SOME ECONOMISTS PROPOSE A STRATEGY TO ADDRESS THESE TWIN CHALLENGES BY INTRODUCING CURRENCY FLOTATION" BY SANDY INGRAM, 18 OCT

  Sandy Ingram

   A parallel market refers to the trade of goods or currencies through distribution channels that are not authorized by the original manufacturer or the official regulatory body...and is legal...

A black market refers to the illegal trade of good and services that are either prohibited by law or sold to avoid taxes and regulations.

  Iraq has serious currency controls and this automatically facilitates the black market...Iraqi citizens are banned from drinking alcohol, so yes the alcohol black market is probably huge. 

 Iraq has another black market product, oil smuggling.

Iraq is one of the world's largest oil producers yet the country struggles with shortages in fuel supply. 

 The central bank vice governor said in March 2024 that Iraq is fighting a booming currency black market.

  He made this statement...three months after it became illegal to use dollars in transactions in Iraq..

.Some economists propose a bold strategy to address these twin challenges by introducing currency flotation.

  The would essentially remove the CBI's peg to the dollar allowing the dinars exchange rate to be determined by market forces. 

 It appears the more controls a country has the more room there is for a parallel market or a black market..