Cash shipments to Iraq have dramatically increased in recent years despite a sluggish Iraqi economy, and officials are concerned that some of the exchange houses that buy this currency are funneling dollars to groups like ISIS, also known as the Islamic State, and sanctioned governments like Iran.
Emily Glazer, Nour Malas, and Jon Hilsenrath described in The Journal how the cash flow works.
“Foreign central banks hold dollars and can call on the Fed for currency distribution,” they wrote. “The new $100 notes are flown to Baghdad after leaving a Fed facility in East Rutherford, N.J. In Baghdad, the bills are moved to the Iraqi central bank, where they are sold in daily auctions in which Iraqi financial firms request dollars that they pay for largely using dinars, the country’s currency.”
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