Baghdad (IraqiNews.com) – The Central Bank of Iraq (CBI) has denied allegations that the United States suspended US dollar flows related to the country’s oil revenues, according to Mohamed Daghir, financial expert and former director of the CBI. Daghir told Shafaq News that no official declaration has been made regarding a suspension of US dollar shipments to Iraq. “What is being circulated is an attempt by some parties to make use of media to affect the formation of the new government,” according to Daghir.
According to the Wall Street Journal, the US State Department confirmed Washington’s expectation that Iraq would take serious measures to dismantle these groups. According to media reports, the US has increased pressure on Iraq by cutting off critical security ties and suspending US dollar flows related to the country’s oil revenues, highlighting Washington’s growing dissatisfaction with Baghdad’s political instability and the influence of Iranian-backed militias. Iraqi officials indicated that the decision implies two criteria to restore cash flows and intelligence cooperation: the formation of a new government free of militia control and the arrest of suspects involved in assaulting US diplomatic and military sites, according to Middle East Online.
Daghir explained that cash shipments from the United States account for just seven percent of Iraq’s daily foreign currency requirements. He added that bank transactions account for the majority of the country’s demand.