Sandy Ingram 

There is a high demand for US dollars in countries like Iran and Syria where local currencies have significantly devalued.  Entities in these countries are desperate to obtain…physical dollars …because they are accepted everywhere and impossible to trace…Iran and Syria find it more feasible to obtain dollars from Iraq.  The Iraqi market offers cheaper source of dollars…which impacts Iraq’s exchange rate dynamics by increasing the pressure on its currency system and contributing to dual exchange rates.