•The Iraqi government has issued a ban on using the U.S. dollar for conducting business transactions in order to bolster the usage of the Iraqi dinar and reduce black market influence.
•The Ministry of Interior’s Anti-Organised Crime Directorate is enforcing the ban with requests for traders to sign pledges assuring they will use only the Iraqi dinar and fines of up to 1 million Iraqi dinars for violations, as well as prison time for repeat offenders.
•This new measure has caused stress in dollar exchange black markets which have limited their activities to servicing known customers and some arrests have already been made in large trading markets.
Ban on US Dollar Transactions
The government of Iraq issued a ban on using the U.S. dollar for conducting business transactions on May 14th in order to bolster the usage of the Iraqi dinar, its fiat currency, and reduce exploitation in black markets.
Enforcement & Fines
The Interior Ministry’s Anti-organised Crime Directorate is enforcing this ban by requesting traders to sign pledges assuring that only Iraqi dinar is used and fining violators up to one million Iraqi dinars (around $680). Repeat offenders face imprisonment as well as doubled fines.
Effects on Black Markets
This measure has caused considerable stress in dollar exchange black markets, which now limit activities to serving known customers only, while undercover officers are deployed by the ministry to support implementation of this U.S. dollar ban leading to arrests being made at large trading markets.
Impact On Citizens
The enforcement of this new rule affects everyday citizens who need dollars for real estate purchases or other services outside Iraq but cannot access them without facing penalties due tot he official exchange rate offered by the government not matching those available from dealers on the black market leading prices rises due tot he fluctuating difference between them both.
The ministry reminds that dealing with currencies other than the Iraqi dinar is punishable by law and anyone attempting to undermine it will be held accountable with severe punishments ranging from financial fines up tot o imprisonment terms if applicable depending ont he number of violations committed against it’s guidelines