Ziyad Al-Hashemi, the economic advisor, stated today (Thursday) that the Iraqi banking system is reluctant to conform to the standards of disciplined work.
In an interview with “Al-Jarida,” Al-Hashemi stated that private banks have adopted a strategy of maximizing profits by focusing solely on purchasing dollars through the central bank’s window, rather than diversifying their banking services. This approach has resulted in banking practices driven by financial greed, including transferring blocks of cash dollars to the parallel market via intermediaries and taking advantage of price discrepancies. Additionally, some banks are exploiting their relationships with external banks and international money transfer companies to conduct fraudulent operations to transfer dollars and bypass the regulations set forth by the Central Bank of Iraq and US federal controls.
He stated that the banking system in Iraq seems to be resistant to adopting the necessary mechanisms for disciplined banking, which require a high level of compliance and transparency. As a result, they are not able to expand and offer diversified banking services, which could lead to more profitable revenues.
He stated that these banks are primarily focused on identifying weaknesses and loopholes in the Iraqi monetary, banking, and legal systems to exploit them for their benefit. This approach violates central controls and causes significant damage to the Iraqi economy.