Foreign private banks face stiff costs to obtain dollars through the swap line, he said.

Many could only obtain dollars from government exchange bureaux located in the waiting lounge of the airport.

Iraq is a convenient place for both countries to obtain dollars because business ties have been growing rapidly.

One success: The Fed has made it easier for other nations' central banks to obtain dollars to meet runaway global demand for the greenback.

Businesses are unable to secure enough foreign currency to import components or pay a premium above 40 percent to obtain dollars on the black market.

The only winners from this policy are the few who obtain dollars they can sell on the black market, while everyone else is a loser.