Ahead of Joining BRICS, Iraq Issues Ban on U.S. Dollar Transactions
Vinod Dsouza
May 17, 2023
The Interior Ministry of Iraq issued a ban on U.S. dollar transactions across the country. Iraq is one among the 24 countries that have shown interest to join the BRICS alliance and accept the new currency for global trade. The Iraqi government banned entities from initiating business transactions with the U.S. dollar early this week. Iraq aims to control the fluctuating black market exchange rate, that has been plaguing the country for long enough.
The development is also designed to strengthen the usage of the Iraqi Dinar in the nations’ Forex markets. The ministry aims to lower the difference between the official exchange rate offered by the government and the exchange rate that’s thriving in the black markets. The move will reduce dependency on the U.S. dollar and bolster its native currency the Iraqi Dinar.
“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 statement read. The Ministry also pointed out that failing to do so will lead to criminal offenses with punishable crimes. The law will “hold accountable anyone who attempts to undermine the Iraqi dinar and the economy,” it read.
General Hussein Al Tamimi, who heads the operation directorate explained that offenders will be fined one million Iraqi Dinars. Moreover, repeat offenders will attract harsher punishments including double the fine with a year’s imprisonment.
“If the violator repeats it, he will face an imprisonment penalty of up to one year plus a one-million Iraqi dinar financial fine. In case of a third violation, that penalty will be doubled and we’ll have the business license turned,” Tamimi said.
Iraq Aims to Join BRICS After U.S. Dollar Ban
Iraq is looking to join the BRICS bloc in a move to end reliance on the U.S. dollar. The nation is ready to accept the new currency to settle cross-border transactions. The next BRICS summit will be held in Cape Town, South Africa in August 2023. Around 19 countries have both formally and informally requested to join the alliance, reported Bloomberg.
If more countries join BRICS, the expansion of BRICS+ will only hurt the prospects of the U.S. dollar. Also, if the yet-to-be-released BRICS currency grows stronger, it could ring the death knell for the USD. Read here to know what could happen to the American economy if the BRICS currency becomes the global reserve.
Source: Watcher.Guru
______________________________________________________
If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we’ll forward your request to the author.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2022 Dinar Chronicles
