Newspaper: the dollar smuggling to Syria and Iran represents a drain on the assets of Iraq

02/04/2012 09:27

Erbil, April 2 (Rn) – A newspaper published (life) of London on Monday, an article by writer intelligent sincere Khalidi, indicating the implications of smuggling dollar from Iraq to Syria and Iran, two countries that imposed on them economic sanctions from some major countries affected in their resources of foreign currency . The article points out that the dollar out of Iraq to those countries can take many forms such as… grants or loans from the Iraqi government to the official authorities in Syria and Iran. These operations can also be in the form of deposits by the Central Bank and commercial banks in Iraq, in the banks of those countries. In this case, is not considered out currency smuggling, but is to convert the official currency is expected to be aware of the official authorities in Iraq, the size effects and decide the extent to which the Iraqi economy to bear. , but it becomes smuggling when individuals or groups, informal transfer of dollars from Iraq to those countries. May take the smuggling exaggerated form sent to individuals or groups, or even official bodies without charge, or you may purchase amounts of local currency for those countries. The paper adds that “different from the effect of each form of these smuggling in the Iraqi economy. In the former case, which takes the the form of a grant from the charge, it certainly represents a drain on the assets of Iraq of foreign currency, especially if it continues the practice for a long time because the Central Bank of Iraq live auctions daily sale of foreign currency, which come from oil export revenues, to the banks for the purpose of raising the price of the Iraqi dinar gradually against the dollar. but in any case expected to be smuggling in this way is limited and the scope narrow. If taking the form of purchase of the local currency of these countries, whether purchased inside or outside Iraq, the local currency that targeted by the procurement process, it must be used for the purposes of imports of goods and services from these two countries. and thus can not be smuggling the repercussions of bad on the Iraqi economy, because what happens is a swap for foreign currency for goods imported, note that these two countries are considered the most important neighboring countries in the supply of goods to Iraq. In conclusion, author of the article by saying, “The continuing decline in the exchange rate of the dinar against the dollar to the high rates of local inflation. There is no doubt that the Iraqi government through border control, and the Central Bank of Iraq through the offices of money changers in the control of Iraq, they can put an end to this phenomenon, especially as the control of the central bank is not limited to banks, but also include money changers. May be difficult to prevent the phenomenon in its complete form but can mitigate and reduce its consequences. ” Open: Wafa Zangana