Al-Muslawi: The US Federal Reserve is restricting the Iraqi financial system and holding oil revenues hostage.
Al-Muslawi: The US Federal Reserve is restricting the Iraqi financial system and holding oil revenues hostage.
5-17-2026
The spokesperson for the Reconstruction and Development Coalition, Firas al-Muslawi, criticized on Sunday the complete dependence of Iraq’s financial system on the policies of the US Federal Reserve, asserting that Iraqi oil revenues go directly to Washington and are subject to its restrictions, thus depriving Baghdad of its financial independence. Al-Muslawi told the Information Agency that “Iraq’s financial and economic system is entirely tied to and restricted by oil sales, and the general budget is based entirely on these revenues. However, the catastrophe lies in the fact that these financial proceeds do not enter the Iraqi treasury directly but rather go to the US Federal Reserve.”
He added that “Iraq is currently forced and obligated to deal with this restrictive system and does not have broad options for maneuvering due to American control over its funds,” questioning “the benefit of continuing to send Iraqi oil money to Washington and control it at a time when the country needs to pay employee salaries and continue funding the operational budget and essential projects.”
He explained that “Iraq possesses strong alternatives to break free from this dependency, including the accounting and framework agreement with China, which stipulates bartering oil for services and development projects,” stressing “the necessity of activating these agreements to break the restrictions imposed on Iraqi funds and direct them to serve the citizens instead of keeping them hostage to foreign policies.”
It is worth noting that the continued linkage of Iraq’s financial affairs to foreign policies could negatively impact economic stability and the ability to implement vital projects, thus driving the search for economic alternatives that enhance the independence of financial decision-making and safeguard Iraq’s interests.
almaalomah.me
