Foreign dominance.. Iraqi banks retreat before Jordanian and Gulf influence

Foreign dominance.. Iraqi banks retreat before Jordanian and Gulf influence

1-22-2025

Information/Report..
In recent years, the role of Jordanian and Gulf banks has become prominent in Iraq, especially in the field of money transfers. Benefiting from wrong agreements, these banks were able to acquire the largest share of money transfer operations, becoming the main player in the dollar market.

Economists believe that this dominance has negative effects on the Iraqi economy, as it reduces the role of local banks in facilitating financial transactions, and weakens the ability of the Central Bank of Iraq to control the flow of the dollar, which is the backbone of many commercial and investment activities.

With the growing influence of foreign banks, reports indicate that more than 1,000 Iraqi banks and exchange offices have been excluded, which has led to a decline in their ability to deal with foreign remittances. In contrast, Jordanian and Gulf banks have benefited from facilities that have strengthened their control over the Iraqi financial market.

These conditions raise growing concerns about their repercussions on the national economy, as Iraq faces the risk of losing control over its financial markets and monetary sovereignty. As dollars continue to flow into foreign banks, the Iraqi economy is increasingly vulnerable to regional economic fluctuations and pressures resulting from the financial policies of other countries.

Speaking about this file, economic expert Ahmed Abdul Rabbo confirmed that Jordanian and Gulf banks control more than 70% of financial transfers in Iraq, noting that the dollar is delivered to only four Jordanian and Gulf companies.

In a statement to Al-Maalouma Agency, Abdul Rabbo said, “Jordanian banks did not provide any real services to Iraq,” adding that “closing the dollar selling platform opened the way for Jordanian and foreign banks to take over the Iraqi financial market, which raised questions about the role of Iraqi financial institutions in this regard.”

He pointed out that “Jordanian banks control more than 70% of financial transfers in Iraq,” explaining that “this control constitutes a direct harm to Iraq’s sovereignty and financial decisions, especially with the absence of any effective role for these banks in serving the Iraqi economy.”

It calls for “reviewing financial policies and strengthening the local role to ensure the stability of the country’s financial sector.”

In this regard, economic expert Mustafa Akram Hantoush confirmed that the banking system is going through a major crisis, pointing out that the Gulf and Jordanian banks have come to control the cash and dollar sector inside Iraq.

Hantoush said in a statement to Al-Maalouma Agency, “The Iraqi banking system is almost non-existent at the present time, as four or five Gulf and Jordanian banks control the movement of money.”

He added that “four Jordanian banks submitted applications to enter the Iraqi market, two of which succeeded in operating, while two others, namely Al-Ittihad and Al-Iskan, are still under study.”

He explained that “this situation reinforces the dominance of these banks over the dollar, while local banks are now facing major challenges, as some of them remain in the market, while others are forced to seek agreements with Jordanian and Gulf banks in order to continue operating,” adding, “Those who do not succeed in reaching agreements with these banks will move towards merging or exiting the market.”

He points out that “the banking system was previously suffering from a weak structure, and today it is in a state of complete collapse,” stressing that “it has become very difficult to obtain loans in Iraq easily, and whoever succeeds in doing so needs relationships and mediation, which reflects the state of stagnation and paralysis in the Iraqi banking system.”

Reports indicate that 8 Jordanian and Gulf banks control money transfer operations in Iraq, which led to these banks controlling the flow of dollars into the country. This control imposed the exclusion of more than 1,000 Iraqi banks and offices, which raises concerns about negative effects on the local economy and financial sovereignty.

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