INA - BAGHDAD
The PM Financial Advisor, Mudher Muhammad Salih, affirmed on Monday that the return of Iraqi banks to international transactions strengthens exchange market stability and expands channels for obtaining dollars.
"The return of Iraqi banks to international financial transactions enhances their ability to execute foreign transfers directly and raises the level of confidence of correspondent banks and investors in the Iraqi banking system. It also expands official channels for obtaining dollars to finance trade and imports, thus contributing to reducing the reliance of traders and companies on the parallel market for foreign currency," Salih told the Iraqi News Agency - INA.
He noted, "The stability of the dollar exchange rate in the parallel market does not depend on this factor alone, but is also linked to the banks' ability to meet the real demand for foreign currency, the effectiveness of anti-smuggling and anti-money laundering measures, the Central Bank's continued policy in managing foreign currency flows, and the strengthening of confidence in the banking sector and the stability of the economic and political situation."
“Coupling the return of banks with genuine banking and regulatory reforms, expanding trade finance services, and reducing restrictions that drive some traders to resort to the parallel market would significantly narrow the gap between the official and market exchange rates," he pointed out.
Salih added that "addressing the structural problems that the banking system has faced in recent years will make the return of these banks more impactful, supporting the stability of the exchange market and enhancing the chances of achieving a sustained decrease in the dollar's price on the parallel market."