Two aides to the Iraqi prime minister reported that the United States has resumed some air shipments of US dollars to Iraq, after several months of suspension.
The New York Times reported that the administration of US President Donald Trump had halted the flow of dollars to Iraq's cash-dependent economy last April, withholding the country's oil revenues that rightfully belong to Iraq.
This exceptional measure came in light of the long-standing alliance between the two countries, but it reflected escalating tensions as US pressure on Baghdad continued.
According to the newspaper, in addition to halting financial transfers, Washington also suspended its cooperation and funding of Iraqi security agencies, according to another Iraqi official who spoke on condition of anonymity, and confirmed that these measures are still in effect.
The newspaper noted that the US measures came at a time when Iraq was in the process of selecting a new prime minister, as Washington sought to prevent the appointment of figures it considered close to Tehran. The United States also demanded that the Iraqi government rein in armed factions linked to Iran, which operate outside state control and carry out regular attacks against US targets in Iraq.
The spokesman for Iraqi Prime Minister Haider al-Abadi said that "dollar shipments to Iraq have resumed," confirming that "the problem has been resolved." The Prime Minister's financial advisor, Mazhar Muhammad Salih, also confirmed the resumption of transfers.
Years ago, an agreement between the United States and Iraq established new international banking rules requiring greater transparency in the transfer of dollars held as Iraq’s reserve in the Federal Reserve Bank of New York.
The resumption of dollar shipments coincided with the prime minister's launch of a broad anti-corruption campaign that resulted in the arrest of dozens of current and former officials, including members of parliament, on corruption charges. According to the official Iraqi News Agency, authorities arrested 47 people last Sunday, with the pursuit of other suspects continuing.
