• Saturday, 02 May 2026
logo

Dollar Shipments Resume to Iraq After Two-Month Pause, Easing Currency Pressure

Dollar Shipments Resume to Iraq After Two-Month Pause, Easing Currency Pressure

Iraq has resumed receiving shipments of US dollars following a suspension of more than two months, a development expected to relieve pressure on the Iraqi dinar and contribute to stabilizing financial markets.

Mazhar Mohammed Saleh, financial advisor to Prime Minister Mohammed Shia al-Sudani, confirmed on Saturday that Washington has restarted the transfers. Speaking to Rudaw, Saleh stated that there are currently no obstacles to the arrival of dollar shipments.

He emphasized that the distribution of cash dollars—particularly to travelers—will be conducted through a precise digital platform overseen by a tightly regulated mechanism coordinated with the Federal Reserve.

Saleh explained that the earlier suspension was due to logistical constraints rather than a political decision. Iraqi airspace had been closed amid regional tensions linked to the Iran war that began on February 28, disrupting regular deliveries.

Following the declaration of a ceasefire in early April, flights resumed, allowing shipments to reach Baghdad once again.

Iraq’s oil revenues are held in the United States, with cash transfers typically delivered to Baghdad in two monthly installments.

Meanwhile, Iraqi economic expert Nabil al-Marsoumi reported that a shipment of approximately $500 million arrived in Baghdad on Friday, marking the first transfer since the pause.

Marsoumi noted that the resumption of shipments could strengthen the Iraqi dinar against the US dollar. He also suggested the move may reflect US support for the incoming government led by Prime Minister-designate Ali al-Zaidi.

According to Marsoumi, Iraq typically receives around $1 billion per month through two such shipments.

The resumption follows confirmation from the US State Department last week that dollar transfers had been temporarily halted, without providing further details.

Top