Dollar Supply in Iraq Resumed After Four-Month Pause

Following an agreement between Iraq and the United States, the supply of American dollar cash into the country will resume. In return, Baghdad is obligated to strengthen controls to prevent dollars from reaching Iran and armed groups associated with it.

The US Treasury Department halted dollar supplies to Iraq at the end of February. This restricted Baghdad's access to revenues from oil sales, which are held at the Federal Reserve Bank of New York. Washington's goal was to increase pressure on Iraq and reduce the channels through which Iran obtained dollars while circumventing sanctions.

Under the new agreement, Iraq has committed to ensuring that American currency will no longer reach forces associated with Iran, including through currency exchange points and wages intended for members of pro-Iran groups.

The Federal Reserve System has already resumed sending cash. Prior to this, at least two major shipments had been canceled, including one worth 500 million dollars.

Source: Investing.com