Impact of Extortion, Bribery, and Smuggling on Iraq's Dollar Exchange Rate Fluctuations in 2024
In 2024, Iraq faced significant challenges in its economy, particularly concerning the fluctuation of its dollar exchange rate. An economist highlighted that extortion, bribery, and smuggling were the main causes of these fluctuations.
Extortion and Bribery in Iraq's Economy
Extortion and bribery have long been issues in Iraq, impacting various sectors of its economy. These practices often involve the misuse of power by government officials for illegitimate private gain.
The prevalence of corruption has hindered Iraq's economic development, as it discourages foreign investment and undermines public trust in institutions.
Smuggling and Its Effect on Currency Exchange
Smuggling, a significant problem for Iraq, particularly in the context of its relationship with neighboring Iran.
has had a direct impact on the country's dollar exchange rate. Preventing the smuggling of dollars from Iraq to Iran has been one of Baghdad's greatest challenges, largely driven by pro-Iranian proxies. The illicit flow of currency across borders destabilizes the local economy and contributes to exchange rate volatility.
Efforts to Combat Economic Instability
The Iraqi government, under Prime Minister Mohammed Shia' al-Sudani, has been determined to restore economic stability by cracking down on smuggling and addressing corruption.
These efforts are crucial for Iraq's fiscal and external accounts, as well as for reducing its vulnerability to oil price fluctuations.
Conclusion
The combination of extortion, bribery, and smuggling has had a profound effect on Iraq's dollar exchange rate in 2024.
Addressing these issues is critical for the country's economic stability and its ability to diversify its economy beyond oil revenues. The Iraqi government's commitment to addressing these challenges will be a determining factor in the country's future economic prospects.
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