Economist Nabil Al-Marsoumi outlines a roadmap for liberating Iraq’s funds.
Economist Nabil Al-Marsoumi outlines a roadmap for liberating Iraq’s funds.
2026-01-30
Iraqi economist Nabil Al-Marsoumi outlined the complex financial relationship between Baghdad and Washington, indicating that the solution is primarily “political” and requires courage to settle outstanding historical debts.
Roots of Control
Al-Marsoumi explained that the United States has effectively controlled Iraqi oil revenues since 2003 through the Federal Reserve. While the United Nations provided legal protection for these funds under Resolution 1483, that protection ended in 2011 following the implementation of Security Council Resolution 1956, and was replaced by US Executive Order 13303, issued by the US President, which remains in effect today despite some amendments.
According to Al-Marsoumi, the objectives of this protection are twofold: first, “protection from claims,” which safeguards funds from substantial compensation claims filed against the Iraqi state by companies and individuals; and second, “preventing judicial seizure,” thus avoiding the pursuit of funds in cases filed since the 1990s.
Al-Marsoumi stressed that although most of the legal reasons that previously imposed this financial arrangement have disappeared, Iraq is still subject to strict financial monitoring by Washington; these are exceptional measures that are completely different from the usual contexts and standards followed in the international banking system.
The problem is not with “deposit” but with “dependency”.
Al-Marsoumi believes that depositing funds in the US Federal Reserve is a natural procedure for oil-producing countries, given that oil is priced and sold in dollars. However, the Iraqi crisis lies in its “absolute dependence” and the absence of alternative economic resources. He explained that the real problem is not simply the deposit itself, but rather the imposed restrictions that limit Iraq’s freedom to dispose of its funds, unlike the flexibility other countries enjoy in managing their accounts with the Federal Reserve.
It is known that there are hundreds of cases filed against Iraq by companies that were harmed as a result of the invasion of Kuwait in 1990. Due to the absence of legal representation for Iraq in those sessions at the time, and the lack of defenders seeking to refute the claims or reduce the value of the compensations, the international courts issued default judgments for huge sums of money.
Al-Marsoumi explained that linking the protection of Iraqi funds from legal action to the United States “grants Washington broad leverage over Baghdad,” stressing that resolving this crisis requires a courageous political decision, similar to the successful experiences of Greece and Argentina. This solution lies in contracting reputable international law firms with full authority to inventory the cases filed against Iraq and accurately determine the amounts for which judgments have been issued.
Al-Marsoumi continued: “Since Iraq is currently unable to appeal these cases to obtain a final ruling, the legal solution lies in concluding settlement deals with the beneficiaries to drop the lawsuits in exchange for a specific percentage of the funds, which is known as (debt buyout).”
He pointed out that creditors would most likely accept these settlements because they guarantee them immediate payments instead of a long wait, and thus Iraq can finally be free from the “American protection” that is used as a pretext to dominate its financial resources.
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