Iraqi finance committee raises concerns over dollar scarcity and foreign banks' influence
Shafaq News/ Iraq's parliamentary Finance Committee expressed concerns about the looming scarcity of cash dollars in the country, expected at the beginning of 2024 after a decision made by the Central Bank. The committee cited the influence of "foreign" banks in controlling the currency auction, creating challenges in the market.
Committee member Muhammad Nouri revealed to Shafaq News Agency that several non-Iraqi banks dominate the buying and selling of foreign currency. He emphasized that the Central Bank's stringent conditions are applied to a specific group before being extended to other banks or companies, effectively giving these foreign banks significant control over the primary window for foreign currency transactions.
Nouri highlighted a prevalent issue where most financial transfers are fake, often claimed to be for purchasing goods. He noted that these illegitimate transfers cause delays in genuine transactions. He pointed out that these counterfeit transfers receive support from political groups and armed factions associated with economic parties.
However, the Central Bank of Iraq has reassured citizens that dollar deposits are secure. Individuals who deposited their money in dollars with any Iraqi bank before 2024 are guaranteed the right to receive these amounts in cash and US dollars.
The Central Bank clarified that its ongoing reforms aim to align the bank and the broader Iraqi banking system with international compliance standards.
