Under pressure from Washington to stem the flow of dollars into Iran, Iraq's premier sent elite counter-terrorism forces to shut down dealers smuggling the currency.
PM Sudani caught between allies Iran and the United StatesBAGHDAD, Jan 23 - Under pressure from Washington to stem the flow of dollars into Iran, Iraq's prime minister sent elite counter-terrorism forces more accustomed to battling Islamist militants to shut down dealers smuggling the currency to the Islamic Republic.
Aqeel al-Fatlawi, a Shi'ite lawmaker, accused Washington of deliberately using the new regulations as a political weapon. But he came to power with the support of powerful, Tehran-backed militias and so cannot afford to alienate Iran. Two advisers to Iraqi private banks who regularly attend meetings with the central bank, speaking on condition of anonymity, said Iran receives about $100 million a month from Iraqi traders.
The new system has slowed down dollar transactions, said Nabil al-Marsoumi, economics professor at Basra University.
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