Five Iraqi banks to be banned from U.S. dollar transactions
By Maha EL Dahan and Ahmed Rasheed
Dubai / Baghdad (Reuters) – Iraqi Central Bank to Attract US Dollar Transactions To Reuters.
This step took place in Dubai last week between the Iraqi Central Bank officials, who have banned eight banks from US dollar transactions and US treasury and federal offices, say they are one of the sources.
The US and Iran’s rare allies in the United States and Iran are very dismantled on Washington’s goodwill to ensure that oil revenues and finance are not blocked.
But the second largest producer of OPEC can appear at US President Donald Trump for further intersections this month, he would resume his “maximum pressure” policy towards Iran.
Iran views its neighbor and allied Iraq as an economic “lung” and there is a significant military, political and economic impact through the powerful Shiite militants. It is also exported to heavy currency from Iraq and avoids US sanctions through its banking system.
In December, Reuters revealed a complex fuel oil smuggling network, which provides at least $ 1 billion per year for Iran and its proxies.
Banks banned from dollar transactions are allowed to continue operating and transactions are allowed to be involved in other currencies, says the Central Bank.
But the move restricts the banks’ ability to deal with dollars, hindering most of the operations outside Iraq.
The current Iraqi government came to power with a strong non-formal economy of Iraq, including the financial sector, with the support of the armed groups approved by the Iranian government, which is considered a money laundering hotspot.
Western officials praised the cooperation with Prime Minister Sudan to carry out economic and financial reforms, which were called to control the capacity of Iran and its allies to enter US dollars, but pressure is expected with the Trump administration.
The five banks are Al-Arabi Islamic Bank for investment, Al-Sanam Islamic Bank, “Islamic Bank of Islamic Bank” and Ami for Islamic Investments and Finance.
The Central Bank of Iraq has not immediately responded to the request of the comment.
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