Import, export and construction companies continue to purchase large amounts of dollars from Baghdad's money exchangers. Iraqi officials said the dollar-linked companies were linked to Iran and backed by parties and armed factions within the popular crowd.
The central bank has suspended all bank transactions in dollars with banks and foreign remittance offices of Iran because of the imposition of US sanctions on Tehran.
"Based on the decision of the Central Bank of Iraq, it was decided to ban the dollar deal with the branches of Iranian banks and the euro currency, it is up to the requirements of dealing with the European Central Bank, banks dealing with the euro."
The ban on dealing with Iranian banks came in dollars, days after the first package of Washington's economic sanctions came into force on Tuesday, aimed at increasing pressure on Iran over its nuclear program.
The newspaper "New Arab" London, a senior Iraqi official in the Secretariat of the Iraqi Council of Ministers in response to a query on the accuracy of the rumors in the Iraqi street of the existence of groups withdrawing large amounts of dollars as "true."
The official, who declined to be identified, said that the National Security Service and the intelligence service monitored various parties buying the dollar from exchange offices and licensed financial companies in Baghdad and the provinces.
According to the official, it is estimated that what has been collected so far not less than 400 million dollars withdrawn from the market daily trading since last Saturday and is no longer to him, adding that "these entities belong to Iran and supported by parties and armed factions within the popular crowd."
On how to transfer these funds to Iran, he said, "You have 1300 kilometers of common border open between the two countries."
He pointed out that firm action will be taken by the government in cooperation with the Central Bank, including determining the amount of what can be sold from the dollar to companies or persons and the establishment of a database for each person who buys the dollar and where to go or the hand to spend in order to maintain the dinar price and prevent its collapse under the new changes.
"Many of those who buy the dollar are political or follow groups in the crowd and we can not refuse to deal with them," said a commissioner at one of Baghdad's biggest money changers.
According to the same official, who asked not to be named, "the government is required to spare exchange and financial transfer companies this responsibility immediately," asserting that the withdrawals of the dollar is increasing from Baghdad, Erbil, Sulaymaniyah, Najaf, Basra and Karbala as the richest provinces in Iraq in terms of acquisition of huge liquidity.
He added that "the increase in the purchase of the dollar will lead to a shortage in the market and thus adversely affect the dinar, and if continued for long periods may collapse the local currency to range between 1290 and 1300 dinars to the dollar.
"What is happening now in the market is predictable and most observers were sure that if Iran did not withdraw the dollar from Iraq through exchange companies and the central bank auction, it would pull it across the border in the conventional way," said Ali Hussein Mahmoud, a specialist on Iraqi economic affairs.
He explained that Iraq for about 14 years the first supplier of the dollar for Iran and talk about at least 12 billion dollars a year goes to Iran, and the issue of stopping the largest of the government of Baghdad as Iran Iran Iraq basket of currencies and any prejudice to this aspect means a threat to its economic security, Iraq to prevent official trading with Iran in dollars will not be completed. "
For his part, a member of the Iraqi Chambers of Commerce in Baghdad, Anas Ahmed al-Dulaimi said that "Iraq deals with Iran through a system of senior traders have relations with the decision makers in the country and talk about that Iraq stopped dealing via remittances in dollars is not true there are unknown companies still deal voluntarily and other reluctance "He said.
He pointed out that the Iraqi market for goods and services has not been affected so far but with the increase of the bleeding of hard currency will reflect negatively on all sectors.
Prime Minister Haidar al-Abadi said Tuesday that Iraq is not sympathetic to US sanctions against Iran, but his government is obliged to abide by those sanctions to protect the interests of the Iraqi people.
Last edited by rocky on Fri 17 Aug 2018, 9:14 am; edited 1 time in total