An Economist Points To A Decline In Liquidity And The Loss Of Thousands Of Jobs In Iraq.
Economy 2025-06-25 |Source: Alsumaria News 3,726 views Alsumaria News - Economist Ahmed Abdul Rabbah revealed on Wednesday the reasons behind the ban on a number of local Iraqi banks from receiving foreign transfers. He emphasized that the continued ban on 32 Iraqi banks from dealing in dollars not only leads to a decline in liquidity but also threatens the loss of thousands of jobs at these banks.
Ahmed Abdul Rabbo told Sumaria News that the banks operating in the country that handle remittances are Iraqi in terms of registration and establishment, but some of these banks hold majority ownership stakes in foreign investors, which gives them advantages over local banks.
The economic expert attributes the deprivation of a number of local banks from foreign transfers to
their lack of banking relationships with global correspondent banks such as JP Morgan and Citibank,
unlike banks owned by foreign investors, which maintain extensive correspondent banking networks.
He pointed out that those banks in which foreigners hold significant stakes continue to dominate the remittance sector, benefiting from their global network of relationships. He explained,
"I find it essential for the Central Bank of Iraq to diversify the basket of currencies used in emittances by adopting alternative currencies such as the Emirati dirham, the Chinese yuan
, and the euro.
I also call on the Central Bank to guarantee a number of Iraqi banks that adhere to international standards, in order to facilitate the opening of accounts for them with international banks such as Citibank and JPMorgan."
He added that the US sanctions imposed on 32 Iraqi banks remain, in his view, unjust and illogical, as they disrupt the structure of the banking system, negatively impact opportunities for competition and growth, limit the liquidity of these banks, and leave them vulnerable to bankruptcy.
The continued ban on dollar transactions for 32 Iraqi banks not only leads to a decline in liquidity, according to the expert, but also threatens the loss of thousands of jobs at these banks, whether they have been closed or restricted in their operations. It also deepens the crisis of confidence in these banks as intermediary institutions.
This situation has forced many companies and individuals to deal only with "dominant" banks, reducing the opportunities for local banks in the market.
The economic expert noted that if
reform efforts continue and international standards are fairly applied,we may witness a real decline in the role of the black market and a gradual return of committed local banks to competition on a more equitable basis.
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