US Agrees to Resume Dollar Shipments to Iraq

Baghdad and Washington have reached an agreement to resume dollar cash shipments to Iraq after a months-long suspension. The decision was made during Prime Minister Ali Faleh al-Zaidi's visit to the US, according to Haider al-Aboudi, an Iraqi government spokesman.

The US suspended dollar shipments in April, including a consignment estimated at around $500 million, due to concerns over Iran-backed armed groups' influence. This move has significant implications for Iraq's cash-heavy economy, which relies heavily on foreign currency reserves held in an account at the Federal Reserve Bank of New York.

The agreement aims to help meet Iraq's domestic demand for foreign currency by tightening oversight of dollar distribution and expanding electronic payments. A new shipment is expected to arrive in the coming days, although the value and delivery date remain undisclosed.