Shafaq News- Baghdad

Iraq has received no official notice indicating a halt in US dollar shipments, an economic expert told Shafaq News on Wednesday, stressing that no supporting information appears on the US Treasury’s website.

According to Mahmoud Dagher, former Director General at the Central Bank of Iraq (CBI), the rumors are being amplified by parties seeking to take advantage of the current media environment as political negotiations over government formation continue.

“While the speculation may weigh on public sentiment, it has not driven any unusual swings in the exchange rate,” he added, noting that current fluctuations remain within a normal range typically associated with periods of regional tension.

Dagher further indicated that physical dollar shipments arriving by air from the United States account for only about 7% of Iraq’s daily dollar needs, while most demand is covered through banking channels and transfers used to finance imports.

Stressing that dollar liquidity remains sufficient to support trade and meet seasonal demand, including that of pilgrims, he described the overall financial situation as relatively stable despite ongoing geopolitical pressures.

Earlier today, the Wall Street Journal reported that the United States blocked the transfer of roughly $500 million in Iraqi oil revenues to Baghdad, pointing to US dissatisfaction over Iraq’s “slow progress” in curbing Iran-aligned armed factions.