Iraq receives renewed US dollar shipments after two-month pause

ERBIL, Kurdistan Region - Iraq has resumed receiving US dollar shipments after a pause of more than two months, officials and economic experts said Saturday, in a move expected to ease pressure on the local currency and stabilize financial markets.

Mazhar Mohammed Saleh, financial advisor to Prime Minister Mohammed Shia al-Sudani, confirmed to Rudaw on Saturday that Washington has restarted the transfers.

“There is currently nothing preventing the arrival of dollars. Before cash dollars are sold to any beneficiary, particularly tourists, it will be handled through a precise digital platform and a highly organized mechanism known in detail to the US Federal Reserve,” Saleh said.

He explained that the earlier suspension was due to logistical challenges rather than a policy shift, noting that Iraqi airspace had been closed amid the Iran war that began on February 28.

Following the announcement of a ceasefire in early April, flights resumed and shipments were able to reach Iraq again.

Iraq’s oil revenues are held in the United States, with cash dollars typically transferred to Baghdad in two monthly shipments.

Nabil al-Marsoumi, an Iraqi economic expert, told Rudaw on Saturday that “after a suspension of more than two months, a shipment of cash dollars arrived in Baghdad from the US yesterday, totaling approximately $500 million,” he said.

He added that “sending these dollars is part of US support for the future Iraqi government headed by [Iraq's PM-designate] Ali al-Zaidi. This step will contribute to the rise in the value of the Iraqi dinar against the dollar.”

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

The resumption follows confirmation from the US State Department last week that dollar shipments to Iraq “were temporarily paused,” without specifying details.

The pause coincided with heightened tensions after a series of drone attacks on April 8 targeting areas near Baghdad International Airport, including locations used by US personnel. Washington condemned the attacks, attributing them to an Iraqi “terrorist militia,” and called on Baghdad to hold those responsible accountable.