Iraqi Dinar Exchange Rate Manipulated?

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 and his deputy Mudher Saleh [Mudher Kasim, Mudher Saleh Kasim].

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

MP Rules Out Deleting Zeros from Currency Soon

Posted on 27 October 2012

Iraqi MP and member of the Parliamentary Economic and Investment Committee, Nahida al-Dayni, has ruled out deleting the zeros from the Iraqi currency soon.
Speaking to All Iraqi News Agency (AIN), she said:

“The process of deleting the zeros from the Iraqi currency will not be done soon due to the lack of security and economic stability in Iraq, in addition to the lack of the required observatory role and the reduction of the IQD to the USD.

“The increase and decrease of the prices are related to the regional situation … The possibility of fixing the price of the USD to keep the same ratio of the IQD in the local markets.“

Previously, the Council of Ministers decided to postpone the process of deleting the zeros from the Iraqi currency until further notice.