REASONS FOR STOPPING CASH WITHDRAWALS OUTSIDE IRAQ BY TBI
(Mnt Goat: Although the article on this subject matter from my 02/27 Newsletter did not specifically tell us, we now find out the reason. Is exactly as my contact from the CBI told me and I told you then. But here it is in writing….)
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.”
😊More good news from Iraq in the article titled “CENTRAL BANK: 20 IRAQI BANKS PRACTICE DIRECT TRANSFER OPERATIONS IN 8 FOREIGN CURRENCIES”.The Governor of the Central Bank, Ali Al-Alaq, confirmed today, Tuesday, that there are 20 Iraqi banks practicing direct transfer operations in 8 foreign currencies. Remember we read in December that it was only 4 correspondent banks and now it's eight.
At that time I told you my CBI contact said there were 10 in the process and so now we now have 8 of these 10 foreign banks (currencies). This is VERY IMPORTANT news because it shows to us that foreign banks are slowly opening-up to doing business with Iraqi banks and the dinar. Remember the process – merchants in Iraq take dinar,
the Iraqi banks send dinar electronically to the foreign banks that then convert the dinar (or exchange it) to the foreign currency of that country and pay the distributor for the imports to Iraq. But look at this as progress but still in its infant stages. It is like a beta test. Only 20 Iraqi banks and only 8 foreign currencies so far. It’s a start and you have to start somewhere. The glass is half-full!
And finally, I want to cover this question that may be on everyone’s mind. This is the VERY IMPORTANT question asking – Will Iraq go to a fully digital currency for the dinar? If you read a couple articles from today’s news you might get the impression they fully intend to move in this direction and plan to do it now. However, we must consider more than the headlines and read the full articles to understand. We must also look at the past news from the CBI on this topic.
So, what did the CBI tell us in the past? In an article from November of 2021 titled “THE CENTRAL BANK URGES CAUTIONS ON DIGITAL CURRENCIES” in Economy News channels, the Central Bank of Iraq (CBI) warned on Thursday, against dealing in digital currencies. The CBI media office stated in a statement received by the Iraqi News Agency (INA), that “The bank is closely following transactions in the digital, encrypted and virtual currency market, given the great risks associated with these currencies. The statement added, “In order to avoid any negative repercussions resulting from dealing with these currencies, which are highly volatile and speculative, we urge caution against their use”.
Then yet another article in March of 2022 titled “IRAQ CBI: TRADING IN DIGITAL CURRENCIES” affirmed what was stated in our circular No. (125/5/9) on 3/29/2022, in which it was decided to prevent the use of electronic cards and wallets for the purpose of speculation and trading in digital currencies of all kinds. Take all necessary administrative, legal and technical measures to prevent and track such types of transactions and trades. educate your customers about the risks and procedures that will be taken against them according to the laws and instructions in force related to these transactions and trades. Otherwise, all strict legal measures will be taken against your institutions and customers in accordance with the Anti-Money Laundering and Terrorist Financing Law No. (39) of 2015 and the instructions issued thereunder in the event of non-compliance with the above.
Having read the “official” stance or policy of the CBI on this issue of digital currencies (see the two articles above) let’s go and read what just recently came out in the news from the Finance Committee. Remember that the finance committee is part of the government of Iraq (GOI) and not the CBI. It is part of Al-Sudani’s cabinet.
In the articles titled
“FINANCIAL ADVISOR: CENTRAL BANK DIGITAL CURRENCY WILL BOOST TRANSPARENCY, IMPROVE NATIONAL PAYMENTS”
and
“SUDANESE ADVISOR: DIGITAL CURRENCY IS A QUALITATIVE LEAP THAT IMPROVES OVERSIGHT AND SUPPORTS COMBATING MONEY LAUNDERING”,
the financial advisor to the Prime Minister, Mazhar Mohammed Saleh, explained today, Saturday, that issuing a digital currency for the Central Bank will be an important step towards enhancing transparency and achieving a qualitative leap in the national payments system.
Saleh said in a statement to the official agency, followed by NRT Arabic, that “the Central Bank plans to issue a digital currency as a gradual alternative to paper currency,” noting that this step will contribute to reducing cash leakage and lowering the costs of printing paper currency, in addition to reducing the circulation of money outside the banking system.
So its seems according to this article that the CBI is now in favor of a digital currency for the dinar. It does say “gradual” and so when we don’t know when. This was not an announcement of a pending digital currency. It was an informative article only. Will the CBI itself speak up on this issue being that the finance committee already “spilled the beans” on it?
COORDINATION FRAMEWORK MOVES TO RESPOND TO RUBIO’S WARNING MESSAGES
The Coordination Framework in Iraq is preparing to hold an emergency meeting within the next two days to discuss the details of the phone call that took place between US Secretary of State Marco Rubio and Iraqi Prime Minister Mohammed Shia al-Sudani.
The meeting comes amid escalating tensions after informed sources reported that the US Secretary of State had sent warning messages that could carry direct threats. The leaders of the framework believe that these messages may reflect Washington’s intention to increase pressure on Baghdad, especially with regard to relations with Iran.
The move appears to reflect growing concern within Iraqi political circles about the implications of the new US policy under President Donald Trump’s administration, which focuses on a “maximum pressure” strategy against Tehran. The meeting appears to be an attempt to formulate a unified position that protects Iraq from any potential sanctions that may affect economic and political figures or entities.
During the phone call, the US State Department urged the Iraqi government to ensure its energy independence, which was confirmed by the department’s spokeswoman, Tammy Bruce, in an official statement.
She pointed out that Rubio and Al-Sudani discussed the importance of reducing dependence on Iran in this vital sector, while stressing the resumption of the operation of the Iraqi-Turkish pipeline as soon as possible.
This call reveals Washington’s desire to limit Iranian economic influence in Iraq, as the latter depends on Iranian gas to generate about 40% of its electricity
, according to reports by the International Energy Agency for 2024.
This pressure is part of a broader policy aimed at reshaping regional balances, but it could force the Iraqi government to make difficult choices between maintaining its relations with Tehran and meeting US demands.
The leaders of the Coordination Framework see the content of Rubio’s messages as a direct threat to the stability of the political system in Iraq. Speculation is rife in Baghdad about the possibility of US sanctions that could include local banks or prominent figures, which could exacerbate the economic crises that the country is already suffering from.
This perception indicates the sensitivity of the internal political situation, as some believe that any American escalation could lead to reactions from the armed factions loyal to Iran, which have great influence in the Iraqi arena. This dynamic shows the complexity of the scene, as Al-Sudani tries to maintain a delicate balance between external pressures and internal stability.
Former US Assistant Secretary of State David Schenker confirmed during his participation in the Erbil Forum on Thursday, February 27, 2025, that Iraq is not among the main priorities of US foreign policy at the present time. He explained that the US focus is on confronting Iran, and that Iraq is seen as a secondary arena in this conflict
.
This statement reinforces the impression that Washington is using Iraq as a tool in its broader strategy against Tehran, without fully paying attention to its internal needs. This raises questions about the seriousness of the strategic partnership between the two parties, especially with the ongoing security and economic challenges facing Baghdad.
According to statements by Foreign Minister Fuad Hussein, Iraq seeks to maintain a balance in its relations with the United States and Iran, while emphasizing its commitment to the security agreement with Tehran. Hussein indicated in a television interview that Baghdad is working to protect its national interests amid increasing international pressure.
This position reflects the great challenge facing Al-Sudani in managing complex foreign relations, as Iraq has a long border with Iran that extends for more than 1,400 kilometers, making cooperation with it a geopolitical necessity. However, reliance on American support, whether military or economic, puts the government in an unenviable position.
😊In yet another optimistic article about Iraq titled “IRAQI OPPOSITION LOBBIES IN AMERICA: JOE WILSON AND THE MEGA CAMPAIGN AS AN EXAMPLE – URGENT” we find an American politician bringing emphasis on Iraq. For all too long Iraq seemed to be all but ignored by the U.S. foreign policy, except for military purposes against ISIS and terrorism.
Now we read that US Senator Joe Wilson, known for his controversial positions, announced the launch of a campaign called “MEGA”, in direct imitation of former US President Donald Trump’s “MAGA” (Make America Great Again) campaign.
Addison Graves “Joe” Wilson Sr. (born July 31, 1947) is an American politician and attorney serving as the U.S. representative for South Carolina’s 2nd congressional district since 2001. A member of the Republican Party.
Wilson’s campaign, according to what he posted on his account on the X platform, aims to “support the Iraqi people to make Iraq great again”
, in reference to the October 2019 protests, which he described as “a non-sectarian movement abandoned by US President Joe Biden.” So, we can yet more aspects of the U.S. policy towards Iraq slowly changing for the better too. It is not that Trump does not want wealth and prosperity for Iraq too but he is setting the first priority and this must come from dealing with Iran first. If you don’t deal with Iran first the chaos in the middle east will never end. It is time for it to end and then the U.S. can concentrate more on its partners in the middle east.
The article tells us that nn recent years, Iraqi lobby groups have become active in the United States, seeking to influence American decision-makers regarding policies towards Iraq.
These lobbies are divided between supporters of the current Iraqi government and opponents who seek to change the political system in Baghdad. Among the American figures who adopt this approach, Senator Joe Wilson stands out targeting what he called “liberating Iraq from Iran”, which sparked widespread controversy in American and Iraqi circles. I am sure you all can see why this would be controversial for Iraq since Iraq and Iran are tided together both culturally, ethnically and by trade (economics).
Wilson’s statements and his new campaign of MEGA for Iraq faced sharp reactions from American commentators on social media platforms, with some criticizing him, saying that “American politicians should focus on their internal issues instead of interfering in Iraq’s affairs.”
The campaign also angered some American political circles, as some considered it an “irresponsible attempt to reignite chaos” in a country suffering from major political and security complications. I will add that change is hard and sometimes faced with strong resistance. Are any of these negative political figures invested in the corruption schemes with Iraq?
How must money have they gained from holding back Iraq and its currency reforms? Yes, you have to take comments like these against change with a grain of salt as you don’t know what is behind them. In another note you would also think that the democrats in the U.S. would be happy and jumping up and down about all the exposure of corruption and cutting waste out of the U.S. budget. But are they? Why not? Go figure who is behind it.
What would happen if Iraq did institute a digital currency prior to the RV?
This action would impede and slow down the necessity to RV since they would not have to conduct the project to delete the zeros and there would be no longer pressures to do so. On the other hand, it would force the turn-in of all hard cash to the banks for credit and thus finally all this cash back into the banking system for liquidity.
But there are other ways of doing this too, as we are now seeing taking place. Will the people of Iraq accept this lack of FREEDOM of privacy of their expenditures and the government controlling their every dinar spent? Of course, many Iraqi may feel this might be a step up from what they now have, without realizing all the future ramifications it will cause.
Bottom line is I am not worried about this transition to a fully digital currency unless I firmly hear the CBI come out with a directive policy to begin the process. I don’t think this is going to happen until we are way out of this investment and the dinar has already been reinstated.
I want to bring you one more article and this one is from the past. I stumbled on this one while searching for the past articles on the digital currency stuff. Take a look at it as it is very interesting and tells us so much of Ali Al-Alaq and his mind set for the dinar. Look at the date…..
So, in today’s news we just read that from Saturday Alaq said and I quote from Alaq that “IRAQ AMONG THE BEST IN THE WORLD IN CONTROLLING THE SALE OF THE DOLLAR”. Really?So, you see some the news is just hopeful. The CBI does have plans but it might change as the dynamics of the politics change too.
This was during the first Trump administration. If the CBI could really control the dollar so well than after 7 years from this article you would think the CBI could have the dinar equal to the dollar by now? Folks it's been 7 years since this article.
Are you listening what I am trying to tell you? I am not trying to discourage you but to wake you up to the reality of what is really happening in Iraq. There are some strange things happening in Iraq!