“A clear monopoly and binding commissions.” Observers warn of Arab banks’ dominance of currency sales.
“A clear monopoly and binding commissions.” Observers warn of Arab banks’ dominance of currency sales.
2025-05-31
Economist Mahmoud Dagher confirmed on Saturday that Arab banks’ takeover of the currency exchange window portends an economic catastrophe.
“Arab banks have come to dominate the currency exchange window and foreign money transfer operations in Iraq,” Dagher said in a press interview. He pointed out that “this came as a result of the series of US sanctions known as deprivation, which Iraq has strictly adhered to due to the significant influence of the United States in the global financial system.” He explained that “the new reality has opened the way for banks with foreign capital, some with Arab contributions, to work intensively in the field of money transfers, especially after a number of Iraqi banks withdrew from this activity as a result of the sanctions, which led to a vacuum in the arena that these banks exploited to their advantage.”
Dagher explained that “only two or three banks currently control financial transfer operations, which amounted to approximately $80 billion in 2024, which represents a severe concentration in the remittance market.”
He pointed out that “this concentration has led to the emergence of a clear monopoly, with these banks now controlling trade and import financing operations in Iraq and imposing commissions they deem appropriate, which has negatively impacted diversity and competition within the banking sector.”
He explained that “the state is aware of the seriousness of this situation and is moving toward reforming the banking sector,” warning that “any reform must be calm and thoughtful to avoid the creation of powerful financial blocs that monopolize transfer operations.”
He stated, “The reform process cannot succeed if it is undertaken hastily or without taking into account market balance. The goal must be to redistribute banking efforts more broadly and prevent a limited number of banks from monopolizing the market.”
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