Baghdad – The United States has taken escalatory steps against Baghdad, including halting a hard currency shipment worth $500 million and suspending parts of joint security cooperation. This pressure comes in response to what Washington describes as the Iraqi government’s failure to stop attacks by pro-Tehran armed factions against US interests. Accordingly, the future of the Iraqi Dinar against the Dollar in 2026 faces significant challenges, as the absence of the April shipment sparks fears of a liquidity crunch and a sharp rise in exchange rates in local markets.
The Liquidity Weapon: How is Washington Pressuring the “CBI”?
An economic advisor to the Prime Minister confirmed that the US measure targeted air-shipped cash intended for individual needs, while electronic trade transfers remain unaffected for now. Obviously, Washington is using the system of depositing oil revenues at the US Federal Reserve as a political and security lever to force Baghdad into a firm stance against armed factions. As a result, the Central Bank is closely monitoring the fate of May shipments amid diplomatic attempts to contain the crisis and prevent financial instability.
Security and Sovereignty Crisis: Al-Sudani’s Government Between Washington and the Factions
Washington has officially informed Baghdad that it will not tolerate the targeting of its embassy and consulate by factions with political representation in the government. Certainly, the suspension of security coordination places the Iraqi government in a critical position affecting national sovereignty and defense capabilities. Accordingly, the future of the Iraqi Dinar against the Dollar in 2026 remains contingent on the state’s ability to regulate the security landscape, ensuring the continued supply of funds from New York and avoiding economic isolation scenarios.
