The CBI official says that people who deposit dollars into banks before the end of 2023 will still be able to withdraw these funds in dollars next year. However, dollars deposited in 2024 will only be available in local currency at the official rate of 1,320 dinars.

"You want to transfer? Transfer. You want a card in dollars? Here you go, you can use the card inside Iraq at the official rate, or if you want to withdraw cash, you can at the official rate in dinars… But don't talk to me about cash dollars anymore," Ahmed told Reuters.

He also claimed the move is meant to "stamp out the illicit use" of about 50 percent of the $10 billion that Iraq imports in cash each year on semimonthly cargo flights from the New York Federal Reserve.

With more than $100 billion in reserves held by US banks, Baghdad heavily relies on the goodwill of US officials to ensure the economy doesn't collapse. Furthermore, since 2003, all Iraqi oil revenues have been paid into an account with the US Federal Reserve, allowing Washington to control the Iraqi economy and pressure its government.