Washington resumes transferring Iraqi oil revenues to Baghdad

Available information indicates that the administration of US President Joe Biden has resumed transferring Iraqi oil revenues to the Iraqi government, after a halt that lasted several months. The newspaper quoted Iraqi government spokesperson Haider al-Aboudi as saying: "Dollar shipments to Iraq have resumed, and the problem has been resolved." The Prime Minister's financial advisor, Mohammed Saleh, confirmed the resumption of transfers, while the US State Department and Treasury did not comment on the matter. "Dollar shipments to Iraq have resumed, and the problem has been resolved." — Haider al-Aboudi, Iraqi government spokesperson

The resumption of transfers coincides with an anti-corruption campaign launched by Prime Minister Ali al-Zaydi, which included the arrest of dozens of current and former officials, including members of parliament, on charges related to financial corruption.

The backdrop of the halt and its repercussions was that the administration of former US President Donald Trump halted the flow of dollars derived from Iraqi oil sales revenues in April last year, amid concerns about smuggling of US currency through Iran-backed militias. Iraqi officials at the time pointed to Washington's suspension of cooperation and funding earmarked for Iraqi security forces. A Kurdistan Region official said one motive for the halt was to curb dollar smuggling, at a time when the country was selecting a new prime minister, amid US efforts to prevent the arrival of candidates close to Tehran. Washington also urged the Iraqi government to rein in Iran-linked militias operating outside state control, which carried out attacks against US targets in Iraq. It is noted that international banking rules imposed on Iraq required greater transparency regarding dollar transfers, which Baghdad holds as foreign reserves in an account at the Federal Reserve Bank of New York.