Iraq Economic News and Points To Ponder Monday Afternoon 2-23-26
Lists Of Those Restricted From Dealing In US Dollars
The Central Bank of Iraq is currently leading an initiative aimed at reforming the Iraqi banking sector. This requires licensed and supervised Iraqi financial institutions to undergo a thorough and rigorous reform process. Until this reform is complete, the banks listed below are prohibited from participating in the foreign exchange auction or dealing in US dollars, either directly or indirectly.
This list does not prevent international auditing firms from conducting audits of these financial institutions to support their full compliance with banking reform requirements.
Depositing Iraqi Oil Revenues In New York: Between Financial Stability And Economic Sovereignty
Researcher Shatha considers the mechanism of depositing Iraqi oil revenues in accounts at the US Federal Reserve in New York to be one of the most complex financial arrangements in modern Iraqi history. Since 2003, this mechanism has become more than just a technical procedure for protecting funds; it has transformed into a pivotal element affecting Iraq's economic sovereignty, financial stability, and political relations with international powers.
Legal And Economic Background
Following the 2003 US-led invasion of Iraq, the UN Security Council passed Resolution 1483, which aimed to protect Iraq's oil revenues and state assets from creditor claims and lawsuits, given the massive debt accumulated since the previous regime. In this context, US Executive Order 13303 was issued, granting broad legal immunity to Iraqi oil revenues held in the United States. This order was later renewed and amended to reflect developments in the debt situation.
Economically, Iraq was in a very fragile situation. External debt, the collapse of financial institutions, and the lack of international confidence all made this mechanism a necessary tool for reintegrating Iraq into the global financial system and securing a regular flow of dollars needed for imports and financing the general budget.
Indirect Economic Benefits
This arrangement contributed to several economic gains. It boosted international confidence in the management of Iraqi oil revenues, helped stabilize the exchange rate, and reduced the risk of Iraqi funds being frozen abroad. It also provided a more attractive environment for international oil companies, which operate within a legal framework that limits their exposure to legal action related to oil activities in Iraq.
From a macro-financial perspective, this system served as a safety valve against external shocks, whether resulting from fluctuations in oil prices or from legal disputes with creditors, which helped the state maintain a minimum level of financial stability during extremely difficult periods.
The Cost Of Sovereignty And External Dependence
Conversely, these benefits cannot be separated from their sovereign cost. Oil constitutes approximately ninety percent of Iraq's state revenues, and depositing these revenues abroad has granted the United States significant influence over key sectors of the Iraqi economy.
This has become particularly evident at critical political junctures, when Iraqi sovereign decisions have been contingent upon access to or restrictions on these funds.
This situation reflects a classic economic dilemma facing rentier states emerging from conflict: the trade-off between short-term financial stability and building full economic sovereignty in the long term. The longer the reliance on external protection mechanisms persists, the more complicated the path to genuine financial independence becomes.
International Dimension And Overlapping Issues
The issue of oil revenues intersects with other legal and political matters, including maritime border disputes and the deposit of coordinates with the United Nations under the Law of the Sea Convention.
Iraq's successive deposits in 2011, 2021, and 2026 reflect gradual attempts to establish a legal framework that serves national interests, but they have simultaneously opened the door to objections from neighboring countries, confirming that legal stability is not achieved through unilateral deposits, but rather through consensus or international arbitration.
Future Reading
From an analytical economic perspective, the mechanism for depositing oil revenues in New York can be argued to have played a historical role in protecting Iraq during an exceptional transitional period. However, its continuation in its current form raises fundamental questions about Iraq's ability to build independent financial institutions, diversify its sources of income, and reduce its dependence on external arrangements.
The real challenge lies not in the immediate abolition of this mechanism, but in developing a gradual strategy that moves Iraq from the logic of external protection to the logic of institutional sovereignty, where confidence stems from the strength of the national financial system, not from the position of bank accounts.
Conclusion
The deposit of Iraqi oil revenues in New York is not merely a technical or financial matter; it reflects a history of conflict, debt, and economic restructuring. While this arrangement has provided a degree of stability, it serves as a reminder that economic sovereignty is not measured solely by the size of revenues, but also by a state's ability to control them within an independent national legal and institutional framework.
Economic Studies Unit / North America Office, Links Center for Research and Strategic Studies
https://rawabetcenter.com/archives/180088
Government Advisor: Sovereign Guarantees Allow Investors To Borrow From Global Markets With An Iraqi Guarantee.
Economy | 23/02/2026 Mawazin News – Follow-up: The Prime Minister's Financial Advisor, Mazhar Muhammad Salih, confirmed on Monday that sovereign guarantees are a tool to support the financing of major investment projects. He also indicated that Iraq has allocated $1 billion in sovereign guarantees to support private sector projects.
Salih stated, according to the official news agency and as reported by Mawazin News, that "sovereign guarantees are one of the financial tools used by governments to support the financing of major investment projects.
They are an official commitment issued by the state, represented by the Ministry of Finance, to repay the debts of a project or company in the event that the borrower is unable to meet its obligations to the lending entity, whether it be international banks or other financing institutions."
He pointed out that "these guarantees aim to reassure financiers and encourage them to finance strategic projects, as the state affirms its responsibility to repay the loan in the event of investor default.
These guarantees are often directed towards vital projects that contribute to supporting the national economy, such as the construction of bridges, roads, railways, and power plants, in addition to factories that generate added value for the economy."
He added that "for the first time, Iraq has included sovereign guarantees of approximately one billion dollars in its three-year budget for the years 2023-2025. These guarantees, which are being implemented according to the law, are intended to support strategic private sector projects exclusively.
" He explained that "among the most prominent projects that can benefit from these guarantees are pharmaceutical factories, infrastructure projects related to major new cities, as well as projects related to the development road and its infrastructure, renewable energy projects, and digital transformation."
He continued, "These guarantees allow investors to borrow from global financial markets with the guarantee of the Iraqi government through an official sovereign document. In principle, a sovereign guarantee is similar to a promissory note, but it is issued by the government and included in the budget law. This gives lenders—whether local or foreign—greater confidence that the state will guarantee repayment in the event of the borrower's default." https://www.mawazin.net/Details.aspx?jimare=273510
Chevron To Take Over Iraq’s West Qurna-2 After Lukoil Exit
2026-02-23 Shafaq News- Baghdad (Updated at 16:00) Iraq on Monday signed two preliminary memoranda of principles with US energy major Chevron covering the West Qurna-2, Al-Nasiriyah, and Balad oil fields.
According to caretaker Prime Minister Mohammed Shia Al-Sudani's office, the first agreement between Basra Oil Company and Chevron provides for the transfer of management of the West Qurna-2 field. A second agreement with Dhi Qar Oil Company and North Oil Company covers development of the Al-Nasiriyah field, four exploration blocks in Dhi Qar, and the Balad field in Saladin, and amends a previous arrangement by adding Al-Nasiriyah.
US Syria Envoy and Ambassador to Turkiye Tom Barrack later said the agreement reflects President Donald Trump’s vision of promoting “peace through shared prosperity” in the Middle East, describing Chevron’s involvement as a sign of confidence in Iraq’s stability and investment climate.
X Ambassador Tom Barrack @USAMBTurkiye
Today marks a significant milestone for the people of Iraq and for one of America’s leading energy companies, Chevron. This partnership reflects strong support for @POTUS vision of promoting peace through shared prosperity in the Middle East. Chevron’s commitment to stewarding a field that contributes nearly 12% of Iraq’s oil production demonstrates confidence in Iraq’s stability and potential. American investments in Iraq means new opportunities for growth - creating jobs, enhancing economic resilience, and advancing a future of mutual prosperity.
Basra Oil Company and Russia’s Lukoil previously signed a settlement to temporarily transfer the West Qurna-2 contract to Basra Oil Company and resolve outstanding financial dues. A separate framework agreement between Basra Oil Company, Lukoil, and Chevron allows the contract to shift temporarily before reassignment to Chevron following negotiations on a new contract, granting Chevron exclusive negotiation rights for one year.
Lukoil declared force majeure at West Qurna-2 in November 2025 after Western sanctions disrupted its operations, according to Reuters, leading Iraq to halt payments and cancel several crude shipments.
The field, discovered in 1973, produces between 400,000 and 480,000 barrels per day –nearly 10 percent of national output– and holds more than 13 billion barrels of recoverable reserves. Lukoil also moved to sell its overseas assets, including fields in Iraq, citing restrictions imposed on the company and its subsidiaries.
Read more: Russia’s Lukoil turmoil deepens risks for Iraq’s West Qurna-2 oilfield
https://www.shafaq.com/en/Economy/Chevron-to-take-over-Iraq-s-West-Qurna-2-after-Lukoil-exit