Economic experts and political figures are raising concerns about Iraq’s continued dependence on the international banking system tied to the United States. They warn that this reliance could limit Iraq’s ability to manage its financial reserves and maintain stability in the currency market during times of global economic uncertainty.
Former MP Mahma Khalil said Iraq’s foreign currency reserves, which are estimated at more than $80 billion, face a serious challenge because a large portion is invested in bonds within the US financial system. He explained that if Iraq urgently needs access to these funds to cover budget shortfalls or financial needs at home, it could face restrictions and procedures set by the US Federal Reserve.
Khalil stressed that these reserves are a key pillar of Iraq’s economy and help support the value of the Iraqi dinar. He called for a review of the legal protections surrounding Iraq’s assets to ensure they remain secure and protected from any financial problems or policy changes outside the country.
Firas Al-Muslawi, spokesperson for the Reconstruction and Development Coalition, also expressed concern about the impact of US Federal Reserve policies on Iraq’s financial system. He said recent measures have directly affected the stability of Iraq’s banking sector and exchange market, making it necessary to reconsider the current financial relationship.
According to Al-Muslawi, relying heavily on a financial system linked to the United States leaves Iraq exposed to outside pressures and global market fluctuations. He argued that Iraq should take practical steps to strengthen its financial independence and gain more control over its economic decisions.
He added that the country needs a long-term national strategy aimed at gradually reducing its dependence on external financial policies while protecting economic stability.
The discussion comes as political and economic voices continue to call for a review of how Iraq manages its foreign currency reserves, with the goal of strengthening financial security and reducing exposure to international economic pressures.
