Iraq’s economy is facing growing challenges, especially when it comes to managing its money and reducing reliance on outside partners.
Experts say one of the main issues is Iraq’s continued dependence on external financial systems, particularly its connection to the US Federal Reserve. Economic analyst Rashid Al-Saadi described this as a sign of weak financial management over the years.
He explained that relying heavily on external systems limits Iraq’s control over its own funds and decisions. At the same time, he warned that breaking away suddenly is not a realistic option. Doing so could create serious risks, including legal issues and the possibility of funds being frozen.
Al-Saadi also pointed out that while Iraq has the ability to manage its resources, it needs stronger planning and better institutional control to do so effectively.
The same concerns extend to the oil sector. Former MP Razzaq Al-Haidari said Iraq still depends heavily on foreign companies for production, transport, and refining.
He noted that while these companies bring expertise, they also hold significant influence over decisions and take a share of the profits. This limits Iraq’s ability to fully control its own resources.
Al-Haidari added that Iraq has long experience in oil production, but the lack of strong national companies has kept it dependent on outside players.
He also stressed the need to develop local refineries and produce higher-quality fuel domestically, instead of relying on imports.
Overall, the message from experts is clear: Iraq needs to strengthen its own economic institutions and invest in its productive sectors.
In simple terms, reducing dependence on others and building stronger local capacity is key to giving Iraq more control over its economy and long-term stability.
