The US Treasury threatens Iraqi banks with new sanctions
The US Treasury threatens Iraqi banks with new sanctions
9-14-2023
Information/translation..
On Thursday, Reuters revealed in a report about an official in the US Treasury Department that the latter threatened new Iraqi banks in the event of non-compliance with instructions during the recent visit to Iraq.
The report, translated by the “Al-Ma’louma” agency, stated, “According to the American official who refused to reveal his identity, the Central Bank of Iraq must address the ongoing risks resulting from the misuse of dollars in Iraqi commercial banks to avoid new punitive measures targeting the financial sector in the country,” adding “There are still other Iraqi banks operating with risks that must be addressed.” According to his claim.
The report explained, “With the United States having reserves of more than $100 billion in revenues, Iraq remains largely under Washington’s control over the funds and ensuring that oil revenues and funds are not exposed to US sanctions.”
For his part, Farhad Alaeddin, advisor to the Iraqi Prime Minister for Foreign Affairs, said, “The government has taken strict measures to ensure that Iraqi interests are protected while improving the banking sector and remittance market,” adding, “The Iraqi government is serious about continuing the path of reform and fighting corruption.”
The US official said, “I chose to focus on banks that still have access to banks where I see ongoing risks, and it would be good if the central bank took the opportunity to address the matter directly, which could avoid the need for (the United States) to take any further measures.” .
The report explained, “The American measures focus on the so-called Iraqi dollar auction, where the central bank requests dollars from the US Federal Reserve before selling them to commercial banks, which in turn sell to companies in the import-dependent economy, where between 200 million and 250 million are sold.” Millions of dollars are auctioned every day.
The report noted, “According to Iraqi officials, the measures led to a shortage of dollars, which prompted the Iraqi dinar to change its price by more than 150,000 dinars per dollar in the unofficial market in recent months, that is, 15% weaker than the official price of 132,000 dinars previously.” “.
The Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, met with US Assistant Secretary of the Treasury Elizabeth Rosenberg and her accompanying delegation yesterday, Wednesday, to discuss the measures taken by the Central Bank of Iraq in the field of bank currency transfers and other topics.
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