THE ARAB MONETARY FUND RELEASES THE ANNUAL REPORT FOR 2020 ON "ACHIEVEMENTS OF THE FINANCIAL INCLUSION INITIATIVE FOR THE ARAB REGION UNTIL THE END OF 2019"

by **claud39** Thu Aug 27, 2020 1:32 pm

Well !! i am going to share with you 2 articles on financial inclusion, and the importance it also means for iraq.

I am simply giving my opinion on this subject, and I am not inclined to comment on every post that I am going to publish to you on the forum !!!

So before making changes on the currencies, Iraq must finish voting the reforms requested by the UN, and even by the people, and also finish training on the human side, and financial inclusion in banks, as added. ATMs for example in the country.

Or act like the rest of us with our payment cards, and let's not forget that they are 40 years behind us !!!

Have a lovely day everybody !!!

Claud (Moose)

THE ARAB MONETARY FUND RELEASES THE ANNUAL REPORT FOR 2020 ON "ACHIEVEMENTS OF THE FINANCIAL INCLUSION INITIATIVE FOR THE ARAB REGION UNTIL THE END OF 2019"
2020-08-25

Clear efforts by policymakers and supervisory authorities in Arab countries to support enhancing financial inclusion in order to achieve sustainable economic development,

Continuous efforts by the initiative's partner institutions to provide technical advice and support financial inclusion strategies and programs in the Arab countries,

Several achievements made by Arab countries in the aspect of the transition to digital financial services,

Achieving clear progress in implementing the demand-side statistical survey for financial inclusion,

Increased interest from partner institutions in promoting digital financial inclusion, empowering women, financial literacy, and providing financial inclusion data,

Organizing many sessions and meetings, and issuing many studies and papers related to financial inclusion issues,

Within the framework of the efforts made by partner institutions in the Financial Inclusion Initiative for the Arab Region, which includes the Arab Monetary Fund, the World Bank, the German Agency for Development and the Global Financial Alliance, in terms of strengthening financial inclusion policies with the aim of supporting financial bodies and authorities in Arab countries to enhance dialogue, coordination and regional cooperation in the Arab region Through the exchange of knowledge and experiences, thus benefiting from expertise, capacity-building and carrying out studies and research in support of financial inclusion, the initiative's partner institutions prepared the annual report issued in 2020 on “ Achievements of the Financial Inclusion Initiative for the Arab Region until the end of 2019 ”.

It should be noted that the Arab Monetary Fund had launched the Financial Inclusion Initiative for the Arab Region in cooperation with the German Agency for Development on behalf of the German Federal Ministry for Economic Cooperation and Development, the Global Alliance for Financial Inclusion, and with the participation of the World Bank, in September 2017. This initiative is considered one of the main drivers for enhancing levels of Financial inclusion, translating the readiness and readiness of regional and international institutions to provide and enhance the level of technical support and capacity development to support Member States and make all efforts and efforts to improve means of knowledge and capabilities of policy makers with regard to financial inclusion in the Arab region, in order to contribute to achieving long-term sustainable development and common prosperity.

The issuance of the report to introduce the activities of the Financial Inclusion Initiative for the Arab Region during 2019, according to the financial inclusion strategic priorities and programs in the Arab region. The initiative has proven its effectiveness and its close link with the priorities of policymakers and supervisory authorities in Arab countries to establish aspects of complementarity and partnership with the public and private sectors, to support enhancing financial inclusion in order to achieve sustainable economic development in the region.

The initiative implemented a series of capacity building programs, high-level conferences, learning forums and the development of methods and tools, in addition to knowledge products. In this context, the initiative worked to keep pace with the launch of financial inclusion strategies in the Arab countries through technical assistance to the Republic of Iraq to support levels of financial inclusion, technical assistance to the Central Bank of Mauritania in collecting data on financial inclusion, and technical assistance to the Palestinian Monetary Authority to support the collection of data on women's access to Financial services, and technical assistance to the Arab Republic of Egypt to support digital financial inclusion.

Within the framework of the initiative, partner institutions in the initiative began, in 2019, to adopt programs in several Arab countries aiming to accelerate the transition to the digital economy and expand the scope of technical aid and existing financial solutions, by enhancing financial literacy, digitizing government transfers and large wages, and updating legal and regulatory frameworks. Developing entrepreneurship and strengthening partnerships at the global level in the digital economy.

Within the framework of collecting financial inclusion data in the Arab countries, the initiative's working team completed at the beginning of 2019 a sample - the demand-side statistical survey for financial inclusion, whereby a comprehensive survey form was presented for the MSME sector. Demand for the individual and household sector. Based on these models that were presented to central banks and Arab monetary institutions, the Central Bank of Tunisia carried out a study on the reality of financial inclusion in the Tunisian Republic, in order to define a list of consensus indicators to measure financial inclusion of Tunisian adults as well as small and medium enterprises.

With regard to enhancing awareness and knowledge of financial inclusion, the Arab Monetary Fund organized a high-level workshop on enhancing financial inclusion and developing small and medium enterprises in the Arab countries. The Global Alliance for Financial Inclusion, in cooperation with Bank Al-Maghrib, organized a global conference on sustainable financing to exchange ideas and experiences on addressing the challenges of climate impact on financial inclusion. Within the framework of capacity building, the Arab Monetary Fund, in cooperation with the World Bank Group, organized a capacity building course in payment systems for workers in the Central Bank of Yemen, and also organized a course on financial inclusion that focused on building the capabilities of workers in the field of financial inclusion in central banks and Arab monetary institutions.

Within the framework of the initiative, the German Agency for Development also organized a training workshop on financial technologies and financial inclusion within the framework of the Innovation Academy in the cities of Abu Dhabi and Dubai to prepare for innovation issues and support the technology system in order to further coordinate comprehensive modern financial technologies. In the same context, the Global Alliance for Financial Inclusion, in cooperation with Bank Al-Maghrib, organized a training course for member countries on comprehensive sustainable financing. The Global Alliance for Financial Inclusion, in cooperation with the Central Bank of Egypt, also organized meetings of the Financial Inclusion Alliance Network working groups to discuss financial inclusion policy reforms, with a special focus on digital financial data and services.

Realizing the importance of dialogue on the implications of the spread of the Corona pandemic, and the importance of digital transformation, the Arab Monetary Fund, in cooperation with partner institutions in the initiative, began arranging "remote" meetings on the impact of the Corona virus on financial inclusion, payment systems and financial infrastructure with the participation of many regional and international financial institutions . The meetings provided an opportunity to follow up the exchange of experiences and opinions on the accelerating developments regarding the impact of the Coronavirus on enhancing financial inclusion in Arab countries, the role that payment and settlement systems play to mitigate these repercussions and their trends, and appropriate immediate and future policies.

In conclusion, the report touched upon the publications of the Arab Monetary Fund in the context of producing and disseminating knowledge in relation to financial inclusion issues, as a book on financial inclusion in Arab countries: efforts, policies and experiences was published, a book on the impact of Islamic financial services on financial inclusion in Arab countries, and a study of financing platforms. Collective: organizational perspectives and frameworks, a working paper on responsible lending: policies, tools and experiences a working paper on digital banking identity, and a book for the advancement of micro, small and medium enterprises in the Arab countries.

A full version of the report in Arabic and English is available at this link

https://www.amf.org.ae/ar/reports/annual-report-achievements-economic-zone-inclusion-initiative-end-2019

https://www.amf.org.ae/ar/content/%D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-%D8%A7%D9%84%D8%B9%D8%B1%D8%A8%D9%8A-%D9%8A%D9%8F%D8%B5%D8%AF%D8%B1-%D8%A7%D9%84%D8%AA%D9%82%D8%B1%D9%8A%D8%B1-%D8%A7%D9%84%D8%B3%D9%86%D9%88%D9%8A-%D9%84%D8%B9%D8%A7%D9%85-2020-%D8%AD%D9%88%D9%84-%D8%A5%D9%86%D8%AC%D8%A7%D8%B2%D8%A7%D8%AA-%D9%85%D8%A8%D8%A7%D8%AF%D8%B1%D8%A9-%D8%A7%D9%84%D8%B4%D9%85%D9%88%D9%84-%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A-%D9%84%D9%84%D9%85%D9%86%D8%B7%D9%82%D8%A9

by **claud39** Thu Aug 27, 2020 1:36 pm

THE ARAB MONETARY FUND ISSUES A GLOSSARY OF PAYMENT AND SETTLEMENT SYSTEMS TERMS IN COOPERATION WITH THE ARAB COMMITTEE FOR PAYMENT AND SETTLEMENT SYSTEMS

2020-08-26

Standardizing the terminology of payment and settlement systems among Arab countries

Responding to the development in the concepts of financial infrastructure systems

551 terms that cover all aspects of payment and settlement systems operations

Wednesday 26 August 2020

Within the framework of the Arab Monetary Fund's keenness to enhance and advance the financial culture in the Arab countries, and believing in the importance of having a reference for terms of payment and settlement systems at the level of Arab countries, and in sympathy with the important role that the financial infrastructure systems industry plays in enhancing the safety and efficiency of financial transactions, issued The Arab Monetary Fund, in cooperation with the Arab Committee for Payment and Settlement Systems, "Dictionary of Payment and Settlement Systems Terms". The dictionary contains about ( 551 ) terms related to payment and settlement systems, which contribute to enhancing awareness of the Arab public.

In this regard, in light of the rapid development in the financial infrastructure systems industry, the importance of educating the Arab public in terms of payment and settlement emerges, as more attention is needed in this regard. There is no doubt that spreading awareness enhances the efficiency and safety of procedures, processes, settlement of payments and money transfer, which is reflected in the soundness and effectiveness of the performance of the financial and banking sector in particular, and macroeconomic activity in general.

On this occasion, His Excellency the General Manager, Chairman of the Board of Directors of the Arab Monetary Fund, Dr. Abdulrahman bin Abdullah Al-Hamidi pointed out that the issuance of the "Dictionary of Payment and Settlement Systems Terms" comes to confirm that improving the efficiency of financial infrastructure systems contributes to enhancing financial stability as well as enhancing the efficiency of Access to financial services and financial inclusion. His Excellency also affirmed the increasing interest shown by their Excellencies, the governors of central banks and Arab monetary institutions, in the work of committees and working groups emanating from the Board of Governors, and the prominent role they play as a platform for dialogue, knowledge transfer and exchange of experiences and expertise among Arab countries.

A copy of the dictionary can be found here

https://www.amf.org.ae/ar/content/glossary-of-payment-and-settlement-systems-terms

https://www.amf.org.ae/ar/content/%D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-%D8%A7%D9%84%D8%B9%D8%B1%D8%A8%D9%8A-%D9%8A%D8%B5%D8%AF%D8%B1-%D9%82%D8%A7%D9%85%D9%88%D8%B3-%D9%85%D8%B5%D8%B7%D9%84%D8%AD%D8%A7%D8%AA-%D9%86%D8%B8%D9%85-%D8%A7%D9%84%D8%AF%D9%81%D8%B9-%D9%88%D8%A7%D9%84%D8%AA%D8%B3%D9%88%D9%8A%D8%A9-%D8%A8%D8%A7%D9%84%D8%AA%D8%B9%D8%A7%D9%88%D9%86-%D9%85%D8%B9-%D8%A7%D9%84%D9%84%D8%AC%D9%86%D8%A9-%D8%A7%D9%84%D8%B9%D8%B1%D8%A8%D9%8A%D8%A9-%D9%84%D9%86%D8%B8%D9%85

by **claud39** Thu Aug 27, 2020 1:38 pm

[size=40]Financial inclusion[/size]
Financial inclusion is a key factor in reducing poverty and promoting prosperity.

THE ARAB MONETARY FUND RELEASES THE ANNUAL REPORT FOR 2020 ON "ACHIEVEMENTS OF THE FINANCIAL INCLUSION INITIATIVE FOR THE ARAB REGION UNTIL THE END OF 2019" FI-thumbnail

Financial inclusion defines the possibility for individuals and businesses to access at lower cost a whole range of useful financial products and services adapted to their needs (transactions, payments, savings, credit and insurance) offered by providers reliable and responsible.
Accessing a current account is the first step towards full financial inclusion, paving the way for depositing money, as well as sending and receiving payments. As a current account can also serve as a springboard to other financial services, the World Bank Group is working to ensure that every adult has access to it, everywhere in the world, through its initiative for universal access to financial services at home. horizon 2020.
Access to financial products and services makes everyday life easier and helps households and businesses to anticipate the financing of long-term objectives or to deal with unforeseen events. An individual with a current account will be more inclined to use other financial services, such as credit or insurance, to start a business or develop his activity, to invest in education or health, to manage risks and overcome financial shocks, all of which will improve their standard of living overall.

Financial inclusion is now a priority for policymakers, regulatory bodies and development organizations around the world.
Access to financial services is considered a factor of progress for seven of the 17 Sustainable Development Goals .
The G20 is committed to fostering financial inclusion worldwide (a) and reaffirmed its commitment to implement the High Level Principles on Digital Financial Inclusion .

Since 2010, more than 55 countries have made commitments to financial inclusion and more than 30 have already launched a national strategy to this effect or are in the design phase. World Bank Group research shows that the pace of reform accelerates and its impact increases when a country adopts a national strategy for financial inclusion.
The most advanced countries in this area have put in place a favorable regulatory and political environment and have fostered competition, leaving banking and non-banking organizations the possibility of innovating and developing access to financial services. But creating such a space for innovation and competition must go hand in hand with the adoption of appropriate measures and regulations to protect consumers and ensure responsible provision of financial services.
Financial technology, or “fintech”, and in particular the commoditization of mobile telephony around the world, has made it easier to expand access to financial services for hard-to-reach populations and businesses, at a lower cost and for one. minimal risk:

with digital IDs it has never been easier to open an account;
thanks to electronic payments, the number of people with a checking account is growing;
mobile telephony offers practical solutions for accessing financial services, even in isolated areas;
the increased collection of customer information allows suppliers to design dematerialized financial products better suited to unbanked people.

All countries that strive to accelerate financial inclusion face similar obstacles that hamper their progress. This is particularly the case for:

ensure that hard-to-reach populations, such as women and the rural poor, have access to financial services;
strengthen the knowledge of the financial sector among citizens so that they are able to understand the offer;
check that each individual has valid identification documents and a cheap and accessible means to have them authenticated;
design useful and relevant financial products, tailored to consumers' needs;
introduce solid consumer protection frameworks and adapt regulatory and supervisory authorities, in particular by exploiting new technologies (“regtech”);
generalize the possession of an identity document, a precious sesame, but still insufficiently widespread in the world, to open a bank account and access capital and credits.

https://www.banquemondiale.org/fr/topic/financialinclusion/overview

by **claud39** Thu Aug 27, 2020 1:42 pm

[size=40]Microfinance, more necessary than ever in Iraq[/size]

JANUARY 21, 2016

THE ARAB MONETARY FUND RELEASES THE ANNUAL REPORT FOR 2020 ON "ACHIEVEMENTS OF THE FINANCIAL INCLUSION INITIATIVE FOR THE ARAB REGION UNTIL THE END OF 2019" Iraq_blogjpg

How to promote economic development in areas of the Arab world that are fragile and in conflict? The Consultative Group to Help the Poor (CGAP) presents different solutions in a recent series of posts on financial inclusion in crisis (a). These insights underscore that despite the conflict, violence and uncertainty that hamper development, a solid financial infrastructure can help small borrowers weather a crisis - that is, improve their economic resilience.

This is particularly the case today in Iraq, where the government is trying to implement important political reforms while continuing to fight against the Islamic State (IS) group. Microfinance, in its broadest sense (credit, savings, payments and insurance intended for low-income households and small businesses), thus becomes the form of intervention that can support local economic activity and allow the population to face the economic setbacks (shocks) it is undergoing due to the country's difficult situation.

In 2014, according to a Findex study, only 11% of adult Iraqis had an account at a formal financial institution . Iraq thus ranks second among the least financialized countries in the Middle East, and significantly below the average of 70% of adults with incomes in the upper middle bracket and at least one of whom part of the financial assets is placed in accounts.

In addition, this study highlights a considerable gap between Iraqis who have access to formal loans (4%) and those who have to resort to informal borrowing mechanisms (65%). The demand for credit is therefore probably much more substantial than that which the country's formal financial sector can meet. In its 2011 analysis of the financial sector (a),the World Bank also describes a markedly underdeveloped financial system : In Iraq, domestic credit to the private sector totals 6.2% of GDP, lower than in all other countries in the region except Yemen.

In Iraq, even before the conflict with ISIS began in mid-2014, microfinance was emerging as a credible source of funding for nearly 100,000 low-income local entrepreneurs. This branch admittedly held a tiny percentage (0.25%) of the assets of the Iraqi banking sector, with an outstanding amount of 175 billion Iraqi dinars (about 150 million dollars), but it already had 12 microfinance institutions (MFIs) operating in the 18 provinces of the country.

Recently, however, four of the MFIs in Iraqi territory controlled by ISIS have stopped granting loans. This resulted in a 15% contraction of the local microfinance market, which represented more than 20,000 active clients, $ 22 million in outstanding loans and 42,000 job opportunities. This is what emerges from the assessment of the economic and social impact of the Syrian conflict and the Islamic State in Iraq and Syria in Iraqi Kurdistan (a), carried out by the World Bank.

Nonetheless, MFIs still operational in Iraq indicate that the demand for credit and financial services remains strong there, especially as clients seek strategies that allow them to meet their needs, generate income and continue to consume as a result. even as economic activity declines and investors face an uncertain environment. Liquidity problems and shortcomings in bank lending make this situation even worse.

Historical development of microfinance

THE ARAB MONETARY FUND RELEASES THE ANNUAL REPORT FOR 2020 ON "ACHIEVEMENTS OF THE FINANCIAL INCLUSION INITIATIVE FOR THE ARAB REGION UNTIL THE END OF 2019" Clip_image001

Microfinance could play a larger role in addressing Iraq's current funding gap, but several operational and regulatory factors are hampering its growth and expansion. A recent World Bank / CGAP (a) report which analyzes this branch sets out the main legal and regulatory obstacles.

All Iraqi MFIs are non-governmental organizations (NGOs), that is, they operate on the basis of donations which, since September 2012, have virtually dried up. In addition, their NGO status prevents them from raising capital or accepting deposits and, given the difficulty of finding local or international donors at an affordable cost, credit is drying up, threatening the sustainability of the economy. some MFIs.

More broadly, the crisis in Iraq exacerbates the institutional shortcomings of some of the MFIs , which also report an increase in the number of default and fraud cases, reflecting governance and risk management issues. The proportion of non-performing loans for more than 30 days is on the rise: according to estimates, it now reaches 6-7% in this branch, even if it remains below 2% in the best performing MFIs. This is a remarkable achievement in view of the extremely worrying Iraqi context echoed by the international press.

In order to overcome this impasse and allow the recovery of MFIs, immediate technical assistance is necessary. It will help MFIs establish internal controls, as well as a lending methodology, and access their clients in conflict zones. And for microfinance to reach its full potential in Iraq, a regulatory and legal framework is also needed that will ensure its long-term growth and sustainability.

To achieve this, we must rethink the public management of MFIs:

Currently, MFIs come under the administration services responsible for NGOs, which do not have sufficient technical knowledge to properly supervise this branch. This monitoring and supervision could be entrusted to the Iraqi central bank, which has the requisite expertise in financial services.

It needs to be more clearly defined how an NGO could transfer its assets to become a finance company, which would enable it to attract capital and offer a wider range of products.

Finally, there is a need to establish a level playing field for all, so that MFIs such as small business finance companies and microenterprises can provide small loans. Despite a 2010 ordinance authorizing non-bank financial institutions to provide commercial loans, no such institution has been established to date.

It is more important than ever to strengthen support for microfinance in Iraq . In this regard, the recent interest of the country's central bank in financial inclusion and small businesses is to be welcomed. It could be the start of a long-awaited change, not only for microfinance actors, but also for the vast number of Iraqis who still do not have full access to formal financial services.

https://blogs.worldbank.org/fr/arabvoices/microfinance-needed-iraq-more-urgently-now-ever

THE ARAB MONETARY FUND RELEASES THE ANNUAL REPORT FOR 2020 ON "ACHIEVEMENTS OF THE FINANCIAL INCLUSION INITIATIVE FOR THE ARAB REGION UNTIL THE END OF 2019"

THE ARAB MONETARY FUND RELEASES THE ANNUAL REPORT FOR 2020 ON "ACHIEVEMENTS OF THE FINANCIAL INCLUSION INITIATIVE FOR THE ARAB REGION UNTIL THE END OF 2019"

THE ARAB MONETARY FUND ISSUES A GLOSSARY OF PAYMENT AND SETTLEMENT SYSTEMS TERMS IN COOPERATION WITH THE ARAB COMMITTEE FOR PAYMENT AND SETTLEMENT SYSTEMS

Re: THE ARAB MONETARY FUND RELEASES THE ANNUAL REPORT FOR 2020 ON "ACHIEVEMENTS OF THE FINANCIAL INCLUSION INITIATIVE FOR THE ARAB REGION UNTIL THE END OF 2019"

Microfinance, more necessary than ever in Iraq