Calay News
The Government of Iraq has issued a ban preventing the use of the US dollar for trade within the country with the aim of encouraging the use of the Iraqi dinar and reducing dependence on the dollar, according to reports from The National News Agency.
This measure is a response to the increasing volatility in exchange rates, which has generated a decline in dollar prices as well as an increase in inflation and citizen discontent due to the growing gap between the official and black market exchange rates.
The Ministry of the Interior has emphasized that carrying out transactions in the national currency strengthens the country’s sovereignty and economy. They have also added that trading in other currencies constitutes a violation of the law that should be penalized.
Hussein al-Tamimi, head of the directorate’s operations department, has stated that the main objective of this campaign is to protect the value of the dinar and that those who violate the ban will face a fine of one million Iraqi dinars (approximately $760).
Al Tamimi has also explained the consequences for repeat offenders: a prison sentence of up to one year in addition to the aforementioned financial fine. In the case of a third offense, the penalty will be doubled and the business license will be revoked.
In summary, the government of Iraq has implemented a ban on the use of the US dollar in domestic trade in order to promote the Iraqi dinar and reduce the influence of foreign currency. This measure seeks to control exchange rate volatility and strengthen the national economy by establishing sanctions for those who violate the ban.
