Monday, July 21, 2025
Hard Currency Is Being Drained With The Blessing Of The National Bank. Experts Warn Of A Catastrophe That Will Cripple The Iraqi Economy
Hard Currency Is Being Drained With The Blessing Of The National Bank. Experts Warn Of A Catastrophe That Will Cripple The Iraqi Economy.
Economy 2025-07-19 | 06:10 1,903 views Alsumaria News – Economic Bank's monopoly
The National on dollar transfers has sparked widespread controversy in Iraqi economic and commercial circles, amid accusations that it dominates foreign currency sales and transfers, threatening the principle of fair competition and increasing pressure on the local market.
Observers believe this monopoly has contributed to rising exchange rates and limited options for traders and citizens.
Meanwhile, financial experts assert that the lack of effective oversight and the overlapping interests of influential parties have given the bank near-absolute control over the dollar's movement.
Observers noted that almost complete monopoly "the National Bank, with the support of influential parties, was able to obtain near-exclusive control over foreign remittances from Iraq, while a number of Iraqi banks were restricted and barred from accessing the electronic remittance platform."
He added, "This monopoly is not merely technical in nature, but is also due to pressure from political backgrounds and influential figures with ties to the bank's senior management, raising concerns about administrative and financial corruption."
The Impact Of Monopoly On The Market And Iraqis
This, according to experts, confirms the weak competitiveness of Iraqi banks.
Reducing the profit margin and development opportunities for local banks, due to their being barred from participating,weakens their ability to provide local services or improve their infrastructure.
It also leads to a deterioration in services for beneficiaries, as transfer and deposit transactions have been subject to repeated delays and postponements, substandard customer service, and complaints of electronic system outages and erratic transfers.
They continued, "The manipulation of remittances also leads to a drain on hard currency, as the National Bank is estimated to be transferring huge sums of dollars abroad, taking advantage of exchange rate differences and dollar auctions without adequate oversight."
They noted that "there are huge economic losses estimated at billions of dinars annually
—such as 7.5 billion dinars stolen from Iraqi profits and sent directly to Amman
—that are draining the Jordanian economy."
Dividend Distribution – Who Benefits?
The National Bank of Iraq (NBI) achieved huge profits following the acquisition; its net profit after tax for 2023 reached approximately 190 billion dinars, compared to 27.5 billion dinars in 2022.
Revenues from the currency window also increased 26-fold to approximately 93 billion dinars, 67% of which is transferred to non-Iraqi entities.
External destination: A large percentage of these profits go to Jordan, according to representatives and experts, and are added to the budgets of the parent companies, representing a clear drain on liquidity and foreign currency in excess of the local markets' needs.
The Size Of The Monopoly And The Impact Of The Law
waived Article 107 of the Banking Law any limits on foreign investor ownership (up to 100%),
enabling foreign-owned banks to dominate, while such licenses are practically prohibited for Iraqi banks.
granted The Central Bank licenses and controlled currency auctions in a non-transparent manner, and
amended laws to support the interests of certain parties at the expense of national financial sovereignty.
Supervisory Calls
Observers called for "an urgent parliamentary investigation into the procedures that led to the
National Bank's leadership, documenting financial transactions, identifying the parties involved, reviewing the banking law and amending Article 107 to end foreign control and enable Iraqi banks to compete, as well as abolishing the monopoly currency window and replacing remittance distribution with a transparent system managed by the government or a unified platform without the control of a private bank."
They stressed the "need to refer the National Bank to direct oversight by the Central Bank, strengthen monitoring of transfers and the exchange rate, and impose penalties on violators."
The National Bank of Iraq's ongoing monopoly over foreign remittances negatively impacts the national economy and leads to the transfer of huge profits abroad.
This has prompted calls for parliamentary action to investigate the matter through judicial and legislative means, as well as for fundamental reforms to regulatory institutions and the banking system. Experts stated that "Iraqi depositors are the losers in this financial game, while dinars and hard currencies are being siphoned off under the guise of legal transfers."
https://www.alsumaria.tv/news/economy/534072/العملة-الصعبة-تُستنزف-بمباركة-المصرف-الأهلي-خبراء-يحذرون-من-كارثة-تشل
MILITIAMAN: "Iraq’s Quiet Revolution: From Oil to Digital Gold – Militia Man Breaks It Down 💥"
Militia Man
Iraq is not just oil anymore. It's about non-oil resources...That includes banking, banking restructuring. .
.professional institutions like Oliver Wyman and Ernst and Young that have been working with Iraq for many years...That's why I'm so bullish and why I keep doing this.
I totally believe 100% that Iraq is going through a digital transformation. I believe Alaq is...going to delete the zeros from the exchange rate. The project still exists...All of these things are coming into play.
Achievements And Challenges
Achievements And Challenges
Economic 07/20/2025 Yasser Al-Mutawali While the country is witnessing real achievements in various areas of the economic and service sectors, due to efficient reform policies and clear trends toward stimulating the economy and development,
economists are busy these days searching for ways to confront the expected global financial crisis, which is a periodic crisis facing the global economy. Therefore, experts are seeking to mitigate its effects on the reality of the Iraqi economy.
Perhaps it is useful to emphasize that any warnings issued here and there must be taken into account and benefited from, to avoid the damage that may result from them.
Today, the International Monetary Fund (IMF) issued a warning regarding Iraq's worsening fiscal deficit, due to objective reasons related to geopolitical changes taking place around the world, which have painful economic repercussions, according to its latest report this week.
Therefore, it is necessary to focus on stimulating income-generating productive sectors,
while reducing unnecessary expenditures in order to overcome the crisis phase and its usual cycle.
The IMF's warnings called on Iraq to review its spending policy and rationalize it with measures that are difficult to implement, as they raise complex social problems.
In order to preserve and sustain the achievements made, austerity measures must be taken, spending must be reduced, and rapid income-generating economic sectors must be stimulated and diversified.
Regardless of the accuracy of the warnings, it has become necessary not to ignore them and to take them seriously,because they are important indicators whose effects must be guarded against.
We see in them an opportunity for the government to implement more radical reforms in fiscal policy,
to confront the dire effects of the expected financial crisis.
Perhaps it is useful to point out that Iraq, as a rentier country, will be at the forefront of the countries affected and most affected, especially if oil prices fall below the hypothetical price planned for the budget.
This reality requires the government to review current spending plans, reduce all non-essential expenditures, and boost non-oil revenues by revising tax and customs duties, reforming the personal income tax, creating private sector jobs without relying on government jobs, and regulating the import of non-essential goods.
It is perhaps worth emphasizing once again that ignoring the warning, regardless of the accuracy of the information contained in the report,remains a matter that requires serious consideration. https://alsabaah.iq/117658-.html
AJ: 🚨 Dinar Surge! Parallel Market Drops Below 1,400 for 1st Time – Revaluation Getting Closer 🇮🇶💸
AJ
Great News for Iraq's Parallel Market - Declined
It traded below 1,400
for the 1st time 1,397 IQD per $1 dollar.
Big Milestone
60 more IQD to hit official rate 1,320
On Sunday, the US dollar weakened against the Iraqi dinar in both Baghdad and Erbil,
Baghdad’s central exchanges registered a rate of 1,401 IQD per $1. Earlier in the day, the rate stood at 1,403 In local currency exchange shops across Baghdad, the dollar was selling at 1,400 IQD and buying at 1,390 IQD per $1. In Erbil, the dollar was selling for 1,397 IQD and buying for 1,396 IQD per $1.
If you are New Here welcome and I have the best followers, they rock: Just know the parallel Market rate must be the same as the CBI's offical rate 1,320 for Iraq to revalue their currency. The Central Bank's plans to unify the two dollar exchange rates gradually in the second half of 2025
Gradual unification aims to minimize economic shocks, stabilize inflation, and restore confidence in the Dinar currency.
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