Iraq US Agree to Resume Dollar Cash Shipments After Currency Smuggling Concerns

The Central Bank of Iraq and the US Treasury Department have agreed to resume commercial shipments of physical US dollars to Baghdad, following months of restrictions designed to halt currency smuggling.

The agreement was reached on September 27 after high-level negotiations between Iraqi banking officials and US authorities in Washington.

The US had curbed regular cash transfers in April due to concerns over illicit financial networks funneling greenbacks into Iran and regional armed factions.

Iraqi banking officials have agreed to implement stricter compliance standards and expand electronic transaction monitoring across commercial lenders, which will be tracked by independent auditors to verify transactions avoid blacklisted groups.