Iraqi Dinar Exchange Rate Manipulated?

Posted on 16 October 2012. Tags: CBI, Central Bank, Commission on Integrity, dinar, forex, IQD, iraqi dinar, Nouri al-Maliki

By John Lee.

Investigators in Iraq have opened an inquiry into alleged manipulation of the exchange rate between the Iraqi dinar (IQD) and the US dollar, and arrest warrants have reportedly been issued for several officials including the head of the Central Bank of Iraq (CBI).

Hassan Karim Aati, spokesman for the Commission on Integrity, said on Tuesday that the Commission is looking into the matter, and studying documents from a parliamentary committee investigating the corruption allegations.

The investigation focusses around 16 officials in the CBI.

While it’s understood that no charges have been brought, Baha al-Araji, the chairman of parliament’s integrity committee, said 30 arrest warrants had been issued, including for CBI governor Sinan al-Shabibi (pictured) and his deputy Mudher Saleh [Mudher Kasim, Mudher Saleh Kasim].

Contacted by AFP while in Tokyo for a meeting of the International Monetary Fund (IMF), Shabibi said he was unaware of any warrants.

Concerns have been raised that currency auctions organised by the central bank were being used by neighbouring Iran and Syria to shore up foreign currency reserves, allegations the central bank has denied.

The CBI tightened its rules on the purchase of US dollars earlier this year.

There hava also been suspicions that the commission’s decision was politically motivated, as Prime Minister Nouri al-Maliki has been pushing to place the Central Bank under the control of the cabinet.

(Sources: AFP, Associated Press, Azzaman, NINA)


http://www.iraq-businessnews.com/category/banking-finance/