Instead of throwing Iraqi citizens in jail, perhaps the Iraqi Government should create a gold-backed currency option similar to what Zimbabwe has recently announced.
In a surprising development, the Iraqi Interior Ministry has taken a decisive step to control the fluctuating black market exchange rate by banning local, in-country transactions in US dollars by Iraqi citizens. Furthermore, the new law will be enforced with steep fines and potential imprisonment. This move aims to bridge the gap between the official exchange rate and the black market rate, which has caused skyrocketing prices and public discontent. The ministry emphasizes the importance of using the national currency, the dinar, to strengthen Iraq’s sovereignty and economy.
Let’s delve into the details of this bold initiative and its potential impact on the country.
Key Point to Understand
This is NOT a national ban on Iraq using US Dollars for international and cross-border trade. This ban only applies to Iraqi residents when making every-day purchases in their local markets.
Iraqi Interior Ministry’s Stand on Currency Transactions
The Iraqi Interior Ministry firmly asserts that dealing in foreign currencies, particularly the US dollar, is a violation punishable by law. The ministry aims to uphold the national currency’s integrity and safeguard the Iraqi dinar and the economy. By committing to transact in dinars, citizens can contribute to the country’s economic stability and sovereignty.
The Widespread Campaign for Dinar Protection
To enforce the ban effectively, the Interior Ministry’s Anti-organized Crime Directorate has mobilized forces to markets across Baghdad and other cities. Traders are requested to sign a pledge to exclusively conduct transactions in dinars. The campaign involves collaborative efforts between the Central Bank of Iraq, the Interior Ministry’s intelligence department, and the patrols led by Brigadier General Hussein Al Tamimi.
Consequences for Violating the Pledge
Those who breach the pledge to deal solely in dinars will face consequences. Initially, a fine of one million Iraqi dinars, equivalent to around $680, will be imposed. Repeat offenders will face imprisonment penalties of up to one year.
What it Means
The Iraqi government’s decision to ban it citizens from local US dollar transactions represents a bold move in their efforts to stabilize the economy and address the challenges posed by the volatile currency exchange rate. By emphasizing the use of the national currency, the dinar, the Interior Ministry aims to strengthen Iraq’s sovereignty and promote economic stability. The widespread campaign for dinar protection, backed by the Central Bank and the Interior Ministry’s Anti-organized Crime Directorate, demonstrates a strong commitment to enforcing the ban. With clear consequences for violating the pledge, the government is sending a strong message about the importance of supporting the national currency and contributing to the country’s economic well-being. While the road ahead may still hold economic challenges, this initiative marks a significant step towards stability and long-term prosperity for Iraq.
