Reasons for stopping cash withdrawals outside Iraq by TBI
Today , Friday (February 28, 2025), banking and financial affairs specialist Ahmed Abdul Rabbo revealed the reasons for stopping cash withdrawals outside Iraq by the Trade Bank of Iraq.
“There is a strong possibility that the decision is related to combating currency smuggling, as the Central Bank of Iraq and financial institutions have previously taken similar measures to limit the exit of the dollar through unofficial means,” Abdul Rabbo told Baghdad Today.
He explained that “some parties were using electronic payment cards to withdraw cash from abroad with money purchased at the official exchange rate inside Iraq, then reselling it at higher prices in the parallel market, which constitutes a type of currency smuggling.”
He explained that "there is a strong possibility that the decision came in response to American pressures related to regulating dollar flows and preventing its smuggling to countries subject to American sanctions, such as Iran. Washington has imposed strict restrictions on Iraqi banks in recent periods, and asked the Central Bank of Iraq to take strict measures to control financial transfers, especially after detecting currency smuggling operations through the use of electronic payment cards."
He added that "the decision appears to have come as part of broader measures to control the banking sector and prevent the misuse of the dollar, and is an extension of previous measures imposed by the Central Bank, either in response to American pressure or as part of efforts to combat financial corruption and smuggling."
Yesterday, Wednesday, the Trade Bank of Iraq announced the suspension of cash withdrawals via ATMs outside Iraq.
The bank's media advisor, Aqil Al-Shuwaili, said in a brief statement, "Due to the risks resulting from the misuse of electronic cards (Visa and MasterCard), and to avoid these risks, cash withdrawals via ATM machines for these cards outside Iraq only have been stopped."
He added, "Cards can be used to pay through POS machines and online." link