Currency Smuggling Mafias Seize Crises To Undermine The Economy And Deplete Reserves!, 29 OCT

 Currency Smuggling Mafias Seize Crises To Undermine The Economy And Deplete Reserves!

Posted on 2024-10-29 by sotaliraq   In light of the economic and political crises witnessed by Iraq and the region, there are increasing reports of the increasing activity of currency smuggling mafias that exploit these conditions to their advantage.

These networks transfer money abroad illegally, posing a growing threat to economic and security stability in Iraq.

Reports indicate that these operations take advantage of the fragility of government institutions and the spread of corruption, which opens the door to huge losses in terms of cash reserves and the ability to finance basic needs, in addition to the exacerbation of inflation and the deterioration of the value of the Iraqi dinar.

Economic expert, Mohammed Al-Kubaisi, revealed that “the currency smuggling mafias in Iraq and the region are exploiting the economic and political crises to increase money smuggling operations abroad, which results in serious damage to the Iraqi economy.”

He explained that "these mafias are working to transfer huge sums of money illegally, which directly affects the value of the dinar and increases the severity of inflation in the country."

He pointed out that "smuggling operations lead to a shortage in foreign currency reserves, which weakens Iraq's ability to finance its basic import needs and further deteriorates the balance of payments."

He added that "the illegal exit of these funds contributes to the decline in domestic investment and the creation of an unstable economic environment, as smuggling relies on corrupt channels that undermine the effectiveness of government institutions and increase the spread of corruption."

The expert stressed that “currency smuggling does not only affect the economic aspect, but also extends to constitute a serious security threat, as this money is used to finance illegal activities including drug trafficking and financing armed groups, which exacerbates the security challenges in the country and the region as a whole.”

Al-Kubaisi concluded his speech by “warning of the danger of these practices that weaken Iraq’s financial sovereignty, stressing the need to take firm measures to stop smuggling operations and enhance oversight of financial transfers, with the aim of protecting the national economy and restoring confidence in financial institutions.”

For his part, Nasser Al-Kanani, an economic expert, said, “As soon as the war in Lebanon and Gaza escalated and security tensions in the region as a whole, specialized mafias emerged that work to exploit such security conditions in order to increase the process of smuggling currency from Iraq. There are different methods for this smuggling, some of which are done through foreign imports, which take place outside the platform.”

He added, “Iraq is working to strengthen its national currency, but there are those who are working to weaken this currency by making the dollar very high against the national currency, and some are working to limit large commercial transactions to the dollar exclusively, and the sale of real estate, cars, etc., and this also weakens the national currency, despite all the campaigns to prevent internal transactions in dollars.”

The economic expert continued, “Iraq cannot exploit conflicts and wars to strengthen its national currency, especially since it is working hard, internally and externally, to stay away from these wars. Iraq realizes the great economic danger if it enters the circle of conflict and wars.”  LINK