US Holds Key to Iraq's Economy Through New York Federal Reserve
The United States has maintained significant influence over Iraq's economy since its 2003 invasion. A key reason for this is the Development Fund for Iraq (DFI), established by the Coalition Provisional Authority to manage Iraq's oil revenue.
Housed at the New York Federal Reserve, the DFI was created to safeguard Iraq's assets from legal actions and claims stemming from Saddam Hussein's regime. This system has been extended by every US president since George W. Bush.
The connection between Iraq's economy and the US allows Washington to exert considerable control over Baghdad's financial stability. When Iraqi leaders requested the withdrawal of American forces in 2020, the US reportedly threatened to block access to Baghdad's New York Federal Reserve accounts, forcing the government to back down.