The upcoming meeting between Baghdad and Washington... hopes for quick solutions to save the banking sector from collapse

RJG · March 25

The upcoming meeting between Baghdad and Washington... hopes for quick solutions to save the banking sector from collapse

Samir Al-Nusairi

Economy News - Baghdad

The White House announced that the anticipated and important visit of Prime Minister Muhammad Shiaa Al-Sudani to the United States of America and the meeting with the American administration has been set for next April 15.

Makes it very important, in this critical and complex stage that Iraq is going through, that the agenda include meetings and negotiations with the leaders of the American administration, the Treasury Department, and the Federal Reserve, to determine the next and clear paths for bilateral economic relations between the two friendly countries, which have broad relations in all fields and the topics of the visit?

We believe that one of the important files that will be included in the discussions and negotiations, with the participation of the Central Bank and the Association of Iraqi Private Banks, is the issue of financial and banking reform, protecting the Iraqi banking sector from collapse after the issuance of sanctions and restrictions by depriving 50% of the total private banking sector from dealing in the US dollar, which is the main foreign currency for banking and commercial transactions. In Iraq and international banking relations for a long time, they must be informed by the American administration and the Ministry of A that continuing to deal with the Iraqi banking system in this exclusionary manner and without explaining the real reasons for the sanctions, which date back to activities of previous years, and that the American officials who issued the sanctions on 28 Iraqi private banks praise the safety of transfers. Foreign Affairs for the purposes of covering private sector imports in 2023 since the implementation of the electronic platform.

This means that the government and the Central Bank are proceeding in coordination and in great cooperation with the US Treasury and the global financial system in accordance with the banking and financial reform strategy adopted by the government in the governmental curriculum and with high discipline in accordance with international standards for combating money laundering and terrorist financing.

These efforts have actually borne fruit in achieving fruitful economic results after the agreements with the American Bank, the US Federal Reserve and some reputable international banks in 2023 and their approval as correspondent banks for some of our banks, and more than 40 accounts were opened for them in these banks.

Therefore, we believe that the inputs and outputs of this important visit must convince the American side to reconsider the sanctions imposed, especially since all the sanctioned banks are currently subject to audit by K2 International, and this confirms the good faith of the banks that the reasons for the deprivation of dealing in the US dollar were not serious errors and can be overcome if they exist. With joint cooperation between the two parties.

The importance of restoring activity and protecting the private banking system and ensuring the results of its work through the electronic platform for the year 2023, which has confirmed its safety and transparency, and I believe that not reaching quick solutions to this issue will lead to confusion in the commercial and banking market and will affect ration card supplies, which are the primary food source for a large segment of the population. The Iraqi people, the weakening of the plans and procedures of the Central Bank and the government in financial and banking reform, the lack of control over the stability of the exchange rate of the Iraqi dinar, and the damage to the national economy, which World Bank reports confirm that the economy moved during the Sudanese government from fragility to recovery.

The continued sponsorship and support of the United States of America for Iraq as a friendly country requires it to protect the Iraqi economy and the banking sector from collapse in these difficult circumstances that Iraq, the regional countries and the world are going through. We hope that the discussions on the banking file in Washington will result in its return to practicing all its local and international banking activities.

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Added 03/24/2024 - 11:03 AM

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