Group of 14 US-Sanctioned Iraqi Banks Warn of ‘Negative Consequences’

Iraqi activists in front of the Central Bank in Baghdad demand economic reforms (EPA)
Iraqi activists in front of the Central Bank in Baghdad demand economic reforms (EPA)
TT

Group of 14 US-Sanctioned Iraqi Banks Warn of ‘Negative Consequences’

Iraqi activists in front of the Central Bank in Baghdad demand economic reforms (EPA)
Iraqi activists in front of the Central Bank in Baghdad demand economic reforms (EPA)

A group of 14 private Iraqi banks sanctioned by the US Treasury Department warned of "negative consequences" by depriving them of dealing in dollars.

The 14 banks have been banned from undertaking dollar transactions but can continue to use Iraqi dinars and other foreign currencies.

The sanctioned banks said in a joint statement that they deal in dollars with the Central Bank, under the supervision of the US Federal Reserve, and will apply the best auditing standards and investigation of financial transactions.

They said they were ready to challenge the measures and face audits through the Central Bank or an international auditing firm, asserting they'd take full responsibility for any violations if committed.

The statement noted that depriving about a third of Iraqi private banks of dealing in dollars will have negative consequences, not only on the value of the Iraqi dinar against the US dollar, but it will have a significant impact on foreign investments.

They called on the Iraqi government to take all measures to solve this problem and bear the losses they incurred and the banking sector in general.

The United States uncovered information that the Iraqi banks engaged in money laundering and fraudulent transactions, some of which may have involved sanctioned individuals, and raised concerns that Iran could benefit.

An economics professor at al-Basra University, Nabil al-Marsoumi, issued Wednesday data on the number of private banks in Iraq, saying they exceed that of countries such as Britain which has 54 banks only.

Marsoumi reported that the total number of banks in Iraq is 81, including 74 private banks, saying the ratio of public to private banks is the highest in the Middle East, with 43 in Turkey, 41 in Egypt, 31 in Saudi Arabia, 30 in Iran, 26 in Jordan, and 20 in Algeria.

Iraq has 29 Islamic banks, constituting more than a third of the banks in the country, said the expert.

Marsoumi hinted that political groups and parties control most banks.

Meanwhile, dozens demonstrated in front of the Central Bank in Baghdad to protest the sharp decline in the exchange rates of the Iraqi dinar against foreign currencies and chanted against the governor and some political parties and figures, accusing them of manipulating the exchange rates.

The Iraqi dinar reached 1,600 per US dollar in the local markets, compared to an official exchange rate of 1,320 dinars.

Furthermore, independent MP Hadi al-Salami officially requested the dismissal of the governor of the Central Bank, Ali al-Alaq.



Egypt Seeks Up to 60 LNG Shipments

A general view of the Nile River from the Egyptian capital, Cairo (Reuters).
A general view of the Nile River from the Egyptian capital, Cairo (Reuters).
TT

Egypt Seeks Up to 60 LNG Shipments

A general view of the Nile River from the Egyptian capital, Cairo (Reuters).
A general view of the Nile River from the Egyptian capital, Cairo (Reuters).

Egypt is in advanced talks with global energy and trading firms to secure between 40 and 60 shipments of liquefied natural gas (LNG), aiming to meet urgent energy needs before summer demand peaks, according to sources familiar with the matter cited by Reuters.
Cairo is negotiating with companies including Saudi Aramco, Trafigura, and Vitol for LNG supply deals extending through 2028, signaling a strategic shift from exporter to long-term importer amid declining domestic production, Asharq Bloomberg reported.
Sources say the Egyptian Natural Gas Holding Company (EGAS) has received 14 bids for supply contracts ranging from 18 months to three years. The rising demand this year could push Egypt’s monthly LNG import bill to nearly $3 billion starting in July, up from approximately $2 billion last year.
This move reflects Egypt’s effort to lock in long-term contracts to reduce exposure to volatile spot market prices. It also underscores the country’s deepening energy challenges: a sharp drop in gas production, increasing population, and soaring summer temperatures are straining domestic supply and forcing reliance on global markets.
Contract awards are expected next week. Plans call for 110 LNG shipments in the second half of 2025, 254 in 2026, and 130 in the first half of 2027.
One source said bids price LNG at 80 to 95 cents per million British thermal units (MMBtu) above the European benchmark, with payment deferrals of up to 180 days. European gas futures currently trade at about $12 per MMBtu, though LNG cargoes typically sell at a discount.
Egypt is also expanding infrastructure, including the addition of floating storage and regasification units, and is negotiating long-term supply deals with Qatar.
A recent Goldman Sachs report estimated Egypt’s 2024 energy deficit at over $11.3 billion, doubling the current account shortfall to 6.2% of GDP, compared to 3.2% the previous year.
President Abdel Fattah al-Sisi has directed the government to preempt power outages this summer, according to a presidential statement this week.
A government source told Reuters Egypt is also considering importing at least 1 million tons of fuel oil, though LNG remains the preferred option due to its more flexible financing.
With gas output in February hitting its lowest level in nine years, Egypt imported 1.84 million tons of LNG in early 2025—roughly 75% of total 2024 imports, according to S&P Global Commodity Insights.