The Iraqi government said on Saturday that it had reached an understanding with the United States to continue sending cash-dollar shipments to the country, with a new shipment expected to arrive in the coming days, according to a government spokesman.
The understanding confirms the continuation of the shipments, some of which Iraq resumed receiving in July after a suspension that lasted several months.
Arrangements linked to oil revenues
The shipments are part of financial arrangements under which funds from Iraq’s oil revenues pass through the Federal Reserve Bank of New York to the Central Bank of Iraq.
The banknotes are used primarily to meet individuals’ foreign-currency needs, including expenses for travel, medical treatment and study abroad.
Separate channel for trade transfers
The cash-shipment channel differs from electronic dollar transfers designated to finance imports and trade. An economic adviser to the Iraqi government said those transfers were not affected by the halt to the cash shipment in April.
Iraqi sources had linked the halt to the shipment in April to U.S. pressure on Baghdad over the activities of Iran-backed armed factions, before Iraqi officials confirmed in July that some flights carrying cash dollars to the country had resumed.
