Al-Iqtisad News Agency – Advisor to the Association of Banks: The Central Bank’s third strategy is a new methodology for financial and banking reform

Economy News – Baghdad

Mecca – Exclusive

Samir Al-Nusairi, advisor to the Iraqi Private Banks Association, confirmed that the Central Bank’s third strategy has drawn up a road map and programs with clear goals and initiatives for a period of three years in a special, complex, and risk-filled economic and financial situation.

Al-Nusairi said, in an interview from Makkah Al-Mukarramah, exclusively for “Al-Iqtisad News,” that “the Central Bank’s third strategy for the years (2024-2026), which derived its main and subsidiary objectives from the general economic policies of the state and its strategy for financial and banking reform that the government adopted in the government curriculum and from Central Bank Law No. 56 of 2004, and the new strategy has drawn up a road map and programs with clear objectives and initiatives for a period of three years in a special and complex economic and financial circumstance full of risks and challenges at the level of internal and external economic and financial relations.”

He pointed out, “What concerns us as specialists in economic, financial, and banking affairs is what are the new mechanisms and policies that the Central Bank has adopted in its monetary policy and banking reform? According to the approach of the fundamental change desired for the national economy, in which the banking sector constitutes the first and basic link and the implementer of monetary policy applications.”

Al-Nusairi explained that “the Central Bank’s third strategy set the basic goals at 7 goals, the sub-goals at 80 goals, and 75 initiatives to achieve the basic and subsidiary goals and charted the way for banking and financial reform in accordance with the following strategic goals: –
1- Support and enhance monetary stability.
2- Promoting digital transformation, activating electronic payment, and strengthening cybersecurity in the Central Bank and the banking sector.
3- Promoting financial inclusion
4- Maintaining a sound financial system that guarantees the rights of its users.
5- Developing the organizational structure and developing human resources capabilities at the Central Bank.
6- Strengthening the position of the Central Bank locally and internationally.
7- Enhancing the compliance of the banking sector and the non-banking sector in line with international standards.
He added, “These strategic objectives have been defined as programs and policies to achieve the primary and secondary objectives, and their most prominent initiatives in achieving the first strategic objective, which is the national lending strategy, which will restructure banking financing in Iraq, and the initiative to leave the electronic platform and adopt correspondent banks in foreign transfers, and that the objectives emphasize the protection of the financial system.” Enhancing financial inclusion, managing monetary and financial stability, developing control and supervision, developing regulation in the banking sector, completing the development of the organizational structure in the central bank in accordance with the frameworks and techniques adopted in global central banks, raising the capabilities of human resources, developing banking operations, strengthening the bank’s internal and external relations and its representation locally and internationally.”

Al-Nusairi concluded, “By analyzing the mechanisms and action points to achieve the above goals, we note that the strategy identified the planning team, the implementation team, the implementation mechanisms, and responsibility. It also identified clear priorities for achieving reform. Certainly, these priorities were diagnosed in light of the challenges facing the monetary policy and the banking sector, the implementation steps, and the results achieved by the strategy.” The first is for the years 2016-2020 and the second strategy is for the years 2021-2023 and the stifling economic and financial challenges that Iraq has suffered over the past years. Work through this strategy is to clearly identify opportunities to overcome the challenges for this and for the purpose of implementing the banking reform methodology according to what was stated in the strategy and according to an insight into the priorities and challenges that The Iraqi banking sector is suffering from it. The Central Bank made exceptional efforts during this year and last year, completing the first phase of it and began implementing the second phase. Many of the primary and secondary objectives were achieved, and it is trying to complete the achievement of all the objectives in the second half of 2024 and the years 2025 and 2026 of the plan that has been proven to have been prepared and planned. It has identified advanced steps on the path to systematic implementation of the desired financial and banking reform in Iraq.

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