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- The Iraqi financial policymakers announced last week that people will not be able to withdraw the United States dollar beginning January 01, 2024, in a bid to support the Iraqi Dinar amid global high inflation that has pushed investors to Bitcoin.
- The Iraq Central Bank will be joining forces with the BRICS New Development Bank which has set out a three-year plan to ensure a seamless transition from the US dollar dependence.
The need for a global economic liberation from the shackles of the United States dollar is more evident with the BRICS alliance and other individual countries seeking to use their respective currencies in settling international trades.
With every country seeking to have its currency used in international trades, the end channel to liquidate the fiat currencies to valuable assets gives Bitcoin a notable chance to rise as the intermediary unbiased instrument. Moreover, Bitcoin is already accepted as legal tender in El Salvador, and the Central African Republic and used to settle payments by dozens of other countries.
Iraq Joins BRICS in De-dollarization
Earlier last week, the Iraqi central bank director-general of investment and remittances Mazen Ahmed said that people will not be able to withdraw United States dollars in an effort to prop up the demand for the local currency and ostensibly fight crime.
Ahmed highlighted that over $5 billion of cash in the United States dollars imported from New York has directly been linked to illegal activities. Notably, the Iraqi Dinar was exchanged for about 1,306 units for one US dollar on Wednesday, but the country’s central bank is keen to return the rate to pre-COVID times according to recent trends.
“You want to transfer? Transfer. Do 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 noted.
The same initiatives have been undertaken by the BRICS alliance which has been gathering forces with top oil and gas producers to overpower the United States in the coming few years. The economic shift is happening so fast through the BRICS that China and Russia have already led in settling international trades with local respective currencies. As a result, other BRICS members including India have been signing agreements with different countries to settle international trades with respective currencies.
Interestingly, the United States Treasury Securities have been declining significantly from the BRICS member states. For instance, China reduced its holdings from $835.4 billion to $821 billion in July while Brazil and Saudi Arabia cut their holdings by $2.7 billion and $1.1 billion respectively.
More Reasons to Trust Bitcoin as Global Reserve
Bitcoin has demonstrated its impartiality to any regime in the world and is likely to reign as the global reserve currency in the near future. Already, institutional investors have increased their demand for Bitcoin to protect their investments from the high global inflation.
In the United States, the Bitcoin debate is expected to carry significant weight in next year’s presidential election amid the notable application of spot BTC ETFs.
