Hard Currency Is Being Drained With The Blessing Of The National Bank. Experts Warn Of A Catastrophe That Will Cripple The Iraqi Economy

Economy     2025-07-19 | 06:10  1,903 views   Alsumaria News – Economic   Bank's monopoly 
The National on dollar transfers has sparked widespread controversy in Iraqi economic and commercial circles, amid accusations that it dominates foreign currency sales and transfers, threatening the principle of fair competition and increasing pressure on the local market.  

Observers believe this monopoly has contributed to rising exchange rates and limited options for traders and citizens.
 
Meanwhile, financial experts assert that the lack of effective oversight and the overlapping interests of influential parties have given the bank near-absolute control over the dollar's movement. 

Observers noted that  almost complete monopoly "the National Bank, with the support of influential parties,   was able to obtain near-exclusive control over foreign remittances from Iraq,  while a number of Iraqi banks were restricted and barred from accessing the electronic remittance platform."  

He added, "This monopoly is not merely technical in nature, but is also due to pressure from political backgrounds and influential figures with ties to the bank's senior management, raising concerns about administrative and financial corruption."

They continued,  "The manipulation of remittances also leads to a drain on hard currency, as the National Bank is estimated to be transferring huge sums of dollars abroad,  taking advantage of exchange rate differences and dollar auctions without adequate oversight." 

They noted that "there are huge economic losses estimated at billions of dinars annually
     —such as 7.5 billion dinars stolen from Iraqi profits and sent directly to Amman
     —that are draining the Jordanian economy."
 
Dividend Distribution – Who Benefits?
 
The National Bank of Iraq (NBI) achieved huge profits following the acquisition; its net profit after tax for 2023 reached approximately 190 billion dinars,  compared to 27.5 billion dinars in 2022.

Revenues from the currency window  also increased 26-fold to approximately 93 billion dinars,  67% of which is transferred to non-Iraqi entities.

External destination: A large percentage of these profits go to Jordan,  according to representatives and experts, and  are added to the budgets of the parent companies, representing  a clear drain on liquidity and foreign currency in excess of the local markets' needs.
 
The Size Of The Monopoly And The Impact Of The Law
 
waived Article 107 of the Banking Law any limits on foreign investor ownership (up to 100%),
enabling foreign-owned banks to dominate, while such licenses are practically prohibited for Iraqi banks.
 
granted The Central Bank licenses and controlled currency auctions in a non-transparent manner, and
amended laws to support the interests of certain parties at the expense of national financial sovereignty.
 
Supervisory Calls
 
Observers called for "an urgent parliamentary investigation into the procedures that led to the
National Bank's leadership,   documenting financial transactions,  identifying the parties involved,  reviewing the banking law and amending Article 107 to end foreign control and  enable Iraqi banks to compete, as well as abolishing the monopoly currency window and  replacing remittance distribution with a transparent system managed by the  government   or a unified platform without the control of a private bank."   

They stressed the "need to refer the National Bank to direct oversight by the Central Bank, strengthen monitoring of transfers and the exchange rate, and impose penalties on violators."
 
The National Bank of Iraq's ongoing monopoly over foreign remittances   negatively impacts the national economy and  leads to the transfer of huge profits abroad.
 
This has prompted calls for  parliamentary action to investigate the matter through judicial and legislative means, as well as for  fundamental reforms to regulatory institutions and the banking system.  Experts stated that "Iraqi depositors are the losers in this financial game, while dinars and hard currencies are being siphoned off under the guise of legal transfers."      
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