China News Service, Beijing, February 5th Baghdad News: According to Reuters, on the 4th local time, the Central Bank of Iraq banned eight domestic commercial banks from engaging in U.S. dollar transactions to reduce fraud, money laundering and other illegal use of U.S. dollars.
According to the report, eight banks including Asour International Investment Bank, Iraqi Investment Bank, and United Bank of Iraq are prohibited from participating in the Iraqi Central Bank’s daily U.S. dollar auctions, but they can continue to operate business, including transactions in other countries’ currencies.
A spokesman for the Iraqi Ministry of Finance said that the Ministry of Finance appreciates the continued measures taken by the Central Bank of Iraq to protect the Iraqi financial system from abuse, which helps legal Iraqi banks achieve international interconnection through correspondent banking relationships.
Reuters pointed out that this ban is mainly to prevent Iran from obtaining US dollars through the Iraqi banking system. Brian Nelson, the U.S. Treasury undersecretary for terrorism and financial intelligence, met with senior Iraqi officials in Baghdad last week to discuss "protecting Iraq and the international financial system from crime, corruption and terrorists."
In July 2023, Iraq banned 14 banks from conducting U.S. dollar transactions. Iraqi and U.S. officials said the decision was made at the request of the U.S. government. Reuters said that as a country that relies on imports, Iraq relies heavily on the United States to ensure its smooth access to oil revenue and funds. (over)