No Ban on Dollar Withdrawals in Iraq

By John Lee.

The Central Bank of Iraq (CBI) has clarified that, from 1st January 2024, it will still be possible to withdraw dollars from a dollar account at an Iraqi bank.

This contradicts recent media reports which suggested that all dollar withdrawals would be blocked from this date.

In a statement, the CBI said:

"The Central Bank guarantees dollar deposits, and the citizen who deposited his money in dollars with any Iraqi bank previously or by the year 2024 has an inherent right to receive these amounts in cash and in US dollars.

"There was no mention in the press interview of expectations that the exchange rate would reach 1,700, and that the Central Bank has its own tools that it uses to reduce the difference between the two prices, and there are no indications that the exchange rate in the parallel market will reach this level. On the contrary, there are measures being taken that will contribute to reducing the difference. .

"The reforms undertaken by the Central Bank of Iraq aim to achieve compliance of the bank and the banking system in general with international compliance standards, and to prevent the dollar from reaching parties prohibited from obtaining it or speculating with it.

"The announcement that the date of 1/1/2024 will be the beginning of stopping cash withdrawals includes transfers received only from outside Iraq according to certain arrangements that guarantee the sustainability of the business and does not in any way include citizens' balances in US dollars."

Transactions in dollars are understood to be banned from the start of January.

(Source: CBI)