"Iraqi Government Prohibits 8 Local Banks from Conducting US Dollar Transactions"

Iraq has banned eight local commercial banks from engaging in U.S. dollar transactions in an effort to combat fraud, money laundering, and illegal uses of U.S. currency, following a visit by a top U.S. Treasury official. The banned banks are prohibited from accessing the Iraqi central bank's daily dollar auction, a key source of hard currency in the import-dependent country. This move comes as part of a wider crackdown on dollar smuggling to Iran via the Iraqi banking system, with the U.S. Treasury Department urging Iraq to do more to counter Iran-backed armed groups operating within its borders.