The alarm beats without a hearing .. Banks without scrutiny and depletion of the reserve auction currency

The alarm beats without a hearing .. Banks without scrutiny and depletion of the reserve auction currency

2019-11-26 | 05:10

Although the government and parliament acknowledged the existence of a large corruption in the currency auction, which led to the depletion of hard currency, but the central bank continues to sell through the auction, which is conducted daily for a number of private banks.
According to a number of experts and specialists, these profits obtained by these banks from the currency auction makes these banks, some of which are founded without scrutiny indispensable to the direction of the market and take risks and loans in the framework of providing service to the citizen, and thus the currency auction has become a “hole in the state treasury “With the knowledge of the highest authorities who have not lifted a finger to remedy the danger despite the constant warnings.”

Economist: 15% of the currency auction goes as money laundering

Economist Abdul Rahman al-Mashhadani said in an interview with Alsumaria News that “15% of the bank’s sales through the auction go as money laundering,” noting that “the parliamentary financial and economic committee talked about it and all government agencies were unable to stop the auction and continued to drain the hard currency because of its association With great political figures. ”

Mashhadani adds that “the real import rate for the private sector is 35 billion dollars annually, but what the bank sells during the year through the auction is 50 billion dollars,” noting that “corruption has become clear even in the regulators, but the power and influence of influential people in banking institutions is “It is bigger than accounting and it continues to do so despite its legalization in previous years.”

The dollar escapes with nothing

The economist Dorgham Mohammed Ali in an interview with Alsumaria News that “the auction, which was established in 2004 was created with the aim of not obtaining a monopoly of the dollar on the one hand and to buy the Iraqi dinar to cover the budget and prevent inflation on the other hand and was a tool to control the exchange rate, but the value difference between the sale of cash and remittances “It was a profit margin for the banks involved in the auction and a limited number of companies, which led to the smuggling of large amounts of dollars.”

He added that “the auction has become a corridor for profit instead of real banking and became a passage for the dollar exit with import permits do not import anything and is not scrutinized on goods purchased for these transfers, which constituted a conduit for corrupt to get their money out of the country legally and not to adopt the documentary credits used in the world to cover business deals and banks So far, the banking companies share the spoils of the auction through the transfer of currency abroad without the need for import and various addresses, which led to the loss of tens of billions of foreign currency smuggled annually.

Establishing banks without auditing

“There are banks, especially Islamic ones, which have been opened and granted licenses without any scrutiny of their financial capabilities and capabilities,” economist Mohammed al-Hasnawi told Alsumaria News.

He added that these banks do not do any credit work, but only their work in the auction of currency and transfer of foreign currency through the laundering of money, calling on “the Central Bank and the regulatory authorities to scrutinize how these banks get the founding license.”

Deputy: Money wasted auction equivalent to the budgets of countries

“The money wasted in the currency auction over the previous years is equivalent to the budgets of countries and enough to operate a large number of stalled factories and eliminate the largest percentage of unemployment in the country,” MP Ali al-Budeiri told Alsumaria News. “The parties dominate the decision and have control over some of the media to prevent the highlight of this dangerous file.”

Al-Budairi added that “some of the beneficiaries of the currency auction are present in the source of the decision, if the decision is legislative or executive,” noting that “any party or deputy opens the subject of currency auction, it is closed and at a strange speed.”

Al-Budeiri pointed out that “hard currency comes out of Iraq in money laundering and smuggling of currency under different headings and incorrect receipts and bonds,” pointing out that “there is a regional and internal planning and cover up the corruption files in the currency auction and mafia dominated.”

“If we leave all the files of corruption and focus on the files of border outlets and currency auction, we will return very large amounts to the treasury of the country and provide a very important revenue for future budgets.”

Currency auction is a big file for corruption

For her part, says a member of the parliamentary economy and investment committee Nada Shaker Jawdat, “the parliamentary economy and investment committee is continuing to investigate the issue of currency auction,” noting that “we have continuous contact with a number of private bodies in this area.”

Jawdat adds in an interview with Alsumaria News that “the process of wasting currency and what is happening in the currency auction is something we have not heard or see in all countries of the world, which takes all measures to maintain its hard currency from wastage and works to rationalize spending even in the field of import to reasonable levels He pointed out that “what is happening in Iraq is a case of fake imports and other ways that lead to the daily waste of large numbers of hard currency for no reason.”

Shakir pointed out that “the currency auction file is a large file of corruption and we have worked to open an investigation into it, but the demonstrations and the focus on laws that support the demands of the public, including the law of public-private partnership made the investigation procedures are deliberate,” explaining that “among the proposals that “We have to reduce the waste in the currency auction is to impose a tax on the money out at certain rates, which creates revenues for the state and make things work properly.”

“This proposal has been widely welcomed by the General Tax Authority and we have reached a semi-final formula which needs to be matured in order to be formally put forward,” Jawdat said, stressing that “we are continuing the procedures to preserve hard currency from waste and corruption and we have coordination and cooperation with the side And the Central Bank and the Tax Authority in this regard. ”

The Central Bank of Iraq sells the dollar to private banks and financial transfer companies through the auction, which is conducted daily and the amount of $ 150 million, which these figures rise or fall as requested by these banks, which in one way or another affect the reserve of the Central Bank of Iraq, which was significantly affected recently As a result of non-symmetry between what he gets from the dollar and between the sale through auction.

It is noteworthy that the pace of accusations escalated on currency smuggling, which cast a shadow on the selling prices of the dollar in local markets and led to an increase in the exchange rate months ago, while deputies demanded that the government to stop the sale of currency in auctions of the Central Bank, others stressed that Iraq is losing Large amounts of money are smuggled out of the border every day.

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