The National Bank is a gateway for smuggling dollars and starving the Iraqi economy!
The National Bank is a gateway for smuggling dollars and starving the Iraqi economy!
2025-05-01
Political and economic circles in Iraq are witnessing a rising wave of anger following the explosion of the financial corruption file at the National Bank, amid accusations of illegal acquisition of foreign remittances, mismanagement of the dollar, and systematic smuggling of hard currency, which has fueled the economies of neighboring countries, most notably Jordan. This comes at a time when the Iraqi economy is suffering from successive crises in the exchange rate and financial liquidity. Initial information indicates that approximately 7.5 billion Iraqi dinars in profits from citizens and depositors have been lost in recent years through what has been described as an “organized financial pattern of plundering public and private funds,” through complex banking instruments that include exchange rate speculation, transfer differences, and illegal fees imposed by the National Bank on foreign remittances and withdrawals.
Meanwhile, informed parliamentary sources revealed to Al-Sumaria TV that “parliamentary committees have already begun gathering evidence regarding the National Bank’s acquisition of most of the dollar remittances allocated to merchants through the currency sales window, and its transfer to external commercial fronts used as a cover for smuggling dollars to neighboring countries, most notably Jordan, where financial companies and offices have been established to act as arms of the bank.”
Feeding the Jordanian economy at the expense of the Iraqi economy
Experts say that “hundreds of millions of dollars have left the Iraqi market via banking fronts and flowed to Jordan, boosting economic activity there. This has had a negative impact on the value of the Iraqi dinar and created continued pressure on the Central Bank’s reserves.”
Economic expert Wissam Al-Jubouri asserts that “Iraq has become an undeclared financier of economic activities in Jordan, given the lack of oversight over transfers by private banks, most notably the National Bank, which has exploited weak laws and bureaucracy within the Financial Oversight Authority.”
MPs accuse the bank of controlling remittances and stealing currency.
In a remarkable development, several members of the House of Representatives broke their silence, asserting in press statements that “the National Bank has become an influential entity controlling remittances and trade facilities,” noting that “there are influential relationships linking the banking administration to political figures that provide it with protection.”
MP Mohammed Al-Sayhoud stated that “the bank has crossed all red lines. It has ceased to be a mere financial institution, but has transformed into a center for liquidating and smuggling currency outside Iraq under the guise of commercial transfers.” He called for “an urgent and comprehensive government investigation into the bank’s board of directors and documents on dollar transactions over the past three years.”
Poor services and manipulation of customer rights
Beyond the major corruption cases, National Bank customers are suffering from a clear deterioration in the quality of banking services, both in account management and internal transfers. There are also recurring complaints about the disruption of electronic payment systems and exchange rate manipulation between official bulletins and the bank’s branch execution market.
Reports from the Financial Supervision Bureau indicate that “the National Bank of Egypt made huge profits from dollar exchange rate differences, without committing to converting these profits to support banking products or improve services provided to citizens. This has created a wide gap between the bank’s financial performance and the reality of its customers.”
Demand for a comprehensive investigation and stripping the bank of its currency window powers
For his part, MP Mustafa Sand called for “subjecting the National Bank to direct oversight by the Central Bank and reopening the file on suspicious remittances since 2021,” noting that “control of foreign remittances cannot remain in the hands of a single bank that represents the private sector but acts as if it were a sovereign entity.”
Parliamentarians also called for “the abolition of the powers of the currency exchange window, which is monopolized by the National Bank, and the establishment of a central electronic system supervised by the government to monitor every transfer or import financing transaction,” noting that “remaining silent on current practices means the continued bleeding of the national economy.”
The most important question preoccupying public opinion remains: Who protects the National Bank? Why is it allowed to exert such control over hard currency and foreign transfers? Will the government and parliament take serious action to stem this financial hemorrhage?
What is happening today is a true test of the state’s resolve to combat financial corruption and put an end to the draining of Iraqis’ wealth by private banks that have abandoned their developmental role and become tools of smuggling and domination.
burathanews.com
