Shafaq News..CBI: Most Al-Taif deposits guaranteed

Shafaq News- Baghdad

Most depositors’ funds at Al-Taif Islamic Bank are
guaranteed, and the Central Bank of Iraq (CBI) will intervene if the lender
faces a shortfall, Governor Nizar Nasser Hussein said on Sunday.

Speaking with a group of economic specialists, Hussein said
the CBI has reserves, financial tools and contingency plans to manage crises,
adding that it has strengthened internal oversight and taken preventive
measures toward financial and banking institutions.

The CBI is continuing its banking sector reform program in
coordination with consulting firm Oliver Wyman. Hussein said the next phase
would bring further changes aimed at strengthening the sector and integrating
it more closely with the international financial system.

He added that international confidence in the CBI was “very
high.”

On Iraq’s money supply, Hussein said the CBI has issued
about 107 trillion dinars (about $81.7 billion) in currency, while roughly 40
trillion dinars (about $30.5 billion) is circulating in the market.

He also said changing the currency falls within the CBI’s
authority, while removing zeros would require legislation from parliament.

The CBI plans to launch new lending initiatives for key
projects to stimulate investment and production and expand the private sector’s
role in the Iraqi economy, Hussein said.

He described banking reform as an ongoing process aimed at
building a more efficient and competitive sector, adding that the government’s
economic approach places greater emphasis on the private sector’s role in
development.

Al-Taif Islamic Bank was placed under CBI guardianship on
Sept. 2 over violations that the Central Bank said had affected its financial
position and depositors’ funds.

Read more: Banking reform: Between necessary change and crippling conditions