Clarification regarding the “local card” launched by the Central Bank of Iraq
An informed source revealed, on Monday, details about the local card project that was announced. Central Bank of Iraq recently.
The source said to Alsumaria News “Local card” means a system of payment cards in Iraqi dinars that is Central Bank of Iraq Responsible for it and monitoring it, and it operates on simple commissions, given that all its operations take place within the country and in dinars and do not pass through international networks such as Visa and MasterCard.
He added, “We can liken this to the issue of conducting…Calls Local with its usual fees, but when we go outside the country, we bear the roaming fees… and therefore any bank or payment company in Iraq According to the new mechanism, customers can be issued a local card, and the customer can also take another card linked to Visa and MasterCard to use outside the country.”
He continued: “Therefore, the issue of creating a local card and what is said about it that (there is a final isolation from Visa And Master) is not true; the evidence is that any Western or Arab citizen now has a number of cards in his wallet and he is free to use any card according to his need and ability to bear wages and other things.
” He noted that “many countries have local cards such as Saudi Arabia (Mada) also has cards issued by Visa and MasterCard, and America as well (AMERICA EXPRESS), knowing that it owns Visa and MasterCard companies, and even The UAE(Gion), Egypt (Feature), Netherlands PIN, India RUPAY, Russia MIR, and Singapore NETS.”
He explained that “these cards work like any other card (withdrawal, purchase, ATMs, points of sale).”
Regarding the features and benefits of the local card, the source pointed out that “one of the advantages is that it operates in dinars only, and that any transaction in dollars or other foreign currency will continue to pass through the usual international channels.”
He added, “Iraq is cooperating with international companies to build the technical infrastructure. The Central Bank already has an advanced national switch built through global partnerships, and the national scheme will operate on top of this same infrastructure with strict adherence to EMVCO, ISO, and PCI standards. That is, cooperation with global companies “It is ongoing, and it does not cancel the adoption of a local national brand for paying salaries or government collection operations and reducing reliance on cash,” he said, considering that “the project has developmental goals and is part of the reforms to reduce reliance on cash, support the electronic localization of salaries, and increase transparency, not to close commercial doors.”
He stressed that “Iraq does not choose isolation, but rather chooses to diversify payment channels, protect pure local dinar transaction data from external pressures, and establish an infrastructure that can be integrated (and not separated from the world).”
He continued, saying: “Since 2020, it has been seeking US To control dollar flows and reduce non-compliance, adopting a national scheme in dinars only enables regulatory authorities to set compliance rules tailored to local transactions in accordance with international best practices without subjecting them to dollar transaction restrictions. This enhances internal transparency and spares the banking system the burden of controls that do not apply to dinar movement.
He pointed out that “many countries, such as Saudi Arabia (Mada), India (RuPay),Singapore(NETS), and other countries have implemented successful national schemes that are integrated with international networks. These countries are allies of Washington, which confirms that a national scheme does not mean international isolation.
” He added: The lesson By applying compliance and transparency, not by denying the idea from its roots, this is achieved by the presence of a parallel reform roadmap represented by the banking sector reform project undertaken by the bank in cooperation with the company. Oliver We are currently working to develop the sector and integrate it strongly into the global financial system and make it more acceptable and reliable. Then the time will be right to launch the Co-Badge version when the sector is ready, so that the card will carry the national Scheme logo alongside an international logo to ensure Acceptance The source concluded by emphasizing that ” the
national scheme is not a means of evading oversight, but rather a tool for bringing it back to Iraq and controlling it technologically by implementing it alongside banking system reforms. Iraq will gain lower transaction costs, greater transparency in salaries and government support, and greater international confidence because the dollar’s movement will remain subject to global standards.”
Alsumaria.tv