Shafaq News- Baghdad

The Central Bank of Iraq (CBI) barred the International Development Bank (IDB) on Thursday from dealing in US dollars “in any form”.

The order was issued by the CBI's Banking Supervision Department and addressed to all licensed banks and non-bank financial institutions.

The move follows US sanctions imposed on the Baghdad-based bank last week. On Oct. 15, the Treasury Department designated IDB as part of a wider action against Iran-linked financial networks that targeted 16 individuals and 10 entities. Washington accused the bank of giving Iran access to US dollars and of maintaining ties with Iranian government entities and Iran-aligned armed groups in Iraq. The Treasury also said the bank was initially established by Iranian companies and sends its profits to Iran in dollars every month.

The bank's management rejected what it called the Treasury's accusations on Friday. It said it was dealing with the developments "with the utmost seriousness, responsibility and transparency."