United States Resumes Physical Dollar Shipments to Iraq

The United States has restarted air deliveries of physical U.S. dollars to Iraq after a suspension that began in April. The halt, which blocked roughly $500 million in cash, was part of Washington’s pressure campaign over the presence of Iran‑backed militias in Iraq. While electronic dollar flows continued, the physical cash track – essential for retail needs, travel, medical expenses and education in Iraq’s cash‑based economy – was stopped. The first post‑suspension shipment arrived on May 1, 2026, after airspace stabilization and a reduction in regional hostilities. Security cooperation programs between the two countries remain suspended, indicating that the financial easing is limited to cash deliveries. Resuming the shipments is expected to improve liquidity in Iraq’s banking system and ease short‑term economic pressures, but broader security concerns persist.