The Iraqi government issued a ban on 14 May outlawing the use of the US dollar for both personal and business transactions, coming as part of a growing ‘de-dollarization’ trend and an overall decline in Washington’s economic influence.
The ban was enforced on 14 May and aims to boost the use of Iraq’s local currency, the dinar.
It is also designed to reduce the gap between the official government exchange rate and the exchange rate offered by the black market, which continues to fluctuate and has resulted in price surges.
In a statement, the Iraqi Interior Ministry said: “The dinar is the national currency in Iraq. Your commitment to transact in it instead of foreign currencies boosts the country’s sovereignty and economy.”
The ministry added that anyone dealing in currencies other than the local currency would be subject to legal punishment and said that it is committed to “hold…