The Central Bank of Iraq intends to cancel the “electronic platform” for financial transfers early next year.
The researcher and specialist in financial and banking affairs, Mustafa Hantoush, says that the Central Bank of Iraq, by not finding real solutions for transfers and moving towards stopping the (fitr) platform and handing over the Iraqi dollar to (4) banks owned by investors and banks (Jordanian and Gulf), will fire the mercy bullet at the entire Iraqi banking system.
Hantoush added during his interview with Iraq Observer that “the banking system in Iraq as a whole will be punished, which will lay off nearly (100) workers in the Iraqi private banking sector in favor of Jordan and the Gulf States.”
He added, “He may demand social care for them, and the stability of the exchange rate will become difficult due to the monopoly of the dollar by these banks, and this may cause new fluctuations in the exchange rate.”
The financial expert continues, “Thus, the Central Bank of Iraq is failing in one of the most important banking policies, which is the policy of achieving competition in the banking sector and preserving banking sovereignty. Therefore, we demand that the Central Bank come up with specific solutions, including extending the work of the (Fitr) platform in coordination with the new administration of the United States of America.”
He continued by saying, “It is necessary to guarantee the Iraqi banks to open an account for them in the correspondent banks in dollars (Citibank/JP Morgan) as the countries of the region have done.”
He pointed out that “it is also necessary to determine and announce the mechanism for cooperation and auditing with Ernst & Young regarding transfers in currencies other than the dollar (euro – yuan – lira – dirham).”
He explained that “the announcement of the results of the agreement and contract with the company (Olver Wyman) regarding the 28 penalized banks and what their fate will be.”
The financial expert called for “the necessity of approaching the central banks of the countries (Turkey – Emirates – China – India) to agree to open branches of Iraqi banks to transform from a remittance relationship to a banking relationship in trade.”
The decision to cancel the electronic platform for money transfers represents a major challenge to the Iraqi economy, and may have direct effects on the exchange rate of the dollar against the Iraqi Dinar.
