In numbers: limited banks “take over” the currency auction, and a “non-Iraqi” bank has the lion’s share

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In numbers: limited banks “take over” the currency auction, and a “non-Iraqi” bank has the lion’s share

Politics/Economy |Today, 17:18 |

    

 

 

 

Baghdad today - Baghdad

A number of specialists and circles concerned with financial and banking affairs accuse the dominance of non-Iraqi banks over the foreign currency auction window in the Central Bank of Iraq, which has turned into a nightmare that is disturbing the Iraqi economy and exchange rates, as well as restricting the freedom of financial transactions for citizens.

 

For at least two years, the Central Bank of Iraq has been “discreet” about the names of the banks participating in the foreign currency auction, amid accusations and information about the dominance of certain banks in the currency auction over others.

 

Only 30% of banks dominate the central window

 

For example, there are more than 80 banks in Iraq, but the daily bulletin of Central Bank sales shows that the number of banks participating in meeting cash requests ranges between 5 to 7 banks only, while the number of banks participating in meeting external transfers does not exceed more than 20 banks. 

This means that only 30% of the total banks in Iraq at most are dominant in the currency sale auction from the Central Bank of Iraq, which in turn is reserved and discreet about announcing the names of these banks.

A "non-Iraqi" bank takes control

Informed sources told "Baghdad Today", "The National Bank of Iraq, which is mockingly called the National Bank of Jordan, accounts for a large percentage of the Central Bank's hard currency sales."

The "ironic" name came from the fact that the National Bank of Iraq is owned by about 65% by the Capital Bank of Jordan.

Specialized circles believe that the dominance of a few banks over the currency selling window will make their profits greater. It will also reduce the amount of dollars on offer and increase the chances of “blackmailing” other banks, as these banks can participate in the currency auction by selling the dollar to banks that need the dollar at a profit margin.

 

The policies of the Central Bank of Iraq led to widespread dissatisfaction in the relevant circles, whether at the level of economic experts or exchange companies, which considered that the Central Bank’s procedures were “blundering” and did not control the price of the dollar. On the contrary, its procedures led to a “scarcity” of the dollar in the market.

 

While specialists believe that the Central Bank may be trying to “hide” the dollar from the market to prevent it from reaching areas deprived of the dollar, it has begun to commit violations that contradict economic logic and contradict financial and monetary freedom and the global banking trend, as the Central Bank began preventing many of those who have accounts and money in dollars in... Banks can withdraw it, according to the Lebanese method.

 

Testimonies from citizens and bankers received by “Baghdad Today” confirmed that Iraqi banks, whether governmental or private, refrain from giving money deposited in dollars or transfers coming from abroad in dollars, to their owners, and force them to withdraw it in Iraqi dinars and at the official rate, which is much lower than the real price in the market. From 25 points.

 

Source: Baghdad Today

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