Iraq’s banking system heavily dependent on oil revenues, says PM’s economic advisor

Referring to the nation’s financial sector as “highly dependent on oil revenues,” Mudhhir Mohammed Saleh, the economic adviser to Iraqi Prime Minister Mohammed Shia Al-Sudani, advocated significant structural changes.

In an explanation to, Saleh clarified, “The Iraqi financial industry is rentier in nature, paying little heed to proprietorship. It depends mostly, both directly and indirectly, on government liquidity and oil income.

“The financial framework gets its exercises from government spending, showing an absence of monetary freedom and a powerlessness to prepare wanted reserve funds inside society from surplus monetary powers towards the speculations required for high supporting of manageable development and improvement,” he further said.

Saleh concentrated on the need for “a thorough change cycle to make market foundations,” noting that this would allow Iraq’s financial sector to coordinate with the international monetary and banking frameworks, thus appealing to global banks.

Earlier, Al-Sudani, Head of the State, reported the creation of a noteworthy level board aimed at modifying Iraqi banks in line with world monetary policies. He also instructed private banks in laying out offset relationships with financial backers, Bedouin banks, and monetary institutions.