Iraq: Airspace closure unlikely to disrupt dollar transfers from US

Shafaq News/ The recent suspension of air traffic is unlikely to affect the flow of US dollars into Iraq, amid escalating regional tensions, the Iraqi parliament’s Finance Committee stated.

Committee member Moein Al-Kadhimi told Shafaq News that Iraq’s oil revenues from exports are sent to an account at the US Federal Reserve, and later transferred to Iraq through financial remittances, rather than in the form of physical cash.

“Transfers are made from the Central Bank of Iraq to the US Federal Reserve,” Al-Kadhimi explained, “and from there, the funds are sent to various countries from which Iraq imports goods for both the public and private sectors.”

He clarified that the suspension of aviation does not impact Iraq’s ability to receive its oil revenues, adding that $1 to $2 billion still reaches Iraq in cash, ensuring domestic liquidity remains stable.

“Employee salaries will not be affected in any way. Cash flow is available, and salaries will be paid on schedule,” he emphasized.

Earlier, the Iraqi Civil Aviation Authority announced an extension of the closure of Iraqi airspace to all inbound and outbound flights, following an unprecedented wave of military escalation between Israel and Iran.