Iraq Economic News and Points To Ponder Friday Morning 5-15-26
When will dollar shipments arrive in Baghdad? Washington ignores the Central Bank, while al-Zidi prioritizes it.
2026-05-14 964 Network The Asharq Bloomberg website published a report in which a senior Iraqi official, who declined to reveal his identity, stated that addressing the crisis of delayed dollar shipments from the United States to Baghdad, amounting to about $10 billion annually, will be among the priorities of Ali al-Zaidi's government, in order to avoid destabilizing the exchange market in light of the sharp decline in oil exports due to the repercussions of the Iran war.
He confirmed that the Iraqi authorities are trying to find out the reasons for the delay in the latest shipments, but the Central Bank has not yet received any response from the American side.
Washington denies releasing Iraqi dollars: Shipments suspended until further notice
Earlier, the administration of US President Donald Trump suspended dollar shipments to Iraq and froze funding for security cooperation programs with Baghdad, pressuring it to dismantle Iranian-backed armed factions. The US Treasury Department blocked an air shipment of about $500 million in Iraqi oil revenues held in accounts at the Federal Reserve Bank of New York, according to the Wall Street Journal.
According to banking expert Mustafa Hantoush, speaking to Asharq Bloomberg, Washington is expected to resume sending shipments soon, based on a similar precedent in 2023, at a time when the International Monetary Fund expects the Iraqi economy to shrink by 6.8% this year, with central reserves amounting to $100 billion before the war.
A report by the “Al-Sharq Bloomberg” website, as reviewed by 964 Network :
A senior Iraqi official said that addressing the crisis of delayed dollar shipments from the United States to Baghdad will be a priority for the new government to avoid destabilizing the exchange market, especially after the sharp decline in the country's oil exports due to the repercussions of the Iran war.
Iraq receives a portion of its oil revenues in the form of cash shipments in US dollars, estimated at around $10 billion annually. These funds are distributed in installments arriving via chartered flights at Baghdad Airport, while transfers related to financing foreign trade—which have not been affected by the delays—are managed through official banking channels.
The government official, who spoke to Asharq on condition of anonymity, confirmed that the Iraqi authorities are indeed trying to find out the reasons for the delay in the latest shipments, but the Central Bank has not yet received a response from the American side.
The US State Department confirmed in response to an inquiry from Asharq News' Washington bureau that dollar shipments to Iraq remain "suspended." It referred any further inquiries to the Treasury Department and the Central Bank of Iraq.
The Treasury Department did not respond to Al-Sharq's questions about the crisis, while officials at the Central Bank of Iraq could not be reached for comment.
Reuters reported in late April, citing several sources, that the administration of US President Donald Trump had halted a cash shipment worth about $500 million and suspended part of its security cooperation with Baghdad in an attempt to pressure the Iraqi government to reduce the influence of Iranian-backed armed factions, which have launched several attacks on Gulf states since the start of the conflict at the end of February in support of the regime in Tehran.
The Stability Of The Dinar Is At Stake
Although the value of the shipment represents only a small fraction of the total demand for dollars in the Iraqi market, its delayed arrival and the ongoing crisis could affect the stability of the dinar and widen the gap between the official exchange rate and the parallel market rate, which has only fluctuated within a narrow range since the outbreak of the conflict.
Therefore, the official confirmed that the issue will be a priority for Prime Minister-designate Ali al-Zaidi as soon as he officially assumes office. The Iraqi parliament is scheduled to vote tomorrow, Thursday, on granting confidence to the new government.
Iraq is among the countries most affected by the war in the region. The International Monetary Fund (IMF) projects a 6.8% contraction in its economy this year due to its reliance on oil exports through the Strait of Hormuz, which account for 90% of government revenue. A senior IMF official told Asharq Al-Awsat last month that Baghdad's options for dealing with the crisis until a new government is formed focus on reducing spending and temporarily drawing on the central bank's reserves, which stood at approximately $100 billion before the war.
Trump had invited al-Zaidi during a phone call at the end of last month to visit Washington after the government was formed, and wished him success “in forming a new government free of terrorism that can provide a brighter future for Iraq and the United States.”
The Historical Roots Of The Crisis
Iraqi banking expert Mustafa Hantoush told Asharq that he expects Washington to resume sending dollar shipments soon. He added that the United States had previously suspended these shipments temporarily in 2023 without publicly stating the reasons.
The story of relying on the United States to send dollar shipments to Baghdad dates back to 2003, when then-US President George W. Bush issued an executive order during the American occupation following the overthrow of Saddam Hussein's regime.
This order mandated that all of Iraq's oil revenues be transferred to a special account called the "Development Fund for Iraq," managed through the Federal Reserve Bank of New York, ostensibly to protect the funds from lawsuits and use them for reconstruction. Since then, the executive order has been renewed annually, meaning that US approval is required before any funds can be transferred to Baghdad. https://964media.com/681037/
Trump's Envoy Congratulates Al-Zaidi On Gaining Confidence: We Are Ready To Work With The New Iraqi Government –
5/14/2026 Baghdad – One News US President Donald Trump’s envoy, Tom Barrack, congratulated Iraqi Prime Minister Ali Faleh al-Zaidi on his government winning the confidence of the House of Representatives.
Barak said the United States is optimistic about the new leadership in Iraq and looks forward to cooperating with al-Zaidi's government on an ambitious agenda that aligns with the shared interests of both countries.
He added that Washington supports building a sovereign, prosperous and stable Iraq that lives in peace with its neighbors and provides opportunities and growth for all its citizens, within a mutually beneficial partnership with the United States.
Barak emphasized that President Trump, Secretary of State Marco Rubio, and the United States are prepared to work closely with the new Iraqi government to achieve common goals, foremost among them the prosperity of the Iraqi people and the elimination of terrorism. https://1news-iq.net/مبعوث-ترمب-يهنئ-الزيدي-بنيل-الثقة-مستع/
US Backs Cooperation With Iraq After Al-Zaidi Cabinet Approval
2026-05-14 Shafaq News- Washington/ Baghdad The United States is looking to work with Iraq’s new government on a “bold new agenda” focused on stability, prosperity, and economic cooperation, US envoy Tom Barrack said on Thursday after Parliament approved Prime Minister Ali Al-Zaidi’s cabinet and ministerial program.
Barrack added that US President Donald Trump, Secretary of State Marco Rubio, and the US administration are prepared to work closely with Al-Zaidi and his cabinet, while reaffirming support for counterterrorism efforts.
X Ambassador Tom Barrack @USAMBTurkiye
Congratulations to Iraqi Prime Minister Ali al-Zaidi on securing parliamentary confidence and the approval of his government by the Council of Representatives.
We are encouraged by your fresh leadership and look forward to collaborating on a bold new agenda aligned with our shared interests: building a sovereign, prosperous, stable Iraq, at peace with its neighbors, that delivers opportunity and growth for all its citizens in mutually beneficial partnership with the United States.
President Trump, Secretary Rubio, and the United States stand ready to work closely with you and your government to advance our shared goals of prosperity for the Iraqi people and the elimination of terrorism, which is always an impediment to the people’s progress.
Earlier today, Iraq’s Parliament granted confidence to Al-Zaidi’s cabinet and ministerial program, approving 14 ministers while postponing votes on six portfolios, including higher education and interior, following objections to several nominees.
The remarks came as Washington closely monitors the formation of Iraq’s next government. A US State Department spokesperson told Shafaq News that Washington’s future approach toward the incoming administration would depend on the role of Iran-linked armed factions within state institutions. “The US is looking for action, not words… Iraq has a choice to make.”
“Iran’s terrorist militias must have no role in state institutions,” the spokesperson added, stressing that Iraqi state funds should not support such groups and indicating that Washington would “calibrate” its approach to the new government accordingly.
Read more: Al-Zaidi named prime minister: Easy nomination, harder road ahead
https://www.shafaq.com/en/Iraq/US-backs-cooperation-with-Iraq-after-Al-Zaidi-cabinet-approval
US State Department To Alwan News: Washington Supports The New Iraqi Government And Sees It As An Opportunity For Stability And Reform
latest news Thursday, May 14, 2026 Baghdad – One News The US State Department confirmed in a statement to One News that the United States and the White House support the new Iraqi government that is being formed.
The Foreign Ministry indicated that they see in it an opportunity to enhance stability, reform, and consolidate state institutions, noting that the US President has confirmed this on more than one occasion and official statement.
The Foreign Ministry added that the US administration is still holding fast to its clear and firm position that the participation of armed factions or any entities outside the framework of the state in the next government is a red line that is not open to discussion or compromise.
It indicated that Washington will continue its support for Iraq within the framework of a state of institutions, the rule of law, and the strategic partnership between the two countries. https://1news-iq.net/الخارجية-الأميركية-لوان-نيوز-واشنطن-ت/