Iraq central bank eases financial restrictions on Kurdistan region

 04 Oct 2017 - 15:22

Iraq central bank eases financial restrictions on Kurdistan region
Haj Omran border is seen on the border between Iran and Kurdistan, Iraq October 3, 2017. REUTERS/Azad Lashkari

Reuters

BAGHDAD: Iraq's central bank on Wednesday eased financial restrictions imposed on the Kurdistan region, after receiving a cooperation pledge from Kurdish banks, an Iraqi banking source said.

Dollar and foreign currency transfers were allowed to continue on Wednesday, with the exception of four Kurdish-owned banks, the source told Reuters.

The central bank had informed the Kurdistan Regional Government (KRG) on Tuesday it would stop selling dollars to the four Kurdish banks, and halt all foreign currency transfers to the autonomous region, banking and government sources told Reuters.

The measures were taken in retaliation for a referendum held on Sept. 25 in which the region voted overwhelmingly for independence.