🔹 Highlights – Iraq's Oil Wealth & the US Federal Reserve: "Relying on the US Federal Reserve is like walking a tightrope"

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🔹 Highlights – Iraq's Oil Wealth & the US Federal Reserve

From Basra to Manhattan – August 15, 2025

Iraq’s oil revenues, though generated in Basra, are largely held at the US Federal Reserve in New York, not in Baghdad.
This system, created in 2003 under UN Resolution 1483 and US Executive Order 13303, was originally meant to protect Iraqi funds and pay reparations to Kuwait.
Though Iraq finished reparations in 2022, the US still renews the executive order annually—most recently in May 2025.

💰 Why Is Iraq's Money Still in the US?

The Federal Reserve holds $80–$85 billion for Iraq.
Read also: 🔥 “$4.22 IQD Rate Confirmed – RV Tears, Tariffs & Tomorrow’s Big Move!”
Funds are used to:
- Finance imports
- Pay government obligations
- Stabilize the dinar and fight inflation
US economists argue this setup provides financial stability and global access .
But it's a "double-edged sword" — offering protection while potentially becoming a political pressure tool.

35 Iraqi banks were recently sanctioned by the US for suspected dollar smuggling to Iran and other sanctioned nations.
This has tightened dollar flow, raised import costs, and strained the local economy.
Some experts warn of legal vulnerabilities and unresolved debts that make Iraq’s funds prone to seizure if removed from the Fed.

Iraqi officials are split: some see US oversight as a "legal safety net", while others see it as a threat to sovereignty.
The core issue: Can Iraq reclaim full control of its funds without risking economic chaos or legal action?

"Relying on the US Federal Reserve is like walking a tightrope."
— Dr. Frank Mismar, Economist