Iraq: The dinar instead of the dollar in internal transactions

by **Rocky** Mon 25 Sep 2023, 4:24 am

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Iraq: The dinar instead of the dollar in internal transactions

by Rocky Mon 25 Sep 2023, 4:24 am

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[size=52]Iraq: The dinar instead of the dollar in internal transactions[/size]

[size=45]The Governor of the Central Bank of Iraq, Ali Al-Alaq, announced on Sunday that Iraq will limit all internal commercial and other transactions to its currency, the dinar, instead of the dollar, starting next year.[/size]
[size=45]Al-Alaq said, according to what was reported by the News Agency (INA): “The coming year will witness the restriction of internal commercial and other transactions to the Iraqi dinar instead of the dollar, except for those delivered to travelers.”[/size]
[size=45]A few days ago, a senior official at the US Treasury Department told Reuters that the Central Bank of Iraq must address the ongoing risks resulting from the misuse of the dollar in Iraqi commercial banks, to avoid imposing new punitive measures targeting the financial sector in the country, pointing to acts of fraud, money laundering, and Iran’s evasion of sanctions. .[/size]
[size=45]In July, the United States prevented 14 Iraqi banks from conducting transactions in dollars as part of a broader campaign against the illegal use of the American currency.[/size]
[size=45]The official, who spoke on condition of anonymity, said that there are still other Iraqi banks operating with risks that “must be addressed,” despite the campaign.[/size]
[size=45]Al-Alaq indicated, during his meeting on Sunday with the heads of the councils and authorized directors of the licensed banks, that the entry of most merchants into the official transfer channels and the provision of the dollar at a price of (1,320) dinars was a direct reason for controlling the general level of prices and decreasing the inflation rate, he said.[/size]
[size=45]During the meeting, Al-Alaq also announced that the bank will dispense with external transfers “next year,” and that banks licensed in Iraq will rely on correspondent banks in external transfer operations.[/size]
[size=45]This came after “an agreement between the Central Bank of Iraq and the US Federal Bank, similar to countries around the world, where central banks do not perform executive duties, and their role is focused on supervision and control,” according to “Iaa.”[/size]
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