Syria has been sanctioned over violent repression of protestors against the regime and Iran has been sanctioned because of suspicions about the countrys nuclear programme.
The relationships that Iraq has with Syria and Iran, as well as the relatively easy-to-cross borders, mean that it is easy to transfer currency between the countries. Additionally its easy to buy US dollars on the Iraqi market because of the hundreds of unlicensed currency traders all over the country. All of which has a negative impact on the local currency, al-Hafez said.
Abbas al-Araji is one such trader working in the Kadhimiya area of Baghdad. Ive been practicing this profession for five years and up until now, I havent got the licenses from the central bank because its just too complicated to do so, al-Araji said. And nobody from the state or the central bank has ever come to supervise or check on him.
And my customers prefer to buy US dollars from my shop rather than going to big banks, al-Araji continued. In these banks, routine money transfers are really complicated and the cost is high, compared to what customers pay in shops like mine. Also, I take less time. I just call colleagues who work in different countries to make the needed transfers.
There are further reasons as to the ease with which US dollars can be accessed. Ongoing political wrangling as well as the desire of the government, led by Prime Minister Nouri al-Maliki, to control the Central Banks activities.
A controversial decision made at the beginning of 2011 by the Federal Court of Iraq decided appears to give the Prime Minister more opportunity to interfere in the way the Central Bank of Iraq does business. The decision was criticised and analysts predicted that any interference in the Bank would cause further distrust in the dinar.
None of these people seem to be aware the Central Bank of Iraq has announced a 100,000% increase in the value for the dinar starting in January.
Everybody gonna be rich!!
Why don't the banks market themselves more efectively ? Surely the first thing to do is to target small businesses by advertising and promotions ? Once businesses start using the banks the general public will surely follow.
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Antony....do you really believe giving away free TV Sets will get them to use Banks....
They make a living by selling USD on Black Market..trade in IQD's and go sell USD..Iraqi Mafia running shit..Have some Merc friends there and No One uses IQD..only to trade for USD..thats it!
That Place is gunna implode..Armad Chablibi will then take PM Spot ,and nothing happens with this IQD for many years to come..if we get lucky. Non Oil GDP is the way to any increase...
Stew: how come that the central bank of iraq will going to announce the 100.000 increase in advance if they know this will going to affect the iconomy! they may announce that but the truoght is it will not going to happen! I have also dinar but I just go based on reallity.
@Stew....That is NOT true! The CBI has NOT announced a value increase in January. The only thing that the CBI has announced was the removal of the large demonstrations from circulation. That does NOT mean an increase in value!
My post was a joke.
Iraq is going to redenominate and most dinar holders will lose money. That's no joke.
Stew enjoys lying,all someone have to do is read the articles.Which stated they had put the redenom on hold becuz they have 60 bil in reserve and it would be expensive to print more money and that there was no need.STEW why do you speak partial truth?Give your opinion but pls quit lying sir.I've been to several blogs on here and you have displayed a pattern of telling part truth.Who does that?Man are you that obsessed with being right?SMH WOW