Iraq to Trade with Turkey in Iraqi Dinar and Turkish lira
-
Roshan Amiri
- . December 25, 2023
- . Update: December 25, 2023 1:25 pm
Iraq is ramping up efforts to enable businesses in the country to make payments in Iraqi dinar and paying Turkish exporters in Turkish lira.
As such, Prime Minister Muhammad Shia Al-Sudani has directed the formation of a joint Iraqi-Turkish committee representing market and Iraqi and Turkish economic organizations between the two countries.
The committee, on the Iraqi side, will include the Association of Iraqi Private Banks, the Iraqi-Turkish Business Council, the Federation of Iraqi Chambers of Commerce, the Iraqi Contractors Union, while the Turkish side will support dealing in Iraqi dinar. The committee will meet semi-annually and submit reports to the prime minister to serve and enhance bilateral trade and strategic partnership between Iraq and Turkey.
Iraq Bans US Dollars
Iraq has been enhancing its dinar since the beginning of the year. The Iraqi government took several measures, including banning cash withdrawals and transactions in US dollars taking effect from January 1, 2024.
Mazen Ahmed, director-general of investment and remittances at the Iraqi central bank (CBI), wants to stamp out the illicit use of about 50 percent of the $10 billion that Iraq imports in cash from the New York Federal Reserve each year. “People who deposit dollars into banks before the end of 2023 will continue to be able to withdraw funds in dollars in 2024. But dollars deposited in 2024 could only be withdrawn in local currency at the official rate of 1,320.”
Iraq wants to fully de-dollarize cash transactions. But the US has held Iraq’s more than $100 billion in reserves hostage, having a grip on the Middle East country’s economy and banking system. Hussein Mouanes, Iraqi MP, said Iraq continues to be a slave to the US dollar. “Every country’s economic strength depends on the strength of its currency. It is clear that Iraq is economically dominated by the US, and our government does not truly have control or access to its own money.”
Keep Reading
Deepfakes Threaten US 2024 Election Campaigns
Deadly 6.2 Earthquake Rocks China, Over 120 Killed
Iraq Turns to lira and Rupee
Iraq is working towards settling foreign in other currencies like the lira and Indian rupee other than the dollar and the euro. An official statement said the new system for foreign transfers and the sale of dollars provides protection against risks for all parties involved in the transactions is accepted internationally and aligns with the anti-laundering and terrorism financing laws.
