Mysterious11
08-12-2004, 12:43 AM
Although there is still a lot to be done in rebuilding Iraq's financial infrastructure, one major step forward has been taken with the establishment of a domestic e-funds transfer system using satellite technology.
All salaries are paid in cash and most transactions, even international, are paid in cash. But the situation is now changing witht the implementation of the new inter-bank and intra-bank payment system controlled by the CBI. It allows for money transfer using a mechanism called original credit, which is transacted through VISA's global processing network, better known as VisaNet.
Connecting Iraqi banks to Visa's processing system provides the crucial links between financial institutions within Iraq, and at some point, their international counterparts. Right now the system is mainly used for bulk domestic payments, enabling the government and non-government oragnizations to pay salaries and transfer funds. It's not only a secure method for payments and transfers but it also is aiding in physical safety as well as insurgents lay outside these institutions targeting individuals to disrupt the government.
Undoubtedly, this electronic funds transfer system will have a significant impact on the Iraqi Economy. Vias hopes that the security, efficiency and convenience of the system will encourage the Iraqi people to put their cash and assets back into the commercial banks and so in turn increase capital that the banks are able to deploy. According to NBK, which has a strategic partnership with the Credit Bank of Iraq, banking assets in state and privately owned banks currently only account for 5% of the country's GDP.
(Source: Banker Middle East)
This is a magazine I read and I am unable to post the full article but I took what I felt was highlights from the article. It is a very positive move for the Banks inside Iraq!!!
All salaries are paid in cash and most transactions, even international, are paid in cash. But the situation is now changing witht the implementation of the new inter-bank and intra-bank payment system controlled by the CBI. It allows for money transfer using a mechanism called original credit, which is transacted through VISA's global processing network, better known as VisaNet.
Connecting Iraqi banks to Visa's processing system provides the crucial links between financial institutions within Iraq, and at some point, their international counterparts. Right now the system is mainly used for bulk domestic payments, enabling the government and non-government oragnizations to pay salaries and transfer funds. It's not only a secure method for payments and transfers but it also is aiding in physical safety as well as insurgents lay outside these institutions targeting individuals to disrupt the government.
Undoubtedly, this electronic funds transfer system will have a significant impact on the Iraqi Economy. Vias hopes that the security, efficiency and convenience of the system will encourage the Iraqi people to put their cash and assets back into the commercial banks and so in turn increase capital that the banks are able to deploy. According to NBK, which has a strategic partnership with the Credit Bank of Iraq, banking assets in state and privately owned banks currently only account for 5% of the country's GDP.
(Source: Banker Middle East)
This is a magazine I read and I am unable to post the full article but I took what I felt was highlights from the article. It is a very positive move for the Banks inside Iraq!!!