ERBIL, Kurdistan Region - Iraq’s national security service on Tuesday announced it had arrested 11 suspects of smuggling currency in Erbil, as the country aims to implement stricter regulations at the banks to curb the ongoing depreciation of the Iraqi dinar.
The Iraqi dinar has been losing value against the US dollar for several months now, leading to a surge in prices of basic goods and consequent outcry of the Iraqi public. The depreciation has been attributed to the smuggling of dollars out of Iraq, mainly to neighboring Iran.
“High coordination was carried out with the Regional Government, resulting in the arrest and joint investigation of 11 suspects after obtaining judicial approval in specialized courts in Baghdad and Erbil,” read a statement from the national security service.
The suspects were arrested based on statements obtained from individuals previously apprehended in Baghdad also on suspicion of currency smuggling, it added.
The Central Bank of Iraq (CBI) on Thursday issued a directive to all banks and currency exchange companies, asking them to provide webcams to take pictures of all customers signing up to the platform or participating in any financial transaction.
The new technique is meant to confirm the identity of customers trying to buy dollar bills, and the CBI has asked all the mentioned bodies to implement it “in a period not exceeding one week.”
The Iraqi government in March approved a decision from the CBI board of directors to set the exchange rate of $1 to 1,300 IQD. The ongoing smuggling has prevented the suggested value from being reached, and the value of the dollar currently sits at over 1,500 IQD in the currency markets of Iraq and the Kurdistan Region.
The US in July banned transactions with 14 Iraqi banks for allegedly violating its rules. The move further dropped the value of the Iraqi currency.
The CBI in late 2020 devalued the dinar against the US dollar by 22 percent, dropping it from 1,182 IQD to 1,450 IQD and sparking public outrage. The devaluation came in an effort to combat a national liquidity crisis and bring in much-needed cash to the government’s coffers.
The Iraqi dinar has been losing value against the US dollar for several months now, leading to a surge in prices of basic goods and consequent outcry of the Iraqi public. The depreciation has been attributed to the smuggling of dollars out of Iraq, mainly to neighboring Iran.
“High coordination was carried out with the Regional Government, resulting in the arrest and joint investigation of 11 suspects after obtaining judicial approval in specialized courts in Baghdad and Erbil,” read a statement from the national security service.
The suspects were arrested based on statements obtained from individuals previously apprehended in Baghdad also on suspicion of currency smuggling, it added.
The Central Bank of Iraq (CBI) on Thursday issued a directive to all banks and currency exchange companies, asking them to provide webcams to take pictures of all customers signing up to the platform or participating in any financial transaction.
The new technique is meant to confirm the identity of customers trying to buy dollar bills, and the CBI has asked all the mentioned bodies to implement it “in a period not exceeding one week.”
The Iraqi government in March approved a decision from the CBI board of directors to set the exchange rate of $1 to 1,300 IQD. The ongoing smuggling has prevented the suggested value from being reached, and the value of the dollar currently sits at over 1,500 IQD in the currency markets of Iraq and the Kurdistan Region.
The US in July banned transactions with 14 Iraqi banks for allegedly violating its rules. The move further dropped the value of the Iraqi currency.
The CBI in late 2020 devalued the dinar against the US dollar by 22 percent, dropping it from 1,182 IQD to 1,450 IQD and sparking public outrage. The devaluation came in an effort to combat a national liquidity crisis and bring in much-needed cash to the government’s coffers.
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