U.S. Banks and the Iraqi Dinar
After the signing of the SOFA agreement between Iraq and the United States government, banks world wide will soon stop selling the Iraqi Dinar for good. Banks will be distancing themselves from any liability that they have been placing themselves in since the Iraqi law forbids Iraqi Dinar from leaving its borders.
The SOFA Agreement Article 20 also states in plain English that it is illegal to export Iraqi Dinar currency. The Iraqi government placed this in there because they are fully aware of how much dinar is outside the borders of Iraq.
The Iraqi government has put banking institutions on notice to stop this practice of selling their Iraqi currency. When you have it stated inside the text of the SOFA agreement, you know their serious about protecting their economy. I have mentioned this in this blog about currency leaving Iraq being illegal just nobody believes it.
On another note 2009 will be much the same as 2008.
Have a great day!
Comments
So as of today - june 10 2009 - are you saying that as per the SOFA agreement - Dinar held by an American is illegal to possess or is at least "invalidated" by the fact that its held by an American; therefore, it has been purchased outside of Iraq therefore an Iraqi bank would or currency exchange could not buy back if the value increases? Thanks Monica
Posted by: Monica smart | June 10, 2009 3:00 AM
I am saying that any Iraqi dinar held outside the borders of Iraq is illegal per Central Bank of Iraq (CBI) banking law.
Posted by: American Contractor | June 10, 2009 4:50 AM