Iraq's Sudden Move: Banning US Dollar & Embracing De-Dollarization!!

In a sudden move, the Iraqi Government has recently announced the prohibition of US dollar usage, cash withdrawals, and transactions within the country. This decision, set to take effect from Jan/1/24, has been officially confirmed by a senior official at the Central Bank of Iraq. The primary motive behind this ban, as argued by the official, is Iraq's determination to combat financial crimes involving the country's hard currency reserves, as well as to evade US sanctions imposed on Iran.

While the government implies that this action aims to reduce dependence on the US dollar and promote the local currency, the reality goes far beyond these intentions. Iraq's strategic positioning in the de-dollarization trend is closely linked to the expansion of the BRICS alliance, which now includes three Middle Eastern countries, namely the UAE, Saudi Arabia, and Iran. Being oil-exporting nations, Iraq intends to align itself with this economic cycle of de-dollarization.

It is essential to note that Iraq had previously declared its decision to replace the US dollar with the Chinese Yuan, signaling its willingness to diversify its currency portfolio. This move further reflects Iraq's dedication to integrating into the growing de-dollarization movement.

Stay tuned to explore the implications, challenges, and potential outcomes of Iraq's sudden ban on the US dollar and its embrace of de-dollarization. Discover how this decision could reshape economic dynamics within the country and influence global financial landscapes. Don't miss out on understanding the deeper significance of Iraq's strategic actions on the international stage.

Link to articles:
https://www.iraqinews.com/iraq/iraqi-...

https://www.reuters.com/markets/curre...

https://www.tasnimnews.com/en/news/20...

https://www.aljazeera.net/ebusiness/2...

About David:
Dr. Oualaalou served a fifteen-year career in the United States Armed Forces in support of the US government’s security agencies in Washington DC and around the world. His primary roles include security policy, intelligence analysis, security operations advice including leadership and managerial operations. He advised high-profile U.S. military and civilian officials on security issues, economic trends, and foreign military threat information. He has written many articles and books including his latest, The Dynamics of Russia’s Geopolitics: Remaking the Global Order.

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