For more than two decades, billions of dollars from Iraq’s oil sales have been deposited at a bank in the United States. This unusual arrangement, which began after the fall of Saddam Hussein’s government in 2003, has put control of the country’s finances in Washington’s hands, and Iraq cannot leave it overnight even if it wants to.
Why the arrangement began
After the US invasion in 2003, a special fund was set up to keep Iraq’s oil wealth out of the hands of international creditors or anyone else. Under UN rules, all Iraq’s oil sale proceeds go to the US Federal Reserve Bank. The aim was to rebuild the war-torn country and protect its assets from old debts. But over time, the arrangement has become a major tool for exerting political pressure on Iraq.
Why Iraq cannot easily move the money
Because oil is paid for in dollars on the world market and Iraq also depends on the dollar for international trade, it cannot simply move the money elsewhere. Several billion dollars of Saddam-era debt also remain unpaid, and moving the money to another country could expose it to lawsuits by foreign creditors.
In April this year, Washington suddenly held back a cash shipment of about $500 million to Iraq, a tactic used to put pressure on pro-Tehran armed groups.
What experts suggest
Basra University economist Ahmed Saddam says it would be unwise to cut ties with the United States abruptly, as old creditors could pounce. Instead, he suggests that without ending the dependence entirely, Iraq could open separate accounts at central banks in Europe or Asia and spread some transactions among them.
What ordinary Iraqis think
Although US oversight undermines Iraq’s independence, many ordinary people see it differently. Citizens in Baghdad and Basra fear that if the strict supervision of US banks is lifted, the vast sums will end up in the pockets of corrupt leaders, so many would rather the money stay safe in a US bank than in their own country’s banks. In the end, the puzzle is not just about dollars; it has become a major test of Iraq’s overall sovereignty.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report