Central Bank of Iraq invests in US Reserve System
Signage outside Silicon Valley Bank headquarters in Santa Clara, California, US. Photo: Bloomberg
Baghdad (IraqiNews.com) – The financial advisor to the Prime Minister, Mazhar Muhammad Salih, explained on Monday that the Central Bank of Iraq (CBI) invests money in the US Reserve System, and does not have any deposits in Silicon Valley Bank (SVB), the Iraqi News Agency (INA) reported.
Last Friday, the US authorities shut down the SVB, after the financial institution in California became unable to meet the massive withdrawals of its customers.
The largest US bank failure since the financial crisis of 2008, and the second largest retail bank failure in the United States, caused concern among customers, questions about the consequences and a wave of panic in global markets.
US Secretary of Treasury Janet Yellen, Chairman of the Federal Reserve of the United States Jerome Powell, and Chairman of the Federal Deposit Insurance Corporation Martin Grunberg issued a joint statement announcing the Fed’s decision to make additional funding available to banks to help provide them with the funds they need to meet the needs of depositors.
The SVB’s activity is focused on the technology sector, which could eliminate startups all over the world without government intervention.
The bank’s collapse led to a decline in the value of shares of banking sector in the United States as well as in Asian and European markets.
The SVB, based in Santa Clara, California, is the 16th largest US bank with assets of 209 billion USD, which makes potential buyers who can execute a deal to buy it relatively few.