Iraq burns with the fire of the dollar as a price for Al-Kazemi’s mistakes… banned banks and obscene profits

Iraq burns with the fire of the dollar as a price for Al-Kazemi’s mistakes… banned banks and obscene profits

12-12-2022

Information / special.
The exchange rates of the dollar in the local markets are witnessing a relative increase, after the Iraqi people had reached more than 145 dinars for every 100 dollars following the decision of the previous caretaker government, but hopes for its decline again “disappeared” in the wind, after the dollar rose To more than 150,000 dinars for reasons that may be related in one way or another to selling currency and smuggling money out of the country.

It is noteworthy that, on December 19, 2020, the Central Bank of Iraq officially announced the adjustment of the exchange rate of the US dollar to be 145 thousand dinars for every 100 dollars, according to the state’s general budget for the year 2021 approved by Parliament.

A member of the Parliamentary Finance Committee, Mustafa Jabbar Sanad, revealed that the banned banks had acquired about 40 percent of the currency auction and smuggled money out of the country.

Sanad says in an interview with Al-Maalouma agency, “The high selling prices of the dollar in the markets came due to the exclusion of 4 private Iraqi banks accused of smuggling currency outside Iraq, which are Al-Ansari, the Middle East, Al-Qabid and Asia, following directives and warnings from the US Treasury Department.”

He adds that “the rise in the price of the dollar led to a decrease in the volume of sales of the foreign currency sale window from 240 million dollars to 140 million dollars,” noting that “the decrease in the volume of sales of the currency sale window, which led to the return of many remittances and the reduction of banks buying large quantities of dollars due to the decision.” The latter has the right to ban 4 private banks.

Sanad explains, “There are many reasons behind the dollar’s rise during the past days, which is speculation by currency traders, from which they get a lot of money without supervision,” stressing that “there are new government steps that will take it upon itself to return the dollar to the natural balance.”

For its part, the Central Bank of Iraq issued an explanation about the reasons for the high price.

The Central Bank’s advisor, Ihsan Al-Yasiri, said in a press statement followed by / information /: “The problem of the exchange rate is related to the money supply,” noting that “the Central Bank has established a platform for banks to submit their requests to obtain the dollar.”

And he shows that “this platform has procedures, because Iraq is still complying with international requirements on the issue of the dollar and combating money laundering and terrorist financing,” explaining that “some banks took time to implement these requests.”

And Al-Yasiri indicates that “banks previously submitted their requests and came to the central bank and obtained the dollar, but now the banks raise their requests on the platform and when they reach the central bank they are checked by the bank, and this process may take some time,” pointing out that “some banks have to International restrictions, and there is no longer any dealing with them by the Central Bank.

It is noteworthy that “the Central Bank dealt with this by raising the level of supply of demand for cash sale and increased the shares of banks and companies of category (A – B – C) from the dollar,” noting that “audit procedures will take their usual ranges, and the exchange rate will return to the natural balance.” “.

In addition, the economist, Nabil Jabbar, confirmed that Iraqi banks have begun to adopt new mechanisms in dealing with the dollar.

And Jabbar mentions in an interview with the information agency, “The central bank stopped dealing in the currency sale window with four banks affiliated with Ali Ghulam, and as a result of this suspension, the central bank’s sales witnessed a high decline, and this decline was not covered during the past month, and this was the most prominent reason for the rise in sales.” The price of the dollar during the past days.

The expert points out, “The US Treasury began discussions with the Central Bank and private banks, and delivered a kind of threat to these banks by imposing sanctions, and this prompted the banks to take new mechanisms in dealing with the dollar in order to protect themselves, and among these measures is to reduce the purchase of the dollar; fear of punishments.

And he adds, “The dollar spread in the Iraqi market comes from the Central Bank, and the latter sells the dollar through the currency sale window, and this window is the one that feeds the market with remittances or the direct market, and this dealing takes place through banks and exchange offices, which are the main distributors of dollars in the market and dealing with citizens.”

The demands of the people to return the dollar exchange rate to its former state may not be achieved, especially with the catastrophic mistakes caused by private banks and the great role they play in demonizing the Iraqi economy through money laundering and currency smuggling abroad, which delays the dream of returning until the government takes control of these banks.

almaalomah.me