Next, we read in the article titled “BOTTLENECK RISKS: IRAQ’S RELIANCE ON A LIMITED NUMBER OF CORRESPONDENT BANKS”. The Iraqi economic and financial system is facing a major transformation with the cessation of the “window” and “platform” and the shift to direct bank transfers, which may reveal gaps in the readiness of financial institutions for this change. I call this one of those WOW!
statements. If have been following this currency auction saga and all its corruption over the last decades, you can see this is going to be huge, huge and be exciting but also very scary too. Like I said the longer you do things one way, even if its supposed to be temporary (as the currency auctions were supposed to be) the harder it is to revert back to a normal way of doing business. You also have the “keepers” of the goose who lays the golden eggs and they are not going to let go without a fight. So, we see the negative articles. We must be smart enough to see through them ad ignore them.
The above article also talks about the Central Bank, and how, it was not able to rehabilitate and develop Iraqi banks and prepare them for the platform’s shutdown phase in time, and it will be forced to rely on only 4-5 banks initially that have the ability to pass direct transfers through their correspondent banks, which will create a large (financial bottleneck), so they predict. But again this is only their “opinion”.
The author also pointed out and I quote – “that these fundamental changes coming to the Iraqi monetary and financial system, and the challenges and risks they entail, have not yet motivated either the government or the Central Bank to move and adopt a special and urgent action plan related to dealing with the variables and data of this critical transitional period, which the Iraqi economy has never experienced before!”
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