Iraq Agrees to Curb Dollar Flows to Iran-Backed Militias

BAGHDAD, July 8: Iraq has agreed to tighten financial controls to prevent US dollars from reaching Iran and Iran-backed militias in exchange for the Trump administration resuming cash shipments to Baghdad, The Wall Street Journal reported on Wednesday, citing US and Iraqi officials.

According to the report, the Iraqi government pledged to introduce measures aimed at blocking Iran and its allied groups from accessing US dollars through Iraq's currency exchange businesses and salary payments made to members of Iran-aligned militias.

The agreement reportedly formed part of negotiations with Washington over the resumption of dollar shipments to Iraq.

A US Treasury official told the newspaper that cash deliveries were restarted after Baghdad committed to implementing additional safeguards to prevent militia groups from exploiting Iraq's financial system.

The reported measures come amid heightened US efforts to restrict financial channels that could benefit Iran and its regional allies as tensions between Washington and Tehran continue to escalate.