(MENAFN) In a move aimed at curbing fraud, money laundering, and other illicit uses of the US dollar, Iraq has decided to prohibit eight local commercial banks from dealing in dollars. This decision comes shortly after a visit from a senior US Treasury official to Baghdad and is part of broader measures to enhance financial integrity. The targeted banks will now be barred from participating in the daily dollar auction conducted by the Central Bank of Iraq, a significant source of hard currency crucial for the country's import-dependent economy.
The decision to restrict these banks from dollar transactions is seen as a response to concerns related to dollar smuggling, particularly in connection to Iran. Iraq, positioned as a rare ally of both the United States and Iran, finds itself at the center of the American campaign aimed at reducing illicit financial activities involving the US currency. The country, with over USD100 billion in reserves stored in the United States, heavily relies on the goodwill of Washington to safeguard its access to oil revenues and financial resources.
The Central Bank of Iraq, in an official document verified by a banking representative, has listed the eight banned banks. These include Assyria International Investment Bank, Iraqi Investment Bank, Iraqi Union Bank, Kurdistan International Islamic Bank for Investment and Development, Al-Huda Bank, Southern Islamic Bank for Investment and Finance, Arab Islamic Bank, and Hammurabi Commercial Bank. The move underscores Iraq's commitment to financial transparency and aligns with international efforts to combat financial crimes, signaling a proactive stance against potential misuse of the US dollar within its financial system.
MENAFN05022024000045015682ID1107809725
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.