The Coordination Framework has called for Iraq to reduce its economic and military dependence on the United States, urging the government to diversify its international partnerships, investment opportunities and sources of military equipment.
MP Jaafar Shuaib told dinaropinions.com that the current situation requires decisive government action to limit what he described as American influence over key sectors of the Iraqi economy. He said strengthening balanced international relations and expanding investment partnerships are important steps toward protecting Iraq’s national interests and independent decision-making.
Shuaib also stressed the importance of diversifying sources of military equipment and defense cooperation. According to him, relying on multiple international partners would help strengthen the capabilities of Iraq’s security forces and reduce dependence on a single supplier.
He pointed to the country’s financial challenges, noting that Iraqi oil revenues are deposited in accounts linked to the U.S. Federal Reserve system, making a significant portion of government finances vulnerable to external decisions and regulations.
The lawmaker also highlighted recent declines in foreign currency sales. According to the figures cited, foreign exchange sales fell from $60.7 billion in 2025 to $35.27 billion during the first eight months of 2026. He attributed part of this decline to stricter auditing procedures and limitations on cash transactions.
Despite Iraq holding an estimated $79.2 billion in cash reserves and continuing to receive regular cash shipments of around $500 million, concerns remain about the impact of financial restrictions on the country’s economy and monetary stability.
Shuaib concluded that expanding economic and military partnerships with a wider range of countries would strengthen Iraq’s sovereignty, support economic growth and provide greater flexibility in addressing future challenges.
