Disclaimer: All information in this newsletter is not intended for investment decisions / purposes. Mnt Goat is not a financial analyst, planner, banker, attorney or associated in any role with giving out professional investment advice.
ABOUT THE NEWSLETTER:
August 19, 2025 Mnt Goat News Brief
Guten Tag everyone:
Today I am bringing you amazing news of the dinar redenomination and that it is now in site, pay attention. Again, please listen to the intro audio for today’s Newsletter.
GIVE A GIFT TO MNT GOAT
I decided to allow everyone to give a Free-will GIFT to Mnt Goat on PayPal if you so desire. Here is the link below.
Since 2013, I have taken my own time from my gasthaus business to research and document findings about the revaluation and reinstatement of the Iraqi dinar. I did not ask for a penny from anyone., At this time more than ever I do not need to spend my time doing all this as it has become another part-time job for me. My time is hard to find, as I have to hold down two other formal jobs already due to COVID just to keep the business going. So, I do this Newsletter out of charity and LOVE for YOU. I already know this info and I do not have to pass it on to you. I do it mostly out of LOVE for my neighbor as the bible says, but let’s be real this is also hard work and the bible also says we should be paid fairly for the labor to which we work.
2 Thessalonians 3:10-12: For even when we were with you, we would give you this command: If anyone is not willing to work, let him not eat. For we hear that some among you walk in idleness, not busy at work, but busybodies. Now such persons we command and encourage in the Lord Jesus Christ to do their work quietly and to earn their own living.
I recommend $10-$15 dollars a month or whatever you can afford. I do not beg for money and never will. Do you realize I write eight (8) Newsletters every month. I have to investigate the news and try to pull out the FACTS, then pull off the articles from Iraqi news channels, translate them, talk to my contact in Iraq and then write and publish the Newsletter. Do you think perhaps a little gift might show some appreciation for all this hard work? Just asking…. The future of the Newsletter depends upon you. This is like a third job for me and like you, I deserve to get some gratitude for all the hard work that I do. You do want the TRUTH, don’t you? Would you go to work each day and not get paid?
Let’s all try to chip in!
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Matthew 10:8
“Freely you have received; freely give”.
More news….
US forces prepare for a complete withdrawal from Baghdad to Erbil.
An Iraqi government source revealed on Sunday that US forces will begin a full withdrawal from the capital, Baghdad, toward Erbil in September. The government source told Al Jazeera that “the international coalition will withdraw from Ain al-Assad, Baghdad Airport, and the Joint Operations Command toward Erbil.”
He also stated that “the withdrawal of coalition forces will take place next September, in implementation of the agreement between Baghdad and Washington,” indicating that “military trainers will remain in the country and have nothing to do with the withdrawal of international coalition forces.”
(US forces are NOT leaving Iraq as a whole, just moving up to bases in Kurdistan)
More news….
ECONOMIST: IRAQI BANKS CONTINUE TO GRADUALLY EMERGE FROM THE IMPACT OF US SANCTIONS.
Economic expert Mustafa Akram Hantoush confirmed that the Iraqi banking system has been experiencing a state of “restriction” for a long time.
In a televised interview followed by Al-Maalouma Agency, Hantoush said, “Iraqi banks are going through a transitional phase from the effects of sanctions towards openness, which requires serious and continuous reforms.”
He pointed out that “Rafidain Bank’s partnership with American companies represents a correct step towards strengthening confidence in the Iraqi financial sector.”
More news….
THE WITHDRAWAL OF THE US COALITION… IS THE WAR OVER OR HAS NEW INFLUENCE BEGUN?
The US Embassy in Iraq announced on Monday that the withdrawal of the international coalition from the country does not mark the end of its work against the terrorist organization ISIS, noting that its military mission will transform into a bilateral security partnership with Iraqi security forces.
In statements to Al Jazeera, monitored by Al-Mustaqilla, the embassy confirmed that the international coalition will continue its civilian efforts worldwide, raising questions about the form and extent of future US intervention in Iraq and the extent to which this partnership will impact Iraqi sovereignty.
Observers believe this shift may represent a less obvious reshuffle of the US presence, but it could continue to shape the course of politics and security in Iraq. While others believe the bilateral security partnership could give Iraqi forces an opportunity to independently enhance their capabilities to counter terrorism, the ambiguity surrounding the nature of this partnership raises concerns about the continued indirect influence of foreign powers.
More news….
THE VALUE OF IRAQ’S GOLD RESERVES HAS INCREASED.
(What? The dinar is still at 1/6 of a penny.)
An economic observatory announced, on Tuesday, an increase in the value of the reserve. Iraq Gold prices rose by 4.76% during the first half of this year, as a result of…Gold prices rise globally.
The Observatory said in a statement seen by Reuters: Alsumaria Newsthat “Iraq owns 162 tons of gold as part of his national reserve,” noting that “the price of a ton of gold was 105 million US dollars in January 2025, and gradually rose to reach 110 million US dollars by the end of June 2025.”
He added, “This increase in the price of gold has directly contributed to raising the value of Iraq’s gold reserves,” stressing that “gold remains one of the most important strategic assets that enhances the country’s financial strength. The observatory noted that, Gold prices rise globally, over the past months, it reflects the volatility of global markets and directly impacts the value of national reserves in many countries, including Iraq.
He explained, “Monitoring gold prices on a regular basis enables Iraq to accurately assess the value of its reserves and make appropriate economic decisions to maintain the stability of the country’s purchasing power.”
STATUS OF THE RV
WOW! We are more than half way through August already and the summer is flying by. What will the fall into winter period bring us? Will it bring us the RV process we have been waiting for?
Of course, no one really knows except the planners in the CBI. My CBI contact tells me that there is a VERY strong possibility that Sept-Dec will be the phase in of the redenomination to the newer lower denominations of the IQD. We were told that even with the electronic banking and inclusion efforts along with the digital dinar, there will be a need for hard currency on the streets, and this will NOT go away.
As you may recall, I do listen to many of the intel calls and nosey around in the forums. I do this to help clarify their nonsense. On a call, the RV guru talked about two more rate changes. We must be careful how we use the English language when we give out information. People hear what they want to hear. The fact is there will only be one more rate change and it will be a change in-country only. Then the reinstatement, which would more than likely bring the rate up even more. Can you call this two rate changes? Technically YES, but let’s not confuse the process. There is no guarantee the reinstatement will be different from the in-country rate and, in fact, it could come out the same as an initial “sucker” rate, maybe. But what we do know for sure is there will NEVER be two “official” rates for the dinar. The in-country rate will be the reinstatement rate also once the reinstatement occurs, get it? Why in hell do you think they had to have the parallel market come in line with the official CBI rate? Did they do this for their health? Didn’t you learn anything from what the CBI has been telling us in the news? So they did this so there can be control over their own currency. There can NEVER, NEVER be two official rates! 😊. Get it?
There have been many solutions implemented to obtain the nearly 80% of the Iraqi currency hoarded outside the banking system. Unfortunately, none of these solutions have seemed to work to the degree of the needed success. What will the CBI do now? Will a redenomination be the answer?
This hoarded capital is much needed to continue the progress of the Development Road and other projects in Iraq. The banks need this money to loan out. So why doesn’t the CBI just print more money and solve this problem?
As readers of my blog, you all should realize by now part of the monetary reform is to shrink the monetary supply by almost two thirds. Why would the CBI print more money at this stage of the game? Instead, they told us they must shrink if back to 2003-2004 era levels. They must get this 80% of the cash into the banks. The CBI in the past was forced to print and issue more dinar to combat stolen funds and hoarded cash stashes. But they have moved into the next phase of financial reform, not survival. So now they must shrink it back and go back to lower denominations and coins. Remember that when you shrink the money supply you can increase the value of the money that remains in circulation. Think about it, it’s not rocket science to understand. It is right along with simple micro economics of supply and demand. This is also why they had to curb the loosey-goosey parallel market and get it inline, not to mention the corrupt money smuggled out of Iraq to Iran.
In the past month there has been nothing but much more VERY GOOD news coming from Iraq. Sure, there are still issues remaining such as the PMF militias and the looming deadline of August 31st for these smaller banks to comply with the reform plan drawn up by the American company Oliver Wyman, before the Iraqi banking system is forced to liquidate violators.
Please see articles titled:
“IRAQ SHUTS 10 BANKS IN RESTRUCTURING SCHEME”
“IRAQ FACES US BANKING GUARDIANSHIP… TWO CRUCIAL WEEKS FOR PRIVATE BANKS” (but only for these 10 banks)
“TWO WEEKS AHEAD OF IRAQ’S “MONEY”… THE CENTRAL BANK IS “VERY EMBARRASSED” BEHIND THE SCENES IN BAGHDAD”
You think this news is important to Iraq? This news is plastered all over Iraqi newspapers and internet news channels. Oh…. I think it’s VERY important and is pivotal to what we are looking for. The American company Oliver Wyman is just not any financial firm. They specialize in consulting with issues that face these smaller banks. I also firmly believe that the current US President Trump and the US Treasury team sent Wyman to Iraq for this purpose. But why now? Why was this not done in prior years?
Remember the US Treasury is still residing in the main CBI headquarters building.
First, I do believe the past administrations of Obama and Biden eras could not give a damn about Iraq. Remember Obama pulled the US military out of Iraq in 2011 compromising its security situation, causing a major blunder and allowing ISIS to penetrate into Iraq. This caused a four year delay (2014-2017) in the banking reform process, as most of the resources went to fighting ISIS not fighting corruption.
Barrack is very close to the Muslim Brotherhood, a terrorist organization on the terrorist list. I believe he is a Muslim himself and used the Biden as his third term in office. This is all now be exposed so Mnt Goat is not a conspiracy theorist. How do we get these incompetent presidents governing the US and the states? So, the Obama and Biden past were more concerned about stealing money from Iraq and funneling funds to Iran to counter the sanctions, sanctions which were imposed as foreign policy only under pressure from the republicans in the first place. In other words, it was all a sham and a scheme and now someone has to clean up their mess once again. This must be done if the redenomination is to take place. Certain elements with the banking system must be in place. The Trump administration also has a plan working with the CBI through the US Treasury and Federal Reserve. The Trump administration knows the wealth that can come from Iraq, not be stealing and laundering it, but by American companies working with Iraq. The banking climate must be right in order for this to happen. This is why the urgency to get this last step of the banking reforms completed now. Again, why now? Could the January reinstatement 2026 be right around the corner?
I know, I know I certainly hear everyone and the cry-babies who will tell me “but we heard this before and nothing happened..bla, bla, bla”. Yes, you have heard it before and nothing did happen, but instead of drowning in your tears, how about learning WHY it did not happen and educate yourself on this matter. I have to tell you it has been scheduled many times in prior years to happen. I have already reviewed why and showed you the evidence in my past Newsletters. What more do you want?
Yes, something might also happen this January too to stop it and I certainly pray nothing stops it. All I can do is deliver to you the current evidence that is making a really good case that this event will happen in January 2026. Again, we have to watch for the redenomination to occur (the Project to Delete the Zeros). I am told this may occur in Sept-Oct timeframe continuing to the end of the year. As investors all we can do is sit tight and watch.
I need to talk briefly on the K2 Integrity contract recently formed with Iraq. Here is the link to fully learn what this company does Home – K2 Integrity. In the article titled “RAFIDAIN: OUR AGREEMENT WITH K2 INTEGRITY PUTS IRAQ ON THE MAP OF THE GLOBAL FINANCIAL SYSTEM.” Rafidain Bank’s General Manager, Ali Karim Al-Fatlawi, emphasized that signing the partnership agreement with K2 Integrity represents a qualitative shift in the bank’s journey and the Iraqi financial sector. He noted that this strategic step transforms Rafidain Bank from a traditional local institution to an integrated banking platform directly aligned with international standards. So, what bank do you think is going to handle the bulk of the flow of dinars to and from Iraq in the future post-RV?
There is other news too that we should be paying attention to such as in the article titled “FROM BASRA TO MANHATTAN: THE FULL STORY OF IRAQ’S MONEY BEING WITHHELD BY THE FEDERAL RESERVE”. This is a long article but I highly recommend everyone to take the dive sit down calmly and read it. It really gets my Goat what the US does to these countries and how crooked politicians manipulate these countries. Why? It is simply because they can. Will Iraq finally be able to break free from the chains of the US Treasury from under the DFI fund? I quote from the article- “Iraqi wealth is transformed into numbers in American financial books, subject to strict oversight and procedures that leave no room for maneuver. These arrangements were created in 2003 but remain in place today, even though their original justifications (on paper) have disappeared.” Yes, all sanctions were lifted in 2022 and so why is this arrangement of the “petro dollar” still in place? This too had to change.
Yet another couple articles titled “IRAQ’S OIL FORTUNE: THE TWO-DECADE GRIP OF A US ‘FORTRESS’ “ and titled “ECONOMIST: BILLIONS OF DOLLARS LOST DUE TO US CONTROL OVER IRAQ’S RESOURCES”. You can go read these articles yourself in the Articles Section of the Newsletter. I recommend you read all three to really get at the heart of who is controlling the wealth of Iraq. Then connect the dots. We can clearly see that Iraq will not and can not reinstate the dinar until the US says it can.
As I have said many times too that in the midst of all this behind the scenes stuff the CBI keeps moving ahead on the path to the reinstatement through the banking reforms and aligning Iraq internationally. I know that this reinstatement will happen and has to happen. There is no doubt in my mind and you too should have no doubt. I believe that we have the best opportunity right now for this RV process to progress in the twenty years I have been following this RV saga. If you are holding enough dinar you are already a millionaire only we can’t go to the bank yet. About all these other currencies we hear about? I can not speak as loud for these other currencies such as the Vietnam Dong and other, however I will say that it would not surprise me a bit if they did put many of them in many baskets to support each other and this would put them on a more level playing field, as President Trump has stated many times will happen. He did not say “might” or “may” happen, he said “will” happen.
As far as the Zimbabwe dollar goes I am still a bit skeptical because I know in 2016 they voided out these multi trillion notes and redenominated to the lower denominations. At that time they did start with the Zimbabwe dollar equal to the US dollar 1:1 but this quickly fell apart and did not last. Soon hyper-inflation set in again. I believe it is now worth about 13-23 cents but this is for the newer denominated notes not the older pre-2016 notes. Unless Zimbabwe makes the much needed, other structural banking and financial reforms, this will never work for them. Anyhow I only caution anyone who invests in these other currencies thinking they are going to make them rich. The ONLY sure currency I now know of is the Iraq dinar. You may not get as much return on it but it is SOLID.
This RV Status is getting too long already today and so I have to conclude. In conclusion we must all pray and pray hard that nothing fouls up the process. There is still many possibilities that can foul it all up. One is security with the issue of the PMF (Iran’s militias in Iraq). The other is the salaries with the Kurds and the Oil issues. I believe all of these issues will eventually work out but what will their timing be? So, let’s pray for the Iraqi people and this financial process to move ahead. It is time for it!
Remember too that in the recent prophecies God is telling us that this chaos we are witnessing is coming to an end soon. What does soon mean? I do not know but I can feel an end to it when the US indictments come out and they are coming out in the coming months.
One thing God does keep telling us is that – what was stolen from us will be returned 7 X.
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Their words not mine…..No Rumors, No Hype, No Opinions ,,,,,
Just the FACTS!
PRAYING WITH SINCERITY
Many may ask why their prayers are not being answered. Our new Shepard in Rome Pope Leo XIV has given us some direction.
You can purchase a nice pair of Rosary Beads here to pray:
These prophecies are more important now more than ever. They give us the strength, perseverance and hope that a better time is coming and that God’s Hand is at work behind the scenes. If you just take a second even to look around you at these past three election cycles, how can you deny that God is at work? Are you sleeping or what?
It is amazing and there is no other way that these events could have happened the way they turned out. But there is more to come, much, much more, I assure you! Now that God has his biblical David re-elected, we need to pay attention to what He does next.
God told us it will be an “hypnotic November” and turbulent until June 2025 and so, isn’t it? June has been amazing too as promised. Was He lying to us? Here comes the indictments.
NOTE: These prophecies just keep getting better and better, giving us HOPE of a bright future. But the real reason why I listen to them is that we can actually see what God says He will do is taking place right in front of our noses. It is a confirmation to me that God is real and is still with us forever just as in biblical times.
From God to the PROPHET: Julie Green
The prophetic words seem to be getting more powerful which usually means we are coming to a climatic period and intensity as to when events begin to happen.
Prophetic Words from prophet Julie Green:
“JUDGEMENT IN DC IS ABOUT TO INTENSIFY“
You can go to mark 8:56 on the video to start prophecy. From Aug 10.
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DC FEDERAL TAKEOVER CONTINUES WITH NEW ARRESTS, CHECKPOINTS AND CONCERNS FOR THE HOMELESS
BONDI PUTS SANCTUARY CITIES ON NOTICE WITH STRICT DEADLINE
THE SCIENCE THEY WON’T TELL YOU: CO2’S WARMING LIMIT
Do you know why they won’t tell you all the facts about climate change? It’s because most of the FACTS are “inconvenient truths” and will spoil their scare tactics and fear mongering related to their narrative. We have already witnessed the multiple bills passed in congress for the wasteful money spent on this narrative. Also remember that there is evidence that a lot of this money earmarked for “climate change” went into slush funds used for nefarious projects or simply just disappeared. Yes, just like USAID funds with good intentions it turns dirty.
CLAPPER IS ABOUT TO BE “CLAPPED” (IN IRONS).
Let’s see how he tries to lie his way out of this one…..
AS DIRTY AS THEY COME!
LEAVITT ADDRESSES ADAM shifty-SCHIFF WHISTLEBLOWER REVELATIONS
THE SCHIFF IS ‘HITTING THE FAN’
JEANINE PIRRO HIGHLIGHTS ‘SILENT VICTIMS’ KILLED IN DC
SOROS FINALLY IN THE CROSSHAIRS OF AN OFFICIAL INVESTIGATION
Incidentally, God did tell us through His prophets, that Soros is going to be exposed and lose his fortune and influence from politics. We are just seeing Pandora’s box being opened on this prophecy now. Yes, this is the beginning of the end of Soros. Pay attention this all matters when it comes to Iraq. This is all tied together.
EPA TO REVERSE UNSCIENTIFIC JUSTIFICATIONS FOR CLIMATE CHANGE
Oh… is this climate change BS finally being challenged with common sense and legal grounds? We must understand it was just yet another communist narrative to drain money foolishly, create slush funds and cause yet another crisis. Yes, more FEAR. They trive on crisis after crisis.
IS VOTER FRAUD STILL ONGOING?
THINK, THINK and THINK SOME MORE! Why did the democrats win so many seats in Congress and the Senate in spite of Trump winning the national popular vote and the electoral college vote?
For the executive branch the election was a “landslide”. So then why are the margins on the congressional and senatorial side of the house still so slim? The republicans in the last many elections just can’t see to gain any kind of real margin of victory in certain key states, in spite of winning the presidency. Does this sound weird to you? Sounds to me there is still massive voter fraud going on in many of these states. Let’s take a deeper dive into this today because this does impact what is going on in Iraq and it is important to our investment in the dinar.
When you go to vote, most vote a straight party ticket. Sorry if you don’t but data shows the majority of people do vote this way. So, if this is the case you can then see the fraud as votes were switched from republican tickets to democrats for the congress and senate positions that were open in 2024. It is obvious something is not right.
Now if you watch this broadcast you will see a map of Illinois, like the one above. Could this districting be the reason why? The voter fraud is obvious. But let’s take these thoughts a step further and go to the state of Massachusetts. Not a single seat today is held by a republican in the house today. Does this seem weird to you because if it does it reeks of voter fraud.
God, through His prophets, tell us that there was massive voter fraud and he is going to correct it. Let’s watch how this all plays out. The important part is that there will be a coming fairness in the voting in the U.S. Also we must PRAY and give thanks to God for how he helped bring back TRUTH and HONESTY to politics in the U.S.
INVESTIGATION CONFIRMS HORRIFYING ELECTION SCANDAL — DEMOCRATS ‘STOLE HOUSE SEATS’
NOW WE LEARN WHY TEXAS DEMOCRATS FLED TO ILLINOIS
Of course, it was to hide from the Texas legislature so as to block the voting process on redistricting of their state. The legislature needs a quorum to even take the vote. But why did they flee to Illinois of all states? Today we get some insight into why Illinois.
Maybe, or most likely, you don’t live in Illinois or Texas and so who cares about all this? As responsible citizens of a constitutional republic we all should care and the carelessness of the citizens of this republic in the past has gotten us into this mess. But then is then and now is now. Now its time to fix this mess.
BIDEN HIT WITH STUNNING DEVELOPMENT — HIS PRESIDENCY COULD BE ERASED. Really?
Many of you folks reading this will turn up your nose and tell Mnt Goat this will never happen. Really? Folks, as I have said to you many times this is not normal times we are living in. There was a coup to take over the country and it was led by the new Marxist party of democrats. Aren’t you even paying attention?
THE CASE OF THE JACK SMITH: ACTIONS AGAINST TRUMP ARE NOT GOING AWAY.
— federal judge orders release of all documents related to cases against Trump. Stay tuned you are going to hear much more about this in the coming months.
WHAT DEMOCRATS SO FAR ENDORSE HAVING A MARXIST SOCIAL COMMUNISTS MAYOR FOR NYC
Folks, we should not even be having this conversation. A communist candidate being endorsed by members of a major political party? Really? This shows us just how far left the left has gone. Whether you are a liberal, conservative or any other political thinker you need to remember these names and remember them well, when you go to vote at their time for re-election. They all have to go along with their buddy Mamdani. Throw these bastards out. The question now lies will Americans in NYC be stupid enough to vote for Mamdani. Oh…maybe they have BIG plans to rig the election anyhow?
THE CLEAN UP OF THE DISTRICT OF COLUMBIA, WASHINGTON DC HAS BEGUN
A Deep Dive Into Epstein – Dr. Jan Halper-Hayes
BONDI BOMBSHELL — OBAMA’S NAME IS ON THE “TOP” OF THE LIST FOR RUSSIAGATE
Forwarded to the Grand Jury for review this week.
TRUMP ISSUES FIERY RESPONSE TO TEXAS DEMS: ‘DO YOU NOTICE THIS’
STATE LAUNCHES INVESTIGATION INTO WHO IS FUNDING TEXAS DEMOCRATS’ WALKOUT
THE REAL RUSSIA COLLUSION STORY WITH JOHN SOLOMON: LAID OUT IN SIMPLE TERMS.
TRUMP JUST UNCOVERED A MUCH BIGGER SCANDAL THAN RUSSIAGATE
As if that could be possible….
US INSTITUTE: IRAQ 2025 IS NOT IRAQ 2003, AND TRUMP IS INVITED TO VISIT IT
The American Middle East Forum Institute called on the US administration to avoid igniting a new war with Iraq, and instead suggested dispatching Steve Witkoff, President Donald Trump’s special envoy, to visit Baghdad and view it from the perspective of 2025, rather than through the “outdated” lens of 2003.
The institute stated in its independently translated report that the Iraqi capital has witnessed radical transformations over the past two years, including active traffic through the former Green Zone, the opening of modern highways and bridges, and major construction projects overlooking the Tigris River. It noted that the US Embassy, once a prominent symbol on the riverbank, now appears “insignificant” next to the towering residential towers, while major hotel projects such as the Mövenpick and Rixos are nearing completion, preparing to receive hundreds of businessmen daily.
The report added that much of the investment financed in Iraq comes from Iraqi funds, despite Baghdad’s efforts to attract international partners. It noted that nearly half of the country’s population was born after the 2003 war, creating a new youthful energy that is pushing for change.
He noted that Iraq is also witnessing a generational shift in politics, with post-war leaders aging or in deteriorating health, while younger politicians such as Muqtada al-Sadr and Qais al-Khazali are trying to redefine their roles. He also noted that Iraqi armed factions, with limited exceptions, have refrained from engaging in the war between Iran and Israel, and that Shiite leaders have written to Iranian Supreme Leader Ali Khamenei to protest the Revolutionary Guard’s interventions.
The report described the current climate in Baghdad as resembling Dubai in 1995, with business activity booming and politicians keen to protect this trend from any disruption. It considered Trump’s policy of prioritizing business over military or diplomatic interventions to be consistent with sending Witkoff to Baghdad, but this has not yet happened, which the institute considered a “serious oversight.”
The report also recalled that former President George Bush envisioned a democratic, economically prosperous Iraq, and that his miscalculation was in estimating the timeframe needed to achieve this. It urged Trump to realize that the absence of American companies from Iraq leaves the door open to competitors from Egypt, the UAE, Turkey, and China.
The institute concluded that investing in Iraq’s thriving economy could be an effective tool to distance it from Iranian influence, arguing that “the greatest gift Trump could offer the marginalized Iraqi opposition as the elections approach would be economic, not military, action.”
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IRAQ SHUTS 10 BANKS IN RESTRUCTURING SCHEME
Iraq has ordered the liquidation of 10 of its banks as part of plans to restructure its financial sector after some failed to return funds to depositors, the governor of the Central Bank of Iraq (CBI) has revealed
Ali Al Allaq said the government is pushing ahead with the restructuring to restore confidence in the banking sector that has been jolted by large losses and corruption over the past few decades. In statements published by the local press on Tuesday, Al Allaq said Iraqis no longer trust banks as nearly 80 percent of their money is kept at home instead of local banks.
“The reforms approved by the government in 2025 are intended to tackle imbalances and weaknesses in the banking sector. They also aim to upgrade banking services to international standards,” Al Allaq said. “Only around 10 percent of the banks have expressed reservations at the reform plan. There are also 10 banks under liquidation for their failure to return funds owned by depositors,” he added without naming those banks. The announcement comes ahead of Iraq’s next parliamentary election, scheduled for November 11, 2025.
The US management consulting company Oliver Wyman, which is involved in the plan to restructure Iraq’s banks, has asked CBI to force private banks to increase their capital through mergers or they will have to quit or shut down.
An adviser to Iraq’s Prime Minister Mohammed Al Sudani said in June that EY is also carrying out a parallel study, which includes changing management of public banks and reducing the government’s share in the country’s largest public bank, Al Rafidain Bank, to 24 percent. Iraq has seven major government banks besides more than 50 national and foreign ones, including 27 Islamic banks, according to the central bank.
In mid January, the Iraqi cabinet announced plans for restructuring public banks, including the creation of a new giant bank.
The bank, to be called First Rafidain Bank, will have a paid-up capital of 500 billion Iraqi dinars ($382 million), to be raised later to one trillion dinars ($764 million), of which the government will control nearly a quarter of the capital. Rafidain Bank was established in 1941 and became a state-owned bank in the 1960s wave of nationalization by the ruling Baath Party. In 1988, Rafidain’s nonperforming assets were carved out into Rasheed Bank.
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THE GOVERNOR OF THE CENTRAL BANK OF IRAQ RECEIVES A DELEGATION FROM THE ISLAMIC CORPORATION FOR THE INSURANCE OF INVESTMENT AND EXPORT CREDIT (ICEIC).
His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, received a delegation from the Islamic Corporation for the Insurance of Investment and Export Credit (ICEIC), a subsidiary of the Islamic Development Bank Group.
His Excellency discussed strengthening cooperation between the two parties, in addition to presenting a study by the Corporation in the field of loan insurance for foreign and investment companies, which cover the financing of major strategic projects with the Iraqi government.
The delegation also praised the remarkable progress in various sectors, supported by the state of stability that expands investment opportunities in Iraq and, accordingly, expands the role of the Islamic Development Bank in financing projects.
Central Bank of Iraq
Media Office
August 14, 2025
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FROM BASRA TO MANHATTAN: THE FULL STORY OF IRAQ’S MONEY BEING WITHHELD BY THE FEDERAL RESERVE
At dawn, giant oil tankers dock at the docks of Basra port, loading pipes gleaming under the lights, and pumps pump millions of barrels of crude into the bilges of ships bound for world markets.
A scene that reflects immense wealth, but what is often overlooked is that the bulk of the proceeds from this “black gold” travel a route that does not end in Baghdad, but rather extends across the Atlantic Ocean to the heart of Manhattan in New York, inside the fortified US Federal Reserve building.
There, Iraqi wealth is transformed into numbers in American financial books, subject to strict oversight and procedures that leave no room for maneuver. These arrangements were created in 2003 but remain in place today, even though their original justifications (on paper) have disappeared.
For many Iraqis, this equation amounts to little more than a combination of protection and guardianship, with officials and analysts saying that any attempt to sever this link could mean freezing assets, disrupting employee salaries, or even losing control over the country’s finances.
These concerns did not arise out of thin air. Rather, they are an extension of a long process that began with UN resolutions and US executive orders that shaped the management of these funds since 2003. Therefore, the Shafaq News Agency team began investigating the background of this file, opening what some describe as the “black box” of the financial relationship between Baghdad and Washington. How did the arrangement come about, why does it continue to this day, and who benefits from keeping Iraqi funds under external supervision?
From the Security Council to the American umbrella
In May 2003, the Security Council issued Resolution 1483, which required Iraq to transfer all oil and gas revenues to a special account in the name of the Central Bank of Iraq at the US Federal Reserve, under UN supervision, with 5% of the revenues to be set aside for reparations to Kuwait for the 1990 invasion. In parallel, then-US President George W. Bush issued Executive Order 13303, which granted these funds full legal immunity from any seizure or confiscation.
Over nearly two decades, Iraq continued to pay reparations, reaching a total of $52.4 billion, and the Kuwait case was finally closed in 2022. But despite the original commitment ending and UN protection being lifted in 2011, Washington has continued to renew the executive order year after year, most recently in May 2025.
For American policymakers, the arrangement has transcended its original purpose, becoming a tool for ensuring financial stability in a country experiencing political and economic volatility, while also providing a means of monitoring the dollar’s movements and protecting strategic interests.
Between Washington and Baghdad
In Washington, economists do not view this mechanism as merely a technical financial measure. For example, Dr. Frank Musmar, an economist and chairman of the University of Maryland’s Advisory Board, describes it as “more than just a financial measure.”
He told Shafaq News, “The Federal Reserve provides Iraq with a safe haven for its revenues amid volatility in energy markets, and enhances investor confidence that funds are managed according to transparent standards. Its presence there also allows Iraq easy access to the US financial system, facilitating debt repayment and import financing.”
But Mismar warns of the other side of this umbrella: “This is a double-edged sword. The United States can, if it wants, use this money as a political bargaining chip. Iraq is here between financial stability and the loss of some of its economic sovereignty.”
On the other side of the river, in Baghdad, Mazhar Mohammed Salih, the prime minister’s economic advisor, defends keeping the funds at the Federal Reserve as a “legal safety net” that allows for diversification of reserves and depositing a portion of them in other central banks protected by law.
He told the agency: “The United States does not control oil revenues themselves, but it does control the movement of the dollar, a reality imposed by the US currency’s position in the global financial system.”
Money under the microscope
According to leaks obtained by Shafaq News Agency from a senior source in the Central Bank, the balances deposited in the Federal Reserve range between $80 and $85 billion. These funds are used to finance foreign trade, pay the state’s obligations, control the dinar exchange rate, and curb inflation.
However, after discovering routes for smuggling dollars to Iran and other sanctioned countries, the US Treasury Department tightened controls and imposed sanctions on 35 of Iraq’s 72 banks, including the Bank of Baghdad, which holds accounts for US embassy staff. These restrictions have reduced the flow of dollars into the local market, driving up the exchange rate and increasing the cost of imports, weighing heavily on commercial activity and citizens’ livelihoods.
Old debt risks
In international markets, these reserves are viewed as a key guarantee for meeting international payments and a safety valve against oil price fluctuations. Any indication of a change in the deposit mechanism or a relaxation of US oversight could raise Iraq’s borrowing costs, impact its credit rating, and potentially put the dinar under additional pressure.
In this vein, economic expert Nabil Al-Tamimi warns that excessive reliance on the US umbrella conceals a greater risk, noting that “there are debts and claims that have not been settled since 2003, making assets vulnerable to seizure if they are removed from the Fed’s protection. Negligence in closing debt files has left legal loopholes that can be exploited.”
He adds that part of these risks are due to “defects in government performance after 2003 and the lack of serious follow-up on these commitments.” In contrast, Mahmoud Dagher, a former banking official, believes that withdrawing funds from the Federal Reserve would be a “strategic mistake,” noting that “the international immunity enjoyed by the Federal Reserve protects Iraq from any claims, given the existence of unresolved international financial cases against the Ministry of Finance.”
Iraq relies on oil to finance more than 90% of its budget, making the timely arrival of revenues extremely critical. Any delay, whether for political or technical reasons, could lead to a crisis of confidence locally and internationally, placing the dinar under additional pressure in the markets.
Between the desire to regain full control over the funds and the need for the legal protection provided by the US umbrella, the issue remains open to multiple possibilities, from renegotiating the deposit mechanism to maintaining the status quo out of necessity.
But the deeper question revolves around Iraq’s ability to balance its economic sovereignty with protecting its finances. As Mismar warns, “Relying on the US Federal Reserve is like walking a tightrope. It provides Iraq with a financial safety net, but it could at any moment become a pressure tool if political calculations change in Washington.” This serves as a reminder that managing national wealth is not just a matter of numbers and calculations, but a daily test of decision-making independence.
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ANKARA SENDS BAGHDAD A DRAFT OF A NEW OIL AGREEMENT: THE CURRENT SITUATION DOES NOT MEET OUR EXPECTATIONS.
Turkey’s Energy Ministry announced on Friday that Ankara is seeking to conclude a new pipeline agreement with Iraq, confirming that it recently informed Baghdad that the current oil export agreement no longer “meets ambition.”
Turkey Today quoted Energy Minister Alparslan Bayraktar, in a statement translated by Shafaq News Agency, as saying, “The pipeline with Iraq has a capacity of 1.5 million barrels per day, but it has not been operating at full capacity for 50 years.”
He added, “We recently informed the Iraqi government that the current agreement no longer meets expectations and does not respond to the world’s energy needs today, and we have sent a new draft agreement.” He stressed, “We are currently reviewing the structure of the new draft, and I hope the technical teams will meet soon to begin negotiations on the new agreement.”
The Turkish minister emphasized that “the Iraqi government’s goal is to fully exploit this pipeline,” explaining that “Turkey’s oil and gas exploration and production strategy focuses on domestic production while evaluating opportunities abroad, especially since it currently produces very small quantities of oil in Iraq.”
Turkish sources had previously revealed that negotiations had begun between Ankara and Baghdad to reach a new, more comprehensive oil transport agreement. A Turkish presidential decree published in the Official Gazette on July 21 indicated that the current agreement, signed between the two countries in 1973, would expire on July 27, 2026.
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IRAQ’S OIL FORTUNE: THE TWO-DECADE GRIP OF A US ‘FORTRESS’
Before dawn in Basra, giant oil tankers edge into the jetties, loading arms glinting under floodlights as millions of barrels of crude stream aboard for export. Yet most of the proceeds from this trade never pass through Baghdad’s vaults. Instead, they cross the Atlantic to a heavily fortified building in Manhattan — the US Federal Reserve Bank of New York — where they remain under strict American oversight.
What began in 2003 as a “temporary safeguard” after the invasion and the fall of Saddam Hussein has endured for 22 years, outliving its original UN mandate and embedding itself in Iraq’s financial system — and in the debate over whether such oversight protects or undermines the country’s economic sovereignty.
From Mandate to Custody
In May 2003, UN Security Council Resolution 1483 required Iraq to deposit all oil and gas revenues into a Federal Reserve account under UN monitoring, with 5% deducted for reparations to Kuwait. That same month, then-US President George W. Bush issued Executive Order 13303, granting the account full legal immunity from seizure.
For nearly two decades, Iraq sent steady payments to Kuwait — $52.4B in total — until the last $44M cleared in late 2021, closing the file. Iraqi lawmakers hailed it as “a new beginning,” yet the financial mechanism remained.
UN Security Council Resolution 1956, adopted on December 15, 2010, ended the UN-supervised arrangements for the Development Fund for Iraq (DFI) as of June 30, 2011. Yet Washington has renewed the executive order every year since — most recently in May 2025.
In US policy circles, the arrangement has shifted from a post-war safeguard to a permanent instrument — one that, according to American officials, helps stabilize Iraq’s fragile economy and monitor dollar flows.
Supporters point to improved investor confidence and reduced risk from oil market volatility, while critics see a foreign power keeping a hand on Iraq’s wealth.
Billions in New York
Central Bank of Iraq (CBI) officials told Shafaq News, in condition of anonymity due to the sensitivity of the matter, that the US Federal Reserve currently holds between $80B and $85B of Iraq’s reserves. These funds pay for imports, settle foreign obligations, stabilize the dinar, and help curb inflation — making uninterrupted access critical to Iraq’s economy.
However, that dependence has given US regulators leverage; after, what it alleged, tracing dollar transfers to sanctioned states such as Iran and Syria, the US Treasury barred 35 of Iraq’s 72 licensed banks from dollar transactions. Iraqi officials note that banks can be reinstated if they meet compliance standards, but until then, access to dollars remains restricted.
With fewer dollars in circulation, the parallel exchange rate climbed from about 1,470 dinars per dollar in 2022 to peaks of 1,600 in 2024. Higher import costs rippled through markets, straining traders, raising consumer prices, and fueling public frustration.
Washington has also considered limits on foreign electronic payments, potentially affecting the use of international cards — a reminder that decisions made in New York can directly influence transactions in Baghdad’s shops and markets.
Old Debt, New Risks
To some, this Fed account is a vital shield, including Washington-based economist and policy adviser Dr. Frank Masmar, who described it to Shafaq News as “a safe haven for revenues in volatile oil markets” that also facilitates debt servicing and trade finance. He warned, however, that “the United States can, if it chooses, use these funds as political leverage.”
Others in Baghdad, such as Prime Minister’s economic adviser Mudhir Muhammad Salih, call it a “legal safety net” that has allowed Iraq to diversify reserves into other protected central banks. He stressed that while the US does not directly control oil inflows, the dominance of the dollar means transactions are inevitably subject to American oversight.
Meanwhile, Economist Nabil al-Tamimi warned that Saddam-era claims could still be used to target Iraqi assets if they lose the Fed’s legal protection, noting that gaps left since 2003 could be exploited by foreign creditors. Former senior banker Mahmoud Dagher agrees, arguing that with outstanding cases against the Ministry of Finance, moving the reserves would be “a strategic mistake.” Both see the same hazard: without immunity, Iraq’s wealth could become entangled in court battles abroad.
A Delicate Balance
Oil revenues fund more than 90% of Iraq’s budget; any delay in accessing them would disrupt salaries, stall public services, and unsettle markets. Altering the arrangement could also raise borrowing costs, hurt credit ratings, and weaken the dinar — risks Baghdad cannot afford to ignore.
Iraq’s choices are few: keep the system, renegotiate it, or cut the tie entirely. Each path carries consequences beyond accounting and deep into the question of sovereignty.
As some analysts put it, relying on the Federal Reserve is like walking a tightrope — it offers security, but it can become a pressure point the moment “Washington’s political calculus shifts.”
Two decades after the first oil dollars landed in New York, Iraq’s economic lifeline shall continue running through a foreign vault for the foreseeable future — a reminder that in global finance, the lines between protection and control can be dangerously thin.
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THE BAGHDAD INTERNATIONAL ENERGY FORUM: A PLATFORM TO STRENGTHEN IRAQ’S POSITION IN GLOBAL ENERGY MARKETS
(How many more forums or seminars are they going to have? How about making the changes you propose?)
The Baghdad International Energy Forum will kick off in the capital, Baghdad, on September 6 and 7, 2025. Organized by the Ghadan Risk Management Foundation, the forum will be inaugurated by Prime Minister Mohammed Shia al-Sudani, with the broad participation of senior executives from global energy companies, energy ministers, the OPEC President, and international experts. The event reflects the international community’s confidence in Iraq’s capabilities and its pivotal role in this vital sector.
The forum aims to highlight Iraq’s significant potential in the oil, gas, and renewable energy sectors, as a key partner in meeting global market needs and a supporter of international efforts to achieve sustainability.
The forum will be attended by energy ministers from the region and around the world, as well as global energy companies including TotalEnergies, Oman’s OQ, BP, Chevron, Eni, and Shell. Its sessions will address energy security, market stability, and the transition to clean energy sources.
The forum is organized under the auspices of the State Oil Marketing Organization (SOMO) and in partnership with the Iraqi Ministry of Oil. It serves as an international platform for dialogue and exchange of views on the future of energy in Iraq and the region, and for exploring promising investment opportunities in this strategic sector.
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TRUMP’S DEVELOPMENTS WITH BAGHDAD: A “RAPID” WITHDRAWAL FROM IRAQ BEFORE AN IMMINENT ISRAELI STRIKE ON IRAN
After the US troop withdrawal from Iraq was scheduled to be suspended after the October 11 elections, Iraqi executive and parliamentary sources told Al-Araby Al-Jadeed that a decision was made in Washington to “accelerate” the withdrawal of hundreds of troops from the large Ain al-Assad base in Anbar. This comes against the backdrop of escalating controversy between the Donald Trump administration and the Iraqi government over the Popular Mobilization Forces (PMF) law, which is no longer a secret. This is in addition to the successive explosion of numerous files, from the dollar to the smuggling of Iranian oil in Basra, as well as security agreements that Baghdad has recently been confused about. The sources expressed their fear that this is related to expectations that are becoming more serious by the day, regarding “the resumption of war between Iran and Israel,” after experts stated that Iraq survived the previous war thanks to a heavy US presence in major Iraqi bases.
Al-Araby Al-Jadeed learned from Iraqi political and governmental sources that the US administration has notified the government of Prime Minister Mohammed Shia al-Sudani of the imminent withdrawal of hundreds of US soldiers and military personnel from the Ain al-Assad base in Anbar province, western Iraq. The withdrawal is related to the Iraqi-US agreement, which stipulates the gradual withdrawal of US forces operating under the cover of the international coalition fighting ISIS since 2014. However, other sources spoke of US “displeasure” with the Iraqi government’s failure to adhere to understandings and agreements with the US administration.
According to the sources, “a senior advisor to the Iraqi government recently visited Washington and met with American officials, who informed him that the Iraqi government had not fulfilled its commitments to restrict the factions’ weapons.”
The sources pointed out that “the decision to withdraw a portion of US forces comes in contravention of the previously agreed-upon timetable between Baghdad and Washington for a gradual withdrawal, which was supposed to take place after the parliamentary elections scheduled for next November, meaning it is an emotional response from the US administration,” expecting the withdrawal from Ain al-Assad base to begin next month.
Ain al-Asad Air Base is located 200 kilometers west of Baghdad, near the Euphrates River in the town of al-Baghdadi, west of Anbar Governorate, and is the largest US base in Iraq.
Ain al-Asad Air Base currently houses hundreds of American soldiers and military personnel. Along with American forces, the base is shared with the Iraqi Army’s 7th Division, part of the Badia and Al-Jazeera Operations Command, which is responsible for Iraq’s borders with Jordan and Syria, and parts of the border with Saudi Arabia.
In this context, a member of the Iraqi parliament told Al-Araby Al-Jadeed, “The United States is not satisfied with the performance of the Iraqi prime minister, and is exerting real pressure from all sides. Therefore, there must be real support for this government and prevent the continuation of American interference.” He added to Al-Araby Al-Jadeed, “The decision to withdraw American forces is expected, and may come within the framework of the security threat that may precede any expected Israeli operations in the coming period. We do not currently know whether the forces will withdraw towards the Harir or Al-Tanf bases, or perhaps to bases in the Gulf, but these hints are merely tools to pressure the current government.”
However, security expert Ahmed Al-Sharifi pointed out, in an interview with Al-Araby Al-Jadeed, that “the American and foreign forces present at the Ain al-Assad base are considered mobile forces, meaning they are not fixed and are constantly moving between three bases: Al-Tanf and Al-Omar in Syria, and Ain al-Assad in Iraq. Each of these bases is linked to the others, which means that the possibility of the withdrawal of American forces from the Ain al-Assad base may be linked to the movement or perhaps the final withdrawal.”
Baghdad and Washington had agreed, at the end of September last year, to an official date for the end of the international coalition’s mission against ISIS in the country, no later than the end of September 2025. This date was reached after months of dialogue between the two sides. This came in the wake of escalating demands from armed factions and Iraqi forces allied with Iran to end its presence, particularly after the US strikes at the time on the headquarters of those factions in response to their attacks on coalition bases inside and outside the country, against the backdrop of the Gaza war.
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RAFIDAIN: OUR AGREEMENT WITH K2 INTEGRITY PUTS IRAQ ON THE MAP OF THE GLOBAL FINANCIAL SYSTEM.
Rafidain Bank’s General Manager, Ali Karim Al-Fatlawi, emphasized that signing the partnership agreement with K2 Integrity represents a qualitative shift in the bank’s journey and the Iraqi financial sector. He noted that this strategic step transforms Rafidain Bank from a traditional local institution to an integrated banking platform directly aligned with international standards.
Al-Fatlawi explained, in an interview with the Iraqi News Agency (INA), that the partnership comes with direct support from Prime Minister Mohammed Shia al-Sudani, and in accordance with Cabinet Resolution No. (23274) of 2023, within the framework of a comprehensive reform vision aimed at restructuring the banking sector, strengthening Iraq’s economic and financial sovereignty, and repositioning the country on the map of the international financial system with confidence and transparency.
Al-Fatlawi told (INA): “The partnership agreement with K2 Integrity represents a qualitative shift for Rafidain Bank, which is no longer just a traditional local bank, but has become an institution working to connect Iraq to international banking standards.”
He added, “K2 Integrity is a global leader in compliance and anti-money laundering and counter-terrorism financing, and our collaboration sends a clear message that Iraq is serious about reforming its financial institutions and preparing them to open up to the global financial system.”
Prime Minister’s support He continued, “This partnership would not have seen the light of day without the great support of Prime Minister Mohammed Shia Al-Sudani, who adopted a serious reform vision to restructure the banking sector. The contract with K2 Integrity came in accordance with Cabinet Resolution No. (23274) of 2023, which reflects that this project is not just an individual initiative of the bank, but rather part of a higher government policy aimed at enhancing transparency and financial sovereignty in Iraq.”
Direct gains for citizens
Al-Fatlawi told (INA): “On the local level, this agreement raises the level of compliance and transparency within the bank, and establishes a modern corporate culture based on governance and risk management. As for the citizen, it means more secure banking services, greater protection for their money, and enhanced confidence in an institution that has long been a fundamental pillar of the national economy. Simply put, the citizen will feel that their money is in safe hands subject to global regulatory standards.”
Reintegrating Iraq into the international financial system
Regarding the agreement’s implications for Iraq’s financial reputation, he explained, “Iraq needs to rebuild trust with international institutions, and this agreement is key to that. Through K2 Integrity’s services, we will be able to issue reports according to the highest international standards, which will put us back on the map of the international financial system and give us the ability to open up to global correspondent banks and attract foreign investment. Simply put, we are establishing a new phase in which Iraq is viewed as a country serious about reform, not as a fragile or isolated economy.”
Fortifying the economy
Al-Fatlawi emphasized that “the banking sector is the first line of defense for any country’s sovereignty. Through this partnership, we are not only improving our services, but also protecting our economy from the risks associated with financial isolation or unjustified accusations, and building institutional capacity that grants us greater independence. This step truly translates the vision of the Prime Minister and the Iraqi government for Rafidain Bank to be part of a broader national project to enhance economic sovereignty.”
Regarding Rafidain Bank’s future vision after this partnership, Al-Fatlawi told the Iraqi News Agency (INA): “This agreement reflects our ambition to transform into a modern, integrated banking institution, capable of keeping pace with technological and regulatory developments in the world. We are establishing a brighter and more stable banking future, where citizens trust our ability to manage their money, and international institutions trust our ability to comply with global standards. Simply put, we are laying the foundation for an Iraqi bank with a global identity.”
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TWO WEEKS AHEAD OF IRAQ’S “MONEY”… THE CENTRAL BANK IS “VERY EMBARRASSED” BEHIND THE SCENES IN BAGHDAD
Quick follow-up from Ziad Al-Hashemi
Private banks have less than two weeks left to implement the reform plan drawn up by the American company Oliver Wyman, before the Iraqi banking system is forced to liquidate violators.
This leaves the Central Bank with only two options: either increasing the banks’ capital and merging those unable to increase the size of their financial portfolios, or liquidation, which would lead to the direct intervention of the US Federal Reserve to implement international banking standards. This would be a scenario resembling US “guardianship” over Iraqi banks, something Baghdad wants to avoid in order to preserve its reputation and independence. However, economic expert Ziad al-Hashemi hints at the presence of “beneficiary parties” who are opposing the proposed reform plan and obstructing its implementation behind the scenes, without taking into account the major repercussions of the return of direct US intervention!
The Central Bank of Iraq (CBI) has a “last chance” to reform its banking system by implementing the reform plan and imposing its will on those obstructing it. Otherwise, the Treasury and the Federal Reserve will be on the lookout!
Over the past years, the Federal Reserve and the US Treasury have pursued a strict, direct policy with the CBI, which has forced nearly 50% of banks out of operation or dealing in dollars as a result of sanctions and deprivation!
During that period, the Federal Reserve imposed numerous conditions and requirements on the CBI to increase compliance, the most important of which were expanding the scope of direct transfers and electronic payments, streamlining the number of banks by liquidating some and merging others, and changing the ownership structure and capitalization of banks!
This situation has placed the CBI in a very embarrassing situation between the hammer of the Federal Reserve and the anvil of the powerful parties in Iraq that own and operate dozens of banks and live off the movement of the dollar and the revenues of these banks!
As a compromise to spare the CBI the embarrassment and pressure it is facing, an American company (OW), which has joint work relationships with the Federal Reserve and the US Treasury, was commissioned to evaluate the Iraqi banking system and present a reform action plan for this system!
The firm presented a banking reform plan, which included requirements based on and consistent with those demanded by the Federal Reserve and the Treasury over the past year.
In other words, the Central Bank of Iraq (CBI) received the same US federal requirements, but indirectly through an American company, in what appears to be a tactic to cover up direct federal intervention in reforming the Iraqi banking system.
The plan is now ready for implementation after the CBI announced it, but it appears that there is some opposition behind the scenes to obstruct implementation by certain parties who benefit from maintaining the status quo without reform.
The CBI now has no choice but to adhere to the banking reform plan presented by the consulting firm. Otherwise, the Federal Reserve and Treasury will return to direct intervention and force reforms on the CBI or impose further restrictions and even sanctions.
The return of direct intervention and pressure by the Treasury and the Federal Reserve is a sensitive issue that the Central Bank of Iraq is striving to avoid, both to protect its reputation and to affirm its independence and ability to implement reforms. This requires a firm and decisive stance from the Central Bank’s management to implement this reform plan without yielding to any internal dictates or pressures.
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ECONOMIST: BILLIONS OF DOLLARS LOST DUE TO US CONTROL OVER IRAQ’S RESOURCES
Economic analyst Faleh al-Zubaidi confirmed on Saturday that the United States is exerting stabilizing economic pressure on Iraq by controlling its financial resources. He warned that this policy has cost the country billions of dollars annually.
Al-Zubaidi told Al-Maalouma News Agency that “Washington’s financial policy toward Iraq is based on two dangerous aspects: the first is the imposition of successful sanctions on Iraqi banks, and the second is the control of Iraqi funds deposited in the US Federal Reserve.” He explained that “these measures weaken the Iraqi economy and deprive it of full use of its resources.”
He added, “Iraq is suffering greatly as a result of these pressures, which often turn into a political blackmail card,” noting that “the continuation of this American approach will deepen the economic and financial crises facing the country.”
Al-Zubaidi explained that “the losses resulting from this policy are estimated at billions of dollars annually, at a time when Iraq needs every financial resource to support the budget projects and implement service and development.”
It’s worth noting that the United States continues to impose restrictions on the movement of Iraqi funds at the Federal Reserve under the pretext of monitoring money laundering and terrorist financing, which economic experts see as a direct targeting of Iraq’s economic autonomy.
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THE DOLLAR FACES GLOBAL PRESSURE AND A POTENTIAL DECLINE OF UP TO 35% – NEWSPAPER ANALYSIS
Economist Zaki Al-Saadi asserted that the US dollar is going through a critical phase globally, even domestically. He pointed out that US President Donald Trump’s recent policies, including the imposition of new taxes on China and the introduction of value-added tax (VAT), have negatively impacted the US currency.
Al-Saadi explained in an interview with Jarida Platform that “talk about the expansion of the BRICS bloc and the accession of new countries, in addition to the complex geopolitical situation, especially the US-Israeli war on Iran, are all factors that put pressure on the dollar and weaken its global standing, with economists predicting a decline in its value of between 8% and 35%.”
He pointed out that “the Iraqi market is also experiencing a state of confusion due to these repercussions, as any return to military escalation could lead to the targeting of some banks or the imposition of sanctions, which would limit dollar transactions and push investors to consider alternatives such as real estate or commercial assets.”
Al-Saadi explained that “the Central Bank’s suspension of dollar sales via platforms at the official rate has contributed to a decline in demand for the currency locally, coupled with citizens’ fears of a change in its value or the emergence of an alternative currency.”
He added, “Any temporary rise in the value of the dollar could occur if war breaks out again, but its impact will be temporary. Iraq’s link to the dollar remains strong, as imports and state salaries are settled in this currency, meaning any fluctuation in its price will have a direct and clear impact on citizens.”
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IRAQ FACES US BANKING GUARDIANSHIP… TWO CRUCIAL WEEKS FOR PRIVATE BANKS
Al-Mustaqilla/- Less than two weeks remain for private banks in Iraq to comply with the financial reform roadmap developed by the American firm Oliver Wyman, a move described by economic circles as the “last chance” to save the banking system from the specter of liquidation and bankruptcy.
According to informed banking sources, the Central Bank of Iraq has two options:
- Forcing banks to increase their capital and merge those unable to expand their financial portfolios.
- Liquidating violating banks, which opens the door wide to direct intervention by the US Federal Reserve to implement international standards in the Iraqi banking sector.
The risk of liquidation and “financial guardianship”
The second scenario is viewed with great concern within Baghdad, as it effectively imposes a form of American tutelage over the Iraqi banking sector, a precedent that could threaten Baghdad’s financial independence and undermine public confidence in the banking system as a whole.
Experts believe that the US Federal Reserve’s involvement could completely redraw the banking landscape in Iraq, from foreign exchange mechanisms to banks’ ability to finance local projects.
Reform roadmap or political pressure?
Oliver Wyman’s reform roadmap came in response to mounting US pressure, following increasing reports of financial transaction irregularities and accusations that some banks were involved in money laundering or illicit financing.
At the same time, the Iraqi government is seeking to strike a balance between meeting international demands and maintaining economic sovereignty, particularly since any direct foreign intervention would place Iraq in a position of weakness vis-à-vis its international partners.
The countdown has begun
The coming weeks will be crucial. Either the Central Bank of Iraq succeeds in imposing radical reforms that preserve the independence of financial decision-making, or it will find itself forced to accept American intervention, which could be read internally as a “declaration of failure” for the local banking system.
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Their words not mine…..No Rumors, No Hype, No Opinions ,,,,,
Just the FACTS!
Disclaimer: All information in this newsletter is not intended for investment decisions / purposes. Mnt Goat is not a financial analyst, planner, banker, attorney or associated in any role with giving out professional investment advice.
Auf Wiedersehen
Much love to ya all,
Mnt Goat
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