Iraq has yet to officially receive the US 120-day national security waiver allowing it to pay its debts to Iran.
A US official on Friday told Reuters about the waiver allowing Iraq to deposit such payments into non-Iraqi banks in third countries instead of restricted accounts in Iraq. However, it is yet to be officially denied.
The US decision may come within the context of resuming a policy Washington previously followed with former Iraqi governments regarding Iran. It also came from Washington's support for the Iraqi Prime Minister Mohammad Shia al-Sudani.
However, considering the debate over the past two days in various Iraqi circles regarding the mechanism for implementing the US decision, Iraq followed a new formula exchanging its black oil for Iran's gas and electricity, aiming to reduce power outages during the hot summer season.
In an unexpected move, the US barred 14 Iraqi banks from conducting dollar transactions, raising the exchange rate, which could hinder the Iraqi government's economic reform measures and market control.
Reports claimed the exchange rate jumped to 1,500 dinars from 1,470, and observers believe it is subject to an increase in the coming days due to the increasing demand for dollars in the parallel market.
On Wednesday, the US Treasury imposed sanctions on 14 Iraqi banks in a crackdown on Iran's dealings in dollars.
The Wall Street Journal quoted US officials as saying they were taking action against the Iraqi banks after uncovering information that they engaged in money laundering and fraudulent transactions, some of which may have involved sanctioned individuals and raised concerns that Iran could benefit.
"We have strong reason to suspect that at least some of these laundered funds could end up going to benefit either designated individuals or individuals who could be designated," said a senior US official.
"And, of course, the primary sanctions risk in Iraq relates to Iran."
Among the banks on the US ban list are al-Mustashar Islamic Bank, Erbil Bank, World Islamic Bank, and Zain Iraq Islamic Bank.
Head of the Political Thinking Center, Ihsan al-Shammari, believes the waivers granted by Washington to Baghdad are normal.
Shammari explained that since 2018, Iraq had been granted bank waivers under the Trump administration because Washington deals flexibly with the Iraqi state, although US opponents formed the current government.
The expert told Asharq Al-Awsat that imposing sanctions on the banks does not target official institutions, rather financial fronts for Iran-linked institutions.
He asserted that the Central Bank and the government are aware of that, and reports have already been submitted to the Iraqi authorities indicating that these banks are smuggling dollars to "US enemies."
He said that Iraqi official institutions, such as the Central Bank, are committed to dealing with US sanctions, adding that the Iraqi government is fully engaged, although it is close to groups related to Iran.
Shammari explained that the matter would have repercussions in the parallel market, forcing the government to follow a new policy on the issue of sanctions.
For his part, political researcher Falah al-Mashaal believes the US acts as a bureaucratic administration.
Mashaal explained to Asharq Al-Awsat that the decision to punish 14 Iraqi banks is related to the US Treasury and the US Federal Reserve, noting that allowing debt payments is political to keep an eye on Iraq.
According to him, the waiver aims to block the gas-oil swap project, adding that US institutions are independent in their decisions and approach, following the US interest.
