Shafaq News – Basra

Local companies operating under Iraq’s oil licensing rounds protested on Tuesday outside the Trade Bank of Iraq (TBI) in Basra, accusing the state-owned lender of preventing them from receiving their dollar-denominated dues in USD.

TBI previously stated that, in line with Central Bank of Iraq (CBI) instructions, it applies a fixed conversion rate of 1,320 dinars per dollar for transactions denominated in US dollars. However, recent market reports show the dollar trading at 143,500 IQD and 142,500 IQD per 100 USD, respectively, in the parallel market, creating a wide gap that significantly reduces the value of payments processed through banks.

Company representatives said the enforced conversion at the official rate inflicts heavy losses, particularly for firms whose contracts and obligations are calculated in dollars.

Jaber Ahmed, director of one of the companies, told Shafaq News that “every 100 dollars withdrawn results in a loss of about 13,000 dinars compared to the real market price.”

He added that the financial strain has curtailed the number of contracts local firms can undertake and disrupted operations dependent on dollar-based commitments.

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