IRAQ'S CENTRAL BANK TO ALLOW PRIVATE BANKS TO SELL US DOLLARS

A spokesman for the Central Bank of Iraq has advised local media that it will shortly begin to allow private banks to sell US Dollars directly to clients. This new policy, which will greatly assist Iraq's expanding international trade, will unfortunately also open a new gateway for Iran to, freely and legitimately, acquire dollars in a place very close to home, where it is amongst friends.

Iran desperately needs US Dollar notes to pay for purchases of goods and services on the international market, which must of necessity bypass the United States. This new pipeline for dollars, which could easily be obtained by front men operating in Iraq, will facilitate Iran's covert trading system, which funnels needed items, including dual-purpose goods, from countries who have corrupt businesses that are capable of evading local law enforcement.

The question arises: should EU & US banks now blacklist those Iraqi banks who will be directly selling dollars to "Iraqis," because they are probably dealing with Iran ? One certainly cannot accept their assurances that they observe international sanctions on Iran, because Iraq pointedly ignores them. What should one do to reduce risk ? A dilemma for compliance.