Economic experts warn Iraq against staying with the US Federal Reserve
Economic experts warn Iraq against staying with the US Federal Reserve
2023-09-18
Ali Al-Zubaidi
Researcher in political and media affairs
A new shock is being witnessed by the Iraqi economy with a significant rise in the dollar exchange rate in local markets, as the parallel exchange rate recorded 1,540 dinars to the dollar, while the official exchange rate is only 1,320 dinars.
The surge in the exchange rate comes after the US Treasury Department imposed sanctions on 14 banks, as revealed by the Wall Street Journal several weeks ago. These sanctions come months after similar sanctions were imposed on 4 other Iraqi banks after they were accused of money laundering.
The American newspaper report added that the ban on these banks comes within the framework of a comprehensive campaign against the transfer of US currency to Iran, as the sanctions included the banks of Al-Mashshar, Al-Qartas, Al-Tif, Elaf, and Erbil, in addition to the International Islamic Bank, the Trans-Iraq Bank, Mosul, Al-Rajeh, Sumer, Al-Thiqah, and Or, as well as Al-Alam and Zain Iraq banks.
The US sanctions raise a new wave of concern among the Iraqis, especially since all government measures during the government of Prime Minister Muhammad Shia al-Sudani did not succeed in bringing the parallel exchange rate closer to the official rate after the crises and setbacks that the American economy has been exposed to for several years.
Here it must be noted that the global economy tends to diversify with a number of foreign currencies, including the new Brexit currency, the euro, the Chinese yuan, the Russian ruble, and the Brexit currency, which it is hoped will be introduced in the financial markets during the next year, as global economic reports stated that the major countries are members of this economic forum. It wants to offer the currency after completing the legal procedures, and it is in the process of being completed soon. This was demonstrated through the meeting that was held several weeks ago in South Africa, in which the number of members increased to more than 24 with promising economies for the future, including China, Russia, India, South Africa, Iran, Saudi Arabia, the Emirates, and some American countries. South Africa, such as Brazil and Venezuela, and the number is likely to rise.
A number of researchers in economic affairs also confirmed that there is a possibility of taking steps by the Iraqi government in order to avoid banks falling into the trap of the US Treasury, especially with regard to the sanctions it imposes from time to time on some banks.
It must be noted here that “Iraq possesses reserves of more than 100 billion dollars in the United States of America, and this matter necessitates the government to strengthen the country’s sovereignty over private banks, which number more than 70 private banks.”
“The government’s measures could block the way for America to impose any new sanctions, after it had previously imposed sanctions on 14 banks that caused a scarcity of dollar supply in the local market, which still deals with financial liquidity in ways that are far from modern.”
It is important for the Central Bank to impose binding conditions for the development of banking, in order to avoid any imposition of American guardianship through money laundering accusations.
burathanews.com
