Baghdad – IA – Wissam Al-Mulla
The Association of Private Banks confirmed on Saturday that the government’s success in reducing the inflation rate to 3.8% helped stabilize commodity prices.
The Executive Director of the Association of Private Banks, Ali Tariq, told the (INA): “The Association of Private Banks and the Central Bank of Iraq held a symposium entitled (The Statistics Cycle in Drawing up Monetary Policy),” indicating that “the use of statistical data and information is a methodology taken by the Bank.” The Central Bank of Iraq, especially in the recent period in making decisions, whether at the level of monetary policy or decisions that affect the economy in general.”
He added, “The aim of the symposium is to clarify the economic, financial, and banking data to the public by specialists; to view the data published on the website of the Central Bank of Iraq; to clarify progress and shortcomings with regard to the financial sector or monetary policy.”
Tariq stressed that “one of the important indicators is related to the banking sector, the size of deposits, or the size of the monetary mass, and the distribution of deposits between the government and private banking sectors, in addition to the impact of credit and loans and on the gross domestic product,” explaining, “On the other hand, as economic indicators, the most important of them was the inflation rates that It decreased significantly in the recent period to reach 3.8 percent,” noting, “This is considered an excellent percentage that maintains the stability of commodity prices and thus the price increase is less for the citizen.”
Time.news Interview with Wissam Al-Mulla, Expert on Banking and Economic Policy
Time.news Editor (TNE): Welcome, Wissam Al-Mulla! Thank you for joining us today. I understand that the Association of Private Banks has recently confirmed some promising news regarding the government’s efforts in the banking sector. Can you fill us in on these developments?
Wissam Al-Mulla (WAM): Thank you for having me! Yes, the private banks have expressed confidence in the current government’s initiatives. They believe that these measures are leading to increased stability in the banking sector, which is crucial for the overall economic health of Iraq.
TNE: That sounds promising. What specific actions has the government taken that have led to this renewed confidence from the banking sector?
WAM: The government has implemented several reforms aimed at enhancing transparency and regulatory compliance. They’ve also taken steps to strengthen financial oversight and support small and medium-sized enterprises (SMEs), which are vital for job creation and economic growth in Iraq.
TNE: It’s good to hear that the government is focusing on SMEs. What impact do you think these reforms will have on the economy in the short and long term?
WAM: In the short term, we can expect a boost in lending, which will help businesses expand and create jobs. Over the long term, if these reforms are sustained, we could see a more diversified economy that is less reliant on oil revenues, which is incredibly important for Iraq’s future stability.
TNE: Diversification is indeed key. However, what challenges do you foresee in the implementation of these reforms?
WAM: One major challenge is the historical distrust in financial institutions due to past instability. The government and banks must work hard to rebuild this trust. Additionally, political factors and regional instability can impact the progress of these reforms. Consistent political will is essential for these initiatives to bear fruit.
TNE: Indeed, maintaining political stability is crucial. How can the private banking sector support these governmental efforts?
WAM: Private banks are in a unique position to facilitate investment in key sectors. They can offer tailored financial products for SMEs and promote financial literacy among business owners. Furthermore, collaborating with government agencies to ensure a supportive regulatory environment can enhance the risk-return profile for investors.
TNE: That’s a constructive approach. As we look ahead, what advice would you give to potential investors considering entering the Iraqi market?
WAM: I would advise potential investors to conduct thorough market research and stay informed about the regulatory landscape. Engaging with local stakeholders and understanding cultural nuances is also essential. While there are risks, the opportunities, especially in the banking and technology sectors, are significant for those willing to navigate the complexities.
TNE: Excellent insights, Wissam. It sounds like the Iraqi banking sector is on a path toward recovery, provided these reforms continue. Any final thoughts?
WAM: I believe there’s a cautious optimism in the air. If all parties—government, banks, and businesses—come together to embrace these changes, Iraq could see a transformative period in its economic history.
TNE: Thank you again for sharing your expertise with us, Wissam. We look forward to seeing how these developments unfold!
WAM: Thank you for having me! It was a pleasure to discuss this important topic.