Finance: Rafidain And Rashid Banks Maintain High Liquidity And Cash Reserves That Exceed The Ratios Set By The Central Bank.
Saturday, May 3, 2025 09:06 | Economic Number of readings: 359 Baghdad / NINA / The Ministry of Finance confirmed:
“Rafidain and Rashid banks maintain high liquidity and cash reserves that exceed the percentages set by the Central Bank.” The ministry said in a statement:
“Referring to what was circulated by some media outlets and social media platforms,
and what was attributed to a number of MPs regarding the government withdrawing the balances of Rafidain and Rashid banks,
there are those who understand the political competition, whether ignorantly or intentionally, as the promotion of lies and rumors or an attempt to spread false information with the aim of incitement and spreading confusion, and
this is what the government considers the worst type of electoral discourse, because it evades moral responsibility.”
She explained: “The funds withdrawn do not represent citizens’ deposits or insurance balances in banks, but rather belong to the Ministry of Finance’s sovereign accounts.
They were kept in those banks as a temporary operating tool, and
after the need for them ceased, and in accordance with financial and administrative instructions, they were transferred to be reallocated within the general budget.”
Thus, Rafidain Bank’s total reserves at the Central Bank
exceed 8 trillion and 540 billion dinars, as
they have not been touched in any way, shape or form.” The ministry explained, “The
thefts that previously affected some trust accounts
occurred because these funds were left unattended for long periods,
creating technical loopholes that were exploited by corrupt networks.
New oversight measures have been implemented in
coordination between the bank and the Ministry of Finance to mitigate these risks.” The Ministry of Finance stressed that:
“Criticism that resorts to falsifying facts and spreading information that has no basis in truth is a destructive act that seeks to undermine the government’s achievements that citizens have witnessed in various fields,” indicating that:
“The levels of financial and economic transparency that the
government is working with are an unprecedented path,
witnessed by major international financial institutions, and they have
raised the
level of Iraq’s credit rating and
confidence in its economy,
attracted global investments, and are now
creating job opportunities and
fueling development,
after the Iraqi economy was captive to rent and dependence on oil.” She stressed that
“the government will continue
its approach to economic reform,
strengthening
banking operations, and
financial management,
and will not stop at cheap lies aimed at disrupting and undermining the trust citizens have placed in the government’s approach and objectives.”
The Ministry called on all media professionals and social media users to be accurate and assume national responsibility when addressing financial issues, stressing that the doors of the Ministry and banks are open to anyone who wishes to have a professional look at official data and reports. https://ninanews.com/Website/News/Details?key=1224345
She added: “Comparing these measures to the experiences of banking collapses in other countries is inaccurate and ignores the unique legal and regulatory structure of the Iraqi banking sector, which is subject to the supervision of the Central Bank and applies strict regulations in the field of compliance and governance.” She pointed out that:
“Rafidain and Rashid Banks maintain high liquidity and cash reserves that exceed the percentages set by the Central Bank, and they perform their duties regularly in disbursing salaries, financing projects, and fulfilling obligations to customers.”
She pointed out that Rafidain Bank‘s legal reserves at the Central Bank currently stand at approximately 9 trillion Iraqi dinars, reflecting the strength of its financial position.
“In recent days, some have resorted to feeding some local agencies, news pages and social media bloggers that the government has resorted to withdrawing Rafidain Bank’s reserves in order to fill the liquidity shortage,” she continued, explaining:
“The latest letter issued by the Central Bank of Iraq, dated April 24, proves beyond doubt that Rafidain Bank’s unused mandatory reserves have reached 4 trillion and 277 billion dinars, while
the used reserves have reached 4 trillion and 263 billion dinars.
Al-Kadhimi Explains The Government’s Motives For Using Tax Trust Funds.
May 3, 17:50 Information / Special.. Parliamentary Finance Committee member Moeen Al-Kadhimi revealed on Saturday that
delays in financial transfers from the US Federal Reserve were the primary reason behind the
Ministry of Finance resorting to using tax deposit funds to secure employee salaries and cover basic expenses.
Al-Kadhimi told Al-Maalouma News Agency that
“the weak flow of funds from oil sales revenues held in Iraq’s account at the US Federal Reserve has led the Ministry of Finance to resort to using tax deposit funds to secure employee salaries for April and the coming months.” He explained that
“Iraq sells approximately 3.3 million barrels of oil daily, and
the proceeds are deposited in a special account at the US Federal Reserve.
However, these funds are not transferred directly domestically,
but rather are disbursed via remittances directed to traders to import various goods.” He pointed out that
“some of these remittances are delayed,
leading to a decline in the flow of Iraqi dinars into the local market,
thereby impacting the ability of the Ministry of Finance and the Central Bank to meet internal obligations, most notably salaries.” He added that
“the Minister of Finance submitted a request during the Cabinet meeting to withdraw these funds,” noting that
“this measure is legally permissible, provided that the amounts are returned to tax funds before the expiration of the legal five-year deadline.”
It is noteworthy that the Council of Ministers had previously authorized, by an official decision,
the Minister of Finance to withdraw tax deposits that had been deposited less than five years ago, to finance and pay salaries for April and the following months. End 25D
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