Iraq to privatize the government's two largest banks
23 November 2015

Shafaq News / The Central Bank of Iraq (CBI) announced on Monday its intention to privatize two government banks that are considered the largest in the country.

The governor of CBI, Ali al-Alaq said in a statement, "The bank's management is moving to privatize al- Rafidain and al-Rasheed Banks or participate with the private sector," noting that "the move is being coordinated with the World Bank after the Cabinet approved this proposal."

He explained that "these two banks are suffering from serious problems because they occupy 80% of fiscal policy in Iraq," considering this as , "an anomaly."

On the other hand, CBI rejected a proposal to distribute employees' salaries in dollars in Iraq, noting that "the Iraqi currency represents sovereignty and the dollar cannot be a substitute for the national currency."

Al-Alaq added, that "the distribution of salaries in dollars does not bring anything positive," pointing out that "this will disrupt the process of distribution."

Iraq relies 95% on oil in the annual general budget, while money laundering operations are still ongoing in the country, primary caused due to the absence of regulatory laws on banks and private banks.