Baghdad and Washington reach an understanding on the continued shipment of cash dollars to Iraq

Al-Aboudi said: "One of the results of Prime Minister Ali Faleh Al-Zaidi's visit to the United States is reaching an understanding regarding the continued shipment of cash dollars to Iraq (one dollar equals 1310 Iraqi dinars), which contributes to meeting legitimate needs for foreign currency."

He added: "A new shipment will arrive in the coming days," without providing details regarding its value or arrival date.

He confirmed that "this understanding comes in light of the progress Iraq has made in strengthening the oversight system for the distribution of the dollar and regulating its uses, curbing cases of foreign currency misuse, as well as expanding electronic payment methods and proceeding with the gradual transition toward a digital economy."

Last April, the United States suspended the flow of dollars to the Iraqi economy and halted a cash shipment estimated at about $500 million, as part of pressure aimed at the time at pushing Baghdad to limit the influence of Iran-backed armed factions.

Dollar shipments are of particular importance to the Iraqi economy, which relies heavily on cash transactions, as the country's Central Bank keeps its foreign currency reserves in an account at the Federal Reserve Bank in New York City.

Over the past years, the United States and Iraq have implemented stricter banking rules to increase transparency in financial transfers, with the aim of curbing dollar smuggling and money laundering, and preventing the US currency from reaching entities subject to sanctions or those supporting armed groups.