MNT GOAT
😊 Next I want to review the article titled “MP ACCUSES FORMER IRAQI CENTRAL BANK EMPLOYEE OF BEING BEHIND US SANCTIONS”. Over the weekend on Sunday, the Parliamentary Integrity Committee accused a former employee of the Central Bank of being behind the banking sanctions imposed on some Iraqi banks by the US Federal Reserve.
As we know, the number of banks sanctioned is 32 out of 72 banks operating in Iraq. Oh…. what amazing news! This is “WOW!” News for today. But why do I consider this WOW! news?
A member of the Parliamentary Integrity Committee, Vian Dakhil, said in a statement received by (Kalima) and I quote “that a former employee of the Central Bank hid the emails received from the Federal Bank, JP Morgan and Citibank to inquire about some issues related to the bank’s work”.
Sounds to me like yet another conspiracy exposed. Think about it. This issue has caused the price of the dollar on the black market to rise and fluctuate over and over again from the official CBI rate since the demand for the dollar out paces the supply.
The IMF made it clear that the CBI must be able to control the official rate for a minimum of 90 days to consider it STABLE. Have they done this? Are they able to do this? What is a major factor in not being able to do this? Was it taking the dollars from these 32 banks and creating a shortage of dollars? Just look at the delay in the Project to Delete the Zeros also due to this conspiracy?
The author adds that failure to respond to these issues of the corruption with the dollar led to some banks being punished, stressing that most banks do not know the reason for the penalties imposed on them.
On the other hand, economic expert Mustafa Akram Hantoush said that the statements of the members of the Parliamentary Integrity Committee are closer to reality than the statements of the Central Bank of Iraq.
He added that the collapse of the Iraqi banking system and the punishment of 32 Iraqi banks without any clear charges during a period of (a year and a half) is not normal and from the banking work perspective this may be the first incident of this kind in the world.
Hantoush pointed out that the worst thing is the lack of serious solutions from the Central Bank of Iraq to this situation, but rather the move towards cancelling the (Fitr) platform by the end of 2024 and handing over the dollar file to banks affiliated with foreign investors and banks (Jordanian and Gulf), according to Shafak News.
Hantoush wondered whether the Central Bank of Iraq knows that by not finding solutions for the Iraqi banking sector, it will fire the mercy bullet at the entire Iraqi banking system and it will be punished as a whole, which will lay off nearly (100) thousand workers in the Iraqi private banking sector for the benefit of Jordan and the Gulf States, and why are Iraqi banks not guaranteed to open an account for them in the correspondent banks in dollars (Citibank / JP Morgan) like the countries of the region did.
He continued, “Why has the mechanism for cooperation and auditing with Ernst & Young regarding transfers in currencies other than the dollar not yet been determined and announced?” I assure everyone that I also checked on the information on this article with my CBI contact.
Yes, the CBI did know about the conspiracy and wanted to begin the process to transfer the currency auctions to the correspondent banks. In another article from today’s news (see above) we also read and I quote “that Al-Alaq announced the Central Bank’s success in implementing the transition plan for “foreign transfers, in line with international practices and standards, and that it is currently taking place smoothly and transparently – especially covering imports at the official exchange rate”. It is currently taking place smoothly and transparently? Really?
Al-Alaq also told us the CBI is using unconventional financial practices to implement these financial reforms. In my past Newsletter I already explained why the CBI is going this and we can now clearly see yet more at to why in this article.
In short, the CBI must conduct breakthroughs in the financial reforms, even it means many GOI, economists or even parliamentary officials not fully understanding these unconventional moves. The push is on. How many times has the Finance Committee or Parliament interviewed the Al-Alaq over his decisions to manage the monetary policy of Iraq?
I believe strongly that Al-Alaq knows that if he is guided by conventional practices alone and doesn’t not take some risks in spite of being criticized by his peers, it will be decades longer in finally realizing the dream of the dinar. Let me give you one example of what I mean by the actions of Al-Alaq in handling foreign transfers. Read the next article.