Today, Sunday, Abdul Rahman Al-Mashhadani, an economic expert, detailed the impact of the approval to increase the dollar balances of ten banks on currency rates in local Iraqi markets, as well as the ramifications of the decision.
According to Al-Mashhadani, in an interview with the “Al-Ma’louma” news channel, that “visiting the dollar balance of ten banks will be one of the factors that will reduce the pressure on the dinar, because a portion of the financial transfers that pass through the electronic platform are rejected for some reason or not,” pointing out that “the past few days It witnessed the rejection of 80% of foreign remittances.”
Furthermore, he stated, “The pressure will also be eased on the dinar, because the transfer transactions, or the parties to whom they are transferred, instead of being audited by the US Federal Bank, will be audited by JP Morgan,” and pointed out that “the latter’s scrutiny is more severe than the Federal Reserve Bank.”
The economic expert explained, “These banks have relationships, as partners, with international banks such as Al-Qantar National Bank, Capital Bank, and Kuwait Finance Bank, in addition to the Kuwait National Bank,” noting that “it is true that these banks are Iraqi, but the entry of the founding partners of these international banks organized “To them.”
“The transfer mechanism will pass without the Central Bank of Iraq,” Al-Mashhadani asserted, “especially after transfers were delayed by 8-20 days.” However, utilizing this approach, bank transactions can be completed within a day or two.”
Earlier today, a government source reported an Iraqi-American agreement to increase the dollar balances of ten banks in light of previous Central Bank discussions with the American side, five of which were through Citibank and the other five through JP Morgan.
In the present era, the exchange rate of the dollar in the local markets has increased significantly, with the exchange rate of 100 dollars reaching more than 164 thousand dinars on a daily basis, due to substantial sales to the Central Bank of Iraq.