Iraq to ban more banks from US dollar transactions: Report

Iraq is working with the United States to ban more local banks and financial firms from engaging in US dollar transactions, says a report, amid efforts by the new government in Washington to restrict Iran’s access to international banking services.

News ID: 6023

Date: 17 February 2025 - 09:20

TABNAK, Feb 17: The Sunday report by Reuters news agency said that Iraq’s central bank was going to ban five banks and three financial companies from providing dollar-based banking services to its customers.

The report said the move had been agreed in a meeting last week in Dubai between officials of the Central Bank of Iraq and US Treasury and Federal Reserve officials.

It claimed that the new bans are in line with US President Donald Trump’s so-called “maximum pressure” policy towards Iran as Tehran earns considerable revenues from its exports to Iraq.

There were no comments from The Central Bank of Iraq and the US Treasury.

Iraq had banned eight banks from US dollar transactions last year.

Reuters said the new bans would cover Al-Mashreq Al-Arabi Islamic Bank, United Bank for Investment, Al Sanam Islamic Bank, Misk Islamic Bank and Amin Iraq For Islamic Investment and Finance as well as payment services of Amawl, AL-Saqi Payment and Aqsa Payment.

Iran’s non-oil exports to Iraq generate more than $12 billion a year while the country has a sizable natural gas and electricity exports to its western neighbor.

Baghdad has secured rounds of waivers from US sanctions to be able to maintain energy imports from Iran.

However, the Iraqis have struggled to make payments for the imports amid sanctions that make it difficult for the banks in the Arab country to process the dollar-based payments.