The Iraqi Parliament yesterday voted in favour of a resolution to impose financial sanctions on the Kurdistan region following a referendum on separation from Iraq.
The decision bans selling dollars to four major Kurdish banks and all foreign currency transfers to the region.
A member of the Parliament's Finance Committee Hassan Khalati told the Anadolu Agency that "the decision provides for the suspension of any financial dealings between the Central Bank of Iraq and banks that have branches in the region and prevents private banks in the region from participating in the currency auction organised by the Central Bank."
The parliamentary decision includes the ministries of oil, finance, foreign affairs, trade, health, electricity, agriculture and transport, the Central Bank of Iraq, the General Secretariat of the Council of Ministers, the General Authority for Communications, the Border Crossings Authority, the National Pension Authority, the General Tax Authority, the General Customs Authority and all banks.
The Iraqi government announced on Sunday that it will not enter into dialogue with the Kurdistan Regional Government (KRG) before the cancellation of the referendum in which 93 per cent of votes came out in favour of independence from Baghdad.
In a move opposed by regional and international forces, the KRG organised a referendum on secession from Iraq on 25 September which saw 3.3 million Kurds come out to vote; 72 per cent of the eligible voters.