Baghdad:Iraq has reached an understanding with the United States to resume dollar cash shipments after a suspension lasting several months, according to an Iraqi government spokesman.

According to Anadolu Agency, the agreement was announced by Haider al-Aboudi during Prime Minister Ali Faleh al-Zaidi's visit to the United States. The renewals of shipments are expected to satisfy Iraq's domestic demand for foreign currency.

Al-Aboudi indicated that a new shipment would arrive soon, although he did not specify its value or the exact delivery date. The agreement follows Iraq's efforts to enhance oversight of dollar distribution, curb the misuse of foreign currency, and increase electronic payments as it transitions towards a digital economy.

The United States had halted dollar shipments to Iraq in April, including a consignment estimated at $500 million, as part of efforts to pressure Iraq to limit the influence of Iran-backed armed groups. These shipments are essential for Iraq's economy, which relies heavily on cash. The country's foreign currency reserves are held at the Federal Reserve Bank of New York.