The event was organized jointly by the First Iraqi Bank (FIB) and Visa Global.
Visa Direct, is a money transfer service aimed at transforming global money movements between Iraq and the rest of the world.
“This represents a remarkable development in Iraq. The Iraqi Prime Minister is pleased because the system and program introduced by FIB will play a crucial role in curbing money laundering and God forbids the flow of funds to terrorist activities and other illicit purposes,” said Ala Talabani, vice chairwoman of the board of directors at FIB, told Rudaw.
One of the contributing factors to the instability of the Iraqi dinar is the absence of an electronic banking system. The Iraqi central government is actively pursuing an e-economy, partnering with companies to transition from the traditional paper-based economy.
“The central bank’s current plan focuses on enabling the government to adopt e-payment methods, reducing the reliance on paper currency and transitioning to an e-economy. While Visa and MasterCard are currently in use within Iraq, there is a need to promote their efficient, transparent, and cost-effective online usage for international transactions,” stated Ali Mohsen al-Alaq, Governor of the Central Bank of Iraq (CBI).
Most civil servants in Iraq receive their salaries through their accounts. In the Ministry of Labor and Social Affairs alone, over 300,000 individuals receive electronic payments.
“We have agreements with several electronic payment companies to utilize credit cards and MasterCard for social welfare recipients with disabilities. Visa Direct will undoubtedly contribute to extending the advantages of electronic payments for all,” mentioned Ahmed al-Asadi, Minister of Labor and Social Affairs.
Visa Direct partners link accounts with over five billion users globally, enabling the exchange of money in more than 160 different currencies.
Visa Direct eliminates the need for lengthy waits to withdraw or send money abroad.
The Iraqi dinar continues to lose value against the US dollar despite ongoing efforts from the federal government to control the instability
The depreciation of the Iraqi dinar has been attributed to the smuggling of dollars out of the country, mainly to neighboring Iran.
The US in July banned transactions with 14 Iraqi banks for allegedly violating its rules. The move further dropped the value of the Iraqi currency.
