HomeEverything
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
← All Stories

US resumes dollar shipments to Iraq after suspension

Created at 2 Jul · 5:23 AM1 source↑ Market-relevant
IN SHORT

The United States has resumed some air shipments of U.S. dollars to Iraq, several months after suspending them. The suspension was part of pressure on the Iraqi government over actions by Iran-backed militias.

✉Newsletter

PiQ Daily

Pick your topics. Get only what matters, on your cadence.

Key Numbers

$500 millioncash shipment halted in April

Who's Involved

Haider al-Aboudi
spokesman for Iraq's prime minister
Mudhar Muhammad Salih
financial adviser to Iraq's prime minister
US resumes dollar shipments to Iraq after suspension

↳ Why This Matters

The resumption of dollar shipments signals a potential shift in U.S. policy toward Iraq, impacting the country's financial stability and its relationship with Iran-backed militias.

Key facts

  • The U.S. has resumed some air shipments of U.S. dollars to Iraq.
  • These shipments were suspended several months ago.
  • The suspension was linked to pressure on the Iraqi government regarding Iran-backed militias.
  • Security cooperation and funding for Iraq's security services remain suspended.

The United States has resumed some air shipments of U.S. dollars to Iraq, several months after suspending them, The New York Times reported, citing two aides to Iraq's prime minister. Haider al-Aboudi, a spokesman for Iraq’s prime minister, confirmed the resumption of dollar shipments to the newspaper. Mudhar Muhammad Salih, a financial adviser to the prime minister, also confirmed the transfer. In April, Washington halted a shipment of approximately $500 million in cash bound for Iraq and suspended parts of its security cooperation with Baghdad. These measures were intended to pressure the Iraqi government over the actions of Iran-backed militias. The suspension in cooperation and funding for Iraq's security services remains in place, according to the report. The White House, U.S. State Department, and the Treasury did not immediately respond to requests for comment outside business hours. Reuters could not immediately verify the report. The measures were taken amid escalating fallout from the Iran war, with the U.S. blaming Iranian-backed militias for attacks in Iraq, including repeated strikes on the U.S. embassy in Baghdad and the U.S. consulate in the Kurdistan region.

Frequently asked questions

The U.S. suspended shipments to pressure the Iraqi government over the actions of Iran-backed militias, which the U.S. blamed for attacks in Iraq.

In addition to halting dollar shipments, Washington suspended parts of its security cooperation with Baghdad.

The suspension in security cooperation and funding for Iraq's security services remains in place.

What Happens Next

01The White House, U.S. State Department, and Treasury may comment on the resumption of shipments.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence
CME Headlines
  • Why Are Investors Divided Over the Path of Treasury Yields?
    2 Jul · 6:00 AM
  • Treasury futures fluctuated as 10-Year yields tested new highs.
    1 Jul · 8:14 PM
  • Euro futures fell as ECB and Fed policy divergence took focus.
    1 Jul · 8:14 PM

How It Developed

The United States resumed some air shipments of U.S. dollars to Iraq.
Shipments were suspended several months prior.
The suspension aimed to pressure the Iraqi government over Iran-backed militias.
Security cooperation and funding for Iraq's security services remain suspended.

Sources

T1
US resumes dollar transfers to Iraq, NYT reportsReuters

Related Stories

Dollar steady, yen intervention jitters persist ahead of US payrolls
2 Jul · 1:06 AM
South Korea currency chief says won is misaligned, in talks with Japan
2 Jul · 6:08 AM
US job growth expected to cool in June, unemployment rate steady
2 Jul · 4:03 AM
Japan shifts to ambush intervention tactics against yen short sellers
2 Jul · 3:39 AM
Nigeria's unreported spending equals 2% of GDP, IMF official says
1 Jul · 11:16 AM