Official: CBI News 05/11/2023

[yota691]

Tender for repackaging the facades of the Central Bank of Iraq building / Basra branch (returned)

 

  

 May 11, 2023

   

Re-announcement for the second time of the public tender No. ( 2/2023 ) for a project

( Repacking the facades of the Central Bank of Iraq building / Basra branch )

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The Central Bank of Iraq announces the re-announcement of the public tender for the implementation of the project (repackaging the facades of the Central Bank of Iraq building / Basra branch) and according to the technical specifications, work requirements and legal conditions contained in the standard document for the implementation of small works prepared by this bank, companies wishing to participate Contracting with experience, specialization and qualifications classified by the Ministry of Planning send their authorized persons according to a letter of authorization to the headquarters of the Central Bank of Iraq / located in Baghdad - Al-Rashid Street Building No. (2) Floor (3) Legal Department / Contracts Department for the purpose of obtaining tender documents for an amount of $ (100,000) dinars (one hundred thousand dinars) is non-refundable, and the tender closing date will be before the end of the official working hours on (Monday) corresponding to 12/6/2023, and the awardee shall bear the fees for publishing the last advertisement.

[yota691]

Anti-money laundering and terrorist financing scenarios

 

  

May 11, 2023

 

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For the purpose of strengthening the supervisory system of the Money Laundering and Terrorist Financing Reporting Unit, scenarios for anti-money laundering and terrorist financing systems have been prepared, which are compatible with the financial work environment in Iraq, and the agents of (Western Union) and (Money Gram) can adopt them as a minimum for their electronic systems, taking into account the following .

 

► To view AML/CFT information and scenarios related to transfers through agents of international transfer companies (Western Union and MoneyGram) .. click here

 

[yota691]

The Governor of the Central Bank of Iraq receives experts from the International Finance Corporation (IFC).

 

  

May 11, 2023

 

His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, received today, Thursday, a delegation of experts from the International Finance Corporation (IFC) affiliated to the World Bank, headed by Mr. (Marcel Rashid), the supervisor of financial market projects in the Levant region.

During the meeting, ways of developing the relationship between the Central Bank of Iraq and the International Finance Corporation were discussed, and a plan was drawn up to establish a (loan guarantee company), which was proposed by the governor earlier as part of a comprehensive study he presented regarding building the bases for a national strategy for bank lending, while the staff of the Central Bank is responsible for building the national strategy. lending according to the rules.

The establishment of a loan guarantee company is an important factor in stimulating lending, by reducing the rates of loan defaults that the banking sector in Iraq suffers from.

Central Bank of Iraq 
Media Office 
11 - May - 2023

 

 

[yota691]

The Central Bank and International Finance are discussing a plan to establish a {loan guarantee company}

• Time: 05/11/2023 23:06:04
•  
• Read: 3,354 times

  

{Economic: Al Furat News} The Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, received today, Thursday, a delegation of experts from the International Finance Corporation (IFC) affiliated with the World Bank, headed by (Marcel Rashid), the supervisor of financial market projects in the Levant region.

A statement to the bank's media, which {Euphrates News} received a copy of, stated that "during the meeting, they discussed ways to develop the relationship between the Central Bank of Iraq and the International Finance Corporation, and put in place a plan to establish (a loan guarantee company), which was proposed by the governor earlier as part of a comprehensive study he presented regarding building bases." A national strategy for bank lending, while the staff of the Central Bank is responsible for building the national strategy for lending in accordance with its rules.

He added, "The establishment of a loan guarantee company is an important factor in stimulating lending, by reducing the rates of loan defaults that the banking sector in Iraq suffers from."

[yota691]

Al-Alaq is discussing with the World Bank his plan to establish a loan guarantee company

 

drains
   

Economy News - Baghdad
On Thursday, the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, received a delegation of experts from the International Finance Corporation (IFC) of the World Bank, headed by the supervisor of financial market projects in the Levant region, Marcel Rashid.

According to a statement by the Central Bank, the two parties discussed "ways to develop the relationship between the Central Bank of Iraq and the International Finance Corporation, and to develop a plan to establish a (loan guarantee company), which was proposed by the governor earlier as part of a comprehensive study he presented regarding building national strategic bases for bank lending, while the bank staff is responsible for Building the national strategy for lending in accordance with its rules.

The statement continued, "The establishment of a loan guarantee company is an important factor in stimulating lending, by reducing the rates of loan defaults that the banking sector in Iraq suffers from."

 

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Views 480

Added 05/11/2023 - 10:41 PM

[6ly410]

CBI refers speculators in exchange rate cases to competent courts

Economic News Agency - The Central Bank refers speculators in exchange rate cases to the competent courts (economy-news.net)

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Economy News - Baghdad

The Central Bank of Iraq announced today, Friday, the referral of speculators in exchange rate cases to the competent courts.

The bank said in a statement that "in response to citizens' requests for the US dollar currency at the official exchange rate for legitimate purposes, the Central Bank of Iraq succeeded in providing easy and appropriate tools represented in the facilitation packages it issued, which include support for the settlement of electronic cards at the official rate and financial transfers of various kinds, but some of those who were allowed to obtain the cards misused them away from the desired goals for this purpose, and this was revealed by the reports of the competent security authorities and the supervisory procedures of the Central Bank and the Anti-Laundering Office. Money and terrorist financing, which called for the development of a strict new electronic system that ends this phenomenon and the violations used in those cards."

The central bank revealed that "legal procedures have been completed against violators, individuals, companies and banks," announcing their "referral to the courts specialized in money laundering and terrorist financing."

The bank stressed, "its keenness to provide all the appropriate tools to stabilize the exchange rate, especially with the arrival of external transfers through the electronic platform to high levels, in addition to the use of electronic cards and the cash sale of dollars, all of which made the so-called (exchange rate in the parallel market) does not reflect the real exchange rate as long as the Central Bank of Iraq responds to all (legitimate requests) to buy dollars."

He continued, "The price in the parallel market is linked to speculative activity, and non-fundamentalist operations that try to move away from the methods provided by the Central Bank of Iraq law and its decisions."

Views 547

Added 2023/05/12 - 5:37 PM

[Officiallytook]

Lockem up, getting paid twice and repeat...just like good ol USA 😂... Well at least we don't have to worry much about reserves just gotta implement the change.

[yota691]

The Central Bank is developing a plan to establish (a loan guarantee company) in cooperation with the International Finance Corporation (IFC).

---  2023/05/11

 

 

Baghdad: morning 

Today, Thursday, the Governor of the Central Bank, Ali Mohsen Al-Alaq, received a delegation of experts from the International Finance Corporation (IFC) of the World Bank, headed by (Marcel Rashid), the supervisor of financial market projects in the Levant region.


 

During the meeting, ways of developing the relationship between the Central Bank of Iraq and the International Finance Corporation were discussed, and a plan was drawn up to establish a (loan guarantee company), which the governor proposed earlier as part of a comprehensive study he presented on building the bases for a national strategy for bank lending, while the staff of the central bank builds the national strategy. lending according to the rules.


 

The establishment of a loan guarantee company is an important factor in stimulating lending, by reducing the rates of loan defaults that the banking sector in Iraq suffers from.

[yota691]

The Central Bank refers speculators with exchange rate issues to the competent courts

2023.05.12 - 17:36

 

Baghdad - people  

The Central Bank of Iraq confirmed, on Friday, that it will refer speculators with exchange rate issues to the competent courts.  

  

  

And the bank stated in a statement that “NAS” received a copy of it (May 12, 2023), that “in response to citizens’ requests for the US dollar currency at the official exchange rate for legitimate purposes, the Central Bank of Iraq succeeded in providing easy and appropriate tools represented in the facilities packages that it issued, which include settlement support.” Electronic cards at the official rate and money transfers of various types, but some of those who were able to obtain the cards misused them far from the goals sought for this purpose, as revealed by the reports of the competent security authorities and the supervisory procedures of the Central Bank and the Office of Combating Money Laundering and Terrorist Financing, which called for the development of ( A strict new electronic system) ends this phenomenon and the irregularities used in those cards.  

  

The Central Bank of Iraq revealed "the completion of legal procedures against the violators, individuals, companies and banks, announcing their referral to the courts specialized in money laundering and financing terrorism," stressing "its keenness to provide all appropriate tools to achieve the stability of the exchange rate, especially with the arrival of external transfers through the electronic platform to high levels.”  

  

In addition to "the use of electronic cards and the cash sale of dollars, all of this made what is called (the exchange rate in the parallel market) not reflect the real exchange rate as long as the Central Bank of Iraq responds to all (legitimate requests) to buy dollars, and that the price in the parallel market is linked to with speculative activity, and non-fundamentalist operations trying to evade the methods provided by the Central Bank of Iraq law and its decisions.  

[yota691]

The Central Bank is taking action against speculators in exchange rate issues

• FRIDAY, 12-05-2023, PM 7:52
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• KARRAR AL-ASADI
•  
• 593

http://non14.net/public/images/large/8-1683910377.jpg

Today, Friday, the Central Bank of Iraq announced that it would take strict action against speculators in exchange rate issues.

A bank statement stated, “In response to citizens’ requests for the US dollar currency at the official exchange rate for legitimate purposes, the Central Bank of Iraq succeeded in providing easy and appropriate tools represented in the facilities packages that it issued, which include support for the settlement of electronic cards at the official price and money transfers of various kinds, but some Those who were able to obtain the cards misused them far from the goals sought for this purpose, as revealed by the reports of the competent security authorities and the supervisory procedures of the Central Bank and the Office of Combating Money Laundering and Terrorism Financing,” noting that “a strict new electronic system was put in place that ends this phenomenon and the violations used in those cards.” ".

The Central Bank of Iraq revealed, according to the statement, “the completion of legal procedures against the violators, individuals, companies and banks, announcing their referral to the courts specialized in money laundering and financing terrorism,” stressing “its keen desire to provide all appropriate tools to achieve stability in the exchange rate, especially with the arrival of external transfers.” through the electronic platform to a higher level.

He pointed out, "The use of electronic cards and the cash sale of the dollar, all of this made the so-called "exchange rate in the parallel market" not reflect the real exchange rate as long as the Central Bank of Iraq responds to all (legitimate requests) to buy the dollar."

He added, "The price in the parallel market is linked to speculative activity, and non-fundamentalist operations trying to get away from the methods provided by the Central Bank of Iraq law and its decisions."

[6ly410]

 

The Governor of the Central Bank comments on the recent rise in the dollar exchange rate

Economic News - The Governor of the Central Bank comments on the recent rise in the dollar exchange rate (economy-news.net)

 

Economy News - Baghdad

Central Bank Governor Ali Al-Alaq confirmed on Saturday to follow up on the situation of the exchange rate and develop appropriate solutions to any problems, and while pointing to the implementation of purchase requests from traders and citizens as a whole, he pointed out that those who refrain from buying from official platforms may have problems and illegal transactions.

Al-Alaq said in a statement to the Iraqi News Agency that "the Central Bank has a daily follow-up of the dollar exchange rate to find out all the factors related to the exchange rate and any effects on the price."

He added, "The central bank is trying to find solutions to them and the appropriate channels, and we are walking close to the market to identify the problems that occur in order to put the price in its official direction."

"The central bank implements the requirements of purchase and the needs of all citizens in terms of dollars, and every price remains outside the official price, either for speculation or illegal actions," he said.

He pointed out that "those who go to buy dollars from the black market at a higher price than the official despite the availability of official through approved platforms, there may be problems in the transactions they make."

Views 777

Added 2023/05/13 - 6:44 PM

 

[yota691]

An economic welcome to the directions of establishing a loan guarantee company

Economical  2023/05/14

 

 

 Baghdad: Haider Fleeh Al-Rubaie 

Specialists in economic and financial affairs welcomed the Central Bank's move towards establishing a loan guarantee company in cooperation with the International Finance Corporation, aimed at stimulating the lending process and reducing default rates, stressing that this step represents a "solid legal guarantor for lending."

The process of “defaulting loans” is a real obstacle that many private and government banks suffer from, which cost them huge financial losses, which, according to the financial advisor to the Prime Minister, Dr. Mazhar Muhammad Salih, amounted to about 28 percent of the volume of loans granted after 2003, which is considered a percentage "Very dangerous" against the accepted global average of 3-6 percent maximum.

In order to eliminate this financial phenomenon that confused the work of many banks, the Governor of the Central Bank, Ali Mohsen Al-Alaq, discussed with a delegation of experts from the International Finance Corporation (IFC) affiliated with the World Bank, financial market projects in the Levant region, and during the meeting, according to a statement he issued. The Central Bank has drawn up a plan to establish a (loan guarantee company), which was proposed by the governor earlier as part of a comprehensive study he presented regarding building the bases for a national strategy for bank lending, while the staff of the Central Bank is responsible for building the national strategy for lending in accordance with its rules.

The establishment of a loan guarantee company, according to the Central Bank statement, represents an important factor in stimulating lending, by reducing the rates of loan defaults that the banking sector in Iraq suffers from.

In turn, Counselor Saleh believes, during his interview with Al-Sabah, that “defaulting in loan recovery varies in our country between the years and the stages through which economic activity passed, in a period of banking turmoil for years after 2003, which involved expansion policies in granting loans or cash credits.” With weak guarantees, during which the government banking system was exposed to defaults in recovering cash loans granted, its defaults amounted to 28 percent, which is a very dangerous percentage compared to the acceptable global rate between 3-6 percent as a maximum, which is the rate that is accepted to face the risk of default in recovering cash loans in order for banks to hedge Reserves around capital, which is called the provision for non-performing loans.

Although bank collection mechanisms have mostly improved, Saleh believes that cases of failure to collect loans are still more than double the acceptable global rate of default within the scope of accepting emergency and rare cases. Despite the foregoing, the government financial advisor confirms that "loan or credit guarantee institutions in the world are considered today among the most effective means to help small and medium-sized companies access financial facilities, and this is what we are looking forward to today in providing flexible financing levers that help their flows to move effectively development activity that is directly linked to the labor market and addressing employment problems and the dilemma of unemployment.

For his part, the financial and banking expert, Dr. Mahmoud Dagher, pointed out during his interview with “Al-Sabah” that “the Central Bank’s initiative represents a step towards stimulating banks to grant soft loans to citizens in a larger and wider manner, which prompted the establishment of a guarantee company that bears an important part of the risks of those loans.” Which usually falls on the banks when the borrower fails to pay it.

Dagher explained, "Iraq owns a company to guarantee loans, but it has a low capital, so the Central Bank established a large guarantee company that is no less important than the Deposit Guarantee Company, which was established with a high capital and contributed by all Iraqi banks that guarantee an important part of citizens' deposits, in When the company to be established guarantees the risks of loans that banks pay to the public (companies and individuals) so that it makes the bank more able to grant additional loans.

Contrary to the previous opinion, the financial and banking expert, Abd al-Hussein al-Mandhari, expressed in his interview with "Al-Sabah" his surprise at the establishment of that company, indicating the existence of a Kafalat loan company that belongs to a number of banks that established it several years ago. Most of the banks contracted with government companies to insure their loans, and among them there were contracts several years ago, including loans from the Central Bank’s initiative.

The financial and banking expert, Abd al-Rahman al-Shaikhli, did not stray far from the previous opinion, when he explained to “Al-Sabah” that “there is a real loan guarantee company that is working at the present time, but in a lesser way than is required, and works to guarantee loans in exchange for a simple commission (not binding on the customer).” Considering the trend towards establishing a company for the same purpose as an "additional administrative circle".

In addition, a member of the Iraqi Economists Association, economic researcher Moqdam Al-Shaibani, counted the Central Bank of Iraq's move to establish a loan guarantee company in cooperation with the International Finance Corporation as a "step in the right direction," stressing that it will contribute to opening the door to the Iraqi economy and Iraqi banks by bringing in more international investments. Especially the investments directed towards the sustainable development goals and implemented by the sector.

Al-Shaibani indicated that one of the IFC's missions is to advance economic development and improve people's lives by encouraging the growth of the private sector in developing countries.

The researcher Al-Shaibani stressed that "the presence of a loan guarantee company, with the help of the International Finance Corporation, encourages many investors and international banks to finance projects inside Iraq, especially by the private sector."

[yota691]

Referring speculators with exchange rate issues to the competent courts

second and third  2023/05/13

 

 

 

 Baghdad: morning

 Yesterday, Friday, the Central Bank of Iraq reported that speculators had referred exchange rate issues to the competent courts. 

A statement by the bank stated, “In response to citizens’ requests for the US dollar currency at the official exchange rate for legitimate purposes, the Central Bank of Iraq succeeded in providing easy and appropriate tools represented in the packages of facilities it issued that include support for the settlement of electronic cards at the official price and money transfers of various kinds, except that some Those who were able to obtain the cards misused them far from the goals intended for this purpose, as revealed by the reports of the competent security authorities and the supervisory procedures of the Central Bank and the Office of Combating Money Laundering and Terrorism Financing, which led to the development of a “strict new electronic system” that ends this phenomenon and the violations used in that. cards".

The Central Bank revealed, "the completion of legal procedures against the violators, individuals, companies, and banks, and announced their referral to the courts specialized in money laundering and terrorist financing," stressing "its keenness to provide all appropriate tools to achieve the stability of the exchange rate, especially with the arrival of external transfers through the electronic platform to high levels, In addition to the use of electronic cards and the cash sale of dollars, all of this made what is called the "parallel market exchange rate" not reflect the real exchange rate as long as the Central Bank of Iraq responds to all (legitimate requests) to buy dollars.

And he indicated that "the price in the parallel market is linked to speculative activity, and non-fundamental operations trying to get away from the methods provided by the Central Bank of Iraq law and its decisions."

[yota691]

Central Bank: We meet all purchase requirements and the needs of all citizens in terms of dollars

 2023/05/13

 

 706

Baghdad / resource news

Today, Saturday, the governor of the Central Bank, Ali Al-Alaq, confirmed the follow-up of the exchange rate situation and the development of appropriate solutions to any problems, and while he referred to the implementation of purchase requests from merchants and citizens as a whole.

Al-Alaq said in a statement to the official agency: “The central bank has a daily follow-up of the dollar exchange rate to find out all the factors related to the exchange rate and any influences on the price.”

He added, "The Central Bank is trying to find solutions to it and the appropriate channels, and we are walking close to the market to identify the problems that occur in order to set the price in its official direction."

He added, "The Central Bank implements the purchase requirements and the needs of all citizens in dollars, and each price remains outside the official price, either for speculation or for illegal actions."

He pointed out, "Whoever goes to buy the dollar from the black market at a price higher than the official one, despite the availability of the official one through the approved platforms, there may be problems in the transactions that he performs."

[yota691]

Iraq: Marriage dowry for money laundering

Arab economy

Baghdad

Ahmed Eid

May 12, 2023

 

Fears of developing new fraud methods for money laundering (Mortada Al-Sudani / Anatolia)

 

 

Iraqi money-laundering crimes have increased through various means and methods that the authorities are trying to control, especially after its significant negative effects on citizens, especially in the housing sector , whose prices have increased several times over the past two years, due to real estate purchases with the aim of laundering that money that is usually be from illegal sources.

Financial deposits and investments in real estate and land, the purchase of gold and valuables, and the establishment of companies are the most prominent aspects and methods of money laundering operations. Dollars, and this is a new trick used by brokers and owners of illegally acquired funds.

Innovative laundering operations
There were many cases of recording high dowries for spouses and documenting this in contracts in large amounts in an attempt to facilitate money transfers in accordance with formal, formal contracts. Specialists considered them new frauds aimed at money laundering.
The specialist in combating money laundering, Qusai Al-Jamal, confirmed that the use of the high dowry as a justification and a source of funds with the banks is done through the permanent or temporary agreement to marry in exchange for a certain amount, after which the separation takes place for the purpose of paying the deferred amount in the Sharia courts by the husband (cash), and then the wife gets the amount for Through a bank check issued by the court, and here the source of funds is justified.

 

Al-Jammal added, speaking to Al-Araby Al-Jadeed, that there are funds that are transferred to bank accounts in other countries, or converted into digital currencies, such as bitcoin, ethereum, and others, and sold on digital currency exchanges.
He pointed out that money laundering operations are used in multiple ways, including the use of companies registered in countries with flexible legislation as a means of transferring funds illegally, and the use of paper currencies to buy commodities such as gold and precious stones, and then sell them later.
Al-Gammal explained that there are suspicious and illegal money laundering activities that are being followed in most of the surrounding countries, related to the financing of illegal businesses, such as gambling, smuggling of drugs, weapons, etc., and the transfer of the resulting funds into clean money.

Dowry and marriage
In light of the many means used in money laundering operations in Iraq, the most prominent and widespread of which are exchange companies, residential complexes, hospitals, private universities, banks, as well as restaurants and entertainment venues, the marriage dowry trick, which began to spread, came to be considered the latest innovation in money laundering fashion.
For his part, economic researcher Omar al-Halbousi believes that fraud and money laundering have multiple means to reach the marriage dowry and the use of other people to register villas and cars in their names, as well as hidden investment through a verbal agreement between the two parties.
Al-Halbousi explained, in an interview with Al-Araby Al-Jadeed, that the marriage dowry method is one of the methods currently used in money laundering operations, which have been recorded several times since the end of last year, and have taken an upward trend to be a new method used by thieves to launder the money they obtained illegally. .
Regarding the method used in the method of dowry and marriage, Al-Halbousi said that an agreement is made between the owner of the illegal money to be laundered, and whoever wants to pair up in exchange for a presenter and a deferred person with large sums of money or a house. Money to a specific destination after taking the percentage agreed upon between the two parties, or she buys real estate or opens a specific project that is on paper in her name.

 

Al-Halbousi confirmed the occurrence of several cases in this aspect in separate regions of Iraq, according to which large funds were transferred abroad, including what was invested internally, and that the graph of this case is escalating.

Trends in the exit of money
The former head of the Integrity Commission in Iraq, Musa Faraj, said that the illegal exit of money from Iraq takes place in two directions, the first is money laundering, and the second trend, which is common, is the smuggling of money that is collected illegally from Iraq to other countries.
Faraj added, speaking to Al-Araby Al-Jadeed, that the official and unofficial border crossings facilitate the smuggling of currency abroad, specifically to Iran and Lebanon, and other countries that facilitate the procedures for receiving and investing these funds.
He explained that the introduction of new fraud methods in money laundering operations has already taken place in Iraq, as there are influential people who recently got married and paid high marriage dowries that were transferred abroad through legitimate legal means.

The former head of the Integrity Commission in Iraq, Musa Faraj, said that the illegal exit of funds from Iraq takes place in two directions.

Faraj emphasized that the Iraqi law did not specify a specific ceiling for dowry and marriage procedures, and there are no upper limits for financial transfers related to this aspect, which makes this method easy and available for those who have money and want to transfer it easily abroad.
Jurist Azhar Bilal said that Article 36 of the Anti-Money Laundering and Terrorist Financing Law of 2015 sets the penalty for money laundering crimes in Iraq.
And Bilal stated, during his interview with Al-Araby Al-Jadeed, that the punishment includes imprisonment for a period not exceeding 15 years and a fine of no less than the value of the money in the same crime that occurred, and no more than 5 times the money for which the crime was committed.
Bilal explained that the crime of money laundering is common in Iraq, and its perpetrators are highly influential in the state, including those with great influence in all institutions, and this law cannot be applied against any of them.
And he indicated that the investigation into money laundering operations is very weak, and there are no actual bodies that can work to pursue money or follow up cases of marriage and high dowries and investigate the extent of their legitimacy, despite the increase in these cases in recent years.

[yota691]

The Central Bank: illegal transactions behind the refusal to buy dollars from the platform

 

May 13, 2023

Baghdad / Obelisk Al-Hadath: The Governor of the Central Bank, Ali Al-Alaq, confirmed that there are illegal transactions behind some people's refusal to buy dollars from the platform.

Al-Alaq said that the Central Bank has a daily follow-up of the dollar exchange rate to find out all the factors related to the exchange rate and any influences on the price.

He added that the Central Bank is trying to find solutions to it and the appropriate channels, and we are walking close to the market to identify the problems that occur in order to set the price in its official direction.

He added that the Central Bank implements the purchase requirements and the needs of all citizens in terms of dollars, and each price remains outside the official price, either for speculation or for illegal actions.

He pointed out that whoever goes to buy the dollar from the black market at a price higher than the official one, despite the availability of the official one through the approved platforms, there may be problems in the transactions that he performs.

[Laid Back]

- Ban the use of the dollar to support the dinar

- Give equal or higher than the dollar 

 

Go Strong Local currency $1+

Go Purchasing power 

[yota691]

Credit cards, crime gangs' path to "black money orders"

Iraq  2023/05/15

 

 

 Baghdad: Hoda Al-Azzawi

 

As part of its monetary policy to facilitate the needs of citizens traveling abroad, the Central Bank of Iraq issued a set of instructions, including the possibility of feeding credit cards and prepaying amounts in hard currency. Smuggling a large group of cards out of Iraq and withdrawing the available amounts in dollars, which leaves great effects on the Iraqi economy and the local market.

Adviser to the Prime Minister for Financial Affairs, Dr. Mazhar Muhammad Salih, said, in an interview with "Al-Sabah": "After the Central Bank firmly controlled its quiet monetary policy, facilitating external transfer in accordance with international compliance controls, and the great role played by the state's financial and economic policy in facilitating import tasks." Without restriction, we noticed that the exchange rate began to improve and the parallel exchange rate approached the official rate.

He added, "Unfortunately, organized crime gangs exploited travelers' credit cards, which are considered one of the means of financing and the traveler's need for foreign currency through a prepaid card or credit cards, as it allowed gangs to use citizens' passports illegally and unknown to generate cards that are smuggled out of Iraq." And its resources are withdrawn to create (black transfers) or smuggle money, and this is one of the methods of organized crime and money laundering that is punishable by law.” 

And he indicated that "this process led to a temporary disturbance in the exchange rate, and in front of international compliance institutions with monetary policy," and indicated that the state's policy, deterrent measures, and the force of imposing order have played their role today to reduce this dangerous phenomenon and the manipulation of citizens' security as a result of economic crime, "stressing that" the situation It will be better in the coming days, and the Iraqi dinar is strong, and the exchange rate will improve again, as it started a few months ago.

Saleh continued, "The monetary authority is responsible for stabilizing exchange rates and communicating with international compliance communities to achieve ease and ease in the money transfer process while using cards in accordance with legal principles and in accordance with the required international compliance methods. form, which led to its exploitation by some weak-minded people,” noting that “there are institutional arrangements that will properly regulate relations until the parallel market exchange rate approaches the official one.”

For his part, the expert on economic affairs, Dr. Jaafar Baqir Alloush, said in an interview with "Al-Sabah": "The smuggling of credit cards is taking place in two directions; the first is by some merchants who evade the restrictions of the Central Bank and its new standards, and the second is by speculators who trade in capital." (dollars) with the intent of achieving capital profits from the price difference between the official and the parallel," pointing out that "trading in these cards is not only done by transferring them abroad or smuggling them, but also takes place inside Iraq."

He added that "the process is considered one of the illegal economic activities, and it even reaches an extent that can be likened to money laundering, in addition to the fact that the involvement of finance and exchange companies in the process of granting (dollar) credit cards expands the base of illegal operations, and contributes to the smuggling of dollars abroad under the pretext of financing trade." Ministry of Foreign Affairs," explaining that "these cards are directed towards countries that have intermediary banks to transfer Iraqi funds and are located in the UAE and Jordan." 

and Turkey.”

In order to limit this pattern, Alloush indicates the possibility of "setting conditions for foreign trade, especially with regard to import controls related to the type of financing and restricting it to concerned official and legal authorities, in addition to the fact that the multiplicity of financing outlets creates opportunities for fraud by major local financiers who have relationships finance with foreign banks in the mentioned countries.

He noted that "this process falls within the circle of (the black financing market) and the state must deal with it with flexible and efficient means, just as government agencies, especially security ones, must monitor the communication networks from which smuggling tools and mechanisms feed," usually that "financing foreign trade is not a shameful matter, but To take the (black dye), as here lies its risks to the movement of domestic capital, and therefore (dollar) savings go abroad, and here the economy is infected with what we call negative savings.

Regarding the damages of these operations, Alloush stressed that they lead to "the erosion of national capital and the weakening of local investment capabilities, and may also affect the exchange rate gap remaining large and for longer periods than the monetary authorities can bear, and therefore the central bank has no choice but to increase the local money supply, and the issuance may be Cash is one of its tools, which exacerbates inflation rates.