US agrees to continue physical dollar cash shipments, Iraqi government says
Iraq keeps more than $100 billion in reserves in the United States, giving Washington substantial influence over Baghdad’s access to physical dollars.
The Iraqi government has announced an agreement with the United States to resume shipments of physical US dollars to Baghdad, following a disruption earlier this year. The agreement was reached during Prime Minister Ali Faleh al-Zaidi's visit to the United States and is expected to help Iraq meet legitimate demands for foreign currency.
Iraqi government spokesperson Haider al-Aboudi stated that a new shipment will arrive in the coming days. The resumption of cash shipments follows the Iraqi government's efforts to tighten oversight of dollar distribution, regulate the use of foreign currency, and reduce misuse of the financial system. The US halted an expected shipment of roughly $450 million to $500 million in physical currency in April as part of pressure on Baghdad over attacks by Iran-backed armed groups.
The currency used for the shipments comes from Iraqi oil revenues held through the Federal Reserve Bank of New York, giving Washington substantial influence over Iraq's access to physical dollars.
Brief written by urgent.news from Jerusalem Post's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
