On Wednesday, the Second Karkh Investigative Court in Baghdad announced the recovery of 5 billion Iraqi dinars. The money came from two companies accused of dollar exchange manipulation through illegal foreign transfers.
According to an official statement, both companies exploited gaps between official and market exchange rates. They conducted foreign transfers to profit from the difference between the two rates.
The court confirmed that this recovery happened under the supervision of the chief judge. Moreover, it stated that legal actions are ongoing against other companies using similar methods. As expected, authorities are determined to stop such schemes that harm public funds.
Currently, Iraq maintains an official exchange rate of 1,300 dinars per U.S. dollar. However, the black-market rate stands higher, around 1,420. Therefore, companies use foreign transfers or payment cards abroad to access dollars at the lower rate. They then return and resell those dollars at a higher price.
Consequently, this process creates massive illegal profits while draining Iraq’s financial stability. Law enforcement has ramped up investigations to address the growing threat of dollar exchange manipulation.
Earlier in May, National Security officers arrested a suspect at Baghdad International Airport. He carried 113 digital payment cards, national ID cards, and multiple SIM cards. Officials said these items were tools in a smuggling operation.
According to authorities, such operations follow a pattern. Criminals load Iraqi bank cards with dinars, send couriers abroad, and withdraw dollars at official rates. These couriers then bring cash back into Iraq to sell on the parallel market.
The Central Bank of Iraq has repeatedly issued warnings. It urged the public not to misuse bank cards or conduct shady transfers. Officials cited Law No. 39 of 2015 on Anti-Money Laundering and Counter-Terrorism Financing.
Additionally, the Kurdistan Region’s Security Agency also released a public warning. It advised travelers to avoid carrying multiple payment cards or trading them abroad.
Iraq’s financial authorities remain committed to fighting dollar exchange manipulation. They continue tracking illegal networks and prosecuting offenders to protect the national economy.
