Association of Banks: For the first time, we are witnessing a clear targeting of depriving half of the banks from dealing in dollars
Association of Banks: For the first time, we are witnessing a clear targeting of depriving half of the banks from dealing in dollars
2024-04-27
The head of the Iraqi Private Banks Association, Wadih Al-Handal, confirmed Friday (April 26, 2024), that Iraq is witnessing a clear targeting by depriving half of the banks from dealing in dollars, describing it as a “danger indicator” at the economic level.
Al-Handal said, in his speech during the Arab Economic Security Forum organized by the Union of Arab Banks in Beirut, 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, “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 financing… Local and international terrorism.
He explained, “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,” stressing that “these challenges facing the banking sector reaffirm the role of the Union of Arab Banks.” International organizations and Arab banks play a prominent role in coordinating positions and confronting dangers together.”
Al-Handal pointed out that “this meeting represents an opportunity for cooperation and agreement on a work road map for the future, as targeting the Iraqi banking sector will not stop within its borders, and may expand at any moment to other countries in light of the regional turmoil.”
He continued, “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 of integrating the sector The Iraqi banker with his Arab counterpart must begin quickly, and we are taking great steps in this direction, especially since Prime Minister Muhammad Shia al-Sudani held dialogues in Washington with the American 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.
During his speech, Al-Handal appreciated “the efforts of the Iraqi government and the Central Bank of Iraq to create deeper understandings with international banks, the Federal Reserve, and the US Treasury to expand the integration of the Iraqi banking sector into the global financial system, in addition to supporting the Iraqi dinar, which led to a gradual rise in its value.”
Pointing out that “Iraq is witnessing a great development in the transition to electronic government and the adoption of electronic payment, and this is what leads to the growth of the digital economy, especially since there is a trend within the country to increase the number of electronic banks, to keep pace with technological development and increase performance.”
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