The Dollar Is A Pressure Tactic… A US Report Links The Suspension Of Shipments To The Influence Of Factions In Iraq!
Published on: April 29, 2026, 3:45 PM Follow-up/Al-Mada The Foundation for Defense of Democracies in the United States held Iraqi factions linked to Iran responsible for Washington’s decision to suspend dollar shipments to Baghdad, considering this move a financial and security pressure tool that can be used to push Iraq towards deeper changes in the management of its economy and banking system.
The report explained that the United States had been sending cash payments ranging between $400 and $500 million to Iraq periodically for years, within a mechanism linked to oil revenues, but the US Treasury Department recently halted these shipments.
The report indicated that the decision came in the context of escalating attacks carried out by armed factions using drones and missiles against American targets inside Iraq, including the American embassy in Baghdad, considering that suspending the flow of dollars was “justified,” and that its effectiveness depends on how it is used as a tool of pressure.
He explained that the Iraqi economy is heavily dependent on dollar inflows, so any disruption to these shipments directly impacts the market, leading to increased demand for hard currency, a decline in the value of the dinar, and greater difficulty in importing basic commodities such as food and fuel.
The report noted that part of these funds reaches, through the banking system, entities linked to armed factions, through companies operating in the fields of construction, import, banking and security services, indicating that the problem is not limited to cash flows, but extends to the mechanisms of their distribution.
In this context, the report considered Rafidain Bank, as the government entity through which oil revenues deposited in the US Federal Reserve pass, to be a key link in the distribution of funds within Iraq, including employee salaries. It added that transferring the salaries of some entities to Al-Nahrain Islamic Bank, under pressure from the US Treasury Department, did not solve the problem but merely shifted it to another entity.
He warned that a prolonged dollar shortage could lead to inflation and monetary instability, weakening the Iraqi government’s ability to manage the economy and giving factions more room to strengthen their financial and social networks.
The report called on Washington to use this suspension thoughtfully, so that it would press for Iraqi compliance without causing an economic collapse, suggesting linking the resumption of dollar shipments to enhanced security measures around American diplomatic facilities.
He also stressed the need to push Iraq towards reducing reliance on cash and moving towards electronic payment systems, in order to limit illegal activities, calling for an investigation into the activities of Al-Nahrain Islamic Bank for possible involvement in money laundering operations, and the possibility of subjecting it to procedures under “Article 311” of the “Patriot” Act.
In the same context, the report recommended threatening sanctions against government officials if they are found to be involved in fuel smuggling or supporting financial networks linked to factions, in addition to strengthening oversight and external auditing of Al-Rafidain Bank, as it is the main channel for the flow of dollars.
The report concluded by emphasizing that Iraq’s continued access to dollars without strict oversight is no longer an acceptable option, calling for any future financial flows to be linked to transparent procedures that ensure they do not leak to entities outside the official framework. https://almadapaper.net/433487/
An American Institute: Iraqi Factions Are Behind The Suspension Of Dollar Shipments To Baghdad, And The Trump Administration Is Using The Move As A Pressure Tactic
4/29/2026 Baghdad – One News The US-based Foundation for Defense of Democracies blamed “Iraqi militias linked to Iran” for Washington’s suspension of dollar shipments to Baghdad, describing the move as “correct” and potentially useful for security and financial pressure on Iraq, and calling for an investigation into the activities of “Al-Nahrain Islamic Bank.”
The American Institute noted in a report that the United States has been transferring funds in amounts ranging from $400 to $500 million at a time to Baghdad for many years, pointing out that the US Treasury Department stopped sending these shipments related to Iraqi oil sales.
The report confirmed that Iraq is critically dependent on dollar inflows, but the Iraqi government, especially the Ministry of Oil, is deeply entangled with the militias, adding that suspending the shipments represents an effective and short-term financial lever for security and financial pressure. https://1news-iq.net/معهد-أميركي-الفصائل-العراقية-وراء-تعل/
A Parliamentary Question To The Governor Of The Central Bank Regarding The Delay In Releasing Foreign Remittances
Baghdad / NINA / The Parliamentary Finance Committee directed a question to the Governor of the Central Bank on Tuesday regarding the delay in releasing foreign currency transfers.
Committee member, MP Hussein Mounis, stated in a press release: “A question was directed to the Governor of the Central Bank of Iraq regarding the delay in releasing foreign currency transfers (excluding US dollars) to Iraqi banks, despite the completion of the requirements for the first phase of reforms being implemented by Oliver Wyman.”
He added, “The current circumstances in the region and Iraq, along with the accompanying difficulties in international trade, necessitate greater support for the Iraqi market through financing and credit facilities that contribute to the stability of commercial activity.” He demanded clarification on the reasons for the delay in releasing these transfers and the setting of an official date for their implementation, given their importance in supporting imports and trade.
Mounis stressed the need to answer the parliamentary question within a period not exceeding 15 days, based on the provisions of Article (15) of the Law of the Council of Representatives and its Formations. /End 9 https://ninanews.com/Website/News/Details?key=1292558
Parliamentary Finance Committee: Preparing The Budget Requires A Fully Empowered Government And Real Resources, Not “Fantasy” Figures
2026-04-28 10:53 Shafaq News – Baghdad Jamal Kojar, a member of the Finance Committee in the Iraqi Parliament, confirmed on Tuesday that the deficit is hindering the resolution of the budget, while pointing out that budgets are based on resources and not on “fanciful figures”.
Kojer told Shafaq News Agency that preparing the budget law and sending it to the House of Representatives requires a fully empowered government, and that the current caretaker government does not have the authority to send the draft budget law to Parliament.
He added that the House of Representatives, in coordination with the government, has three options: to limit spending to the 1/12 system, to legislate a law similar to the Food Security Law, or to submit a draft budget law for the second half of this year.
Koger explained that “the total budget amount cannot be determined given that there is a financial deficit, and the important point is that budgets are based on resources and not on imaginary figures.”
The Finance Committee in the Iraqi Parliament confirmed last week that voting on the 2026 budget law is linked to the formation of the next government, the government program, and the speed with which it is sent to the Council.
Committee member Ribwar Karim told Shafaq News Agency that the committee received information from the government indicating that “there is no liquidity crisis, and that employees’ salaries are fully secured for the coming months.”
Karim added that the parliament is still waiting for the formation of the next government with full powers, so that it can present projects to confront any economic crisis in the next stage.
A US Report Recommends That The Trump Administration Sanction Iraq’s Rafidain Bank: A Means Of Securing Dollars For Factions
Baghdad – One News 4/29/2026 According to the US report, dollar shipments arriving in Iraq sometimes fall into the hands of militias through banking services, which run construction and import companies, currency exchanges, and security contracting firms.
The report considered that a large part of the problem lies with the state-owned Rafidain Bank, as it is the final means of distributing oil revenues deposited in the Federal Reserve Bank of New York, which reach Iraqi society, especially civil servants, after until recently it also reached members of the Popular Mobilization Forces through their salaries, which were forced by pressure from the Treasury Department to be transferred to the smaller, state-owned Al-Nahrain Islamic Bank. https://1news-iq.net/تقرير-أمريكي-يوصي-إدارة-ترامب-بمعاقبة/
