Hard currency is being drained with the blessing of the National Bank. Experts warn of a catastrophe that will cripple the Iraqi economy.
Hard currency is being drained with the blessing of the National Bank. Experts warn of a catastrophe that will cripple the Iraqi economy.
2025-07-19 | 06:10
Alsumaria News- Economist
raises concerns about bank monopoly Al-Ahly Dollar remittances have sparked widespread controversy in Iraqi economic and commercial circles, amid accusations that they dominate foreign currency sales and transfers, threatening the principle of fair competition and increasing pressure on the local market.
Observers believe this monopoly has contributed to rising exchange rates and limited options for traders and citizens. Meanwhile, financial experts assert that the lack of effective oversight and the overlapping interests of influential parties have given the bank near-absolute control over the dollar’s movement.
Almost complete monopoly,
observers said, “The bank Al-Ahly With the support of influential parties, he was able to obtain almost absolute exclusivity in conducting foreign transfers from Iraq “While a number of Iraqi banks have been restricted and prevented from accessing the electronic remittance platform,”
he added. “This monopoly is not merely technical in nature, but is also due to pressure from political backgrounds and influential figures with ties to the bank’s senior management, which has raised concerns about administrative and financial corruption.”
The impact of the monopoly on the market and Iraqis
, according to experts, confirms the weak competitiveness of Iraqi banks. The reduction in profit margins and development opportunities for local banks due to their being barred from participating weakens their ability to provide local services or improve their infrastructure. It also leads to a deterioration in services for beneficiaries, as the transfer and deposit stages have witnessed repeated delays and postponements, substandard customer service, and complaints about the electronic system being down and confused transfers.
They continued, “The manipulation of remittances also leads to a drain on hard currency, as it is estimated that the National Bank transfers huge sums of dollars abroad, taking advantage of exchange rate differences and dollar auctions without adequate oversight.” They pointed out that “there are huge economic losses estimated at billions of dinars annually—such as 7.5 billion dinars stolen from Iraqi profits and sent directly to Amman—that are draining the economy. “Jordanian”.
Dividend Distribution – Who Benefits?
Al-Ahli Bank achieved huge profits after the acquisition; its net profit after tax for 2023 amounted to approximately 190 billion dinars, compared to 27.5 billion in 2022. The currency window revenues also increased 26-fold to reach approximately 93 billion dinars, 67% of which is transferred to non-Iraqi entities.
External destination: A large percentage of these profits go to Jordan According to representatives and experts, it is added to the budget of the parent companies, which represents a clear drain on the liquidity and foreign currencies that are in excess of the needs of the local markets.
The size of the monopoly and the impact of the law
and Article 107 of Banking Law No limits on foreign investor ownership (up to 100%), which enabled foreign-owned banks to dominate, while such licenses are practically prohibited for Iraqi banks
.Central Bank Licensing and controlling currency auctions in a non-transparent manner, and amending laws to support the interests of parties at the expense of sovereignty. National Finance.
Regulatory calls
Observers called for “an urgent parliamentary investigation into the procedures that led to the leadership being granted to the National Bank, documenting financial transactions, identifying the parties involved, reviewing the banking law and amending Article 107 to end foreign control and enable Iraqi banks to compete, as well as abolishing the monopoly currency window and replacing the distribution of remittances with a transparent system managed by the government or a unified platform without control from a private bank.”
They stressed “the need to refer the National Bank to direct oversight by the Central Bank, strengthening monitoring of remittances and the exchange rate, and imposing penalties on violators.”
The ongoing monopoly of the National Bank of Iraq in the field of foreign remittances negatively impacts National economy This leads to the transfer of huge profits abroad, amid calls for parliamentary action to investigate the matter through judicial and legislative means, as well as for fundamental reforms to regulatory institutions and the banking system.
Experts stated that “Iraqi depositors are the losers in this financial game, while the dinar and hard currency are siphoned off under the guise of legal transfers.”
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