On Monday, a Parliamentary member of Iraqi Finance Committee Majida Al Tamimi issued a statement that there are a number of community banks in the country that are buying the foreign currency from Iraqi Central Bank and selling them outside.
She also pointed out that these banks are getting foreign currency from Iraqi Central Bank at official rate and selling them at domestic market price. She added in a press statement that there are a number of community banks in the country and their main purpose is only buying foreign currency from the Central Bank of Iraq and sell them to other countries. This process reflected a number of negative effects on the Iraqi economy.
She further added that a member of the Iraqi Finance Committee itself investigated for one of these banks, but didn’t find accurate record. She said that most of these banks are buying foreign currencies from Iraqi Central Bank with official exchange rate and then converting the currency to cover imports of general items and the remaining extra currency transferred to the other countries. She stressed that Iraqi Central Bank should redirect them to use letters of credit to cover imports. She pointed out that we are arranging a meeting with the Governor of Iraqi Central Bank to discuss on this critical matter.