The Iraqi government has recently announced that it has reached an agreement with the United States to continue the shipment of dollar banknotes to the country. This agreement is the result of the visit of Ali Falah Al-Zaydi, the Prime Minister of Iraq, to the United States, and a new shipment is expected to arrive in Iraq in the coming days.
History of the halt in dollar shipments to Iraq
Iraqi officials had previously announced that the United States had resumed sending some shipments of dollars to Iraq after several months of suspension. In April 2023, the United States halted a shipment worth approximately $500 million, an action taken due to pressures on Baghdad to limit the Popular Mobilization Forces.
Read more: Baghdad and Washington agreement to resume dollar shipments to Iraq
Haider Al-Abadi, the spokesperson for the Iraqi government, emphasized in his statements to the official news agency of the country that these shipments will help meet Iraq's domestic need for foreign currency. However, he did not mention the value of the shipment or the exact delivery date.
Iraq's measures to monitor dollar distribution
The spokesperson for the Iraqi government further referred to the measures that his country has taken to intensify monitoring of dollar distribution and combat the misuse of foreign currency. These measures include expanding electronic payments as part of Iraq's gradual shift towards a digital economy. This could help reduce Iraq's economy's reliance on cash transactions.
The Iraqi economy is heavily dependent on cash transactions, and the shipment of dollar banknotes to this country is of particular importance. Iraq's foreign currency reserves are also held in an account at the Federal Reserve Bank of New York, and these shipments can contribute to the country's economic stability.
As Iraq seeks to strengthen its economy and reduce dependence on foreign currencies, this agreement with the United States could be a positive step in this direction. Given the current economic situation and the need for foreign currency, these shipments could have a significant impact on domestic markets and help stimulate the country's economy.
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