Iraq and US reach agreement to continue cash dollar shipments

Iraq and the United States have reached an understanding to ensure the continued shipment of cash US dollars to Iraq. A new shipment is expected to arrive within the coming days.

Iraqi government spokesperson Haidar Abudi stated that the agreement follows a visit to the United States by Prime Minister Ali Zaidi. The deal comes as Baghdad reorganizes its foreign currency distribution mechanisms and strengthens oversight of the banking sector to reduce misuse of the currency and expand electronic payment methods.

These cash shipments are not US aid; rather, they are linked to Iraqi oil revenues held in accounts at the Federal Reserve in New York. A portion of these funds is transferred in cash to the Central Bank of Iraq to meet domestic demand for travelers, transfers, and cash transactions. This arrangement follows increased US scrutiny of Iraqi financial institutions aimed at combating money laundering and preventing currency diversion to sanctioned entities.