US and Iraq Agree to Resume Dollar Cash Shipments After Months-Long Pause

Baghdad said on September 27 that it had reached an understanding with the United States to resume dollar cash shipments after a months-long suspension, with a new delivery expected in the coming days. The currency comes from Iraqi oil revenues held through the Federal Reserve Bank of New York. In April, the Trump administration blocked a shipment of nearly $500 million, pressing Baghdad to dismantle Iranian-backed armed groups. Electronic dollar transfers used for imports and trade were not affected, and some cash deliveries resumed by early July. The value and date of the next shipment were not disclosed.

The background matters. US and Iraqi officials have said the central bank's dollar auction allowed large sums to be acquired through fake invoices and then transferred or physically smuggled to neighbouring countries, chiefly Iran. Measures introduced by the Fed and the Central Bank of Iraq reduced currency smuggling but did not end it.

Why it matters: the cash flow has shifted from routine logistics to a negotiated lever. It supports a cash-heavy Iraqi economy, while giving Washington leverage over Baghdad's handling of militias and banks. Whether the tighter controls hold will decide how durable the arrangement is. More analysis at navvyasignal.com.

Sources

Sources: The Media Line, themedialine.org; ANews, anews.com.tr; France 24, france24.com; AGBI, agbi.com.