The Story Of The Suspicious Dollar Transfer.” An American Newspaper Interviews Ali Ghulam At His Palace In London, “Near The American Embassy.”
Policy 2024-09-09 | 7,321 views Alsumaria News-Politics A Wall Street Journal report revealed the extent of Ali Ghulam’s influence on the dollar crisis in Iraq, as he was the reason for the American side imposing strict control on dollar transfers from Iraq, while
Ghulam was described as “the undisputed king of the dollar in Iraq for a decade.”
The Iranian Revolutionary Guard was financed with dollars using suspicious import receipts, which is denied by Gholam, who lives in his mansion in London near the residence of the American ambassador to Britain.
The newspaper pointed out that the American side was aware of these problems since 2012, but did not want to plunge Iraq into an economic crisis.
The newspaper said in an article translated by Al Sumerian, that Ali Ghulam was the undisputed king of the dollar in Iraq for nearly a decade, and
his three banks in Baghdad transferred tens of billions of dollars at that time outside the country, ostensibly to buy car parts, furniture and other imports, indicating
He was one of the most senior workers in the ad hoc banking system that was established nearly two decades ago under the American occupation and that gave the Federal Reserve Bank of New York a key role in processing Iraq's international transactions. She noted that
years later, when the Federal Reserve finally began to look more closely at where the money was going, it closed it almost overnight, as
American officials suspected that its banks were among more than two dozen Iraqi banks involved in transferring dollars to Iran and its allies., using front companies and false invoices to circumvent sanctions that prevent Iran from accessing the global financial system.
The newspaper reported that audits of Gholam's banks, which were completed in May, revealed unusual details of dollar transactions abroad, which auditors said raised concerns about money laundering. Gholam denied these allegations in interviews.
The newspaper explains that among Iraqi banks in general, it was not possible to trace up to 80% of the bank transfers worth more than $250 million that flow through them on some days, and part of this amount went secretly to the Iranian Islamic Revolutionary Guard Corps.
The crackdown on Iraqi banks began in late 2022 after more than a decade of US inaction, even after the Pentagon's inspector general warned as far back as 2012 of the potential for fraud worth $800 million a week.
Current and former US officials said the US had imposed... Over the years, it has imposed temporary restrictions on cash flows to Iraq, but fears that strict or permanent controls will plunge Iraq into economic chaos and setback its battle against ISIS.
Ghulam, 42, now based in London, ran an empire that handled the lion's share of dollars transferred outside Iraq, on some days as much as 20 percent of wire transfers, he and Iraqi banking officials said.
Its banks - Iraqi Middle East Investment Bank, Al Ansari Islamic Bank, and Islamic Holding Bank - were the first to be banned from dollar transactions by the Federal Reserve and the Treasury Department in late 2022.
He was suspended from work due to the large volume of suspicious transactions, and no action was taken against Ghulam personally.
Gholam denied that his banks knowingly sent money to the Quds Force or the Iranian government. He said:
"The Americans have nothing against me.
I have nothing to do with money laundering or Iran."
He said that his life in London, where he and his family live after moving from Baghdad in 2018, has been turned upside down since the loss of the US dollar.
His $40 million home, which was recently renovated with shiny marble floors, a swimming pool in the basement and a parrot cage, is located Just a few blocks from the US ambassador's residence, after a walk, he often heads to his favorite London restaurants in his Rolls-Royce SUV.
“The system is bad, but every bank in Iraq was operating under the same system,” Ghulam said. The Americans came up with this system?
Since the ban on Gholam's banks, the Treasury Department and the Federal Reserve have been pressing for more sweeping changes in Iraq.
The United States has banned more than two dozen other Iraqi banks from conducting transactions in dollars.
Strict new rules imposed by the Central Bank of Iraq since late 2022 under American pressure require banks to disclose the final recipients of bank transfers.
The New York Federal Reserve Bank at that time began carefully monitoring wire transfers from Iraq's official accounts, rejecting any transfers that did not comply with standard procedures for transferring international funds, officials said.
Iraq’s financial landscape is evolving with discussions on enhancing the dinar’s value, central bank policies, and potential forex listings.
Highlights
💰 Militia Man discusses the importance of local currency value enhancement.
📈 Prime Minister’s advisor links central bank decisions to reducing inflation.
🔍 Mark Z confirms ongoing education on lower denominations in Iraq.
🏦 Wolverine hints at the dinar’s potential entry into Forex.
💼 Advisor reveals discussions between the Central Bank of Iraq and the US Federal Reserve.
📊 Claire reports on upcoming central bank decisions impacting exchange rates.
🚫 Urgent measures to combat currency smuggling are anticipated from the central bank.
Key Insights
🌟 The emphasis on enhancing the dinar’s value signals a strategic shift in Iraq’s economic policies, aiming for stability and growth.
📊 Central bank decisions are pivotal in controlling inflation, suggesting a direct link between economic growth and currency strength.
🔄 The ongoing education on lower denominations indicates an upcoming adjustment in currency value, furthering public understanding and acceptance.
🌍 The potential inclusion of the dinar in Forex illustrates Iraq’s ambition to integrate more fully into global financial markets, which could attract foreign investment.
🤝 Collaboration with the US Federal Reserve suggests serious efforts towards financial reform, which are crucial for Iraq’s economic stability.
📈 Anticipated central bank decisions could significantly impact the parallel market, highlighting the need for transparency in currency trading.
🚨 Measures against currency smuggling reflect the government’s commitment to maintaining currency integrity and market stability.
The Fragile State of the Iraqi Economy in 2024 and Proposed Solutions
As of September 10, 2024, the Iraqi economy is facing significant challenges that have raised concerns among economists and policymakers alike. The economy has been heavily reliant on oil revenues, which account for over 99% of exports, 85% of the government budget, and 42% of gross domestic product. This over-dependence on oil has left the country vulnerable to macroeconomic volatility and restricted fiscal space for countercyclical policy measures.
The Current State of the Iraqi Economy
The most recent data from January 2021 showed that Iraq's unemployment rate was more than 10 percentage points higher than its pre-COVID-19 level of 12.7 percentage points. The economy has been gradually recovering from the oil and COVID-19 shocks of 2020, with real GDP estimated to have increased by 1.3% in 2021, following a sharp contraction of 11.3% in 2020. The non-oil economy grew by over 6% in the first nine months of 2021, driven by a robust performance in the services sector as COVID-19 restrictions were eased.
The Risk of Economic Collapse
Economic researcher Manar Al-Obaidi has identified eight hidden weaknesses in the Iraqi economy, which he believes could lead to its collapse. Al-Obaidi argues that the collapse is not a future event but rather a process that has been ongoing for a long time, exacerbated by fluctuations in oil prices. The sustainability of the Iraqi economy is primarily threatened
by its lack of diversity in revenue sources and the mismanagement of expenditures.
Proposed Solutions
To address the challenges and prevent a full-scale economic collapse, several solutions have been proposed by experts and policymakers. These include:
Diversification of the Economy: Reducing dependence on oil by developing other sectors such as agriculture, tourism, and manufacturing.
Fiscal Reforms: Implementing measures to control government spending, improve tax collection, and mobilize non-oil revenues.
Private Sector Engagement: Encouraging the growth of the private sector by creating a business-friendly environment, reducing bureaucratic red tape, and attracting foreign investment.
Job Creation: Focusing on creating productive job opportunities, particularly for the youth and women, to reduce unemployment.
Anti-Corruption Measures: Strengthening transparency and accountability to reduce corruption and improve the overall business climate.
Conclusion
The Iraqi economy has been facing significant challenges, exacerbated by its heavy reliance on oil revenues and the impact of the COVID-19 pandemic. To prevent a potential collapse and achieve long-term stability, the country must implement comprehensive reforms aimed at diversifying its economy, improving fiscal management, and fostering a more vibrant private sector.
Economy | 09/09/2024 Mawazine News – Baghdad An economic researcher considered the existence of 8 hidden weaknesses in the Iraqi economy, in a comment on fears of the collapse of the economy,
describing that the collapse essentially occurred a long time ago, and fluctuations in oil prices prolong or accelerate the final collapse. Economic researcher Manar Al-Obaidi said in a statement that with the decline in oil prices and the unprecedented rise in operating expenses to reach a growth rate in current expenditures exceeding 30% and a decline in revenues by 16%, the most important question arises: Is the Iraqi economy facing a crisis or collapse?
The sustainability of any economy depends primarily on the diversity of its sources and the
control and planning of its expenditures.”
He continued, “We cannot expect the sustainability of an economy in which more than 500,000 researchers enter the labor market annually and is unable to create productive job opportunities with more than 20 to 30 thousand opportunities as a maximum, and an economy based on sales of one commodity and whose prices are not controlled through One port and only two countries.”
He described the Iraqi economy as “an
economy based on a deteriorating business environment with no role for the private sector in turning the wheel of the economy, an
economy that adopts the private sector and pastoral laws and legislation and gives preference to the public sector, a
consumer economy based on an unprecedented consumption pattern without production having a role, an
economy that employs more than 6 million employees with almost non-existent productivity, an
economy marred by corruption, lack of transparency and inequality of opportunities, an
economy that does not have foreign investments and is unable to attract them.” He concluded:
“The collapse occurred a long time ago, and the
fluctuations that are occurring in oil prices are merely prolonging or accelerating the collapse process, and the
