The National Currency Is Fluctuating.. An Expert To The “Iraq Observer”: We Need A Banking System That Creates Balance, 6 AUGUST

 August 5, 2024  Baghdad/Iraq Observer   Dollar prices have witnessed a significant rise recently, with a difference of 20 thousand dinars from the official price, amid the absence of any real solutions to control it and limit its rise.

In this regard, Mustafa Hantoush, a researcher in banking and financial affairs, confirmed to the Iraq Observer that   “the issue of currency stability and the exchange rate is determined according to monetary policy, which is represented by several axes, the most important of which is that the dollar currency and the rest of the foreign currencies are owned by a number of foreign countries.”  He added,  “At the same time, Iraq has policies and understandings with these countries, such as the United States, so the issue of trade with countries such as Iran and Syria must be done according to the platform,” pointing out that

 “this trade is huge and must be financed according to a specific method by purchasing gold or making transfers.” Or goods are imported until there is an understanding with these countries.” 

He continued,  “The United States today prevents dealing with the dollar in official trade,  so how can this trade be financed at a time when it is not allowed to deal in the dollar-denominated dinar?

 The issue of the platform with Iran and Syria may raise the American momentum and reduce tensions, and thus stabilize the currency.”  He pointed out that    “to support and strengthen the national currency, there must be a basket of currencies that needs a banking system.

 Today, the banking system is due to the mistake committed by the Central Bank of Iraq related to the lack of a platform system with countries such as Iran and Syria from day one, unlike countries in the region such as Turkey and others that have created a platform.”

Gold and remittances, as the banking system was stopped, restricted from the dollar, and eliminated with quasi-sanctions, which created a banking problem, and then introduced banks to foreign investors with another mistake.”

 The researcher asked about banking and financial matters:

How are Iraqi banks given to foreign investors?

 This matter led, as a result, to these investors transferring the dollar to their bank branches in their countries, to an account in Citibank and JP Morgan, and

their profits will be in exorbitant amounts transferred to foreign countries, as

 the issue has begun to affect the sovereign financial security of Iraq.”

He explained,  “Iraq needs to build a banking system that strengthens banking standards and

thus enables Iraq to build a banking system that provides a balance for the currency.

 Also, the issue of people is not as important in monetary policies as the policies themselves are important,

 because the presence of a specific person who follows the same policies and does not have any plan, he cannot benefit from it.

”Rather, there must be a plan related to monetary policy to achieve the

    balance of the currency and the banking system,

    plans for financing and attracting deposits, and

     plans related to granting loans.

Whoever has banking policies will be the best.”    https://observeriraq.net/العملة-الوطنية-تتأرجح-خبير-لـعراق-او/