Baghdad-INA
The Prime Minister's advisor, Mazhar Muhammad Salih, confirmed on Wednesday that talk of the cessation of dollar flow from the United States to Iraq pertains to a very limited part that does not exceed about 5%, while he indicated that the demand for dollars to finance foreign trade is being managed normally without interruption.
Saleh told the Iraqi News Agency (INA): “There is a fundamental difference between the cash dollars allocated to travelers through airports, which is capped at approximately $3,000 per traveler, and the financing of foreign trade, which is conducted through remittances and the global banking system," He explained that “what is being circulated in some circles regarding the halt in the flow of dollars from the United States to Iraq pertains to a very limited segment of the demand for dollars, not exceeding about 5%, which is related to meeting travelers’ cash needs.”
He added that “this segment has been affected by purely logistical factors, most notably the limited air traffic and the closure of most airports, which has led to difficulties in shipping dollars in cash via air transport, especially with the disruption or reduction of flights in the region.” He pointed out that “this halt is temporary and short-term, and is linked to operational circumstances that do not reflect a flaw in monetary policy or in the availability of foreign currency in general.”
He added that “the largest part of the demand for dollars—estimated at about 95%—which is allocated to financing foreign trade (importing goods, services and various benefits), is still being managed normally through official banking channels, without significant interruption,” noting that “the need for foreign currency for travelers can be covered by modern alternatives, such as electronic payment cards in foreign currency, which allow their holders to make payments and withdrawals outside the country easily, thus reducing dependence on direct cash dollars.”
