A member of the Iraqi parliament's finance committee, Narmin Maruf, said on Thursday that by the end of 2024, the central bank will end the electronic dollar transfer platform that has been in operation since last year.

"The central bank has sent a document to the licensed banks stating that it will end the electronic dollar transfer platform by the end of this year," Maruf said in a post on Facebook.

"This step aims at promoting and encouraging banks to establish strong financial and banking relations with international banks and financial institutions," she said, adding that this requires Iraqi banks to take several financial and administrative measures to be able to communicate directly with banks abroad.

"If these measures succeed, they will have a positive impact on the development of the Iraqi banking sector, improving the trade balance and stabilizing the value of dinar against dollar and other foreign currencies.”

The Iraqi government is planning to convert domestic and border crossing transactions into Iraqi currency from the beginning of 2024, aiming to reduce the price of the US dollar to align with the official rate set by the central bank.