Iraq reached an agreement with the administration of US President Donald Trump to implement new regulatory measures aimed at preventing US dollars from reaching Iran and the armed factions allied with it, according to The Wall Street Journal on Wednesday.

Iraq reached an agreement with the administration of US President Donald Trump to implement new regulatory measures aimed at preventing US dollars from reaching Iran and the armed factions allied with it, according to The Wall Street Journal on Wednesday.

The newspaper quoted US and Iraqi officials as saying that the agreement ended a four-month suspension of US currency shipments to Baghdad.

The US Treasury Department had stopped shipments of banknotes to Iraq in late February, with the start of the war with Iran.

The decision deprived the government of Iraqi Prime Minister Ali al-Zaidi of cash liquidity resulting from oil export revenues, which are deposited in accounts at the Federal Reserve Bank of New York.

The suspension of shipments came at a time when Iraqi oil exports declined significantly due to the war with Iran, a step aimed at increasing pressure on Baghdad to reduce its relations with Tehran, which, according to the report, used Iraq as a source for obtaining dollars in violation of US sanctions.

This measure is part of broader efforts by the US administration to strengthen its relations with Baghdad after the outbreak of the war.

The Federal Reserve, based on instructions from the US Treasury Department, canceled at least two shipments of dollars to Iraq, one of which was estimated to be worth about $500 million, according to officials. Cash shipping operations to Baghdad resumed late last month.

Under the agreement, the Iraqi government pledged to prevent Iran and its allies from obtaining dollars through Iraqi exchange companies, in addition to preventing US currency from reaching members of armed factions loyal to Iran through salary payments, according to the report.

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