The Biden administration has authorized the transfer of $2.76 billion from Iraq to Iran, Reuters reported on June 10.
The news comes within days of emerging reports that Washington hopes to trade Iranian funds trapped in foreign accounts for a halt to further nuclear escalation by Tehran.
Yahya Al-e Eshaq, the head of the Iran-Iraq chamber of commerce, was quoted as saying by the local media Saturday that the Iraqi debt is between $7 to $8 billion but only $2.7b has been agreed to be released and that part of the funds has been earmarked for pilgrims and another portion has been used to purchase basic goods.
The Iranian government organizes and controls the Hajj pilgrimage, including paying Saudi Arabia in US dollars for the expenses of each traveler, and providing dollars at a low preferential rate to pilgrims to spend during their journey.
