Iraq Dollar Ban: Tough Choices for the ‘Coordination Framework’

Currency exchange shop in the city of Najaf, Iraq (Reuters)
Currency exchange shop in the city of Najaf, Iraq (Reuters)
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Iraq Dollar Ban: Tough Choices for the ‘Coordination Framework’

Currency exchange shop in the city of Najaf, Iraq (Reuters)
Currency exchange shop in the city of Najaf, Iraq (Reuters)

Political factions involved in speculation and dollar smuggling operations have suffered a significant blow as Iraqi authorities are set to ban external transactions in the US currency starting in January.

A government official, speaking to Asharq Al-Awsat, affirmed that Washington is looking to reduce the circulation of physical dollars to prevent their use in suspicious activities, even months after the implementation of the US Federal Reserve’s restrictions.

Companies and individuals in Iraq will be required to conduct financial transactions in the local dinar at the official exchange rate.

However, this process is expected to take a considerable amount of time before the Iraqi market fully adapts, unless political forces discover new ways of circumventing these restrictions, as indicated by an Iraqi banking official.

According to journalistic and financial sources, Washington rejected Iraq’s request for a billion dollars in cash from the Federal Reserve Bank due to concerns over Baghdad’s conflicting efforts to curb the use of physical US dollars and halt illicit flows to Iran.

Washington routinely dispatches shipments of dollars to Iraq through US military aircraft, but since the end of last year, it has imposed restrictions and mechanisms to track e-transfers involving these funds.

As a result, Iraq’s Central Bank has been forced to reduce the allotments of currency exchange companies in physical US dollars by more than half.

This will have future implications on the exchange rate of the Iraqi dinar against the dollar in the parallel market, and it will almost halve Iraq’s imports from Iran.

Talk of the ban has forced political parties within the “Coordination Framework” coalition to discuss “ideas on how to swiftly change the leadership of the Central Bank,” according to Iraqi lawmakers who spoke with Asharq Al-Awsat.

However, what hinders this decision is the political timing, which raises US concerns.

The Central Bank of Iraq was supposed to succeed in channeling dollar sales through the official exchange window, but political entities with financial and commercial interests have found a way to trade dollars in an off-the-grid parallel market beyond the state’s control.



Israel Army Issues Evacuation Warning for Lebanon Village ahead of Strikes

 Smoke rises after Israeli strikes following Israeli military's evacuation orders, in Chehour, southern Lebanon November 19, 2025. REUTERS/Ali Hankir
Smoke rises after Israeli strikes following Israeli military's evacuation orders, in Chehour, southern Lebanon November 19, 2025. REUTERS/Ali Hankir
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Israel Army Issues Evacuation Warning for Lebanon Village ahead of Strikes

 Smoke rises after Israeli strikes following Israeli military's evacuation orders, in Chehour, southern Lebanon November 19, 2025. REUTERS/Ali Hankir
Smoke rises after Israeli strikes following Israeli military's evacuation orders, in Chehour, southern Lebanon November 19, 2025. REUTERS/Ali Hankir

The Israeli army issued an evacuation warning on Sunday for the village of Kafr Hatta in southern Lebanon ahead of air strikes on Hezbollah targets in the area, AFP reported.

"The Israeli (army) will soon, and once again, strike terrorist Hezbollah military infrastructure in the village, in order to address the prohibited attempts it is making to rebuild its activities there," Arabic-language spokesman Colonel Avichay Adraee wrote on X, posting a map of the expected target.

The Lebanese army said Thursday that it had completed disarming Hezbollah south of the Litani river, the first phase of a nationwide plan. Kafr Hatta is located north of the river.


Sudan PM Announces Govt Return to Khartoum from Wartime Capital

File Photo: Some shops reopen despite extensive damage (Asharq Al-Awsat)
File Photo: Some shops reopen despite extensive damage (Asharq Al-Awsat)
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Sudan PM Announces Govt Return to Khartoum from Wartime Capital

File Photo: Some shops reopen despite extensive damage (Asharq Al-Awsat)
File Photo: Some shops reopen despite extensive damage (Asharq Al-Awsat)

Sudan's Prime Minister Kamil Idris announced on Sunday the government's return to Khartoum, after nearly three years of operating from wartime capital of Port Sudan, AFP reported.

"Today, we return, and the Government of Hope returns to the national capital," Idris told reporters in Khartoum, ravaged by the war between the army and the Rapid Support Forces.

"We promise you better services, better healthcare and the reconstruction of hospitals, the development of educational services... and to improve electricity, water and sanitation services," he said.


Iran Protest Death Toll Rises as Alarm Grows over Crackdown 'Massacre'

Smoke rises as protesters gather amid evolving anti-government unrest at Vakilabad highway in Mashhad, Razavi Khorasan province, Iran, released on January 10, 2026, in this screen grab obtained from a social media video. SOCIAL MEDIA/via REUTERS
Smoke rises as protesters gather amid evolving anti-government unrest at Vakilabad highway in Mashhad, Razavi Khorasan province, Iran, released on January 10, 2026, in this screen grab obtained from a social media video. SOCIAL MEDIA/via REUTERS
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Iran Protest Death Toll Rises as Alarm Grows over Crackdown 'Massacre'

Smoke rises as protesters gather amid evolving anti-government unrest at Vakilabad highway in Mashhad, Razavi Khorasan province, Iran, released on January 10, 2026, in this screen grab obtained from a social media video. SOCIAL MEDIA/via REUTERS
Smoke rises as protesters gather amid evolving anti-government unrest at Vakilabad highway in Mashhad, Razavi Khorasan province, Iran, released on January 10, 2026, in this screen grab obtained from a social media video. SOCIAL MEDIA/via REUTERS

At least 192 protesters have been killed in Iran's biggest movement against the Islamic republic in more than three years, a rights group said Sunday, as warnings grew that authorities were committing a "massacre" to quell the demonstrations.

The protests, initially sparked by anger over the rising cost of living, have now become a movement against the theocratic system in place in Iran since the 1979 revolution and have already lasted two weeks.

The mass rallies are one of the biggest challenges to the rule of supreme leader Ali Khamenei, 86, coming in the wake of Israel's 12-day war against the Islamic republic in June, which was backed by the United States.

Protests have swelled in recent days despite an internet blackout that has lasted more than 60 hours, according to monitor Netblocks, with activists warning the shutdown was limiting the flow of information and the actual toll risks being far higher.

"Since the start of the protests, Iran Human Rights has confirmed the killing of at least 192 protesters," the Norway-based non-governmental organization said, warning that the deaths "may be even more extensive than we currently imagine".

Videos of large demonstrations in the capital Tehran and other cities over the past three nights have filtered out despite the internet cut that has rendered impossible normal communication with the outside world via messaging apps or even phone lines.

Video verified by AFP showed large crowds taking to the streets in new protests on Saturday night in several Iranian cities including Tehran and Mashhad in the east, where images showed vehicles set on fire.

Several circulating videos, which have not been verified by AFP, allegedly showed relatives in a Tehran morgue identifying bodies of protesters killed in the crackdown.

The US-based Center for Human Rights in Iran (CHRI) said it had received "eyewitness accounts and credible reports indicating that hundreds of protesters have been killed across Iran during the current internet shutdown".

"A massacre is unfolding in Iran. The world must act now to prevent further loss of life," it said.

It said hospitals were "overwhelmed", blood supplies were running low and that many protesters had been shot in the eyes in a deliberate tactic.

 

- 'Significant arrests' -

 

The US-based Human Rights Activists News Agency said it had confirmed the deaths of 116 people in connection with the protests, including 37 members of the security forces or other officials.

State TV on Sunday broadcast images of funeral processions for security forces killed in recent days, as authorities condemned "riots" and "vandalism".

National police chief Ahmad-Reza Radan said authorities made "significant" arrests of protest figures on Saturday night, without giving details on the number or identities of those arrested, according to state TV.

Iran's security chief Ali Larijani drew a line between protests over economic hardship, which he called "completely understandable", and "riots", accusing them of actions "very similar to the methods of terrorist groups", Tasnim news agency reported.

Iran's President Masoud Pezeshkian said "rioters" must not distrupt Iranian society.

"The people (of Iran) should not allow rioters to disrupt society. The people should believe that we (the government) want to establish justice," he told state broadcaster IRIB.

In Tehran, an AFP journalist described a city in a state of near paralysis.

The price of meat has nearly doubled since the start of the protests, and while some shops are open, many others are not.

Those that do open must close at around 4:00 or 5:00 pm, when security forces deploy in force.

 

- 'Legitimate targets' -

 

Reza Pahlavi, the exiled son of the ousted shah, who has played a prominent role in calling for the protests, called for new actions later Sunday.

"Do not abandon the streets. My heart is with you. I know that I will soon be by your side," he said.

US President Donald Trump has spoken out in support of the protests and threatened military action against Iranian authorities "if they start killing people".

Israel's Foreign Minister Gideon Saar urged the European Union on Sunday to designate Iran's Revolutionary Guards Corps as a "terrorist organization" over the suspected violence against protesters.

He also said Israel supports the Iranian people's "struggle for freedom".

Iran's parliament speaker Mohammad Bagher Ghalibaf said Iran would hit back if the US launched military action.

"In the event of a military attack by the United States, both the occupied territory and centers of the US military and shipping will be our legitimate targets," he said in comments broadcast by state TV.

He was apparently also referring to Israel, which the Islamic republic does not recognize and considers occupied Palestinian territory.