The US resumed air shipments of dollars to Iraq this month after suspending them for several months, an Iraqi government official told The National.
The resumption comes after Washington halted deliveries of about $500 million in cash in April and paused parts of security co-operation with Baghdad. US officials at the time linked the suspension to repeated attacks by Iran-backed militias on American infrastructure in Iraq and the region, and to put pressure on Baghdad to rein in those groups in the process of forming a new government.
The cash, drawn from Iraqi oil revenues held at the Federal Reserve Bank of New York, is used mainly for retail and foreign-exchange demand, while electronic transfers for trade continued despite the halt.
The official did not provide details on the amounts.
The shift coincides with Prime Minister Ali Al Zaidi’s first month in office. Since taking power in early May, he has made three priorities central to his engagement with Washington: disarming Iran-aligned militias, fighting systemic corruption and reforming financial oversight.
His government has launched a high-profile anti-corruption campaign that has led to the arrest of dozens of officials and lawmakers and the seizure of tens of millions of dollars in assets. He has also pledged to place all weapons under state control, a key US demand after militias claimed responsibility for drone and rocket strikes on the US Embassy in Baghdad and other targets during the Iran war.
On the financial side, he moved to appoint a new governor for the Central Bank of Iraq, part of efforts to strengthen compliance and reduce illicit dollar flows. US officials had cited concerns that cash entering Iraq was being diverted to militia networks.
Washington has not commented publicly, and the State Department said in April it would not tolerate attacks on US interests and expected Baghdad to “immediately take all measures to dismantle the Iran-aligned militia groups”.
The resumption signals US recognition of Mr Al Zaidi’s early steps, but full normalisation will depend on verifiable progress on militia disarmament and financial transparency. He is set to make an official visit to Washington this month.
