Baghdad bars security forces from currency market interventions

Shafaq News- Baghdad

Iraq’s security forces have no authority to intervene in the dollar exchange market, the Security Media Cell said on Sunday, after a video circulated online showing an officer urging a caller to report exchange offices selling dollars above the official rate.

In a statement, the Security Media Cell explained that foreign exchange rates are the responsibility of financial and monetary authorities, particularly the Central Bank of Iraq (CBI). It also cited directives from Prime Minister Ali Al-Zaidi, commander-in-chief of the armed forces, requiring security forces to act within their legal powers.

In such cases, their role is limited to enforcing the law and carrying out valid judicial orders issued by the competent authorities.

The Cell added that any action against violations involving foreign currency transactions must follow established legal and judicial procedures and be coordinated with the CBI, stressing that each authority must operate within its own powers to prevent arbitrary measures and protect the rights of those conducting legitimate transactions.

‘’The CBI oversees financial and banking institutions, regulates exchange companies and monitors their compliance with applicable rules,’’ it added, noting that it can also take administrative and regulatory action against violations.

In a separate statement, the Ministry of Interior clarified that the officer’s remarks in the circulating video were personal and did not reflect the ministry’s official position.

“The officer was not authorized to provide information or comment on matters outside his duties,” the ministry stated, confirming that legal action had been taken against him under applicable rules and instructions.

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The Central Bank of Iraq (CBI) raised the official cash selling rate for the public from 1,320 to 1,520 dinars per dollar, prompting political parties and trade unions to demand a reversal. CBI Governor Nizar Hussein told parliament’s Finance Committee that the official rate had been fixed at 1,500 dinars per dollar, with the draft federal budget already based on that figure.

Iraq derives almost all government revenue from oil exports, earning dollars that are exchanged through the central bank for dinars to fund public spending, including salaries.

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