Iraq prohibited banks from conducting transactions in U.S. dollars - Reuters
Iraq has banned banks from conducting operations in U.S. dollars (photo: Getty Images)
Iraq has imposed a ban aimed at stopping fraud, money laundering, and other illegal operations with U.S. dollars, according to Reuters.
This decision was made a few days after the visit of a high-ranking representative of the U.S. Treasury.
The Iraqi government has prohibited banks from participating in the daily auctions for the sale of U.S. dollars conducted by the country's Central Bank. The goal is to halt the smuggling of dollars to Iran, a situation actively opposed by the U.S.
Iraq, an ally of both the U.S. and Iran with over $100 billion in reserves stored in the U.S., heavily relies on Washington's goodwill to access its oil revenues and other financial resources.
The following financial institutions are affected by the ban:
- Ahsur International Bank for Investment
- Investment Bank of Iraq
- Union Bank of Iraq
- Kurdistan International Islamic Bank for Investment and Development
- Al Huda Bank
- Al Janoob Islamic Bank for Investment and Finance
- Arabia Islamic Bank
- Hammurabi Commercial Bank
"We commend the continued steps taken by the Central Bank of Iraq to protect the Iraqi financial system from abuse, which has led to legitimate Iraqi banks achieving international connectivity through correspondent banking relationships," stated a representative from the Iraqi Treasury.
U.S. sanctions against Iran
Earlier, we reported that the U.S. imposed sanctions on companies assisting Iran in the production of kamikaze drones.
By the way, at the end of November 2023, the U.S. introduced sanctions against Iran and North Korea.
