What’s the Real Reason for Shabibi’s Dismissal?

What’s the Real Reason for Shabibi’s Dismissal?

Perhaps the biggest story of recent days was the shock dismissal of the Governor of the Central Bank of Iraq (CBI), Sinan al-Shabibi, and the issuing of arrest warrants for him and many of his staff.

The nature of the allegations against Mr Shabibi are not entirely clear, but appear to center around manipulation of the exchange rate between the Iraqi dinar (IQD) and the US dollar.

Considering the fact that the exchange rate has been managed within a relatively tight range for quite some time, this accusation looks a little strange.

But there has been tension between the Central Bank and the government for years. In January of last year, Nouri al-Maliki secured a court ruling placing the Central Bank under the control of the cabinet, rather than the parliament, much to the displeasure of al-Shabibi.

The latest charges have been brought by Iraq’s Commission on Integrity, whose former head resigned last year, alleging political interference in his inquiries.

Suspicions abound that the Central Bank affair is an attempt by al-Maliki to increase his control of the bank. While we wait for more details to emerge, the international business community will be watching developments closely.

Iraq is a complicated environment, and Upper Quartile and AAIB are the ideal partners to guide your business through the complexities of Iraqi life. For more information please contact Gavin Jones or Adrian Shaw.

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14 Responses to “What’s the Real Reason for Shabibi’s Dismissal?”

  1. Daddy Warbux says:

    Now that Maliki has removed another obstacle do you think this means that he raises the value of the currency any time soon? This year perhaps?

  2. kev says:

    LOL. Maliki doesn’t “raise” anything anymore than Obama “raises” the Dollar. It’s not the job of the head of state to micro-manage the currency by dictating an artificial peg (Communist Dictatorships like North Korea aside). Reading between the lines, this is little more than a power struggle that will hardly help the average Iraqi or boost external confidence in Iraq’s “post corruption” regime…

  3. NAWAZ says:

    IT MAY BE TURNING POINT OF PPLS OF IRAQ WITH RESPECT TO THEIR FATE, THEY MAY BECOME RICHEST LIKE KWAITI PPLS.

  4. NAWAZ says:

    It may be good move, and healy sign over NID

  5. Stew says:

    Dinar holders pull positive news out of the toilet.
    Geez… Maliki wanted to get his hands on the FX reserves and use them to fund the budget. He tried to do it about a year ago and he backed off. He came up with a different strategy and this is it. If he goes through with this and spends the FX reserves the dinar will sink back to 2500:1 or more.

  6. Stew says:

    So the new CBI head has spoken and said they will keep the same procedures in place. The same procedures that they said Shabibi put in place that caused the dinar value to fall, for which they removed him.
    Iraq shows it is still one of the most corrupt countries in the world. Sadly, corruption is simply a way of life for these people.
    But don’t worry. They will make everyone holding dinar millionaires. SMH.

  7. Kickabuck says:

    Maliki has tunnel vision with his greed and power trip. He will not gain control of the CBI and will NOT be re-elected. The political parties who joined his alliance now despise him, his original opponents still despise him, it’s game over and he’s desperate. They will find another load of $$$/Gold in his trunk as he attempts to smuggle it out…and OFF with his head. Eyes are watching. Iraqi politics…it’s a very ugly picture to watch.

  8. 2collectg says:

    hey stew your like a vulture waiting on something to die! QUOTE FED CHAIRMAN BEN BERNANKE ALL EMERGING ECONOMIES RAISE THE VALUE OF YOUR CURRENCIES! WALLSTREET JOURNAL ARTICAL http://PROFESSIONAL.WSJ.COM 10-14-2012! HEY STEW I`VE POSTED ALOT OF ARTICALS THAT COME OUT OF INVESTMENT NEWS FROM AROUND THE WORLD YOUR STILL DOGGING INVESTORS? THE DUBAI BOURSE YOU DO NO WHAT THAT IS RIGHT? WANT MORE DINAR IN THEIR BOURSE THIS IS NOT A GAME!
    QUESTION IF YOU DON`T OWN DINAR WHY ARE YOU SO WORRIED ABOUT OTHER PEOPLES MONEY?

  9. Daddy WarBux says:

    It is all interesting to watch…. I’m banking on the fact that they are completely corrupt…Govt is big business and Big business runs Govts…. Iraq never misses and opportunity to miss an opportunity and I have no doubt that their Powers to be care as little for their own people as our leaders actually care for us… Do Dinar holders get to eat at the trough eventually?….. We hide and watch as usual… Having to wait is the only thing that we know is %100 true. Happy Friday Pimps & Players. :)

  10. nemesis says:

    hey 2collectg YOUR DESPERATION SHOWS – SO SHELL WE BUY MOR DINARS? LoLL!

  11. 2collectg says:

    i don`t give investment advice! and if you would search REAL INVESTMENT NEWS and stop thinking everybody`s a GURU THEN YOU WOULD FIND THAT IRAQ WAS ON THE VERGE OF POSTING A RATE UNTIL MALIKI PULLED HIS STUNT! MR.SHABIBBI MET WITH 188 CENTRAL BANKS & THE WORLD BANK AND IMF LAST WEEKEND! YOU THINK THEY WERE TALKING ABOUT TUNA SANDWHICHES? THEN ON MONDAY THE FED CHAIRMAN STATED THAT ALL EMRGING ECONOMIES CAN LET THEY`RE CURRENCIES APPRECIATE AGAINST THE USD! HIS WORDS NOT MINE! http://PROFESSIONAL WSJ.COM READING IS FUNDAMENTAL! (MONEY THAT YOU FOLD IS FOR THINGS BOUGHT AND SOLD MONEY YOU LAY FLAT AND STACK SOMEBODY WILL BUY THAT BACK!)

  12. Bari says:

    It is Dr Shabibi

  13. Jaydee says:

    All the skeptics that come to this site are the same as us dinar holders. They are waiting for whatever news(good or bad) about the dinar. Once something happens we aren’t gonna visit this site ever again.

  14. kev says:

    Jaydee, if you opened your eyes a little wider, you’ll see this site is about serious tangible grown-up long-term Iraqi investments (energy, construction, mining, etc) that actually will net a long-term profit. Only Dinaraholics think people hang out here for ‘secret inte’ about the “RV”. This site isn’t even remotely like “Dinar Daddy” or “DinarRecaps” (which is why so many people coming here from such pumper sites churning out their daily BS end up so out of their depth). LOL


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