Economic Observatory: The Central Bank of Iraq “Slaughters” National Capital and Opens the Door to Monopoly
Economic Observatory: The Central Bank of Iraq “Slaughters” National Capital and Opens the Door to Monopoly
2025-08-23 01:27
Shafaq News – Baghdad
An Iraqi economic observatory said on Saturday that the Central Bank is “slaughtering” national capital and granting private banks control over foreign ownership. The observatory noted that it has imposed what it described as “unreasonable conditions” that place banks under “foreign monopoly.”
The Echo Iraq Observatory, which specializes in economic affairs, revealed documents detailing the new instructions issued by the Central Bank of Iraq to private banks, noting that they “make it difficult for local investors to conduct their business,” according to the observatory’s head, Ali Naji.
Naji stated in a statement to Shafaq News Agency, “The Central Bank has circulated four documents as binding instructions for private commercial and Islamic banks operating in Iraq,” noting that “these instructions represent the continuation of the banks’ operations, and if they are not implemented, the bank may be subject to liquidation or forced to merge with another bank.”
He explained that “the instructions allow large institutional investors to own up to 60% of bank shares, but stipulate that the investor’s assets must be no less than four trillion Iraqi dinars (about three billion dollars),” adding that “this condition is only available to global banks or foreign sovereign wealth funds.”
The observatory continued, “If this is not achieved, investors or capital holders may enter with only 10% of the shares, or 20% with the approval of the Central Bank.” It noted that “these instructions have been implemented since this August, and bank owners must adhere to them or their licenses will be revoked.”
The observatory’s head believes that “local Iraqi investors may find themselves excluded from investing in their banking sector,” explaining that “although these instructions aim to enhance transparency and prevent monopolies, they may create adverse risks represented by weakening the role of national capital and transforming the Iraqi banking market into an investment arena for foreign parties at the expense of local investors.”
According to the Observatory, the issued documents included:
Central Bank Guide to Detailed Evaluation of 2025 Standards (47 pages).
Standards Booklet (17 pages).
Banking Reform Initiative (19 pages).
Banks’ Undertaking Document (12 pages).
shafaq.com
