The corruption of the currency auction in Iraq

The economic challenges faced by the current Iraqi government may be harshest in the history of modern Iraq; The economy is a rentier and depends entirely on oil revenues ,which account for 90% of its imports, and as a result of the crisis of oil prices , the Iraqi economy has received numerous tremors internally and externally, most recently is the reduction of its credit ratings to “negative” by the global agency”Fitch”.
The other part of the crisis is financial and administrative corruption; and that includes with it a lot of files that strain the Iraq and the economy, not to mention the displacement crisis and the war on ISIS “Daash” and the loss of a lot of the capabilities of Iraq.
the torrent of waste and corruption did not stop that drove Iraq to the brink of economic collapse, but still the country ‘s ministries and its various sectors are full of corruption and quotas.
A document issued by the Finance Committee in the House ofRepresentatives has uncoverd that Iraq ‘s oil revenues during the past two months totaled 3 billion and 269 million dollars, and compared to the previous figures , we note that the sum of central bank sales of the currency in the same period has exceeded oil revenues as It amounted to 5 billion and 821 million dollars as it will appear in the following table number “2”

And it appears in the document that “the state’s oil revenues for the month of January last billion had exceeded by $ 643 million, while state revenues in February from the sale of oil and 625 billion dollars.”

As for the sales of central bank of the foreign currency for the month of January amounted to 3 billion and $ 318 million, as the bank ‘s sales in the month of February amounted to two billion and 503 million dollar .

The parliamentary Finance Committee confirmed that the continuation of the central bank to sell amounts of the dollar greater than Iraq ‘s revenues from the foreign currency as a result of the export of crude oil is the “service of the corrupt.”
MP Magda Tamimi indicated that ” the amount of central bank reserves from the dollar in the last number informed by the Bank was $ 59 billion, but she do not think that it is true , it is illogical because there is a continuing sales of the bank , and this figure is not accurate and it is probably at the beginning of the fifty billion dollars. ”
the central bank had sold in the last two months amounts of the dollar exceeded Iraq ‘s revenues from the export of crude oil.
economic reports revealed that the Iraqi Central Bank sold more than $ 44 billion in foreign currency auction during the last year.
According to reports that since the establishment of the Central Bank auction to sell the dollar to banks and banking bureaus in 2004, the central bank sales amounted to more than $ 312 billion since its inception, valued at 1180 dinars to the dollar, it has transformed 80% of these funds out of Iraq , while 20 percent have entered into the market.
the facts emphasizes that the corruption file of the currency auction is very large and Iraqi funds were stolen through auction of currency in accordance with the fake contracts amid of the silence of the previous governments on these abuses, which many economists and parliamentarians indicated to the studied looting in the central bank and this ignorance by the government is a sign that the parties and political figures and influential bodies are involved in these processes ,noting that the Banks constitute interfaces to the politicians and corrupt.
in fact , and on the basis of many of the data , we can only say that the collapse in oil prices has revealed the fragility of the Iraqi economy and revealed corruption cases hushed by successive governments, the economic situation in Iraq is catastrophic actualy, and the Treasury today is empty and the budget is burdened with deficit, and the debt on the rise, coupled with rampant corruption and the absence of control over the work of the Central Bank, which may be the most important factors for the failure and collapse of the economy , and with this bitter reality , the hopes of the Iraqi citizen are fade for any intended economic reform .

Rawabet Research and Strategic Studies Center