US lifts restrictions on Iraqi exchange firms

The United States Treasury Department building in Washington, D.C. Photo: Alabama Political Reporter Baghdad (IraqiNews.com) – The Central Bank of Iraq (CBI) revealed on Sunday that the US Treasury Department has lifted restrictions on several Iraqi exchange companies. The CBI said in a statement that the US Treasury Department removed the restrictions after verifying that these companies met the standards it established, enabling them to resume the sale of US dollars to travelers. The step is part of the Iraqi government’s efforts to strengthen compliance with regulatory controls and organize the sale of foreign currency in accordance with approved frameworks, the state-run Iraqi News Agency (INA) reported. In late September, the spokesperson for the Iraqi government confirmed that Iraq received a new shipment of US dollars from the Federal Reserve Bank of New York. Al-Aboudi explained that the step comes within the framework of bilateral understandings reached between Prime Minister Ali al-Zaidi and US officials during his recent visit to the United States. The United States halted physical dollar supplies to Iraq in April 2026, including a huge cargo worth $500 million, to force Baghdad to limit the influence of Iran-backed armed groups and minimize illegal financial flow. Washington decided to keep the supplies going in response to the Iraqi government’s efforts to tighten monitoring on dollar distribution, reduce currency abuse, expand electronic payments, and phase out the traditional currency auction system. The revenues Iraq generates from international oil exports are officially stored in a designated account under the custody of the Federal Reserve Bank, giving Washington significant structural power over Baghdad’s access to physical cash. The new funds will be used largely for travel-related activities and foreign transfers approved by the CBI.