US agrees to resume cash dollar shipments to Iraq

The U.S. has agreed to resume previously halted cash shipments to Iraq, according to an Iraqi government spokesman on Saturday.

The resumption follows a months-long suspension of U.S. dollar shipments to Iraq’s cash-heavy economy which heavily relies on foreign currency to boost its own domestic market.

The suspension of transfers took place in April of this year, including suspending a consignment estimated at around $500 million, as the U.S. pressed Iraq to curb the influence of Iranian-backed militias.

Haider al-Aboudi told the official Iraqi News Agency that the agreement was reached during Prime Minister Ali Faleh al-Zaidi’s visit to the US, saying: “A new shipment will arrive in the coming days,” without disclosing the value or a delivery date.

He added that the resumption followed steps taken by the Iraqi government to tighten oversight of dollar distribution, curb misuse of foreign currency, and expand electronic payments in a shift toward a more digital economy.

Al-Aboudi underscored that the shipments would help meet Iraq’s domestic demand for foreign currency, as the country’s foreign currency reserves are held in an account at the Federal Reserve Bank of New York.