Thursday, July 10, 2025
AN EXPERT WARNS OF THE US FEDERAL RESERVE’S RESTRICTIONS ON IRAQ’S FINANCIAL AUTONOMY
AN EXPERT WARNS OF THE US FEDERAL RESERVE’S RESTRICTIONS ON IRAQ’S FINANCIAL AUTONOMY
Economic expert, Diaa Mohsen, confirmed on Wednesday that Iraq still lacks independent economic decision-making due to the restrictions imposed by the US Federal Reserve on its funds, warning of the repercussions of the continuation of this situation on the country’s financial autonomy.
Mohsen said in a statement to Al-Maalouma Agency, “After Iraq was released from Chapter VII in 2011, the United States deposited its funds in the US Federal Reserve under the pretext of protecting them,” noting that “the returns resulting from these deposits are much less than what could have been achieved if these funds were invested by the Iraqi government directly or through partnerships with various countries.”
He explained that “Iraq’s continued exposure to these restrictions is unacceptable and deprives it of significant economic opportunities,” stressing that “Iraq’s liberation from the authority of the US Federal Reserve would revive the national economy and open broader horizons for financial development.”
He added that “Iraq remaining hostage to US decisions makes it vulnerable to financial sanctions in the event of any political dispute with Washington, as the latter can simply seize Iraq’s funds or prevent their disposal.”
(The pressure is building for “full” independence. Will Trump give it to them? All I can say now is “I told you so”.)
MNT GOAT : "US NETWORK REVEALS TRUMP'S STRATEGY IN IRAQ - URGENT."
MNT GOAT
"US NETWORK REVEALS TRUMP'S STRATEGY IN IRAQ
- URGENT."
"It appears that the American president has a strategy centered around two aspects:
- Through the first, he is trying to force Iran to negotiate by imposing multiple pressures on it, and thus its influence in Iraq."
- "The second aspect of Trump's strategy is an attempt to draw Iraq closer to the Western, and specifically American, sphere of influence, and to reduce Chinese and Russian influence in Iraq, thereby reducing the influence that is now growing in the region."
"Trump is also attempting to achieve these goals by threatening economic sanctions against the government in Baghdad and using Iraq's relationship with Iran as a means of pressuring the Iraqi government. Join Mnt Goat as we explore Trumps's policy towards Iraq. What will it bring us?
Their words not mine.....
EXPERT WARNS: IRAQ’S FINANCES ARE UNDER “AMERICAN PRESSURE”… AND THE GUARDIANSHIP ENDED IN 2022
EXPERT WARNS: IRAQ’S FINANCES ARE UNDER “AMERICAN PRESSURE”… AND THE GUARDIANSHIP ENDED IN 2022.
Economic expert Ahmed Abdel Rabbo called on the Iraqi government to review the international legal framework for depositing Iraq’s funds in the US Federal Reserve, stressing that continuing to work under Security Council Resolution No. 1483 issued in 2003 is no longer justified after the reasons for which the “Development Fund for Iraq” was established have ended.
In a statement to “Jarida Platform,” Abdul Rabbo said , “In 2021, Iraq paid the full $52.4 billion in compensation for the invasion of Kuwait, and in 2022, the Security Council approved Resolution 2621, which officially ended the international claims file and closed the United Nations Compensation Commission, which removes the main legal cover for keeping Iraq’s funds under direct American supervision.”
He added, “Despite this development, the United States continues to exert economic pressure by restricting dollar transfers from Iraq’s account in New York, causing disruptions in the foreign exchange market and unstable increases in the dollar’s exchange rate against the dinar.”
Abdul Rabbo stressed the need for the Iraqi government to “take the initiative to request a review of Security Council Resolution 1483 and work to diversify foreign reserves, as countries that rely on a currency basket are less vulnerable to the risks of dollar fluctuations.” He called for “the formation of a currency basket comprising no less than 20% of the total reserves, which exceed $100 billion.”
He pointed to the importance of “establishing a sovereign wealth fund to invest oil surpluses under independent and transparent management, similar to Norway’s experience, to achieve sustainability for future generations and reduce the need to hold cash abroad.” He explained that “developing the local financial system, accelerating digital transformation, strengthening the role of private banks, and activating financial hedging tools are urgent priorities.”
At the end of his remarks, Abdul Rabbo emphasized that “achieving Iraq’s economic sovereignty requires unity in political and diplomatic decision-making, and clear parliamentary support for the government in any international financial negotiations, particularly with the Security Council and the International Monetary Fund,” noting that “Iraq is not a poor country, but a rich one.”
AJ 📢Breaking! A MUST READ👇 If you are a Dinar Investor.
AJ
Breaking! A MUST READ
If you are a Dinar Investor.
Iraqi economic & banking expert Samir Al-Nusairi new book Is out now, Iraq’s economic future!
BTW Chapter 5 he addresses the relationship between the official CBI rate and parallel dollar exchange rates!
Chapter 1: Foundations of Monetary Stability
In the first chapter, he was able to conduct a precise and comprehensive analysis of the opportunities, challenges, and steps taken by the Central Bank of Iraq to pursue monetary stability, while reviewing the foundations of monetary policy for the years (2023-2024), so that he (CBI) can complete the banking reform process in 2025 in the new book.
This chapter dives into the Central Bank of Iraq’s efforts to achieve monetary stability during 2023-2024, setting the stage for 2025 to complete the banking reform process.
Chapter 2: Digital Transformation & Electronic Payments
The second chapter comprehensively covered electronic payments, linking digital transformation with the development of electronic payment programs, along with activation projects. It intelligently explored the relationship between current and future payment system development projects, and provided an assessment of the relationship between this effort and information assessment, cybersecurity, and artificial intelligence.
This chapter explores Iraq’s transition from a cash-based to a digital economy, emphasizing electronic payment systems. Moving to a digital economy is a game-changer for Iraq, improving efficiency and transparency in banking.
Chapter 3: CBI’s Third Strategy
In the third chapter, he focused his efforts on the Central Bank of Iraq's third strategy, defining the strategy's objectives and reform methodology, and addressing key issues such as regulating foreign trade financing, lending strategy, foreign reserve management and hedging policies, improving investment, and sources of monetary policy. In this chapter, Al-Nusairi was able to link the many banking areas and activities addressed by the reform plan.
This chapter explans how these strategies interlink to create a robust banking reform plan. BTW I have posted in the past the CBI Third Strategy 2024-2026
Chapter 4: Government & Global Support
Chapter Four discusses how government support for the banking reform project can be provided, as well as the International Monetary Fund's support for the reform plan, with a focus on international economic relations and the government and Central Bank of Iraq's vision for the comprehensive banking reform process.
Key points, Collaboration between local and global entities to drive Iraq’s banking transformation.
Why? External support is crucial for Iraq’s reforms to succeed, ensuring alignment with global standards.
Chapter 5: Exchange Rates & Financial Confidence
In the fifth chapter, he addresses the causes of exchange rate fluctuations and recovery measures, emphasizing the relationship between the exchange rate, the financial and banking reform process, the relationship between the official and parallel dollar exchange rates, government decisions, and strategies for enhancing confidence in the banking sector.
This chapter focus on how exchange rate stability ties into broader financial and banking reforms. The gap between official and parallel dollar exchange rates.(BTW the CBI plans to end the parallel market in the 2nd half of 2025)
Why? A stable exchange rate builds public confidence and supports Iraq’s economic growth.
This New Book 2023-2025 by Iraqi economic & banking expert Samir Al-Nusairi is out now, published by Balit Center in Baghdad! Deposited at the National Library, this is his 13th book in a 20-year career in banking and consulting
Al-Nusairi, with 30+ years in economic institutions and 700+ published articles, offers a precise, scientific look at Iraq’s monetary and financial stability. Praised by CBI Governor Dr. Ali Mohsen Al-Alaq and Professor Dr. Khalil Muhammad Hassan Al-Shamaa, this book is a must-read for anyone interested in Iraq’s economic future!
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