Will Iraq Abandon Its Local Banks? New Pressures from the Central Bank
Will Iraq Abandon Its Local Banks? New Pressures from the Central Bank
2-16-2025
The Central Bank of Iraq has given banks operating in the country that do not have an account in a bank that deals directly with the American bank JP Morgan, a deadline of June to settle their electronic payments, threatening to stop them if they do not comply with the decision.
In this context, Mustafa Hantoush, a researcher and specialist in financial and banking affairs, said in a statement to (ABC Arabic), “If this decision is implemented, it will lead to limiting the dealings of electronic payment companies in Iraq to Jordanian and Gulf banks, which currently dominate the currency auction with the support of the Central Bank of Iraq.”
Hantoush explained that “electronic payment companies will be forced to open accounts in banks that have dealings with (JP Morgan and Citibank), in exchange for closing their accounts in Iraqi banks, whether they are sanctioned or not, which may affect the local banking sector.”
Hantoush renewed his call to “reconsider the standards of the Central Bank of Iraq related to building local banks,” stressing “the need to strengthen and develop them to face the challenges resulting from these decisions.”
So far, the Central Bank of Iraq has not issued any official statement confirming or denying the validity of this news, leaving the door open to speculation about the impact of the decision on the banking system in Iraq and its relationship with international banks.
rawabetcenter.com
