Iraqi Parliamentary Finance Committee Criticizes Central Bank's Dollar Sales Decision, Fears Potential US Sanctions

Shafaq News/ The Iraqi Parliamentary Finance Committee expressed criticism over the recent decision of the Central Bank of Iraq to permit banking companies to sell dollars directly to citizens who intend to travel abroad.

The committee has raised concerns that this move may potentially trigger new sanctions imposed by the United States on the country.

Ahmed Mazhar, the committee's deputy head, disapproved of the CBI's decision, stating, "The Central Bank took a wrong decision when it allowed exchange companies to sell dollars directly to citizens wishing to travel outside Iraq." He further questioned the rationale behind the decision-making process, suggesting that such a move could be at odds with the US Treasury's policy, potentially leading to further sanctions that could adversely impact the Central Bank if the situation persists.

Mazhar also highlighted the negative effects of previous US Treasury sanctions on the market, predicting that the value of the US dollar against the Iraqi dinar could continue to rise if the current approach remains unchanged.

The Central Bank of Iraq's decision, announced on Monday, aimed to streamline cash sales in US dollars for travelers. It granted permission to exchange companies falling under categories (A and B) to open accounts with the bank in both dinar and dollar currencies, enabling their participation in a designated sale window for foreign currency purchases..