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Iraq has banned eight local commercial banks from engaging in U.S. dollar transactions, taking action to reduce fraud, money laundering and other illegal uses of U.S. currency days after a visit by a top U.S. Treasury official. The banks are banned from accessing the Iraqi central bank's daily dollar auction, a main source of hard currency in the import-dependent country that has become a focal point of a U.S. crackdown on currency smuggling to neighbouring Iran. A rare ally of both the United States and Iran with more than $100 billion in reserves held in the U.S., Iraq relies heavily on Washington's goodwill to ensure that its access to oil revenues and finances are not blocked.

United statesDhi qarMohammed shia al sudaniTimour azhariBrian nelsonGiles elgoodCentral bankAl huda bankArabia islamic bankHammurabi commercial bankKurdistan international islamic bankAhsur international bankAl janoob islamic bankUnion bankUs treasury departmentInvestment bank