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The Central Bank will actively operate on Real-time gross settlement (rtgs) system
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Al-Zawraa - [9/2/2006]
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The Iraqi Central Bank announced the actual operation of the system timely adjustments (rtgs) during an extensive meeting held with officials of the World Bank, Al-Rafidain, Al-Rashid and the managers of three commercial private banks.
A source at the Central Bank of Iraq in said that the results of this preliminary work rules were satisfactory and fulfilling ambition. It is hoped in the near future from Ministry of Finance to participate in this system with the gradual entry of other banks operating in Iraq and as the system will be a better opportunity for the Iraqi banking system and also all users of its services; including the speed transfers and banking-related communications within Iraq.
And regarding the way to operate the (rtgs), the source pointed out that the Central Bank of Iraq established a new department for this purpose that will be a branch of the Directorate General of accounts in the bank. While the technical aspects of the system will be assigned to the computer department.
The source added that there is coordination with the general company of communications and mail in the Ministry of Communications to facilitate the communication network between the banks and Central Bank. As for funding this project, the source clarified that it is funded by the World Bank to develop a system of payments to the Iraqi Central Bank in particular, banking transactions in general.
What is the Real-time gross settlement systems?
CPSS Publications No. 22
March 1997
The work of the Committee on Payment and Settlement Systems of the central banks of the Group of Ten countries (CPSS) has consistently emphasised the importance of large-value funds transfer systems which banks use to settle interbank transfers for their own account as well as for their customers. Estimates compiled by the CPSS indicate that these systems transfer several trillion dollars per day in the G-10 countries, a large portion of which is related to the settlement of financial market transactions.
During the past decade a number of countries, inside as well as outside the Group of Ten, have introduced real-time gross settlement (RTGS) systems for large-value funds transfers. Nearly all G-10 countries plan to have RTGS systems in operation in the course of 1997 and many other countries are also considering introducing such systems.
RTGS systems effect final settlement of interbank funds transfers on a continuous, transaction- by-transaction basis throughout the processing day. Because of the growing importance of RTGS, the CPSS set up a Study Group to identify and analyse the major issues related to the operation of such systems. The Group, which was chaired by Mr. Yvon Lucas of the Bank of France, has produced the present analytical report. The report is intended to provide information on the important features of RTGS systems to a broad audience, including operators of and participants in clearing and settlement systems for securities, derivatives and foreign exchange that make or intend to make use of RTGS systems, and the various supervisory authorities and industry groups interested in the enhancement of risk controls in payment and settlement systems. The report might also be particularly helpful to the many countries currently in the process of introducing or developing RTGS systems.
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