(Bloomberg) -- Iraq’s central bank will restrict all internal commercial transactions to the Iraqi dinar starting next year, the bank said in a statement, citing governor Ali Al-Allaq.
The step appears aimed at curbing the dealing of the US dollar outside Iraq’s banking sector, as well as limiting smuggling it abroad. It’s also a move to back the local currency.
The central bank next year will end the job of transferring money for foreign trade and instead focus on “supervision and monitoring,” with the job of transfers shifted to licensed Iraqi banks.
Currently, the central bank is the process of opening transfer channels in various currencies, including the Emirati dirham, the Turkish lira, the Indian rupee and the euro, according to the statement.
On Sunday, the dollar was available on the unofficial market at about 1,550 dinars, 17% weaker than the official rate of 1,320.
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