A banking official indicates a “danger” to Iraq by depriving more than half of its banks of dollars

A banking official indicates a “danger” to Iraq by depriving more than half of its banks of dollars

2024-04-26 03:32

A banking official indicates a danger to Iraq by depriving more than half of its banks of dollarsShafaq News/ The head of the Iraqi Private Banks Association, Wadih Al-Handal, on Friday considered the deprivation of more than half of the country’s banks from dealing in US dollars a “dangerous indicator” of the economy.

This came in a speech he delivered during his participation in the Arab Economic Security Forum, organized by the Union of Arab Banks in Beirut.

Al-Handal said in his speech that the forum is being held in complex circumstances and geopolitical changes taking place in the region, and the Arab banking sector has begun to be affected, starting with the State of Iraq.

He added that Iraq is still facing major challenges, at various economic levels, including depriving the Iraqi private banking sector of using the dollar, which has exceeded half the number of banks operating inside the country, which is a very dangerous indicator, despite the efforts of Iraqi governmental and private institutions to comply with laws against money laundering and terrorist financing. Local and international, adding: But for the first time we are witnessing a clear targeting of the sector, which has begun to affect banking services within the country, undermine citizen confidence, and hinder the expansion of financial inclusion.

Al-Handal also pointed out that “the Association of Private Banks is working with the Iraqi government, the Central Bank, and some local and international institutions, to save the banking sector, and return banks deprived of dealing in dollars to their activities, but this is not enough, but rather requires continuing cooperation with the Arab and foreign banking sector, because the stage “The integration of the Iraqi banking sector with its Arab counterpart must begin quickly.”

He added: We are making great strides in this direction, especially since Prime Minister Muhammad Shiaa Al-Sudani held dialogues in Washington with the US President and other government officials, who announced in a joint statement the possibility of a group of Iraqi banks returning to dealing in dollars and supporting the private banking sector.