WASHINGTON—Iraq has agreed to new controls aimed at preventing U.S. dollars from flowing to Iran and its militia allies in exchange for the Trump administration lifting a four-month suspension in shipments of American currency to Baghdad, according to U.S. and Iraqi officials.
The Treasury Department halted the banknote deliveries in late February at the start of the Iran war, depriving Prime Minister Ali Al Zaidi’s government of badly needed cash from its oil sales deposited at the Federal Reserve Bank of New York.
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