Shafaq News- Baghdad

US dollar transfers to Baghdad are continuing normally despite the halt in oil export revenues, Central Bank of Iraq (CBI) Governor Ali Al-Allaq said on Saturday, rejecting reports of a stoppage.

Speaking at the Sin Dialogue Forum, Al-Allaq confirmed that public-sector salaries remain secured, noting that the CBI will “continue supporting” the government despite reduced fiscal flexibility following the suspension of Iraq’s main oil export outlet amid the ongoing blockade of the Strait of Hormuz by Iran and the United States.

Transfers now account for about 95% of total dollar sales after the bank shifted operations into regulated channels aligned with anti-money laundering and counter-terrorism financing rules, while annual cash imports were reduced from around $14 billion to roughly $4 billion, limited mainly to travelers. Al-Allaq explained that the central bank cannot lend directly to the government but can use alternative tools, including securities, to manage liquidity and sustain spending.

He added that there are no restrictions on foreign currency transfers or sales, noting that dollars remain available for trade and travel, while the parallel market rate is unofficial and outside the bank’s framework.

The United States has for years transferred cash shipments to Baghdad in amounts ranging between $400 million and $500 million per tranche, tied to Iraq’s oil revenues. Washington suspended these transfers in April, according to US reports at the time, citing an escalation in attacks by Iran-linked armed groups against American interests. However, Iraqi economist Nabil Al-Marsoumi indicated that a new shipment of US dollars has arrived in Baghdad as part of ongoing monthly transfers.

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