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Iraqi Central Bank Governor Is Collaborating With Iran In Counterfeiting, Money-Laundering – As Part Of Iran's Efforts To Circumvent U.S. Sanctions


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March 28, 2019 No.
7970

Senior Former Hashd Al-Sha'bi Official To Saudi Alarabiya.net: Iraqi Central Bank Governor Is Collaborating With Iran In Counterfeiting, Money-Laundering – As Part Of Iran's Efforts To Circumvent U.S. Sanctions

 

On March 11, 2019, the Saudi news outlet Alarabiya.net, which is known for its anti-Iran views, published a report that quoted a former senior Hashd Al-Sha'bi and Badr Organization official as stating that officials in Iraq's financial system, headed by Central Bank of Iraq governor Ali Al-'Alaq, were operating in service of Iran's Islamic Revolutionary Guards Corps (IRGC) and participating in counterfeiting money and money-laundering for the IRGC and Hizbullah in Lebanon.  

The former Hashd Al-Sha'bi and Badr Organization official told the website, in an anonymous interview, that Al-'Alaq had met many times with Abu Mahdi Al-Muhandis, Hashd Al-Sha'bi deputy leader and right-hand man of IRGC Qods Force commander Qassem Soleimani. He added that "individuals blacklisted by the U.S.," among them Imam Ali Brigades commander Shibl Al-Zaydi, arrive frequently at Beirut's international airport to transfer the funds to the IRGC and Hizbullah.

According to the Alarabiya.net report, Iran is circumventing the U.S. sanctions in a number of ways. One is by counterfeiting Iraqi dinars in Iran and having Iranian pilgrims bring them into Iraq, where they are converted into U.S. dollars that are then smuggled into Lebanon via Rafic Hariri International Airport in Beirut and from there transferred to the IRGC forces there and to Hizbullah. Another is with the Central Bank of Iraq's involvement; it sells foreign currency to banks under Iranian ownership at an exchange rate lower than market rate, and the Shi'ite banks rake in profits which are used to fund IRGC activity.

It should be noted that in recent months Iran has been locking down its control of the Iraqi banking system in order to circumvent the U.S. sanctions.[1]As part of these efforts, Iranian President Hassan Rohani visited Iraq earlier this month, on March 11-13, 2019, and signed several memoranda of understandings for trade, oil, and transportation.

The following is the translation of the Alarabiya.net report:

Money.png
Counterfeit bills (image: Alarabiya.net)

"'An Iraqi money mafia is operating in accordance with IRGC guidelines, leading the largest money-laundering operation in Iraqi history.'

"This serious admission is by a former top commander of Hashd Al-Sha'bi and the Badr Organization, in a phone conversation with Alarabiya.net, during which he exposed the secrets of the many counterfeiting and money-smuggling operations via the Iraq-Iran border to Hizbullah at Beirut airport and the IRGC in Tehran.

"He began: 'There are influential Iraqi figures who are taking advantage of Iraq's financial system, due to pressure [on them] from the armed factions in the country, to provide Iran with U.S. dollars in roundabout ways while at the same time circumventing the American sanctions...'

"The main way [this is done is by] flooding the Iraqi market with counterfeit dinars in order to buy dollars, with the backing of Central Bank of Iraq governor Ali Al-'Alaq, who is among those closest to former Iraqi prime minister Nouri Al-Maliki. [It was Al-Maliki who] personally insisted on [Al-'Alaq's] appointment as bank governor despite the many reservations. The counterfeit currency is smuggled across the border and is not subject to checkpoints. It is brought into Iraq by Iranians who are making pilgrimage to the holy sites at Karbala and Al-Najaf.'

"According to the Al-Hashd official, Central Bank of Iraq governor Al-'Alaq has met many times with Abu Mahdi Al-Muhandis, deputy leader of Hashd Al-Sha'bi, who is known as Qaassem Soleimani's man... in order to facilitate the transfer of dollars to the terror organizations – Hizbullah in Lebanon or the IRGC. He stressed that [the employees of] Iraq's financial institutions fear these people, who [are members of] designated terrorist organizations. Because of the threats [by IRGC and Hizbullah supporters in Iraq], they are following the Iranian guidelines and providing backing for the money laundering, even if it is at the expense of the Iraqi economy and the destruction of the local currency.

"Alarabiya.net tried many times, with no success, to speak with Ali Al-'Alaq on his cellphone, after being told by the information department of the Central Bank that he was abroad. We also tried to contact the head of the Administration of Financial Operations at the Central Bank, but were likewise unsuccessful.

"The Hashd official further revealed that 'individuals blacklisted by the U.S.'  were managing to enter Beirut airport, with the backing of Hizbullah officials, including Imam Ali Brigades secretary-general Shibl Al-Zaydi, who is the proxy of Qods Force commander Qassem Soleimani. According to this information, Shibl Al-Zaydi is a regular visitor to Beirut, and has met with Hizbullah's Iraqi affairs chief Muhammad Kotharani, in the capacity of his role to transfer funds to Hizbullah.

"There are many apprehensions regarding Al-'Alaq's administration of the Central Bank of Iraq, particularly in all things concerning the foreign currency auctions.[2] Knowledgeable sources told Alarabiya.net that the Central Bank is selling dollars to civilian 'Islamic Shi'ite' banks belonging to Iranian elements, at a rate lower than market rate. Thus [the civilian banks] are raking in huge profits that are being used to provide a regular cash flow to the IRGC and Hizbullah in Lebanon...

"According to the sources, another method being used [by Iran] to keep foreign currency is that the Iranian regime does not pay Iraq the entry visa fees for Iranian pilgrims. The amount of the fees is offset against  Iraq's debt to Iran for the natural gas and electricity that it imports [from Iran].[3]

"Alarabiya.net has obtained the reports on the counterfeit funds seized at Al-Najaf [International] Airport [in Iraq] in the last four months. Thus, on February 18, 2019, $28,000 in counterfeit currency and also 225,000 counterfeit Iraqi dinars were found in the possession of an Iraqi traveler coming from Beirut; on February 3, 2019, 39 million counterfeit Iraqi dinars were confiscated; on December 27, 2018, $66,000 were confiscated and on October 10, 2018, $448,000 in counterfeit bills were found in the possession of an Iraqi traveler..."[4]

 


[2] Foreign currency auctions, held by the Central Bank of Iraq at least once a week, allow banks and businessmen to acquire foreign currency. The actionshave been extensively used as a method of capital flight by corrupt politicians and as a method of money laundering to help Iran obtain dollars.

[3] It should be noted that during Iranian President Rohani's visit to Iraq, he announced that both sides had agreed that there would be no charge for entry visas to each other's countries. President.ir, March 11, 2019.

[4] Alarabiya.net, March 11, 2019.

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Thank you for this post pp.  

 

I’ve been waiting for an article like this and it doesn’ surprise me in th least.  The entire region is corrupt.  Maybe now they can start to clean up the thievery.  Corruption doesn’t get too much Guru talk but I believe it is an important step that must be corrected in order to have an RV.  

 

Its kind of disheartening that the CBI leaders are helping Iran, but there is Maliki again, right in the middle of the corruption.!!!

Geeeezz

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You are right Pitcher...how can they RV with all of this going on but the good thing is the CBI Governor has been exposed but what will be done about it. Stop the Auctions!!! With Mahdi bring the Prime Minister and Iran's puppet this is not a good thing. I have no idea which direction this is going to go in.

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HEY, HEY, HEY EVERBODAE’!!!

 

ALL Good News HERE!!!

 

THOSE nominally 37 TRILLION Bicraqi Iraqi Dinar proverbially  UNDER the Bicraqi Iraqi MATTRESSES ALL Insanian COUNTERFEIT Bicraqi Iraqi Dinar???!!!

 

JUST a FLIP OF THE SWITCH to INTERNATIONAL Bicraqi Iraqi Dinar AND the Insanian Bicraqi Iraqi Financial Corruption GOES AWAY!!!!!!!!!!!!!!!!!!!!

 

:backflip:       :backflip:       :backflip:

 

The Bicraqi Iraqi WILL BE ALL Upset AND Irrate WITH the Insanians in Iraq AND “boot” the Insanians OUT BECAUSE of ALL the WORTHLESS COUNTERFEIT Insanian Bicraqi Iraqi Dinar put IN circulation IN Iraq BY the Insanians!!!

 

Go Moola Nova!

:pirateship:

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19 minutes ago, Synopsis said:

HEY, HEY, HEY EVERBODAE’!!!

 

ALL Good News HERE!!!

 

THOSE nominally 37 TRILLION Bicraqi Iraqi Dinar proverbially  UNDER the Bicraqi Iraqi MATTRESSES ALL Insanian COUNTERFEIT Bicraqi Iraqi Dinar???!!!

 

JUST a FLIP OF THE SWITCH to INTERNATIONAL Bicraqi Iraqi Dinar AND the Insanian Bicraqi Iraqi Financial Corruption GOES AWAY!!!!!!!!!!!!!!!!!!!!

 

:backflip:       :backflip:       :backflip:

 

The Bicraqi Iraqi WILL BE ALL Upset AND Irrate WITH the Insanians in Iraq AND “boot” the Insanians OUT BECAUSE of ALL the WORTHLESS COUNTERFEIT Insanian Bicraqi Iraqi Dinar put IN circulation IN Iraq BY the Insanians!!!

 

Go Moola Nova!

:pirateship:

 

I have a question, Synopsis.

Why do you think the "mattress money" is counterfeit?  Maybe the counterfeit money is in circulation in Iraq.

 

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15 minutes ago, jake21 said:

The one thing your missing is that Alaq is the one that will or won't push the button to RI. As long as Thst dirtbag Maliki is controlling him, forget about it

 

No Worries HERE, Jake21, AND The Very Best Of Your Weekend To You!!! :tiphat:

 

THERE IS SO MUCH PRESSURE ON the Bicraqi Iraqi CBI to ReInstate the Bicraqi Iraqi Dinar INTERNATIONALLY NOW that Ole Mr. Potatoe Head Nouri al-Maliki Bicraqi Iraqi CBI Goof Ball Governor Ali al-Alaaq WILL “respond” ACCORDINGLY ESPECIALLY WITH The United States Of America Treasury having the Insanian “corruption” “goods” on Goof Ball Bicraqi Iraqi CBI Proxy Governor Ali al-Alaaq!!!

 

Goof Ball Bicraqi Iraqi CBI Proxy Governor Ali al-Alaaq IS NOT a Bicraqi Iraqi “elected” “official” WITH “immunity” SO COULD BE INTERNATIONALLY PROSECUTED FOR INTERNATIONAL WIRE FRAUD AMONGST OTHER INTERNATIONAL CRIMES!!!

 

12 minutes ago, Floridian said:

 

I have a question, Synopsis.

Why do you think the "mattress money" is counterfeit?  Maybe the counterfeit money is in circulation in Iraq.

 

 

HOW Can They Differentiate, Floridian, AND The Very Best Of Your Weekend To You!!! :tiphat:

 

Proportionally, THERE maybe BABY a WHOLE LOT LESS REAL Bicraqi Iraqi Dinar CHUNKAE’ MONAE’ THAN what IS being reported SO the “transition” WILL be impacted LESS THAN what IS reported!!!

 

Go Moola Nova!

:pirateship:

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17 minutes ago, Synopsis said:

 

CBI Proxy Governor Ali al-Alaaq IS NOT a Bicraqi Iraqi “elected” “official” WITH “immunity” SO COULD BE INTERNATIONALLY PROSECUTED FOR INTERNATIONAL WIRE FRAUD AMONGST OTHER INTERNATIONAL CRIMES!!!

 

Proportionally, THERE maybe BABY a WHOLE LOT LESS REAL Bicraqi Iraqi Dinar CHUNKAE’ MONAE’ THAN what IS being reported SO the “transition” WILL be impacted LESS THAN what IS reported!!!

 

 

So what happens with all this counterfeit money, either under the mattress or in circulation?

Do the poor Iraqi people lose everything (on top of everything else they've been through) or will they be, in some way, compensated if the fault lies with the CBI and others, due to helping the Iranians?

Edited by Floridian
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"Alarabiya.net has obtained the reports on the counterfeit funds seized at Al-Najaf [International] Airport [in Iraq] in the last four months. Thus, on February 18, 2019, $28,000 in counterfeit currency and also 225,000 counterfeit Iraqi dinars were found in the possession of an Iraqi traveler coming from Beirut; on February 3, 2019, 39 million counterfeit Iraqi dinars were confiscated; on December 27, 2018, $66,000 were confiscated and on October 10, 2018, $448,000 in counterfeit bills were found in the possession of an Iraqi traveler..."[4]

 

$ 28,000

        194

   33,540

   66,000

 448,000

--------------

$575,734  seized in the last 4 months

 

How much was NOT seized?

 

So I guess this is true.  Ali al Alaq is good-for-nothing, and the IMF is blind to what's going on.

Where does that leave us, who are waiting with baited breath for the RV?

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Here's an article from March 7th.   Looks like we're sunk!  I don't know if this article was posted before, but this is the first time I'm reading it.  The link was on the bottom of the article that Poker Player posted above.  Apparently, Iraqi papers would not report this.  It was reported in Iran.  Any opinions of what might happen next, due to this horrible news?

 


[1] See MEMRI Special Dispatch No. 7932, In Advance Of Iranian President Rohani's Iraq Visit, Iran Takes Control Of Iraqi Banking System – In Cooperation with Iraqi Prime Minister – In Order To Circumvent U.S. Sanctions, March 7, 2019.

 

March 7, 2019  No.
7932

In Advance Of Iranian President Rohani's Iraq Visit, Iran Takes Control Of Iraqi Banking System – In Cooperation with Iraqi Prime Minister – In Order To Circumvent U.S. Sanctions 

 

In advance of Iranian President Hassan Rohani's upcoming visit to Iraq next week, Iranian regime and banking officials in Baghdad have held preliminary meetings, during which the Iranian regime ensured that it would control the Iraqi banking system in a way that would allow Iran to circumvent the U.S. sanctions.  

 

During the visit, Rohani is expected to sign agreements that go beyond what was concluded in these meetings. The Iranian news agency Tasnim, which is close to Iran's Islamic Revolutionary Guards Corps (IRGC), announced on February 6, 2019 that an Iran-Iraq payment system had been set up during a nighttime meeting in Baghdad between Central Bank of Iran governor Abdolnasser Hemmati and his Iraqi counterpart Ali Al-'Alaq.[1] It should be noted that Iran is striving to create a financial apparatus with Iraq that would allow it to evade the U.S. sanctions that threaten its economy (see MEMRI Inquiry and Analysis No. 1434, Iraq's Importance To The Survival Of Iran's Regime And Economy Following U.S. Sanctions, January 30, 2019)

 

While the Iraqi media barely covered the visit of the Central Bank of Iran governor's Baghdad visit in early February 2019, apparently in order to conceal the details of the agreements reached, Iranian news agencies reported on the meetings' conclusions and agreements. According to the reports, beyond decisions regarding a mechanism for Iran-Iraq payments, extensive sectors of the Iraqi political and financial leadership firmly support upgrading banking relations and trade with Iran. Thus, Iraqi Prime Minister Adel Abd Al-Mahdi, a Shi'ite supported by the U.S., personally committed to the agreements obtained and is a fervid supporter of continued bilateral negotiations with Iran. Central Bank of Iraq governor Ali Al-'Alaq seeks to remove the obstacles to economic cooperation, in particular to allow foreign currency to flow into Iran. This is so that Iran can export its oil and natural gas to Iraq and receive euros in exchange. To this end, it was agreed that the Central Bank of Iran would open euro and dinar accounts in Iraq through which payments for the oil and gas would be made. 

 

It should be noted that the U.S. administration has warned that if Iraq becomes a channel for transferring foreign currency to Iran, the U.S. would respond with sanctions on Iraqi banks, and would block their access to dollars. 

 

Furthermore, at a March 4, 2019  press conference in Baghdad, Iraqi President Barham Salih referred to the Iraqi interest in maintaining "very good relations" with Iran. He explained: "[Iranian President] Rohani's trip to Iraq is important. Not long ago, I was in Tehran and conducted in-depth talks with the Iranian upper echelons on many matters. Our relations with Iran are important. I always emphasize, in any country I visit, that Iraq's interests lie in maintaining very good relations with Iran. I deliberately repeat this sentence several times. We Iraqis have an interest in strengthening these relations with Iran, and we must see them as a main issue among all our regional relationships. We have paid a very high price for past [Iran-Iraq] tensions. These relations  with Iran must be based on respect for [our] sovereignty. These are joint interests based on 1,400 km of shared border, and on history, culture, and society... We must remember the importance of this relationship [with Iran]... [Rohani's planned] trip will conclude in agreements and understandings that will advance our reciprocal relations. What will these agreements be like, and of what quality? This will become clear with [Rohani's Iraq] visit."[2]

 

The following are reports by the Iranian news agency Tasnim and the Iranian financial daily Taadol on agreements reached during the February 19, 2019 Iraq visit by the Central Bank of Iran governor, and a report by the Iranian news agency ISNA on a meeting between Iranian Vice President Eshaq Jahangiri, a reformist, and Iraqi Electricity Minister Luay Al-Khatteeb. 

 

Iranian News Agency Tasnim On Meeting Of Iranian, Iraqi Bank Governors: "A Continuation Of The Financial Agreements Of The Two Countries"

 

"[Central Bank of Iran governor Abdolnasser] Hemmati, who visited Baghdad for banking talks, said that he met with his Iraqi counterpart on February 5 and expressed hope that the level of financial relations between the two countries would increase. He said: 'Iraq is Iran's largest trade partner, and the durability of this relationship between the two countries requires banking relations. America is conducting an extensive effort to thwart Iran's economic and political situation by waging economic war on Iran, but fortunately the enemy's plots are being neutralized by means of the arrangements that Iran came up with, and now the required stability prevails in Iran's economy.

 

"'The Central Bank of Iran has reached appropriate financial solutions for trade with Russia, Turkey, India, China, and others. At this time, I am certain that we will arrive at ideal results through cooperation on the part of the Iraqi government and also through following up on the economic relations as quickly as possible and establishing a financial channel for payments.'

 

"Ali Al-'Alaq, Central Bank of Iraq governor, welcomed his [counterpart] Central Bank of Iran governor Dr. Hemmati, and called the meeting 'a continuation of the financial agreements of the two countries,' and, as such, one that prepares the ground for strengthening economic cooperation between them.

sd7932.jpg
Right: Central Bank of Iraq governor Al-Alaq. Left: Central Bank of Iran governor Hemmati. Source: Tasnim, Iran, February 6, 2019. 

 

"He added that the Central Bank of Iraq would make all efforts to remove the obstacles to economic cooperation between the two countries. He said: 'Also according to the agreements we made, [Iraq's] debts for the export of gas and electricity [from Iran] to Iraq will be paid or transferred as per invoices from the Central Bank of Iran. This framework will be used also for [Iran's] income from future exports. This meeting, that lasted for over four hours, also covered agreements regarding the form of the foreign currency transfer of private Iranian exporters. I hope that after [the arrangement] is final, the problem of restoring exporters' foreign currency revenues will be solved."

 

Iranian Financial Daily Taadol: Hemmati Said "Agreements... Are Reached Thanks To The Direct Consent And Instructions Of The Iraqi Prime Minister" 

 

The next day, February 7, 2019, the Iranian financial daily Taadol reported that Central Bank of Iran governor Hemmati had, on the second day of his Iraq visit, met with Iraqi bank directors, trade offices, and economic figures. It reported Hemmati as stating:

 

"Yesterday and today, we arrived at good agreements with the Central Bank of Iraq governor and we believe that banking relations are the key to expanding bilateral economic relations. I saw a strong desire among the Iraqi officials to expand bilateral relations. The Iraqi prime minister fervently supports bilateral negotiations and the agreements that were attained.

 

"According to the agreement that was attained, the Central Bank of Iran expects to have accounts in euros and dinar, and gas and oil exchanges will be conducted based on these accounts. According to the agreements, Iranian exporters can operate by means of the Iraqi banks and, accordingly, the Iranian banks can hold dinar accounts. Therefore, the Iran-Iraq banking relationship will be strengthened by these agreements, and the agreement of the Iraqi prime minister and the expansion of trade relations between the two countries will take shape based on this. Iraqi companies can also open accounts in Iranian banks and conduct their business in dinars.

 

"The chairman of the Iraqi Rashid Bank said: 'We are willing to cooperate with Iranian financial companies in the framework of the Central Bank of Iraq. In accordance with this, we seek to establish one branch in Iran which, if there is agreement, will play an important role in bilateral trade.'   

 

"[Central Bank of Iran governor] Hemmati added: 'According to these agreements, I agree to the proposal to establish and open branches of Iraqi banks in Iran, and I believe that opening them in Iran can help [create] a chain of agreements, and expand them. I hope that we will see the implementation of agreements that are reached thanks to the direct consent and instructions of the Iraqi prime minister. The Central Bank of Iran governor said that there is a need for regular monthly bilateral meetings."[3]

 

Iranian News Agency ISNA: Iraqi Electricity Minister Says "Iraq Wants To Become A Manufacturing Country Through Partnership With Iran And Through Utilizing Iran's Capabilities And Experience" 

 

According to an ISNA report, in his meeting with Iraqi Electricity Minister Al-Khatteeb, Iranian Deputy Prime Minister Eshaq Jahangiri, a reformist, said: "Iran will be alongside Iraq during its reconstruction. Those who want to destroy Tehran-Baghdad relations must know that these two countries have strong relations.

 

"Tehran is ready to expand its cooperation with Iraq in all areas. Good agreements were arrived at between the governors of the central banks of the two countries, and I hope that after expanding banking cooperation, Tehran-Baghdad economic relations will expand even more."

 

Also according to the report, "Iraqi Electricity Minister Al-Khatteeb said: 'In reality, the sanctions on Iran are sanctions on other countries so that they will not manage to make use of Iran's achievements. The media are trying to show that Tehran-Baghdad relations are political and security relations, [but] we want the media to understand the truth of the relations between the two countries with Iran's extensive cooperation in rebuilding Iraq. Iraq wants to become a manufacturing country through partnership with Iran and through utilizing Iran's capabilities and experience."[4]

 
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I don't think, in light of this report, that we will see the Dinar RV until we see an article that this corrupt CBI Governor has been arrested and replaced. But with both the Iraqi President and Prime Minister all in on building this banking relationship with Iran, good luck with that happening. Can you say HUGE step back?

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One day we are close to a RV the next we are miles away. If anybody can screw up the Iraqis can and seem to do it all the time.  With this going on, the only way to stop it is to stop sending the US currency over there and force them to use their worthless paper. 

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7 hours ago, Engine1 said:

One day we are close to a RV the next we are miles away. If anybody can screw up the Iraqis can and seem to do it all the time.  With this going on, the only way to stop it is to stop sending the US currency over there and force them to use their worthless paper. 

Even then, as you can see, they are doing an end around using the Euro. Unless the US steps in quickly and squashes this that elusive RV just got a whole lot greasier....or should I say Oilier!

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This kind of articles makes me believe our wait for an RV will be longer.

 

The currency auction is the process of money laundering and recycling in favor of Iran.

 

The role of Iran’s sabotage and economic player in Iraq has become very clear, after the package of the US blockade of Iran, which is supposed to start the blockade of its mechanisms and procedures from Iraq to impose the encircle .

 

The continuation of the auction contributes to revive the economic situation of Iran at the expense of Iraq by easing the economic embargo imposed by America on Iran and undermine it through banks and companies employed for Iran, whether real or fake.

 

This destructive activity continues, which is subject to the influence of senior officials in the political process linked to Iran? Iran has banking and financial institutions and covers of individuals and institutions supporting and loyal in the financing of the economy and the expansionist extension and Iranian terrorism.

 

Solution:

Stop the currency auctions 

Give real market value to the dinar

Roll out Lower denomination notes

 

 

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