Iraq Agrees to Tighten Dollar Controls as U.S. Resumes Cash Shipments

Iraq has reached an agreement with the United States to strengthen controls aimed at preventing U.S. dollars from reaching Iran and Iran-backed groups, paving the way for the resumption of U.S. dollar cash shipments to Baghdad after a four-month suspension, according to The Wall Street Journal, citing U.S. and Iraqi officials.

The shipments were halted in late February after heightened regional tensions. During the suspension, at least two cash deliveries, including one reportedly worth around $500 million, were canceled. The funds originate from Iraq's oil revenues held at the Federal Reserve Bank of New York.

According to the report, Iraq has agreed to tighten oversight of currency-exchange businesses and strengthen measures designed to prevent unauthorized access to U.S. dollars. Cash shipments reportedly resumed late last month before the agreement was formally announced.

The U.S. Treasury has increased sanctions enforcement against financial networks accused of helping Iran access the international financial system. The latest agreement reflects ongoing efforts to strengthen oversight of cross-border dollar flows.