The Trump administration has reportedly warned Iraq that if it forces the U.S. forces to withdraw, it will close Iraq’s accounts at the Federal Reserve Bank of New York to cut off Iraqi financial resources.
The Wall Street Journal quoted Iraqi officials as saying on January 11 that US authorities are threatening them to close Iraq’s Fed bank account. Like other countries, Iraq uses accounts at the Federal Reserve Bank of New York to handle international oil sales and various transactions. If the account is closed, Iraq will lose important financial resources, which will seriously affect domestic fiscal stability.
The U.S. airstrikes Iraqi airports on January 3, killing Iranian Revolutionary Guards commander Qassem Soleimani. Iraq was dissatisfied with U.S. military infringement on Iraq ’s sovereignty, and passed a non-binding motion in Congress demanding that U.S. troops be withdrawn. Trump once threatened to impose sanctions on Iraq.