Parliamentary warning on the banking reform paper: It has made Iraqi money captive to foreign banks.
MP Haitham al-Fahd, representing the al-Asas parliamentary bloc, warned on Tuesday of financial paralysis that could befall Iraq due to the banking reform paper, noting that the paper came with US controls and placed Iraqi funds at the disposal of foreign banks.
Al-Fahd told Shafaq News Agency, “The banking reform paper recently issued by the Central Bank was dictated according to the regulations and instructions of the US Federal Reserve and sent from Washington to Baghdad.”
He pointed out that “this paper detailed in great detail the foreign capital invested in Iraq, specifically banks whose capital is Jordanian, Emirati, Bahraini, and Kuwaiti.”
Al-Fahd added, “Foreign banks, under the guise of Iraq, have rendered Iraqi capital weak and incapable of carrying out their duties. These banks have increased their capital from 200 to 400 billion dinars in record time.”
He explained that “the banking reform paper, which was written in Washington, made foreign banks and so-called investment banks the ones controlling Iraqi capital.”
The MP concluded his statement by saying, “Iraqi monetary policy at this stage has become captive to foreign capital, and these banks are the ones who control financial transfers. If they cease to operate, there will be significant economic and financial paralysis in Iraq.”
The Central Bank of Iraq has set a set of standards for reforming the banking sector, most notably increasing capital to 400 billion dinars by December 31, 2025. This is despite investors’ reluctance to subscribe to its shares due to sanctions, making this requirement nearly impossible to achieve, according to economic experts.
Shafaq.com