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)
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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.



Aramco Completes Acquisition of 10% Stake in Horse Powertrain Limited

Aramco’s pavilion at the Global Future Investment Initiative conference held in Riyadh (FII webiste)
Aramco’s pavilion at the Global Future Investment Initiative conference held in Riyadh (FII webiste)
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Aramco Completes Acquisition of 10% Stake in Horse Powertrain Limited

Aramco’s pavilion at the Global Future Investment Initiative conference held in Riyadh (FII webiste)
Aramco’s pavilion at the Global Future Investment Initiative conference held in Riyadh (FII webiste)

Aramco, one of the world's leading integrated energy and chemicals companies, through a directly and wholly owned subsidiary, Aramco Asia Singapore Pte. Ltd., has completed the purchase of a 10% equity stake in Horse Powertrain, a global leader in hybrid and internal combustion powertrain solutions.

The transaction builds on Aramco's efforts to develop new mobility solutions with the potential to reduce transport emissions.
The transaction's completion follows the signing of definitive agreements on June 28, 2024, and receipt of all applicable regulatory approvals. Aramco's investment is based on Horse Powertrain's €7.4-billion enterprise valuation, in which Renault Group and Geely (through Geely Holding and Geely Auto) each retain a 45% stake, SPA reported.
Aramco Executive Vice President of Technology & Innovation Ahmad O. Al Khowaiter said: "Addressing transport emissions requires a wide range of approaches that consider the diverse nature of the global vehicle fleet, broad disparities in transport infrastructures, and the specific needs of motorists in different countries. At Aramco, we are pursuing several potential innovative solutions, from lower-carbon synthetic fuels to more efficient internal combustion engines, as we look for opportunities to make a difference. Our investment in Horse Powertrain builds on our considerable R&D in this field. In joining forces with two of the world's leading carmakers, we aim to leverage our collective know-how to take lower-emission mobility solutions forward."
For his part, CEO of Horse Powertrain Matias Giannini said: "We are delighted that Aramco has closed its investment in Horse Powertrain. Aramco's expertise in alternative and synthetic fuels makes Aramco the ideal partner for us to deliver lower-emission powertrain solutions. By strengthening our technology leadership with this partnership, Horse Powertrain will only become more valuable as a partner to automotive brands looking to benefit from our expertise and global production footprint."

CEO of Valvoline Global Operations Jamal Muashsher said that as a technical partner and supplier to Horse Powertrain, "we look forward to applying Valvoline Global's 150-plus years of automotive expertise and tradition of innovation to advance future-ready solutions in internal combustion engine technology, fuels, and lubricants. Our newest joint effort with Horse Powertrain and Aramco builds on Valvoline Global's strong history in original equipment manufacturer partnerships. Through collaboration, we are helping to shape the next generation of mobility."

Aramco's investment is expected to accelerate Horse Powertrain's efforts to develop next-generation internal combustion engines (ICE), hybrid powertrains, and complementary technologies like alternative fuel and hydrogen solutions. As part of the transaction, Aramco and affiliate Valvoline Global Operations will collaborate with Horse Powertrain on innovations in ICE technology, fuels, and lubricants.
Thanks to its technology leadership, global manufacturing, and economies of scale, Horse Powertrain will further solidify its value proposition to automotive and transportation groups worldwide. Horse Powertrain aims to become a peerless partner for accessible, cutting-edge hybrid and ICE powertrain solutions, helping to reduce global vehicle emissions.