Iraq to investigate missing $500,000 from airport bank branch: Integrity committee

31-07-2023
Azhi Rasul @AzhiYR
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ERBIL, Kurdistan Region - Iraq’s parliamentary integrity committee told Rudaw on Monday that an investigation has been launched into the disappearance of almost half a million dollars from the Baghdad airport branch of Rafidain bank. 

A member of the integrity committee told Rudaw’s Hastyar Qadir that they had obtained a copy of a letter from the Iraqi finance ministry, dated April, stating that $500,000 from the airport branch are unaccounted for. The ministry’s own investigation revealed that the bank's employees and their family members withdrew dollars without the required travel or documentation proof for such withdrawals.

“Today our committee will convene to discuss this matter and will form an investigation committee to reveal further information regarding the incident,” Khalid Rekani said. 

Following the devaluation of the Iraqi dinar against the US dollar earlier this year, the Iraqi Central Bank introduced a rule of exchanging dinars to dollars at 1,300, instead of the market price of $1 for around 1,500 IQD, for Iraqis traveling outside the country who presents the verified documentation of traveling. 

Following the decision, airport branches of Rafidain Bank saw a significant increase in visitors.

According to the letter from the finance ministry, Rafidain Bank employees withdrew dollars for their family members at lower rates and without proper documentation. Some even withdrew foreign currency without depositing Iraqi dinars in the bank.

“We will summon the central bank officials and other officials related to the matter to investigate the withdrawal of that amount of money,” he added.

In February , the Iraqi government restored the exchange rate of $1 to 1,300 IQD, the highest since 2020. However, hours after the decision, the exchange rate of $1 went from 1,560 IQD to 1,440 IQD in the currency markets of Iraq and the Kurdistan Region.

In December 2020, Iraq’s central bank announced devaluing the country’s currency in an effort to combat a national liquidity crisis and bring in much-needed cash to the government’s coffers.

The devaluation of the dinar struck the public hard as government employees are paid in dinar, and they would be able to afford less with their salaries given that many imported goods are paid for in dollars.

The devaluation of the Iraqi dinar is a step taken towards reform and creating a “financial balance” and will revive the economy, former Finance Minister Ali Allawi said at the time.

 

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