Al-Mashhadani: Washington’s duplicity exacerbated the dollar crisis in Iraq

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Al-Mashhadani: Washington's duplicity exacerbated the dollar crisis in Iraq

An economic expert, Abd al-Rahman al-Mashhadani, criticized the United States of America’s economic policy towards Iraq on Thursday. He pointed out that the US allows Gulf countries to engage in foreign trade using US dollars with penalized countries, while preventing Iraq from doing the same. This amounts to duplicity, according to al-Mashhadani.

According to Al-Mashhadani, the government and the Central Bank’s decisions and actions were effective in minimizing the crisis, if it weren’t for the sanctions imposed by Washington. Al-Mashhadani also highlighted that the root of the problem is America’s policy towards Iraq.

He stated that the United States of America had engaged in double standards by proposing a trade of Iranian gas for Iraqi oil. This barter was viewed by Washington as a painful blow to their previous decisions.”

He continued by saying that the Central Bank has enforced all the regulations required for banks to register in the electronic system. He also mentioned that Iraq’s trade is not evenly balanced with the other countries it imports from, making it impossible for the government to conduct trade using any other currency but the dollar.

Al-Mashhadani states that the United States’ economic policy towards Iraq did not help in resolving the dollar crisis. Furthermore, Gulf countries were allowed to conduct foreign trade in US dollars, while Iraq was prevented from doing so.

Last week, the US Treasury made a decision to prohibit 14 Iraqi banks from trading and selling hard currency. As a result, the exchange rates of the dollar increased in the local markets.