Oman Investment Authority Invests in American Company Electric Hydrogen

Oman Investment Authority Invests in American Company Electric Hydrogen

The Central Bank of Iraq (CBI) said it will ban cash withdrawals and transactions in US dollars in a move that surprised markets.

The move aims to stamp out 50 percent of the use of $10 billion that Iraq imports in cash from the New York Federal Reserve each year.

The abrupt decision has sown confusion in the Iraqi financial markets. It is expected to lead to massive withdrawals, as predicted by several Iraqi bankers anticipating a significant wave next Sunday.

The CBI director-general of investment and remittances, Mazen Ahmed, told Reuters that Iraq will ban cash withdrawals and transactions in US dollars as of Jan. 1, 2024.

Ahmed indicated it is a push to curb the misuse of its hard currency reserves in financial crimes and the evasion of sanctions on Iran.

However, an hour after the report, a statement clarified that the ban on cash dollar withdrawals would only apply to accounts receiving transfers from abroad and under no circumstances affect the dollar balances of Iraqi citizens.

Ahmed explained that people who deposit dollars into banks before the end of 2023 will continue to be able to withdraw funds in dollars in 2024.

Refuting expectations that the exchange rate would skyrocket to 1,700, Ahmed emphasized