Secretary General of Iran-Iraq Joint Chamber Calls 'Dollar Removal from Transactions' a 'Opportunity'

The Secretary General of the Iran-Iraq Joint Chamber considered the 'suspension of the sale of travel dollars at the official price in Iraq', implemented due to international punitive sanctions against the Islamic Republic, as an 'opportunity'. Jahangir Sanjabi Shirazi, in response to the halt of travel dollar sales to Iraqi travelers heading to Iran, stated: 'Iraq has stopped selling dollars at the official price of its central bank to travelers in line with its central bank's regulatory policies.' He reiterated claims made by Iranian officials such as 'removal of the dollar from transactions', asserting that this event, given the 'high number' of travelers coming from Iraq for tourism, pilgrimage, and medical purposes, represents an 'opportunity' for the country. The Central Bank of Iraq, at the beginning of December, enacted a new law in the currency sector, prohibiting official exchange offices and banks in the country from 'any currency exchange' with five countries including Iran, making it 'impossible' for the Islamic Republic to obtain dollars through legal channels in the country. The Tehran-based newspaper 'Donya-e-Eqtesad' reported on December 12 that, according to this law, any currency procurement from the Iraqi market must occur through the country's free market, where the exchange rate difference is '20 percent'. On December 19, Ali Shariati, a member of the Chamber of Commerce, mentioned in an interview with the 'Entekhab' website that U.S. officials have told Iraqi banking leaders that 'the issue of circumventing sanctions by Iranian traders must be resolved.' In mid-February, Reuters reported that the Iraqi government had banned eight of its banks from engaging in U.S. dollar transactions. This decision followed a recent visit by a senior Washington official (Brian Nelson, U.S. Deputy Treasury Secretary for Terrorism and Financial Intelligence) to Iraq, aimed at reducing fraud, money laundering, and other illegal activities using the U.S. dollar. Consequently, Iraqi banks have been barred from accessing the dollar auctions conducted daily by the Central Bank of Iraq. The dollar is the main source of currency in this import-dependent country. Some of the banned banks listed in a document from the Central Bank of Iraq include: Kurdistan International Islamic Bank for Investment and Development, Ashur International Bank, Islamic South Bank, Al-Huda Bank, Iraq Investment Bank, Iraq Union Bank, Arab Islamic Bank, and Hammurabi Commercial Bank. A spokesperson for the U.S. Treasury stated that Washington appreciates the ongoing efforts of the Central Bank of Iraq to protect the Iraqi financial system from abuses. The narrative of a Chamber of Commerce member: How the U.S. is closing the path to circumvent sanctions in Iraq. The Secretary General of the Iranian Exchange Association: The dollar has become seven-tiered. Fluctuations in the currency market continue; the dollar has entered the 57,000 Toman channel. The U.S. has expanded sanctions related to Iran.