On Sunday, Hussein Arab, a member of the House of Representatives, disclosed that a Jordanian bank had obtained 75% of dollar transfers in Iraq. While revealing the extent of the “forbidden” trade, he cautioned about the increase in the dollar’s value.
In an interview with the Twenty program broadcast by Al-Sumaria TV, Arab pointed out significant failures in the issue of the dollar and the parallel market. He emphasized that there is information confirming the National Bank of Iraq’s acquisition (a Jordanian bank) of the total of 75% of foreign transfers. Arab stressed that it is necessary to hold this bank accountable and to investigate the reasons behind its acquisition of this percentage from the Central Bank auction.
A member of the House of Representatives has raised a question regarding the proportionality of the National Bank of Iraq’s liquidity to the volume of dollars it receives from the Central Bank. It was pointed out that the Central Bank reinforces this bank with dollars from outside the platform. The member further added that they are interested in understanding the mechanism of transferring dollars through the central bank.
He expressed concern over the decision to limit financial transfers to just one bank out of 73 banks, describing it as a real disaster. He questioned why the National Bank of Iraq (Jordan) was receiving such a large amount of dollars and whether the entire Iraqi economy was dependent on this bank. He revealed that the Central Bank did not transfer dollars to this bank through the electronic platform or through direct purchase, as it was a customary bank.
Arab expressed his concern over the state of the private banking sector in Iraq, stating that it was sacrificed in order to revive foreign banks within the country. He warned that the Iraqi private banks are at risk of closing due to the central bank’s blunders, extortions, and arbitrary actions. Arab emphasized that the upcoming future will be difficult for the banking sector in Iraq.
He believed that if the issue is not addressed, dollar prices will continue to rise. He also mentioned that the dollar crisis, which is affecting Iraq’s neighboring countries, has had a negative impact on their country. The former Prime Minister, Mustafa Al-Kadhimi, was allowed by America to grant the dollar to Iran, but these allowances have now come to an end.
Arab emphasized the need to stop smuggling and take government action to combat the $10 billion illegal trade.
During a speech, he mentioned that alcoholic beverages, cigarettes, and gold are being imported through the border crossings without being taxed, even though they should have a 200% tax rate. This suggests that most of these products are being smuggled through the Kurdistan border. He also pointed out that there are instances of currency smuggling and tax and customs evasion happening at the border crossings.