The United States has resumed the transfer of US dollars to Iraq, ending a suspension that had restricted the country's access to hard currency.
The move marks a shift in Washington's approach to Baghdad, following a period where financial flows were halted to pressure Iraqi authorities to distance themselves from Iran-backed militias.
An Iraqi Kurdish official attributed the initial suspension to concerns over the smuggling of US dollars by these groups, which had complicated regional financial stability.
The resumption of transfers is likely to provide immediate relief to Iraq's central bank, which has faced significant liquidity constraints.
For traders monitoring the region, the development signals a de-escalation in the financial pressure campaign against Baghdad.
While the suspension was intended to curb illicit activities linked to Iranian proxies, its reversal suggests that diplomatic or operational adjustments have been made to allow normal economic functions to resume.