[rtl]The banking expert, Mahmoud Dagher, detailed the causes and repercussions of the crisis of the rise in the exchange rates of the US dollar in the Iraqi markets, stressing that "the new US federal measures in the money transfer system caused an unprecedented shock to the local markets, and the crisis may develop unless the current government takes urgent measures to restore balance. supply and demand market.
Dagher said in an interview with (Iraq Today), that the current crisis is unprecedented in the history of banking transactions, and it differs from all financial crises that have passed previously, for the first time the Central Bank of Iraq loses its ability to manage the local market, as the central bank has always been the "market maker" He used to run the country's financial markets, but now he can do nothing about the crisis.[/rtl]
[rtl]He stressed that the current crisis resulted from a change in the course of financial dealings between the US Federal Reserve and the Central Bank of Iraq in the financial transfer system that has been in place for years, after a loss of confidence between the two parties, Knowing that it is normal when any country in the world links its currency to the US dollar, the US Federal Reserve has the right Monitoring and following up on which financial transfers go.”
He pointed out that “the crisis began after punishing the four banks, and one of them was classified in the Central Bank with the classification A, which aroused the ire of the American Fedali and caused the latter to take a set of measures that do not prevent Iraq from asking for its money, but it checks the conversion mechanism, so the conversion mechanism began to take different dimensions from the Iraqi market.
And he indicated that "the local market was accustomed to the Central Bank of Iraq strengthening the accounts of joint banks in the dollar sale window, and then these banks sell money transfers to the owners of exchange shops, and they, in turn, sell them to their customers, knowing that 95% of the dealers do not go to banks, but rather buy transfers from exchange offices directly to evade the tax system, but this mechanism has changed now and we are facing a new reality, where the US Federal Reserve stipulated that when transferring to any bank, the latter announces the name of the buyer of the transfer, and the buyer's information is checked in the country of arrival, which changed the picture from transferring for promotional purposes, to direct selling with audit procedures that sometimes it takes more than ten days,Which impeded the movement of merchants, so the banks' demand for the window decreased, and after the procedures began to take a long time, most merchants resorted to cash dealing, which caused real chaos in the local market.
Dagher pointed out that the Central Bank does not suffer from the problem of lack of supply, but rather the problem of banks not accepting the window due to the above measures.These parties, especially since the US Federal Reserve has been sending signals to Iraq for years about the need to pay attention to the existence of a kind of inaccuracy in financial transfers, and after it was proven to the US Federal Reserve that there are banks contributing to corruption, especially since the year 2019 witnessed the issuance of sanctions from the US Treasury against five Iraqi banks, Likewise, it was preceded by the punishment of Al-Bilad Al-Ahly Bank, which is known as Al-Aidiya, as well as the issuance of a suspension against Al-Wad Bank for its owner, Nour Zuhair Jassim, and other problems that stimulated mistrust in the financial systems in Iraq and prompted these measures.
Dagher held the US Federal Reserve responsible for what is happening, because it used the shock with the Iraqi financial markets, and Iraq also bears part of the responsibility because it did not interact with the American signals to address the imbalance in its financial system. He
concluded that the current Iraqi government must take quick measures to restore confidence and restore stability. for financial markets.[/rtl]
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