Why doesn't Iraq withdraw its dollars from American banks? 4 experts answer

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[size=52]Why doesn't Iraq withdraw its dollars from American banks? 4 experts answer[/size]

[size=45]Maysoon Al Shaheen[/size]
[size=45]After many fluctuations in the conditions of the dinar and the dollar market over the course of two years, parliamentary circles and social activists are calling for the disengagement of Iraq’s oil from the US dollar and the withdrawal of funds from the Federal Bank in Washington. According to estimates from government advisors and senior experts, the experiments in this field have always been dangerous, as they tried Saddam Hussein and Muammar Gaddafi sold oil in euros and then suffered a collapse, while Baghdad recently tried to place sums in European banks, but they were confiscated due to compensation requests that “cannot be counted,” and they cannot be protected “except by the American president” until further notice.[/size]
[size=45]Mazhar Muhammad Saleh - Financial Advisor to the Prime Minister:
Placing oil revenues in dollars in the Federal Reserve comes based on Security Council Resolution No. (1483), which stipulates placing Iraq’s funds in a global account, and it is not a decision from the United States.[/size]
[size=45]The Central Bank of Iraq began to diversify its reserves and now has Chinese yuan, euros, and Emirati dirhams to diversify the investment portfolio, but the global oil market is a “dollar” market and the whole world is involved in this trade accordingly.[/size]
[size=45]There is no intention to release the funds currently because Iraq is linked to the states economically according to the Strategic Framework Agreement.[/size]
[size=45]As long as the dollar is the currency of the United States, it will not allow its currency to work against its national security or foreign policy, and everyone who deals in the dollar, whether governments or individuals, will be subject to its control, and Iraq is within the dollar zone.[/size]
[size=45]Iraq ended all its debts to the private sector in accordance with the Paris Club Agreement, and in 2009 it issued a European bond called “Iraq 2028”, worth $2.7 million, in compensation for the claims of the private sector. This bond is traded in the European market and carries interest, and will be repaid in 2028. It extinguished almost all private sector debt.[/size]
[size=45]The question now is: Is Security Council Resolution 1483 still in effect or not? Iraq does not have an answer to that?[/size]
[size=45]In February 2022 - after Iraq paid its debts at the end of 2021 - the Security Council issued a resolution stating: Iraq is immune from any fines.[/size]
[size=45]But knowing whether Iraq got out of debt after the decision, and whether the latter is still in effect or not, requires an international diplomatic effort.[/size]
[size=45]I think there are exaggerated concerns about compensation claims, and there is no clear picture of what these claims are.[/size]
[size=45]Iraq is keen on its interests and money, specifically oil revenues, as long as they are protected by the United Nations by Security Council resolution, in addition to the protection of the American President, which is issued by the White House, from any judicial prosecution.[/size]
[size=45]Iraq is able to proceed with any decision, but it takes a peaceful and neutral position on world issues. At the same time, it does not accept that its rights are lost, but removing money from the Federal Reserve suddenly is a hostile act and Iraq is immune to it.[/size]
[size=45]Mahmoud Dagher - financial expert:
Delinking Iraqi oil from the dollar is talk that contradicts economic logic, because the price of a barrel globally is determined in dollars, even if we are able to convert it to another currency.[/size]
[size=45]Who said we can't withdraw oil revenues from America? Iraq sells about $250 million daily, in cash and transfers.[/size]
[size=45]We have balances in all European countries, Singapore and Malaysia, but it is better to place them in the federal currency because the dollar is the peg currency, and Iraq follows the peg system and the transaction is conducted in dollars, and the federal brings us better returns and lower risks.[/size]
[size=45]We can sell oil in dollars and then convert it to euros, but Iraq will not benefit. The euro, the Chinese yuan, or any other currency, all require measures that do not differ from the Federal Reserve’s procedures and do not stray from American monetary policy, as it is the world leader in the financial aspect.[/size]
[size=45]There are some legal cases against Iraq, and so far they have not been resolved in legal circles, and this makes it difficult to place Iraqi money in any bank, especially Europe. If a decision is issued by any European court to seize funds, it will be implemented directly, and this is what happened in 2016 when a court issued a An Italian company issued a ruling in favor of an Italian company with compensation amounting to $30 million, and the amount was withdrawn from Iraq.[/size]
[size=45]It is better for Iraq to have its wealth in dollars, and to place it in America until the legal issues that have not yet been agreed upon between creditors and debtors are resolved and resolved.[/size]
[size=45]Nabil Al-Marsoumi - economic expert:
Since 2003, Iraq has placed its reserves in the Federal Bank for fear of the claims of creditors (and those demanding compensation from previous wars over 4 decades), and Baghdad today invests about 34 billion dollars in US treasury bonds.[/size]
[size=45]The monetary authority in Iraq, represented by the Central Bank and the Ministry of Finance, is supposed to clarify the nature and size of Iraq’s debts, and can they be repaid or scheduled? Is it worth putting the Iraqi decision at the mercy of the US Federal Reserve?[/size]
[size=45]The danger is not with withdrawing funds from the states, but rather with delinking oil from the dollar, and this is an American red line, because the oil trade is the first trade in the world after the arms and drug industry, and one of the reasons for the strength of the dollar is that oil pricing is linked to it.[/size]
[size=45]During the time of the previous regime, Iraq tried to price oil in euros and failed. Gaddafi also tried this method and his political system collapsed.[/size]
[size=45]Manar Al-Obaidi - economic expert:
There is no country that can sell oil in euros, until Iraq dares to take this step. There is great competition in the oil trade, where the Gulf, Saudi Arabia, Russia, Iran, and Iraq cannot impose on the buyer the method of sale, in light of... The competition.[/size]
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