Islamic State orders businesses to use its currency

An Islamic State flag is seen in this picture illustration taken February 18, 2016. REUTERS/Dado Ruvic/Illustration/File Photo

BEIRUT/CAIRO (Reuters) - Islamic State ordered shopkeepers and traders to price goods in its currency, the dirham, as of Tuesday and set the value at 1,000 Syrian pounds (1.41 pounds) per dirham, seeking to steer its own monetary policy even as its territorial grip is shaken.

The announcement, circulated in an audio statement on Islamic State-run messaging platforms, said two Syrian banknotes - the 1,000 pound note and 50 pound note - would be banned in the areas it controls as of July 25.