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Sign InThe Iraqi financial landscape is facing heightened uncertainty following reports from the Wall Street Journal, cited by Reuters, that the US Treasury has suspended physical dollar shipments to the Central Bank of Iraq. This move is reportedly intended to squeeze Iran-backed militias and restrict their access to hard currency amid ongoing political deadlock. These developments emerge as the Coordination Framework struggles to appoint a Prime Minister, with the US maintaining significant influence over liquidity via the Federal Reserve Bank of New York. While the CBI issued a formal statement rejecting these claims and asserting that flows remain uninterrupted, the reports have sparked fears of economic instability. Analysts warn that targeting these financial flows could trigger a surge in the IQD/USD black market rate. Markets remain cautious as they monitor how this strategic pressure will impact Iraq's monetary stability.