Foreign banks dive into the currency auction and Iraqi banks’ eyes are “white”.. What’s the secret?
Foreign banks dive into the currency auction and Iraqi banks’ eyes are “white”.. What’s the secret?
2024-09-01
Alsumaria News
Member of the Parliamentary Finance Committee Hussein Mounes revealed today, Sunday, the reasons for the Arab or foreign banks’ acquisition of the currency auction in Iraq, indicating that Iraqi banks are not qualified due to their weak classification and the Central Bank failed to raise the classification of Iraqi banks that have turned into shops.
“The entry of foreign banks into the currency auction and the deprivation of Iraqi banks is a real indicator of the failure of the Central Bank in the financial management of the country,” Mounes told Sumaria News.
“Iraq sells more than $200 million daily and the exchange rate is still high due to the low supply,” he added, noting that “when Iraqi banks were banned from the dollar auction, the supply of dollars became limited in Arab and foreign banks, and unavailable in Iraqi banks, which caused a shortage of dollars compared to demand.”
Mounes considered that “this is a test for the Central Bank to expand the supply base, but so far there are no sufficient measures. The Central Bank has launched 6 reform packages and we have not seen any real effects in reducing exchange rates.”
He stressed that “we have repeatedly asked the Governor of the Central Bank to resolve the problems of Iraqi banks and raise their classification or to partner with Arab banks operating in Iraq to raise their classification, but we have not seen any seriousness in that.” He
explained that “the largest holder of the currency auction is the Jordan National Bank, but the Central Bank must have a clear imprint in the currency auction and strengthen the Iraqi dinar and raise the classification of our Iraqi banks that have turned into shops. The bank must seek to raise the classification of local banks and obtain correspondent banks and thus enter the currency auction.”
The day before yesterday, the Central Bank of Iraq announced its approval of 13 Iraqi banks to participate in the currency auction, as part of the results of the meetings of the Central Bank delegation in New York.
The number of banks entering the currency auction currently stands at 15 banks, bringing the number of banks to 18.
alsumaria.tv
