The Central Bank of Iraq Suspends Western Union International Financial Transfers
The Central Bank of Iraq has decided today to suspend the Western Union international money transfer service until further notice.
In a statement, the company explained that, in compliance with the Central Bank of Iraq's directives, the Western Union service has been temporarily suspended as of October 12, 2023, to implement modern mechanisms and technologies for verifying financial transactions in accordance with international best practices and the Central Bank of Iraq's instructions.
The statement addressed the company's customers, saying, "You will be informed when the service is resumed."
Ali Mohsen Al-Alaq, the Governor of the Central Bank of Iraq, announced last September that the bank would cease external transfers next year, while also deciding to limit domestic business transactions to the dinar instead of the US dollar, except those pertaining to travelers.
It is worth noting that Mazen Ahmed, the Director of Investments and Transfers at the Central Bank of Iraq, announced last week that his country would prohibit cash withdrawals and dollar transactions from January 1, 2024, as part of the latest effort to curb the misuse of the dollar and the country's monetary reserves.
The head of transfers at the Central Bank of Iraq stated that the purpose of this measure is to put an end to the illegal use of approximately 50 percent of the $10 billion in cash that Iraq imports annually from the US Federal Reserve.
Last week, the Central Bank of Iraq received dollar deliveries sent by the US Federal Reserve, following a precise schedule and agreed-upon timelines between the two monetary institutions.