Iraq Emerges as Iran’s Key Route for Smuggled US Dollars Amid US Pressure

Iraq Emerges as Iran’s Key Route for Smuggled US Dollars Amid US Pressure

Iraq has emerged as Iran’s only remaining route for obtaining smuggled US dollars as Washington intensifies economic pressure on Tehran, an Iraqi lawmaker has told Iran International.

Sherwan Doberndani, a member of the Iraqi Parliament’s Security and Defence Committee, said dollar smuggling from Iraq to Iran and other destinations was continuing despite increased scrutiny.

“Dollar smuggling from Iraq to Iran or any other destination is continuing,” Doberndani said.

According to the lawmaker, the United States halted dollar transfers to Baghdad about a month ago. He linked the move to increased pressure on Iraq’s financial system and a rise in the value of the US dollar against the Iraqi dinar.

Doberndani also warned that Iraq could face broad US sanctions if Baghdad fails to bring armed groups operating outside state control under government authority. Such measures, he said, could potentially extend to Iraq’s vital oil sector.

The warnings come as Iraq prepares for the planned September 30 withdrawal of international coalition forces. Efforts to reach an agreement on disarming or bringing Iran-aligned armed groups under state control have so far remained unresolved.

The developments highlight the growing pressure on Iraq as it attempts to balance its relations with Washington while managing the activities of Iran-aligned groups and financial channels between the two countries.

Source: Iran International.