Iraq Secures New Dollar Shipment from Federal Reserve

Iraq has received a new shipment of US dollars from the Federal Reserve Bank of New York, according to a spokesperson for the Iraqi government. The shipment comes after Prime Minister Ali al-Zaidi's recent visit to the United States, where he met with US officials to discuss bilateral understandings.

The new funds are aimed at meeting legitimate domestic cash demands and reducing foreign currency flows, which had been halted by the US in April 2026 as a means of pressuring Baghdad to limit the influence of Iran-backed armed groups and minimize illegal financial flow.

Washington had decided to keep supplying physical dollars to Iraq after the Iraqi government's efforts to tighten monitoring on dollar distribution, reduce currency abuse, expand electronic payments, and phase out the traditional currency auction system.