With the use of modern technology coupled with state-of-the-art banking system, private banking in Iraq can now be compared to other developed nations. There are still problems however, such as the lack of laws when it comes to regulating banking transactions. This hinders the development of Iraq's new and advanced banking transactions thereby making it hard for the Iraqi dinar to take plight. |
According to Adnan Chalabi, a banking expert, these new banking advancement and services are only available in Iraq on a small scale. However if adopted on a large scale, bank performances will get better and clients will get to experience excellent and quality banking.
Chalabi relates that private bank have started shifting from manual labor to modern banking technology and have already started using the latest accounting system. Now clients can have inter-branch transfer of his/her money. With internal remittances, money undergoes internal bank conversion and becomes available for distribution and withdrawal of the clients. Other banks have also started providing Visa and Master Cards however these are only limited, which is probably due to customers being vulnerable to the banking culture.
According to the Vice President of the Association of Private Banks in Iraq, to be able to regulate electronic banking transactions in the country, legislation is required. To preserve client funds and public funds from system misuse and electronic piracy, a proposed draft law of permission is still needed from the Iraqi Central Bank and Ministry of Commerce.
When it comes to using electronic money, Chalabi said that this type of system is dependent on companies that operate outside of Iraq such as in Beirut and Amman. The Central Bank has its own established system, which makes it convenient for customers instead of having to rely on companies operating overseas.
The use of the global smart card also has its advantages especially with e-payments. Though customers who want to use smart cards for social welfare and pensions still need to activate the complex services of the card to access such services.
Chalabi said that the ASEAN has declared willingness to help Iraq in its speedy implementation of this modern banking system and transactions. Opening of training courses that can help workers learn more about the new technology would be a start. Chalabi relates that though slow, the Iraqi government has had several attempts in the implementation process.
Vice President of the Association of Private Banks in Iraq relates that for such modern banking technology to take effect, cooperation from government institutions and support from the Council of Ministers is important as well as honest partnership between public and private sector. Only then can the Iraqi banking system move forward and the Iraqi dinar strengthen.
Mike Moore is published on more than 300 websites. He writes on various topics including from dinari, currency, currency exchangecurrency exchange and buying dinari'. He is published at www.dinarinc.com
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