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The US Has Stopped Sending Cash Dollars To Iraq. Is This The Beginning Of A Blockade?
July 21, 2025 Al-Mustaqillah/- Private sources confirmed that the United States has decided to completely halt cash dollar shipments to Iraq, a move described as potentially the beginning of a "financial blockade" on some Iraqi banks involved in currency smuggling and money laundering.
According to a source who spoke to Al-Mustaqilla on condition of anonymity,
Washington's decision does not pertain to Iraq as a country, but rather targets specific banks suspected of involvement in suspicious dollar transfers to countries subject to international sanctions.
This has angered the US Treasury, prompting it to tighten controls on dollar movement within the Iraqi market.
Sudden drop in exchange rate after the decision
Remarkably, the US decision coincided with a significant decline in the dollar exchange rate in the Iraqi market. Experts interpreted this as a natural consequence of the restrictions on the circulation of cash and the prevention of its smuggling abroad.
This led to an increase in supply in the local market and a temporary decline in its price.
Government shift towards “legal dollarization”
Separately, a banking source revealed that the Iraqi government has been relying on
new mechanisms for disbursing salaries and conducting financial transactions for months.
These mechanisms involve legal invoices processed through official banks and digital platforms linked to the global financial system. This is an alternative to the paper dollar shipments previously transported into the country by air.
The source indicated that this step represents a major shift in cash liquidity management in Iraq,
making it difficult for suspicious entities to continue smuggling or manipulating the currency market.
Is this the beginning of the storm?
The US decision raises many questions about the future of dollar transactions in Iraq,
especially in light of escalating regional tensions and Washington's tightening of financial sanctions.
Are we witnessing the beginning of a new phase of international restrictions on the Iraqi economy?
Or is this merely a technical measure against some violating banks? https://mustaqila.com/أمريكا-توقف-إرسال-الدولار-النقدي-إلى-ا/
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