Profits for Jordan, Losses for Iraq: The Story of Al-Ahli Bank’s Acquisition of the Currency Sales Window
Profits for Jordan, Losses for Iraq: The Story of Al-Ahli Bank’s Acquisition of the Currency Sales Window
2025-04-22 | 05:18
Raised the bank’s acquisition Al-Ahly On the foreign currency selling window in Iraq Widespread controversy in political and economic circles, amid accusations of a flaw in the policy Central Bank of Iraq and opening a new door to support the economy Jordanian At the expense of the Iraqi economy.
Viewpoints on this step varied, with some seeing it as a necessity imposed by international sanctions, and others considering it an institutional failure to support the local banking system.
The currency sales window, or what is known as the “currency auction,” is the mechanism used by Central Bank of Iraq To sell dollars to banks and companies in exchange for Iraqi dinars, with the aim of financing imports and controlling the exchange rate.
This window has long been a source of controversy, given its occasional use as a tool for currency smuggling or money laundering.
The head of the opposition parliamentary coalition, MPAmer Abdul-Jabbar, , for Alsumaria News “The bank’s acquisition Al-Ahly Jordanian The largest share of the currency sales window represents a “new gateway to support the Jordanian economy,” in reference to the transfer of huge sums of dollars to foreign banks under unclear import pretexts.
He pointed out Abdul-Jabbar “This change in the banking equation occurred due to the policies of the Central Bank, as daily dollar sales increased from $85 million under the previous governor to approximately $300 million currently, doubling the opportunities for foreign banks to benefit.”
According to banking researcher Mustafa Hantoush, “The Central Bank of Iraq granted licenses to the Jordan National Bank, the Arab Jordan Bank, and other Gulf banks to operate in bank transfers, in light of the sanctions imposed on the majority of Iraqi banks by the The treasury “American.”
Because of these sanctions, it has become almost impossible for Iraqi banks to conduct money transfers or open accounts with international banks such as Citibank and JPMorgan Chase. Morgan, which foreign banks exploited to become the main financial intermediary.
According to experts, “large financial transfers from Iraq To Jordanian banks, it constitutes direct support for foreign currency reserves in Jordan, which analysts consider a financial and sovereign loss for Iraq.
The profits of foreign banks operating in the currency sales window are estimated at about 300 billion dinars annually, and may double when taking into account side commissions.
These profits are achieved without providing real banking services to Iraqi citizens. Experts believe that “this foreign monopoly on bank transfers weakens the ability of Iraqi banks to compete and prevents them
from developing their services, which leads to further deterioration in the Iraqi financial sector.”
Iraqi law investor Foreigners have a share not exceeding 49%, while foreign banks are granted a 100% share under Article 107 of Banking Law, which allows the Council Central Bank Management The authority to set the percentage is unrestricted.
Experts warned that “foreign banking monopoly, without adequate oversight, could encourage suspicious financial activities. Furthermore, Iraq’s reliance on foreign banks in the currency exchange window facilitates dollar smuggling outside the country. When remittance channels are controlled by non-Iraqi entities, this weakens the state’s ability to control the currency market.”
The experts stressed “the need to reduce reliance on foreign banks and support local banks, while providing them with international guarantees. Article 107 of the Banking Law should be amended to ensure banking sovereignty is not compromised, and strict oversight mechanisms should be established to control remittances, monitor commissions, and prevent exchange rate manipulation. Furthermore, transparency in licensing should be increased to ensure fair competition and prevent monopolies.” The
National Bank’s acquisition of the currency exchange window is an example of the failure of monetary policies pursued in Iraq, revealing the fragility of the banking system in the face of regional and international pressures.
While this reflects Iraq’s need for internationally recognized banking networks, it also highlights its growing economic dependency, necessitating radical reforms to the structure of the Iraqi financial system.
alsumaria.tv
