US Holds the Keys to Iraq's Oil Revenue Fortune
The US has maintained control over Iraq's oil revenue dollars since its 2003 invasion of the country. This control is exercised through the management of Iraq's oil income by the Federal Reserve Bank of New York, where the Development Fund for Iraq (DFI) was set up to collect and manage oil revenues.
The DFI has been used to protect Iraqi oil revenues from lawsuits and claims related to Saddam Hussein's rule. The arrangement has given the US significant leverage over Iraq's economic and political stability, particularly since oil makes up about 90% of the state budget.
Washington reportedly threatened to cut Iraq's access to New York Federal Reserve funds in 2020 when Baghdad asked US troops to leave. Although Iraq has gained more control over its financial affairs since the early years of the occupation, the link highlights the enduring influence of the US on Iraq's economic landscape.