Iraqi government cracks down on exchange companies to control rate at free market – The National

Iraqi government cracks down on exchange companies to control rate at free market – The National

Iraqi security forces raided two of Baghdad's biggest markets for the US dollar on Saturday in an effort to control the exchange rate, a security official and traders told The National.

Several traders were arrested at Al Harithiya and Al Kifah bourses, according to an Interior Ministry official and two traders.

Earlier on Saturday, Prime Minister Mohammed Shia Al Sudani announced his government has taken more measures to support the dinar.

“We have adopted a number of decisions to back up the Iraqi dinar and its stability,” Mr Al Sudani said at a ceremony to mark the death anniversary of a senior Shiite cleric in Baghdad.

“We warn those who exploit the crisis,” he said without elaborating.

It is still unclear how many traders have been arrested and there is no official statement yet from the government on the operation.

Since 2004, the Central Bank of Iraq has sold US dollars at a foreign currency auction as one of its means of maintaining monetary stability.

However, the process has been mired with accusations of corruption, money laundering and the channelling of dollars to Iraq’s neighbours including Iran, Syria and Lebanon, using forged bills. Iran and Syria are under US sanctions.

As of late 2020, the official rate set