2024-02-28T10:51:42+00:00
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/ The Central Financial institution of Iraq revealed, on Wednesday, that the quantity of deposits within the banking sector elevated to greater than 180 trillion dinars, in addition to a rise in financial institution credit score to 69 trillion dinars, indicating that the quantity of international trade reserves reached 148 trillion dinars.
The Deputy Governor of the Financial institution, Ammar Hamad, stated throughout a speech on the Finance and Banking Companies Convention in Iraq, which was attended by a Company correspondent, that “the Central Financial institution of Iraq confronted all challenges with excessive duty and was in a position, via varied financial coverage instruments and its sound choices, to realize its objectives set out in its legislation, which is the principle objective of attaining stability within the common value stage by decreasing the inflation charge because the starting of 2023 from 7% to 4% on the finish of final 12 months and activating varied financial coverage instruments, along with issuing varied monetary devices, together with financial institution transfers and Islamic certificates of deposit.”
He added that “these Islamic securities and certificates of deposit had been thought-about an funding alternative for Islamic and industrial banks working in Iraq, along with utilizing varied financial coverage instruments, together with elevating the necessary reserve ratio from 15% to 18%. All of those instruments had been meant to handle the surplus liquidity within the Iraqi financial system.”
He added, “As well as, throughout the previous 12 months there was a transparent development in most financial adjustments, for instance, the rise within the quantity of deposits within the banking sector from 129 trillion dinars final 12 months to 131 trillion dinars, in addition to the rise in personal sector deposits within the banking system from 54 trillion dinars to 55 trillion dinars.”
Hamad additionally identified that “the quantity of credit score within the banking sector elevated from 60 trillion to 69 trillion dinars in 2023, in addition to the rise within the completion of the personal sector from 35 trillion dinars to 40 trillion dinars, along with the rise within the quantity of international trade reserves from 140 trillion dinars to 148 trillion dinars.”
He harassed that “the efforts led by the Central Financial institution of Iraq in cooperation with the federal government, particularly with regard to the usage of digital cost instruments, and there was a transparent improve and development in digital cost instruments in Iraq. For instance, the variety of factors of sale (POS) elevated from 10,000 units in 2023 to greater than 20,000 units, and the variety of ATMs elevated from 2,223 units to about 3,000 units. As for the assorted playing cards, their quantity elevated from 15 million playing cards to 18 million playing cards, and the quantity is rising.”
Hamad identified that “final 12 months witnessed nice cooperation between the federal government and the Central Financial institution, particularly with regard to enhancing confidence within the nationwide foreign money via varied choices issued by the Council of Ministers and the Central Financial institution. We discover that there’s much less use of international foreign money in each day transactions, in distinction to elevated reliance on the nationwide foreign money in native transactions.”
He identified that “the usage of digital cost instruments has been enhanced and expanded, in addition to the event of personal banking establishments to construct sound and stable banking establishments. The Central Financial institution of Iraq additionally stresses the significance of enhancing dedication to compliance requirements for all monetary establishments in accordance with native and worldwide requirements.”
He added that “international switch operations witnessed nice self-discipline throughout the previous 12 months, and a excessive response from all banks to facilitate international commerce financing operations and varied international transfers, particularly after the issuance of international switch controls at the start of 2023. Additionally, the Central Financial institution of Iraq was in a position to strengthen its banking relations with numerous Arab and international monetary and banking establishments to open wider areas to make sure excessive fluidity for international transfers, particularly the usage of completely different channels for international switch in numerous currencies apart from the greenback or along with the US greenback.”
Hamad defined that “the Central Financial institution seeks to strengthen banks by rising their capital from 250 billion dinars to 400 billion dinars, and this improve can be till the tip of this 12 months.”
He identified that “one of the crucial essential tasks launched by the Central Financial institution of Iraq final 12 months and which continues to be being labored on throughout the present 12 months is the institution of Riyada Financial institution, which can specialise in offering financing for small and medium enterprises and making ready a nationwide technique for banking functions as a result of significance of the monetary depth of the Iraqi financial system and the significance of the position of financing in enhancing manufacturing and funding alternatives in Iraq.”
He concluded by saying, “This additionally goals to boost the position of non-banking monetary establishments that assist monetary and banking stability in Iraq by enhancing the position of the Deposit Insurance coverage Firm and the Mortgage Insurance coverage Firm, along with beginning to set up the Nationwide Firm for Digital Cost Methods. We consider that this firm may have a really massive position in regulating digital cost operations in Iraq.”