Economy News Baghdad:
The head of the central bank’s financial operations, Mahmoud Dagher, said Saturday that the central bank’s three-pronged strategy has contributed to the reform and development of the banking sector.
Dagher said during a seminar held on the ground of the Baghdad International Fair entitled “Challenges of the banking sector and the reform strategy” and attended by “Economy News”, “The reform carried out by the Central Bank, based on three axes, the first close the exchange rate gap, Carrying out financial inclusion and settling salaries and the third related to the process of technical development within the banking system.
He stressed that “these axes constitute the basis of the strategy of the Central Bank to develop the banking system.”
During the seminar, the Director of Financial Statistics at the Central Bank talked about identifying the challenges coming from the external environment, which included public banks and the science of low capital, as well as the absence of law in the process of achieving the shortcomings of the customers towards banks.
The director of risk management at the Bank of Baghdad, Nabil Abdel-Hur Toman, talked about the political risks and their relationship to foreign investment.
“Any country with high political risk will prevent the foreign investor from coming to it,” Toman said. “We need to develop a methodology and strategy for the coming years related to planning, measuring and analyzing risks to minimize their impact.”
And that the reduction of risk requires the participation of the government and the central bank and investment bodies as well as the banking sector.
He pointed out that “Tuman should provide a saving investment environment to the successful investor has a sophisticated banking system and fixed laws and investment facilities for taxation,” adding that “Iraq during 2014-2015 was ranked sixth in the world on the level of political risk, according to international reports” .
In turn, the financial adviser to the Association of Iraqi Private Banks, Samir Nusairi, explained during a speech at the symposium that “the challenges facing the banking sector is not the last responsible, but the structural imbalance in the economy in general.”
He stressed the need for a clear methodology to overcome this structural imbalance, which is reflected in the inability of non-oil revenue and the deficit of the general budgets of the state as well as the balance of payments deficit and other aspects related to infrastructure.
He pointed out that the banking sector, under the leadership of the Central Bank of Iraq and according to the strategy of the last years 2016 2020, has been able to achieve good results in the development of the banking sector, including financial inclusion and the settlement of salaries.