Iraq receives new shipment of US dollars from Federal Reserve Bank

Baghdad (IraqiNews.com) – The spokesperson for the Iraqi government confirmed that Iraq received on Wednesday a new shipment of US dollars from the Federal Reserve Bank of New York.

In a statement to the state-run Iraqi News Agency (INA), al-Aboudi explained that the step comes within the framework of bilateral understandings reached between Prime Minister Ali al-Zaidi and US officials during his recent visit to the United States.

The arrangement aims to keep foreign currency flows and meet legitimate domestic cash demands.

The United States halted physical dollar supplies to Iraq in April 2026, including a huge cargo worth $500 million, to force Baghdad to limit the influence of Iran-backed armed groups and minimize illegal financial flow.

Washington decided to keep the supplies going in response to 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.

The revenues Iraq generates from international oil exports are officially stored in a designated account under the custody of the Federal Reserve Bank, giving Washington significant structural power over Baghdad’s access to physical cash.

The new funds will be used largely for travel-related activities and foreign transfers approved by the Central Bank of Iraq (CBI).