Iraq's Parliamentary Finance Committee says the value of the U.S. dollar link to My FX Buddies Blog could decrease further as more Iraqi banks resume dollar transactions and restrictions on some banks are lifted. Committee Chairman Uday Awad said the move could affect the dollar exchange rate, the flow of U.S. dollars into Iraq, and the parallel market, potentially benefiting the Iraqi economy and reducing the dollar's value in the local market.

The comments come as Iraq's banking sector continues to undergo major reforms and as the Central Bank of Iraq works to reconnect eligible Iraqi banks with international financial channels. Could improved access to dollars through the banking system reduce pressur ...