Shafaq News / Washington rejected Iraq’s request for $1 billion in cash from the Federal Reserve on the grounds that it contradicted their efforts to curb Baghdad’s use of the dollar, and to stop illicit cash flows to Iran.
The American newspaper “The Wall Street Journal” reported that since the US invasion of Iraq two decades ago, the United States provides 10 billion dollars or more annually to Baghdad through bimonthly shipping flights, and the money is derived from the proceeds of Iraqi oil sales deposited with the Federal Reserve Bank.
“The banknotes in the hands of the Iraqis have become a lucrative source for illegal dollars belonging to militias and corrupt politicians, as well as to Iran,” U.S. officials said.
By applying for an additional $1 billion shipment, Iraq says it needs funds to help support its struggling currency. A senior Iraqi official explained that “the Central Bank of Iraq submitted last week an official request that is still being studied by the Treasury Department, after Washington rejected the initial request submitted by Iraq last month.”
Since last November, Washington has prevented 18 Iraqi banks from doing business in dollars, adopting stricter rules for electronic dollar transfers from their banks.
Treasury officials have told Iraqi central bankers that sending an additional large shipment runs counter to Washington’s goal of limiting Iraq’s use of U.S. banknotes, Iraqi officials said.
U.S. officials spoke of compelling evidence that some of the dollars that were arriving in Iraq had been smuggled out in cash over the years to Iran, as well as to Turkey, Lebanon, Syria and Jordan.
“The United States continues to support Iraq with dollar banknotes and has not restricted its access to ordinary Iraqis and companies,” a Treasury Department spokeswoman said on the Iraqi request, noting that it continues to work with the Central Bank of Iraq.
https://www.shafaq.com/ar/سیاسة/امريكا-ترفض-طلبا-للعراق-بمليار-دولار
