Iraq's Central Bank to Receive $1 Billion Cash Shipment from the U.S.

The Central Bank of Iraq announced that a cash shipment of one billion dollars will arrive in Baghdad from the United States within the week. This is part of ongoing discussions between Iraqi Prime Minister Ali al-Zaidi and U.S. officials aimed at increasing dollar inflows into the country.

Mahmoud Dagher, adviser and spokesman for the Central Bank, stated that this shipment will be crucial for strengthening the Iraqi dinar and maintaining financial stability. The funds will be utilized to balance the financial market and support the currency.

Dagher attributed the recent decline in the dollar's exchange rate to the Central Bank's monetary policy, which has involved increasing the supply of dollars and implementing economic reforms.

As part of a phased plan, the shipment is intended to establish a continuous monthly delivery of one billion dollars, with hopes to eventually raise this figure to $2.5 billion. This increase aims to close the gap between the official and parallel exchange rates for the dollar and dinar.

The upcoming shipment follows a significant hiatus in dollar cash deliveries to Iraq, the last being approximately $500 million on August 6, 2026. The renewed supply, which is set to double the previous amount, marks an escalation in U.S.-Iraq financial cooperation. This development occurs amid broader geopolitical challenges, including militia disarmament, U.S. pressure on Iran, and budget negotiations with the Kurdistan Region.