Economic sovereignty in Iraq: Between pressure from the US Federal Reserve and weak national decision-making
Economic sovereignty in Iraq: Between pressure from the US Federal Reserve and weak national decision-making
5-30-2026
Information / Baghdad..
Parliamentary warnings continue regarding the repercussions of the Iraqi economy remaining dependent on external variables and pressures, amid increasing calls to strengthen the independence of economic decision-making and activate the private sector as one of the most important solutions to address the financial crises facing the country.
In this context, former Finance Committee member Mueen Al-Kadhimi warned against the continued dominance of the US Federal Reserve over monetary policy in Iraq, stressing that Washington uses this issue as a tool of pressure to achieve its own interests at the expense of national interests.
Al-Kadhimi told Al-Maalomah that the continued linking of Iraqi monetary policy to the procedures of the US Federal Reserve gives the United States a great ability to influence the country’s economic and financial decisions, which negatively affects the economic reality and limits the ability of Iraqi financial institutions to make independent decisions.
He called for the development of genuine solutions that would enhance the independence of Iraqi economic and financial decision-making, ensuring the protection of national interests and reducing the impact of external pressures on the local economy.
For his part, MP Ahmed Majeed stressed that the Iraqi economy is still subject to foreign control, holding successive governments responsible for the economic challenges facing the country.
Majid explained in a statement to Al-Maalomah News Agency that the absence of strategic plans and weak economic diversification contributed to the exacerbation of financial crises during the past years, stressing the need to reform economic policies and revitalize the productive and investment sectors to build a national economy capable of facing external changes.
In the same context, MP Ali Al-Zirjawi called on the new government to make activating the private sector a top priority to address the economic crises, warning against the continued almost complete dependence on oil revenues to finance the general budget and employee salaries.
Al-Zirjawi pointed out to Al-Maalomah News Agency that excessive reliance on oil has led to the accumulation of internal and external debt, noting that the continuation of this approach may pose a real threat to the Iraqi economy in the coming years.
He stressed that diversifying national income sources, supporting investment, and enabling the private sector to play its developmental role are urgent necessities for achieving economic stability, calling on the government to take practical steps to address these challenges before their effects worsen in the future.
Observers believe that the growing political and economic calls to free financial decision-making from external influences, coupled with demands to revitalize the private sector and reduce dependence on oil, reflect the magnitude of the challenges facing the Iraqi economy and the need for structural reforms to ensure sustainable development and strengthen the country’s economic independence.
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