Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Iranian Shura Council recommends the closure of the Hormuz Strait and leaves the decision up to the Iranian National Security Council.
IRGC Commander Major General Mohammad Pakpour: As time passes, the people's solidarity increases, which is a divine blessing
IRGC Commander Major General Mohammad Pakpour: The Iranian Revolution Guard Corps' aerospace operations will not stop
Russian Foreign Ministry: IAEA Director General Rafael Grossi must ensure that an objective report is presented at the special session of the International Atomic Energy Agency (IAEA)
Russian Foreign Ministry: The UN Security Council must respond to the US attacks on Iran
Russian Foreign Ministry: We strongly condemn the US strikes on Iran, calling the decision irresponsible
Iranian Red Crescent: Three personnel martyred, 29 injured in Israeli aggression
IRGC: We have identified and monitored the departure points of the US aircraft that carried out the aggression
IRGC: America has neither the initiative nor the ability to escape the consequences of a powerful response
IRGC: We strongly affirm that Iran's peaceful nuclear technology cannot be destroyed by any attack

Iraq to end all dollar cash withdrawals by Jan. 1, 2024: Reuters

  • By Al Mayadeen English
  • Source: Agencies
  • 5 Oct 2023 22:16
  • 2 Shares
4 Min Read

On Thursday, the parallel market rate of the Iraqi dinar was 1,560, or around 15% less than the official rate.

  • x
  • Reuters: Iraq to end all dollar cash withdrawals by Jan. 1 2024 
    A man counts US dollars in a money exchange shop in Dhaka on July 28, 2022 (AFP)

Iraq will prohibit cash withdrawals and transactions in US dollars beginning on January 1, 2024, in the latest effort to reduce the exploitation of its hard currency reserves in financial crimes and the violation of US sanctions against Iran, according to a top Iraqi central bank official.

In a move to double down on sanctions against Iran and other heavily sanctioned Middle Eastern countries, the New York Fed began enforcing tighter controls on international dollar transactions in commercial Iraqi banks in November, US and Iraqi officials said. 

According to the report, Iraqi banks had been operating under laxer regulations since shortly after the 2003 US invasion. However, years of US-sponsored weak governments and crises—from the insurgency during the US occupation to the ISIS takeover of large portions of the country—have led successive administrations to postpone bringing Iraq's banking system into 'compliance' with US money-transfer practices until now, according to officials.

The measure intends to eliminate the so-called "illegitimate" use of around half of the $10 billion in cash that Iraq buys from the New York Federal Reserve each year, according to Mazen Ahmed, director-general of investment and remittances at the Iraqi Central Bank (CBI).

The move is also inching towards de-dollarizing the economy after the people of Iraq suffered intense losses following the 2003 US invasion.

According to Ahmed, those depositing dollars in banks before the end of the year will be able to withdraw them in 2024 and those deposited after the new year begins can only withdraw their funds with the local currency at the official rate of 1,320.

On Thursday, the parallel market rate of the Iraqi dinar was 1,560, or around 15% less than the official rate.

Related News

Kataib Hezbollah warns US forces against postponing Iraq withdrawal

Iraq condemns 'repeated Israeli assaults' on Lebanon

Iraq's central bank announced in February that it would allow commerce with China to be settled directly in yuan for the first time.

Banks restrict dollar cash withdrawals

Some local banks have already restricted dollar cash withdrawals in recent months, creating a scarcity that has caused the secondary market exchange rate to soar.

According to Ahmed, some banks were short on dollars because many individuals were attempting to withdraw dollars all at once amid a sense of concern about the financial system, while others were short on dollars because they offered dollar-denominated loans that were ultimately repaid in dollars.

He also stated that the CBI had reduced the number of dollars it was delivering as part of an agreement with the Fed to minimize cash and migrate toward e-payment. He rejected allegations of a halt in Fed cash transfers to Iraq, saying that the most recent normal cargo had arrived on Wednesday.

Ahmed stated that the CBI expected the dinar to lose more value as the new measures took effect, but that this was a desirable side consequence of formalizing the financial system, and that the CBI was supplying dollars at the official rate for all lawful uses.

According to a subsequent central bank statement, Ahmed stated that the central bank was making efforts to decrease the parallel market exchange rate and that there was no sign that the market rate would reach 1,700.

On Thursday, a video surfaced on social media showing a depositor at a Baghdad bank threatening to burn it down if his deposit was not returned in cash dollars.

"I swear I will burn it down. I swear I will enter the safe and take my money" the man threatened.

  • Iraq
  • USD
  • US dollar
  • dedollarization
  • Baghdad

Most Read

Iran launches 9th wave of Op. True Promise 3, destroys IOF air defense

Iran launches 9th wave of Op. True Promise 3, destroys IOF air defense

  • MENA
  • 17 Jun 2025
Rescue team work at the site where a missile launched from Iran struck Tel Aviv, Israel, Monday, June 16, 2025 (AP)

Wave 12 of Operation True Promise 3 launched, Sejjil deployed: IRGC

  • Politics
  • 18 Jun 2025
Iran launches missile barrage to Tel Aviv, casualties reported

True Promise 3, wave 14: Tel Aviv targeted, casualties reported

  • Politics
  • 19 Jun 2025
Iran's heavy barrages impact multiple Israeli targets overnight

Iran's heavy barrages impact multiple Israeli targets overnight

  • Palestine
  • 18 Jun 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Iran UN Ambassador Amir Saeid Iravani addresses a United Nations Security Council meeting, Friday, June 20, 2025. (AP)
Politics

Iran demands urgent UN Security Council session over US airstrikes

CIA Director John Ratcliffe, testifies before a hearing April 18, 2023, on Capitol Hill in Washington (AP/Manuel Balce Ceneta)
US & Canada

Trump aides pushed war on Iran with Mossad-fed intel, ignoring dissent

This photo released on Nov. 5, 2019, by the Atomic Energy Organization of Iran shows centrifuge machines in the Natanz uranium enrichment facility in central Iran. (Atomic Energy Organization of Iran via AP, File)
Politics

Iran: Minor damage to nuclear sites after US attack, no radiation

The U.S. Capitol, on June 5, 2025, in Washington. (AP)
Politics

US lawmakers condemn Trump’s strikes on Iran; MAGA base frustrated

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS