US resumes transfer of American currency to Iraq after Iran-related suspension - report

The United States has restarted the transfer of US dollars to Iraq, ending a suspension that was intended to pressure the Iraqi government to reduce its ties with Iran. The New York Times reported the resumption, citing aides to Iraqi Prime Minister Ali al-Zaidi. "The dollar shipments to Iraq have resumed," confirmed Prime Minister spokesperson Haider al-Aboudi to the NYT. "The problem has been resolved."

While the transfer of currency has resumed, a senior Iraqi official noted that the Trump administration's suspension of funding and cooperation with Iraq's security services remains in effect. The US government initially halted the dollar transfers in April, which included withholding earnings from Iraqi oil sales. According to an Iraqi Kurdish official cited in the report, these measures were a response to the alleged smuggling of American currency by Iran-backed Iraqi militias.

This development occurs amidst a significant anti-corruption crackdown led by Prime Minister-designate al-Zaidi. Iraqi forces have detained politicians and officials across the political spectrum, with substantial amounts of cash reportedly found in raids. The crackdown has seen arrests of civil servants, directors general, politicians, and businessmen, highlighting ongoing efforts to address corruption within the country.

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The dollar shipments to Iraq have resumed. The problem has been resolved.