Iraq, US agree to resume dollar cash shipments

Baghdad has reached an understanding with the US to resume dollar cash shipments to Iraq after a months-long suspension, an Iraqi government spokesman said on Saturday.

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.

He said the shipments would help meet Iraq’s domestic demand for foreign currency.

“A new shipment will arrive in the coming days,” said al-Aboudi, without disclosing the value or a delivery date.

He said the agreement followed steps by Iraq to tighten oversight of dollar distribution, curb misuse of foreign currency and expand electronic payments as the country gradually shifts toward a more digital economy.

The US suspended dollar cash shipments to Iraq in April, including a consignment estimated at around $500 million, as Washington pressed Baghdad to curb the influence of Iran-backed armed groups.

Dollar shipments are particularly important to Iraq’s cash-heavy economy. The country’s foreign currency reserves are held in an account at the Federal Reserve Bank of New York.