IMPORTANT IRAQ NEWS: US PRESSURES PUSH THE CENTRAL BANK OF IRAQ TO CLOSE AND MERGE TROUBLED BANKS BY MNT GOAT, 1 AUGUST

US PRESSURES PUSH THE CENTRAL BANK OF IRAQ TO CLOSE AND MERGE TROUBLED BANKS

An informed source revealed that the US Treasury and the US Federal Reserve have asked the Central Bank of Iraq to take urgent and strict measures to merge the banks restricted from using the US dollar. This step comes within the framework of US efforts to support the stability of the Iraqi banking system and enhance its ability to deal with economic challenges.

The source confirmed that the American side also asked the Central Bank of Iraq to close some troubled banks that suffer from financial and administrative problems.

The source stressed that the aim of these measures is to improve the efficiency of the banking system and ensure its stability, which will positively reflect on the Iraqi economy in general and the exchange rate of the Iraqi dinar in particular.

In this context, the Central Bank of Iraq is under great pressure to take swift and decisive action. These measures include merging restricted banks and closing troubled banks to enable them to return to banking operations in a better and more effective manner. Improving the performance of banks is an essential part of the economic reform plan that the Iraqi government seeks to implement in cooperation with international bodies.

The source added that the Central Bank of Iraq has recently contracted with a specialized international company to present a comprehensive plan to reform the banking sector. This plan includes proposals to merge troubled banks and close some of them, in addition to providing innovative solutions to improve the efficiency of banking work and enhance the confidence of investors and customers in the Iraqi banking system.

This contract comes within the framework of the Central Bank’s efforts to enhance transparency and achieve financial stability. This plan is expected to contribute to improving the performance of the banking sector and providing more efficient and reliable banking services to citizens and companies alike.

In light of these developments, the Iraqi banking sector awaits a period of change and reforms that may be radical, but ultimately aim to build a strong and sustainable banking system capable of meeting the needs of the growing Iraqi economy and facing future challenges.