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The controversy of foreign banks taking over the “Iraqi dollar auction”... a comprehensive breakdown of the reasons
Economy 2024-07-14 | 04:05
3,518 views
Alsumaria News-Economy
Today, Sunday, the researcher in banking and economic affairs, Mustafa Hantoush, reviewed the reasons for foreign banks’ acquisition of the largest percentage of shares in some banks inside Iraq and their acquisition of the currency auction, as the
strengths of these banks are that they are owned by foreign banks that are able to open accounts easily in application of international standards. American banks that supply the dollar. Hantoush told Al-Sumaria News,
“Some foreign investors and foreign banks obtained a percentage of shares of more than 51% in some banks inside Iraq, even though the Companies Law prohibits giving the foreign investor more than 49%.”
However, Hantoush reviewed the existence of a “legal loophole” that enabled the Central Bank to grant foreign investors greater percentages than those stipulated in the Companies Law, noting that
Article 107 of the Banking Law No. 94 of 2004 gives the authority to the Board of Directors of the Central Bank to determine the percentage of foreign investor ownership in banks without Compliance with general laws. He considered that
this paragraph is not supposed to mean that the percentage be more than 50%, but rather that it be less,
but the loophole is that the legal article gave absolute authority without mentioning that the percentage be less or more than 49%. He explains that
“there is no grant in the world of a share greater than 50% except in countries where there is a high circulation of funds, as they are bankrupt countries that do not possess wealth and fear the control of foreign banks.” He explained,
"According to this strategic mistake,
foreign banks were given more than 60% of the shares in banks inside Iraq, and
today we began to observe the fruits of this mistake, when the American side became aware of the presence of currency smuggling operations and trade with Iran and Syria, and
they set conditions for compliance.
The bank failed."
The Central Bank of Iraq and Iraqi banks apply the standards or the possibility of opening accounts for Iraqi banks in American banks to achieve oversight and fund their accounts in dollars.” He pointed out that
"when this happened and the scene became empty of Iraqi banks capable of taking on this role, these
foreign banks operating in Iraq were put forward, and
through the governors of the central banks of the countries of origin of these banks, they
presented themselves as a solution before Washington instead of presenting themselves as a mediator between Iraq." And America.” He stressed that
"Indeed, American banks relied on these foreign banks operating in Iraq, and
they opened accounts for them in Citibank and JP Morgan, for their parent banks in other countries, which own the largest part of these banks inside Iraq,
even though these banks in Iraq do not perform well." To achieve 5 points in global standards, it relied on its parent banks located in other countries.
Accordingly, Iraq are financed is now taking the dollars it owns in the US Federal Reserve,
and through them the accounts of these banks open in the accounts of Jeep Morgan and Citi Bank,
and from there the dollars are transferred to the rest of the world for Iraqi merchants,
and the merchants deposit the dinars in the Central Bank of Iraq.". He explained,
"Iraqi banks cannot play this role because they cannot open accounts in Citibank and Jeep Morgan because they do not have branches in countries trusted by the American banking system.
Also, the Central Bank of Iraq failed to guarantee Iraqi banks in front of American banks, and it succeeded earlier in 5 banks."
But it only lasted a month and then these banks were punished, and
they were also guaranteed by Jordanian banks.” He stressed that
"it is not possible to rely on foreign banks to manage the Iraqi banking system.
This model has failed in India because of its reliance on the foreign banking system, as the
foreign bank gives profits to its parent branches abroad, and does not reinvest the profits here inside Iraq,"
calling on the Central Bank to
"Finding a solution for trade with Iran and Syria,
strengthening the Iraqi banking system and guaranteeing it to American banks, and
opening accounts for Iraqi banks to experiment with American banks."
https://www.alsumaria.tv/news/economy/493779/جدلية-استحواذ-مصارف-اجنبية-على-مزاد-دولار-العراق-تفصيل-شامل-للأسباب
Economy 2024-07-14 | 04:05
3,518 views
Alsumaria News-Economy
Today, Sunday, the researcher in banking and economic affairs, Mustafa Hantoush, reviewed the reasons for foreign banks’ acquisition of the largest percentage of shares in some banks inside Iraq and their acquisition of the currency auction, as the
strengths of these banks are that they are owned by foreign banks that are able to open accounts easily in application of international standards. American banks that supply the dollar. Hantoush told Al-Sumaria News,
“Some foreign investors and foreign banks obtained a percentage of shares of more than 51% in some banks inside Iraq, even though the Companies Law prohibits giving the foreign investor more than 49%.”
However, Hantoush reviewed the existence of a “legal loophole” that enabled the Central Bank to grant foreign investors greater percentages than those stipulated in the Companies Law, noting that
Article 107 of the Banking Law No. 94 of 2004 gives the authority to the Board of Directors of the Central Bank to determine the percentage of foreign investor ownership in banks without Compliance with general laws. He considered that
this paragraph is not supposed to mean that the percentage be more than 50%, but rather that it be less,
but the loophole is that the legal article gave absolute authority without mentioning that the percentage be less or more than 49%. He explains that
“there is no grant in the world of a share greater than 50% except in countries where there is a high circulation of funds, as they are bankrupt countries that do not possess wealth and fear the control of foreign banks.” He explained,
"According to this strategic mistake,
foreign banks were given more than 60% of the shares in banks inside Iraq, and
today we began to observe the fruits of this mistake, when the American side became aware of the presence of currency smuggling operations and trade with Iran and Syria, and
they set conditions for compliance.
The bank failed."
The Central Bank of Iraq and Iraqi banks apply the standards or the possibility of opening accounts for Iraqi banks in American banks to achieve oversight and fund their accounts in dollars.” He pointed out that
"when this happened and the scene became empty of Iraqi banks capable of taking on this role, these
foreign banks operating in Iraq were put forward, and
through the governors of the central banks of the countries of origin of these banks, they
presented themselves as a solution before Washington instead of presenting themselves as a mediator between Iraq." And America.” He stressed that
"Indeed, American banks relied on these foreign banks operating in Iraq, and
they opened accounts for them in Citibank and JP Morgan, for their parent banks in other countries, which own the largest part of these banks inside Iraq,
even though these banks in Iraq do not perform well." To achieve 5 points in global standards, it relied on its parent banks located in other countries.
Accordingly, Iraq are financed is now taking the dollars it owns in the US Federal Reserve,
and through them the accounts of these banks open in the accounts of Jeep Morgan and Citi Bank,
and from there the dollars are transferred to the rest of the world for Iraqi merchants,
and the merchants deposit the dinars in the Central Bank of Iraq.". He explained,
"Iraqi banks cannot play this role because they cannot open accounts in Citibank and Jeep Morgan because they do not have branches in countries trusted by the American banking system.
Also, the Central Bank of Iraq failed to guarantee Iraqi banks in front of American banks, and it succeeded earlier in 5 banks."
But it only lasted a month and then these banks were punished, and
they were also guaranteed by Jordanian banks.” He stressed that
"it is not possible to rely on foreign banks to manage the Iraqi banking system.
This model has failed in India because of its reliance on the foreign banking system, as the
foreign bank gives profits to its parent branches abroad, and does not reinvest the profits here inside Iraq,"
calling on the Central Bank to
"Finding a solution for trade with Iran and Syria,
strengthening the Iraqi banking system and guaranteeing it to American banks, and
opening accounts for Iraqi banks to experiment with American banks."
https://www.alsumaria.tv/news/economy/493779/جدلية-استحواذ-مصارف-اجنبية-على-مزاد-دولار-العراق-تفصيل-شامل-للأسباب
