Iraqi Central Bank warns Iraqi banks refusing USD withdrawals

ERBIL (Kurdistan 24) – The Central Bank of Iraq on Sunday directed all Iraqi banks to comply with authorized foreign exchange centers to prevent deficits.

CBI also warned Iraqi banks that it would take legal action against any bank that prevents Iraqi citizens from withdrawing US dollars.

Recently, the value of 100 USD in the Kurdistan Region and Iraqi markets has exceeded 160,000 Iraqi dinars, following rumors that the value of 100 USD will reach 170,000 dinars due to the US Federal Reserve System's failure to send cash to Iraq.

Moreover, a statement from the CBI denied that the US Federal Reserve System had stopped sending cash to Iraq, stating that cash would be supplied in annual installments.

Citizens in Baghdad and several other cities in central and southern Iraq protested against several Iraqi banks that prohibited them from withdrawing money from their accounts in USD despite previously depositing funds in dollars.

Furthermore, the governor of the Central Bank of Iraq, Ali Mohsen al-Alaq, announced on Sept. 24 that all commercial transactions will be conducted in Iraqi dinars beginning next year.

On Sept. 15, the US Department of the Treasury announced in a statement that it had agreed to work with Iraq to improve the financial sector to prevent fraud, money laundering, and other illegal activities.

The statement came after Assistant Secretary of the Treasury for Terrorist Financing Elizabeth Rosenberg visited Baghdad on Sept. 12 and met with top Iraqi officials, including Iraqi Prime Minister Mohammed Shia al-Sudani.