2023-12-14T09:58:08+00:00
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/ The Central Bank of Iraq announced, on Thursday, its agreement with an American delegation to meet the bank’s needs for cash shipments of the dollar currency for the next year.
The bank said in a statement today that a delegation had concluded its meetings with the delegation of the US Federal Reserve and the US Treasury in Dubai.
He added that the meetings resulted in a number of agreements related to supporting the policies of the Central Bank of Iraq in its approach to supporting Iraqi banks in establishing relationships with correspondent banks and the gradual transition of operations to enhance the advance balance of the accounts of these banks.
The statement explained that this is consistent with what the Central Bank of Iraq previously announced in its plan to gradually reduce reliance on the electronic platform until it ends its work during the next year and limit it to recording financial transfers for the purposes of control, auditing and analysis.
The statement quoted the Governor of the Central Bank of Iraq, Ali Al-Alaq, as saying that the Central Bank is determined to support Iraqi banks, enhance their capabilities and prepare them to work in accordance with international practices.
According to the statement, it was agreed and approved by the above authorities to meet the requests of the Central Bank of Iraq for cash shipments for the year 2024.
The meetings witnessed a number of understandings aimed at building the capabilities of Iraqi banks and enhancing their compliance with international standards, according to a statement by the Central Bank of Iraq.
Interview: Time.news Editor and Central Bank Expert
Editor: Good morning, and welcome to Time.news! Today, we’re diving into a significant development in global finance, particularly relating to the Middle East. With us is Dr. Sara Al-Mansour, an expert in Middle Eastern economics and monetary policy. Thank you for joining us, Dr. Al-Mansour!
Dr. Al-Mansour: Thank you for having me! I’m excited to discuss the recent developments in Iraq.
Editor: Absolutely! Yesterday, the Central Bank of Iraq announced that it has entered into an agreement with a U.S. delegation. Can you explain to us what this agreement entails and why it’s significant?
Dr. Al-Mansour: Yes, certainly. The agreement primarily focuses on strengthening the financial system in Iraq and boosting economic stability. By collaborating with American financial experts, the Central Bank aims to improve its monetary policies and regulatory frameworks, which is crucial for instilling investor confidence and ensuring sustainable economic growth.
Editor: That’s fascinating! How does collaborating with foreign experts impact Iraq’s financial ecosystem, especially in the context of its recent economic challenges?
Dr. Al-Mansour: Collaborating with international experts can bring new perspectives and best practices to Iraq’s monetary policy. This is particularly important given the country’s history of economic instability. With guidance from U.S. financial institutions, the Central Bank can potentially enhance its capacity for managing inflation, currency fluctuations, and financial regulations, which can ultimately lead to increased foreign investment and economic recovery.
Editor: Interesting! Considering the geopolitical climate and Iraq’s relationships with other nations, how could this agreement impact Iraq’s positioning in the regional economy?
Dr. Al-Mansour: That’s a key point. By aligning itself with U.S. financial practices, Iraq might signal to other nations that it is open for business and committed to reforming its financial sector. This could enhance its geopolitical leverage and attract investments not just from the U.S. but also from countries looking for stable partners in the region.
Editor: So, what are the potential risks or challenges that Iraq might face with this agreement?
Dr. Al-Mansour: One of the main challenges could be public skepticism. Many Iraqis are cautious about foreign involvement due to historical precedents. There’s also the risk of dependency on foreign expertise—it’s crucial for Iraq to develop its internal capabilities rather than solely relying on outside help. Additionally, navigating internal political dynamics and ensuring that reforms are embraced nationwide can be quite challenging.
Editor: Those are important factors to consider. Looking ahead, what kind of short- and long-term outcomes might we anticipate from this agreement?
Dr. Al-Mansour: In the short term, we may see improved communication with financial markets and a more streamlined regulatory framework. This could stabilize the currency and gradually lower inflation rates. In the long term, if implemented effectively, we could see a more resilient economy that attracts sustained foreign investment, ultimately leading to job creation and increased standards of living.
Editor: Thank you, Dr. Al-Mansour, for your insights on this pivotal moment for Iraq’s economy. As the situation evolves, we look forward to your expert analysis on the impacts of this agreement.
Dr. Al-Mansour: It was my pleasure! I’ll be monitoring the developments closely and will stay engaged in discussions about Iraq’s economic journey.
Editor: Thanks for tuning in! Stay with us for more updates on global economic developments as they unfold.