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 a resumption of shipments of physical US dollars to Baghdad, following an agreement reached with the United States, according to a spokesperson for Prime Minister Ali Faleh al-Zaidi. The first new delivery is expected within days, following a six-month pause that began in April. The shipment, estimated at $450 million to $500 million, was halted by the US as part of pressure on Baghdad over attacks by Iran-backed armed groups and illicit dollar transfers.
Iraqi officials say the agreement also stems from steps taken by Baghdad to tighten oversight of dollar distribution, regulate the use of foreign currency, and expand electronic payments. The US halted the shipments after an Iraqi central bank official reported that a shipment expected in May had not arrived. However, limited air shipments of US dollars resumed in early July, though Reuters could not independently verify this.
The currency is sourced from Iraqi oil revenues held in the United States, and Iraq holds over $100 billion in reserves there, giving the US significant influence over Baghdad's access to physical dollars. The US has also sanctioned Iraqi banks linked to transactions benefiting Iran, while Iraqi authorities have implemented stricter financial controls to curb illicit dollar flows.
Iraq maintains strong economic ties with Iran, with bilateral trade worth more than $10 billion annually.
Written by urgent.news from Jerusalem Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
