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Iraq bans American dollars

Iraq Bans American Dollars in Latest Move to De-Dollarize

Baghdad, Iraq (May 24, 2023): The Iraqi government has banned the use of American dollars in all personal and business transactions. The move is part of a broader effort to de-dollarize the Iraqi economy and reduce the country’s reliance on the US currency.

The ban, which was announced by the Iraqi Interior Ministry on Sunday, takes effect immediately. It prohibits the use of US dollars for the purchase of goods and services, the payment of salaries, and the transfer of money.

The ministry said the ban was necessary to “protect the national economy and sovereignty of Iraq.” It said the use of US dollars had led to the “destabilization of the economy” and the “growth of corruption.”

The ban has been met with mixed reactions. Some Iraqis have welcomed the move, saying it will help to boost the Iraqi dinar and reduce the country’s dependence on the US dollar. Others have criticized the ban, saying it will make it more difficult for Iraqis to do business and will lead to higher prices.

The ban is the latest in a series of measures taken by the Iraqi government to de-dollarize the economy. In February, the government announced that it would begin selling oil in euros. The government has also been working to develop its own payment system, the Iraqi Payment Network, which would allow Iraqis to make payments without using US dollars.

The de-dollarization of the Iraqi economy is a long-term goal. It will take time for the Iraqi government to fully implement its plans. However, the ban on US dollars is a significant step in the right direction. It is a sign that the Iraqi government is serious about reducing its reliance on the US dollar and protecting the national economy.

The ban on US dollars is also a sign of the growing tensions between Iraq and the United States. The United States has been critical of the Iraqi government’s handling of the economy and its human rights record. The ban on US dollars is a way for the Iraqi government to send a message to the United States that it is not going to be dictated to.

The de-dollarization of the Iraqi economy is a complex issue. It has both economic and political implications. It is too early to say what the long-term impact of the ban on US dollars will be. However, it is clear that the Iraqi government is serious about reducing its reliance on the US dollar and protecting the national economy.

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