Central exit from the list of European sanctions
15/9/2018 12:00 am
Following improved performance and application of international standards
Baghdad / Mustafa Al Hashemi
The European Union has officially announced the exit of the Central Bank of Iraq from the list of sanctions imposed by the European Union on institutions, published in the official newspaper of the European Union.
The newspaper stressed the abolition of sanctions imposed on the Central Bank under the former regime, which provided for "the prohibition of dealing with a group of financial institutions and non-financial Iraqi, including the Central Bank of Iraq."
"This move comes as the Central Bank has made significant progress in improving its performance and implementing international regulations and standards in this field," the bank said in a statement.
"Under these recent amendments, international financial banking institutions will be allowed to deal in accordance with the new regulations as it is a reliable financial institution to deal with international European institutions," the bank said.
In this regard, financial and banking specialists commented on this step, describing it as contributing to achieving a qualitative leap in the financial sector as it will ease the routine restrictions on the entry of funds directed to investment in all fields.
Issam Mohammed said that the financial sector in Iraq suffered for years from the decline of economic performance because of wrong policies in the nineties of the last century, which isolated the country from global financial transactions and keep up with any developments in the world of banking and modern systems.
He added in an interview with Sabah that the Iraqi economy and through this step will begin to recover after the entry of international companies known for specialized investments in various will encourage the facilitation of the entry of funds to the country after it was facing administrative difficulty because of those sanctions.
Enter the money
According to Mohammed, "investors have difficulty entering their money into Iraq for two reasons. The first concerns the stability of the situation because the capital is cowardly and can escape when the country is subjected to a shock.
The second relates to the adoption of modern banking systems by the local banks and the dissemination of the culture of dealing with credit cards.
During the implementation of the comprehensive banking system, and stressed the importance of expanding the dissemination of the culture of dealing with credit cards (smart as MasterCard and KeyCard) and increase outlets and points of sale and disposal in different parts of the cities to conduct these activities because it gives the impression of investors The payments system is improving and is being developed.
In turn, economic researcher Lubna al-Shammari stressed the importance of this measure because it comes within the transformation of Iraq to the stage of economic development because facilitating the entry of investors' funds will greatly help in the process of creating incomes from non-oil sectors and driving the wheel of local production.
According to some law of the first amendment to the Investment Law No. (13) for the year 2006 No. 2 for the year 2010, the investor enjoys the advantages of taking out the capital that he entered into Iraq and its revenues in accordance with the provisions of this law and the instructions of the Central Bank of Iraq and convertible currency after payment of its obligations and debts to the Iraqi government and all other parties; In addition to opening accounts in Iraqi or foreign currency or both at one of the banks in Iraq or outside the project metaphor.
Al-Shammari pointed out that "this measure will enhance the attraction of capital and investments to the interior of the country, as well as reduce the flight of Iraqi funds to countries of the world," adding that
after the liberation of cities from the grip of terrorism, the private sector will start operating its funds inside Iraq, Banks in providing great guarantees for foreign investments, which would attract capital, especially after the abolition of European sanctions on the Iraqi Central.
The removal of the European sanctions on the Central Bank will lead to the activation of the service "PayPal" officially in Iraq.
"PayPal is the best and most popular e-bank in the world, offering users digital financial services, supporting thousands of e-shops and e-commerce sites, Middle East.
It is worth mentioning that the PayPal payment service was established in 1998 and is located in some Arab countries such as Kuwait, Jordan, Bahrain, Saudi Arabia, Algeria, Egypt, Tunisia, Morocco And Somalia.