ERBIL, Kurdistan Region - Iraq on Wednesday launched an electronic portal seeking to reward citizens who wish to report currency smugglers, as the Iraqi dinar continues to remain unstable against the US dollar with the government citing smuggling as the primary reason, state media reported.
The Iraqi Fund for Assets Recovery “announced the establishment of an electronic window available to all citizens at home and abroad to report on the funds and assets belonging to the Iraqi state,” it said in a statement.
The initiative aims to reward citizens for reporting currency smugglers and those who abused the Oil-for-Food program with 10 to 25 percent of the amount, given it does not exceed the $5 million limit.
The Oil-for-Food program was adopted in accordance with UN Security Council Resolution 986 and enabled Iraq to export some of its oil in exchange for food imports after being sanctioned for invading Kuwait in the Gulf War.
The Iraqi government in March approved a decision from the Central Bank of Iraq (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 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.
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 Iraqi Fund for Assets Recovery “announced the establishment of an electronic window available to all citizens at home and abroad to report on the funds and assets belonging to the Iraqi state,” it said in a statement.
The initiative aims to reward citizens for reporting currency smugglers and those who abused the Oil-for-Food program with 10 to 25 percent of the amount, given it does not exceed the $5 million limit.
The Oil-for-Food program was adopted in accordance with UN Security Council Resolution 986 and enabled Iraq to export some of its oil in exchange for food imports after being sanctioned for invading Kuwait in the Gulf War.
The Iraqi government in March approved a decision from the Central Bank of Iraq (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 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.
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.
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