US Threatens Economic Sanctions on Central Bank of Iraq Amid Troop Withdrawal

[Asia Economy Reporter Naju-seok] The United States has begun pressuring the Iraqi government, which is demanding the withdrawal of U.S. troops, by raising economic issues. The U.S. has threatened to cut off transactions with the Federal Reserve Bank of New York if the troops withdraw.

According to the Wall Street Journal (WSJ) on the 11th (local time), the U.S. State Department warned Iraq that transactions between the Central Bank of Iraq and the New York Fed could be severed if U.S. troops withdraw. WSJ reported that, like other countries, Iraq has maintained government accounts at the New York Fed to manage proceeds from oil sales, and if transactions with the New York Fed are cut off, Iraq's economy could face a credit crunch. Such measures could deliver a shock to Iraq's already fragile economy.

Earlier, the Iraqi parliament adopted a resolution demanding the withdrawal of U.S. troops in response to the killing of Qasem Soleimani, commander of the Iranian Revolutionary Guard Corps Quds Force, near Baghdad Airport in Iraq.

Iraqi Prime Minister Adel Abdul Mahdi has effectively demanded the withdrawal of U.S. troops, calling for the establishment of a consultative body for the withdrawal.

In response, President Donald Trump threatened to impose economic sanctions on Iran if U.S. troops withdraw.

The threat to block the Central Bank of Iraq's account at the New York Fed is reported to have already been conveyed to the Iraqi government. Additionally, the U.S. has communicated that if American forces withdraw from Iraq, the military, political, and economic cooperation between the two countries could also be adversely affected.

This content was produced with the assistance of AI translation services.