"THE BANKER OF BAGHDAD: HOW TOM BARRACK PLANS TO STARVE IRAN'S MILITIA MACHINE." ANTALYA DIPLOMACY FORUM ANTALYA DIPLOMACY FORM
Washington's Economic Hitman has come to Baghdad
"— President Donald J. Trump, Truth Social, 31 May, 2026
The money trail, painstakingly documented by the Foundation for Defense of Democracies, is darning: the state-owned Rafidain Bank, a downstream distributor of oil revenues held at the New York Fed, was disbursing dollar-converted wages directly to PMF militia fighters until mid-2025. When US Treasury pressure forced Rafidain from processing those payrolls, the PMF simply migrated its salary mechanism to a smaller state-owned lender, Al-Nahrain Islamic Bank - shifting the
problem rather than solving it. Worse, multiple Treasury sanctions between 2024 and 2026 traced diverted Iraqi dollar-auction proceeds through fronts linked to IRGC financiers and networks procuring components for Shahed drones and Iranian ballistic missiles. Washington, in the most literal sense, has been subsidizing its own adversaries.
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🏦🇮🇶 The Banker of Baghdad: How Tom Barrack Plans to Cut Off Iran's Militia Funding
Earlier today, we discussed why the United States has not yet given Iraq the green light. One of the biggest reasons has been the corruption that allowed U.S. dollars flowing into Iraq's financial system to ultimately find their way into Iran-backed networks. That is exactly what this strategy is trying to change.
The battle between the U.S. and Iran in Iraq is increasingly being fought through the banking system rather than on the battlefield.
💵 For years, Iraq's oil revenues—held at the Federal Reserve Bank of New York—flowed through state-owned banks. According to the report, some of those funds ultimately reached members of the Popular Mobilization Forces (PMF), including factions linked to Iran's Islamic Revolutionary Guard Corps (IRGC).
🏦 Rafidain Bank reportedly processed government payrolls until U.S. Treasury pressure forced those payments to stop. However, the report claims the payroll system simply shifted to Al-Nahrain Islamic Bank, moving the problem instead of eliminating it.
🚨 U.S. Treasury sanctions issued between 2024 and 2026 also allege that diverted dollars from Iraq's currency auction system were funneled through front companies connected to IRGC financiers, helping procure components for Shahed drones and Iranian ballistic missile programs.
👤 The article argues that Tom Barrack's strategy is not about military action—but about financial pressure:
✅ Tighten oversight of Iraqi banks
✅ Restrict access to U.S. dollars for suspicious institutions
✅ Block front companies and illicit financial networks
✅ Increase transparency in government payments
💡 The goal is straightforward: cut off the money that finances Iran-backed militias instead of confronting them solely through force.
📈 These developments suggest that the environment in Iraq is beginning to change. As financial oversight improves and longstanding corruption is addressed, the country appears to be moving toward a stronger and more transparent banking system. That creates a more favorable foundation for Iraq's economy and, over the long term, for the Iraqi dinar.
⚠️ Important: These reforms are encouraging, but they do not by themselves confirm or announce a revaluation (RV) of the Iraqi dinar.
There is a growing sense that Iraq is entering a new phase—one focused on financial integrity, international confidence, and economic reform. The direction appears increasingly positive for both Iraq and the future of the Iraqi dinar.
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