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Shafaq News/ The Association of Investors in the Iraq Stock Exchange criticized, on Wednesday, the Central Bank of Iraq's increase in fines on banks, which affects the profitability of investors in the shares of these banks.
"The change in the exchange rate of the dollar against the dinar within two years affected the performance of most banks, and caused banks' capital to disappear, in different proportions," said Alaa Al-Moussawi, head of the association, in a statement received by Shafaq News agency.
He added, "The Central Bank has a duty to support these banks, and to work on compensatory measures in order to reassure investors and shareholders," pointing out that "the Central Bank during the first quarter of this year directed 134 fines worth 34.7 billion dinars, which is a very large number that affects the profitability of banks." And small investors in the Iraq Stock Exchange.
Al-Moussawi noted that "the Central Bank of Iraq is required today to return the money from the fines to the banks in order to make the bank's shares more attractive in the Iraqi market for securities, because the continued imposition of fines will reflect negatively on the shares."
And the Central Bank of Iraq imposed, at the beginning of this month, financial fines on banks and institutions after they manipulated the exchange rate of the dollar against the dinar.
According to the schedule of penalties issued by the bank, fines of more than 34 billion dinars were imposed on banks and non-bank financial institutions for the first quarter of 2023, in addition to directing warnings and warnings after their manipulation of dollar exchange rates.
The Central Bank of Iraq announced, on Monday, January 19, a package of decisions that would restore the foreign currency market to its normal position after the rise in it.
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