Iraqi Central Bank Denies Reports of U.S. Dollar Halt
Conflicting reports of a currency freeze highlight Washington’s financial leverage over Baghdad.
On Monday, April 20, 2026, the Central Bank of Iraq (CBI) officially rejected reports that the United States had suspended shipments of physical U.S. dollars to Baghdad.
The denial followed claims by regional media, including Al-Hadath, that Washington had halted currency transfers and security coordination as part of a crackdown on Iran-aligned militias.
These reports come on the heels of April 17 U.S. State Department sanctions against seven militia commanders from groups like Kata’ib Hizballah and Asa’ib Ahl al-Haqq.
While the CBI insists the flow of cash is normal, the U.S. Embassy in Baghdad remains under a Level 4 "Do Not Travel" alert, citing ongoing militia threats in federal Iraq.
The conflicting signals underscore the high-pressure environment as Iraqi leaders attempt to form a new government under the shadow of potential U.S. economic sanctions and demands for militia disarmament.