Peregraf - The Governor of the Central Bank of Iraq (CBI), Ali Mohsen Al-Alaq, met today with the Chargé d’Affaires of the United States Embassy in Iraq, Joshua Harris, amid escalating tensions regarding the selection of Iraq’s next prime minister and reports of American threats to freeze Baghdad’s oil revenues.
CBI Governor Holds Talks with US Embassy
During the meeting, the two discussed prospects for strengthening the strategic partnership between their countries, emphasizing the importance of monetary and economic stability as a foundation for Iraq’s political and security stability.
Harris reaffirmed the United States’ commitment to enhancing relations with Iraq and supporting efforts to consolidate stability and shield the country from destabilizing factors. He praised the "significant reform developments" pursued by the Central Bank of Iraq, as well as the productive relationship the bank maintains with the U.S. Department of the Treasury and the Federal Reserve.
Governor Al-Alaq expressed gratitude for continued U.S. support, particularly through quarterly consultations with Treasury and Federal Reserve officials. He outlined the bank’s comprehensive reform agenda, highlighting achievements in "stabilizing external transfer operations" and regulating dollar sales in accordance with international standards.
At the conclusion of the meeting, Harris pledged continued U.S. support for the Central Bank’s efforts to strengthen Iraq’s financial and monetary systems.
Trump Officials Delivered "Ultimatum" Last Week
Today’s diplomatic meeting takes place against a backdrop of mounting political pressure. According to Bloomberg News, Trump administration officials met with Governor Al-Alaq in Turkey last week and reportedly delivered a "stark warning": if Baghdad appoints Nouri al-Maliki as Prime Minister, Washington will freeze Iraq’s oil revenues currently held at the Federal Reserve Bank of New York.
Iraq’s oil revenue forms the backbone of the national economy, funding the budget and government salaries. With these funds held at the U.S. Federal Reserve, a freeze would plunge Iraq into a severe economic crisis.
Political Standoff Threatens Stability
Multiple sources indicate that tensions between the White House and Iraqi politicians over the selection of a prime minister are intensifying, raising fears of broader destabilization. President Trump has reportedly "explicitly rejected" al-Maliki for the position, placing Shia political factions in a difficult predicament.
Despite the pressure, al-Maliki and the Coordination Framework have remained steadfast in supporting his candidacy. The factions are scheduled to meet again today, with informed sources suggesting that shifts in their position may be possible in light of the American "ultimatum."
Any disruption to Iraq’s access to its oil revenues would have catastrophic consequences for the economy, potentially affecting everything from civil servant salaries to essential services and reconstruction efforts.