An economist announces loudly: The banking sector is facing annihilation

On Saturday, economic researcher Mustafa Hantoush called the actions of the Central Bank of Iraq and the US Federal Reserve “annihilation” of the Iraqi banking sector.

According to Hantoush, “Not all exchange companies, banks, and financial companies employ devious methods. There are specific percentages in them, and many exchange companies are reputable, regardless of their category – A, B, or even C.”

He said that the Central Bank failed to set up a trade mechanism with Iran and Syria, prevent smuggling and introduce new mechanisms. Moreover, the Bank was unable to alter its financial policy due to the limited thinking of its management. As a result, the Bank accused the banks in front of the US Federal Reserve, which then worked towards eradicating the banking sector and demanded a reduction in cash.

He emphasized that the mechanism used facilitates dollar smuggling due to the existence of a profitable parallel market. As a result, we resorted to seeking quick profits.

The speaker mentioned that the Central Bank has started taking steps to prevent the dollar from reaching the public, which includes withdrawing mechanisms from the parallel market. Additionally, they have decided to cease the operations of Western Union, MoneyGram, Zain Cash, and many other similar entities. The speaker believes that this would lead to the collapse of the banking sector.

He explained that the lack of knowledge about regulating trade with Iran and Syria, opening accounts at TBI for small merchants, and stopping smuggling had caused all of this.