At a Glance

• Iraq expects another $500 million cash-dollar shipment from the US Treasury.

• Deputy Prime Minister Mohammed Ali Tamim announced the expected delivery.

• An adviser to the Iraqi prime minister predicts the parallel-market exchange rate will move closer to the official rate.

• Previous US cash-dollar deliveries reportedly totaled $3 billion annually.

Iraq expects to receive another $500 million in cash dollars from the US Treasury, as an adviser to the Iraqi prime minister predicts the gap between official and parallel-market exchange rates will narrow.

Key Statements and Focus Areas

Exchange Rate Outlook

An adviser to the Iraqi prime minister said the parallel-market value of the Iraqi dinar is expected to approach the official exchange rate in the coming period. He said he stood by his assessment.

The adviser also described relations between Baghdad and Washington as positive and based on mutual trust.

US Dollar Deliveries

Deputy Prime Minister Mohammed Ali Tamim said Iraq expects to receive $500 million from the US Treasury for the Central Bank of Iraq.

The adviser said annual cash-dollar deliveries to Iraq had previously been reduced to $3 billion. He added that the United States had decided over the past two months to send $3 billion, with shipments continuing.

He also said that $1 billion had arrived the previous Thursday.

Iraq is expecting another $500 million cash-dollar shipment from the US Treasury to the Central Bank of Iraq, according to Deputy Prime Minister Mohammed Ali Tamim.

The expected delivery comes as an adviser to the Iraqi prime minister predicts that the gap between the official and parallel-market exchange rates will narrow, bringing the dinar's parallel-market value closer to its official rate.

The adviser said he stood by his forecast and described the relationship between Baghdad and Washington as positive and built on mutual trust.

He also said the United States had resumed cash-dollar deliveries totaling $3 billion over the past two months, following an earlier reduction in annual shipments to that level. According to the adviser, $1 billion arrived the previous Thursday, while further deliveries are continuing.

The expected $500 million transfer adds to the reported dollar shipments, although the impact on exchange rates will also depend on access to official dollar channels, market demand and confidence in the banking system.

FYI

The gap between Iraq's official and parallel-market exchange rates has remained a key economic concern. While additional dollar supplies may support market liquidity, a sustained reduction in the gap also depends on the effectiveness of the Central Bank's foreign-exchange mechanisms and the availability of dollars through regulated channels.