America Is Choking Off The Dollar In Iraq... And The Central Bank Is Distributing It Only To "Close Associates"!
July 22, 2025 Al-Mustaqilla/- A source said that the Iraqi market is currently witnessing a severe shortage of cash dollars, as a result of what he described as a “well-considered” move by the Central Bank of Iraq,
which decided to restrict dollar transactions to a limited number of private and government banks,
while preventing or restricting the flow of hard currency to exchange offices and open markets.
According to the source, who spoke to Al-Mustaqilla on condition of anonymity, this measure is an extension of a previous US decision to
halt cash dollar transfers to Iraq.
This decision is part of a regulatory effort aimed at controlling the flow of currency and preventing smuggling and money laundering, particularly after Washington identified Iraqi financial networks involved in suspicious transfers to countries subject to sanctions.
Dollar shortage crisis in the market:
The absence of cash dollars from the market has opened the door to a stifling liquidity crisis,
leading to a decline in actual demand for the US currency and
contributing to a depreciation of the exchange rate on the parallel market.
Yesterday, the dollar exchange rate recorded a significant decline, reaching 139,000 dinars for every $100, compared to previous levels of more than 143,000 dinars.
However, this "drop" in price does not reflect economic improvement as much as it indicates a shortage of supply and a contraction in commercial activity in hard currency,
at a time when a large segment of traders are turning to the Iraqi dinar in the absence of the dollar.
Dimensions of the American decision:
Washington's decision to halt the dollar exchange rate, while not officially announced as a punitive measure, is part of a series of pressures exerted by the US Treasury on Baghdad to regulate the financial and banking sectors and prevent the flow of dollars to countries such as Iran, Syria, and Lebanon.
These pressures have resulted in the inclusion of Iraqi banks on watch lists, the imposition of strict restrictions on foreign transfers, and a reduction in the dollar cash quota previously sent by air to Baghdad.
Are we facing a "dollar drying up" phase in Iraq?
The facts indicate that Iraq has actually begun to enter a phase that can be called the “drying up of the cash dollar,” a tactic with two objectives:
Internally: controlling the market and regulating the use of foreign currency.
Externally: appeasing Washington and avoiding sanctions or negative financial ratings. However,
this approach requires radical reforms in the banking system and ensuring comprehensive financial coverage for citizens.
Otherwise, the shortage could turn into a broader crisis that would disrupt the economy and return the market to a state of chaos and confidence in the currency. https://mustaqila.com/الدولار-في-العراق/