The advisor to the Iraqi Private Banks Association, Samir Al-Nusairi, explained today, Thursday, that the stability of the exchange rate in the parallel market will remain in a state of fluctuation until the completion of the stages of financial and banking reform.
Al-Nusairi said, in an interview with "Al-Eqtisad News", that "the stability of the exchange rate in the parallel market will remain in a state of fluctuation until the completion of the measures currently taken to implement the stages of financial and banking reform specified in Axis Twelve and Articles 1 to 7 and the daily efforts made by the Monetary Authority to complete the regulation of foreign trade financing and strengthen and reform the public and private banking sector
Which focus on compliance with international standards and agreements and ongoing negotiations with the US Treasury and global banks and the completion of the selection of the international auditing company to audit foreign transfers for banks to enhance their balances in foreign currencies that deal in currencies other than the US dollar and the completion of the final agreements with Chinese correspondent banks to start dealing in the Chinese yuan after the temporary suspension of foreign transfers with China, as well as helping private banks find correspondent banks to deal with them after the Central Bank's decision to cancel the electronic platform inevitably during this year."
He added, "The information confirms that there will be a breakthrough very soon by completing the above procedures and finding other correspondent banks to deal in Chinese Yuan, UAE Dirham and Euro. Efforts are also continuing with the US Treasury and the company tasked with auditing foreign transfers of the sanctioned banks in order to lift the restrictions on them by using the US dollar."
Al-Nusairi explained: “What also needs to be completed to reform the private banking sector is taking the decision to merge the willing banks as well as the weak and troubled banks in order to reach the real size of banking activity that covers the actual need for economic requirements, and the urgent need to restore work when the electronic platform is cancelled,” stressing that “the important measure that the government is responsible for is to stop illegal imports and cancel unofficial border crossings.”
He continued: “We must not forget, clearly and precisely, that there is an organized lobby working against achieving monetary stability, led and implemented by multiple parties linked to speculators and corrupt people who have an agenda to weaken the national economy and harm it by fabricating news, statements and short-sighted economic analyses and transforming them from reassuring news for the market and citizens into news that confuses the market and creates panic among citizens, and this is what is actually happening now.”
Al-Nusairi explained that "the return of stability in the exchange rate to its targeted and balanced rates in the parallel trading market is achieved with the support of the relevant authorities in the government by activating other productive sectors and supporting the procedures of the Central Bank in implementing its plans to reform the financial and banking sector
And draw up clear financial policies in coordination with the monetary authority and its currently approved applications and tools and overcoming the challenges of achieving economic stability, which means achieving stability in the financial and monetary system.
This is not only the duty of the Central Bank alone, but rather it is a basic duty of financial policy and the government's methodology in managing the economy and activating sources of national income other than oil and supporting, protecting and encouraging local production and generalizing the activation of dealing in the Iraqi dinar in all internal monetary trading activities and expanding the use of electronic payment methods whenever possible."
He concluded his speech by saying: "My expectations are that the exchange rate will return to stability after completing the reform, regulatory and negotiation procedures, and this does not take a long time." link
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