Hoda Jassim (Baghdad)
Dozens of Iraqis staged a protest in front of the Central Bank yesterday, to demand that the government intervene in order to regulate the exchange rate of the Iraqi dinar against the dollar.
The exchange rate on the black market rose to a record level of 158 thousand dinars per 100 dollars, while the authorities kept the exchange rate in the central bank at 146 thousand dinars per 100 dollars.
Price fluctuations and currency depreciation caused waves of inflation. Iraqi economist Kovind Sherwani considered that one of the reasons for the currency shortage is the sanctions imposed by the US Treasury Department on a number of Iraqi banks that contributed a large share in selling the currency.
Sherwani added, “The first reason is the issuance of sanctions by the US Treasury Department on a number of Iraqi banks that accounted for a large share of the currency sale window. The second matter is that the Central Bank of Iraq has created an electronic platform for submission by banks and exchange offices to apply for currency purchase requests, and this platform contains requirements.” Imposed by the US Treasury and the Federal Bank, it seems that Iraqi banks have become late in meeting these requirements required by the electronic platform. The third issue is the existence of speculation in the markets by some merchants who monopolize the currency and store it for other periods.
In another context, an Iraqi court yesterday summoned the Minister of Justice and another official in the ministry against the background of “obstructing an investigation into a possible corruption case,” related to providing food to prisons, after they refused to provide documents, according to a statement issued by the Federal Governmental Integrity Authority.
Suspicions of corruption
In early December, the Integrity Commission, which is specialized in investigating corruption cases, opened an investigation “about information on suspicions of corruption in the file of feeding prisoners,” and about “the poor quality of the food provided,” and about the insufficient quantities being supplied despite the payment of financial dues, as stated in official statements. And the statement of the Integrity Commission stated that “a recruitment order was issued against the current Minister of Justice and the director of security clearances in the ministry by a court specialized in corruption cases, due to their abuse of the authority of their jobs and their refusal to provide the team of the Integrity Commission with the required documents.” The head of the Integrity Commission, Haider Hanoun, said in a press conference yesterday that “these required documents convict the accused,” accusing the minister of “using his authority to obstruct the work of the Integrity Commission.”
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