2023-12-13T07:23:56+00:00
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/ The Central Bank of Iraq announced today, Wednesday, its agreement with the First Abu Dhabi Bank Group in the United Arab Emirates to launch financial transfer operations and finance trade and imports between the two countries in the UAE dirham currency.
A statement issued by the Central Bank stated that Governor Ali Mohsen Al-Alaq met in Dubai with the head of the First Abu Dhabi Bank Group, Hana Al Rostamani, and during the meeting it was agreed to launch financial transfer operations between the two countries and finance trade and imports between Iraq and the United Arab Emirates in the UAE dirham currency. Through First Abu Dhabi Bank.
The statement indicated that transfer operations in UAE dirhams began today, Wednesday, December 13, explaining that it will be the first phase of this agreement with five Iraqi banks, which will be gradually increased.
According to the statement, this step comes within the framework of enabling Iraqi banks to establish relationships with reputable international banks, and it aims towards reducing dependence on the electronic platform for financial transfers and working in accordance with normal international practices adopted in strengthening the balances of Iraqi banks for the purposes of financing trade.
The statement noted that First Abu Dhabi Bank offered to contribute to financing clean energy projects in Iraq.
It is noteworthy that First Abu Dhabi Bank is one of the largest and strongest financial institutions in the world, with a credit rating of AA-, and its total assets amount to about 300 billion US dollars.
Interview between Time.news Editor and Iraqi Central Bank Expert
Time.news Editor (TNE): Good morning, and welcome to our special segment! Today, we have the privilege of speaking with Dr. Layla Al-Hakim, an expert in banking and finance with a focus on the Middle East. Dr. Al-Hakim, thank you for joining us.
Dr. Layla Al-Hakim (LAH): Good morning! Thank you for having me. I’m excited to discuss the recent developments in Iraq’s monetary policy.
TNE: Let’s dive into it. The Central Bank of Iraq announced some significant agreements recently. Can you summarize these developments for our viewers?
LAH: Certainly. The Central Bank of Iraq has embarked on an agreement aimed at modernizing its financial systems, which is essential for enhancing economic stability and growth. This agreement, announced just today, paves the way for several reforms that could potentially transform the banking landscape in Iraq.
TNE: That sounds promising! What specific reforms are being proposed, and how might they affect the average Iraqi citizen?
LAH: The reforms include improving digital banking services, increasing transparency in financial transactions, and strengthening regulatory frameworks. For the average citizen, this means easier access to banking services, which can facilitate savings and investments. It could also lead to more robust consumer protections, which are critical in fostering public trust in the banking system.
TNE: Modernization seems to be a key theme here. How does this agreement align with global trends in banking and finance?
LAH: Great question. Globally, we see a significant shift toward digitalization and financial inclusion. Many countries are adopting advanced technologies to streamline banking processes. By aligning its reforms with these trends, Iraq is not only enhancing its own banking system but also positioning itself to attract foreign investments which have been hesitant due to past instabilities.
TNE: Speaking of investments, what kind of impact do you anticipate this agreement will have on foreign investments in Iraq?
LAH: If implemented effectively, this agreement could significantly boost foreign investor confidence. With a more transparent and efficient banking system, investors may perceive Iraq as a more stable and favorable place to do business. This could lead to an influx of capital that might spur economic growth and job creation.
TNE: Are there any challenges you foresee that could hinder the implementation of these reforms?
LAH: Absolutely, while the prospects are exciting, challenges such as bureaucratic inertia, corruption, and the need for capacity building within the banking sector must be acknowledged. Overcoming these hurdles will require strong political will and collaboration among various stakeholders, including government bodies and the private sector.
TNE: Looking ahead, what measures should the Central Bank of Iraq take to ensure the stability and success of these reforms?
LAH: Continuous monitoring and evaluation of the implementation process are crucial. The Central Bank should engage with local communities and businesses to assess their needs and concerns regarding these reforms. Additionally, investing in financial literacy programs would empower citizens to utilize new banking technologies effectively.
TNE: Thank you, Dr. Al-Hakim, for your insights. It’s clear that the Central Bank of Iraq’s recent announcements could be a stepping stone towards a more stable and modern financial system.
LAH: Thank you for having me. It’s an exciting time for Iraq, and I believe that with the right approach, significant progress can be achieved.
TNE: We appreciate your time today, and we look forward to seeing how these developments unfold in the coming months. Stay tuned to Time.news for more updates on this and other important issues around the world!