Economic: The banking and commercial system must be rehabilitated, and Iraq needs half of the existing exchange companies
Economic: The banking and commercial system must be rehabilitated, and Iraq needs half of the existing exchange companies
8-11-2023
On Friday, the economist Safwan Qusay stressed the need to rehabilitate the banking and commercial system, noting that Iraq needs half of the number of exchange companies that currently exist.
Qusai said in an interview with “ Al Jazeera ” newspaper, “The Central Bank of Iraq is trying to reduce the number of exchange companies and Iraqi banks by increasing the capital,” explaining that “the capital for each bank is currently 250 billion dinars, and it will be raised to 400 billion dinars within 18 months.” .
He added, “The process of increasing capital is easy for some banks, given that the founders have the capabilities to maximize capital, but others will merge.”
He pointed out that “solid exchange companies are supposed to have made large profits and can increase their capital if asked,” noting that “there are more than 2,000 officially licensed exchange companies, and Iraq does not need half of this number in order for the control process to be easier by the central bank.” “.
Qusai continued, “Iraqi banks that do not work with grants, loans, and credits can disappear or change their ability to enter the market with full force,” explaining that “the development tool in Iraq is the banks, and the tool for consolidating cash sales is the exchange companies.”
He pointed out that “the banking and commercial system in Iraq needs to be rehabilitated,” adding, “We have to trust the international community, strengthen the bank’s procedures, and support the government to control the dollar and prevent its smuggling.”
jaredaiq.net
