New Prime Minister Ali Al-Zaidi has decided to thrown in his lot with the United States and the Trump administration. That means disarming the pro-Iran Resistance and fighting corruption. Some of this might actually help Tehran though.
One of Iran’s main goals in Iraq is to use it to get around international sanctions. A main way this is accomplished is by buying dollars in auctions held by the Central Bank of Iraq. It uses front companies and friendly Iraqi political parties and businesses to make the purchases in fake trade deals. This gives it crucial access to foreign currency it would otherwise be denied.
The irony is that Zaidi’s policies could help this continue. For instance the Central Bank worked out a deal with the U.S. Treasury Department to ease restrictions on several Iraqi banks. These institutions were singled out by Washington for their ties to Iran. Eventually they will be allowed to partake in the dollar auctions again and will return to aiding Tehran.
Iran’s influence in Iraq is deep seeded. Most of the country’s ruling parties have ties to Iran. Many of them are funded by Tehran. That’s the reason why reforms never work. They are undermined by the officials that are supposed to enforce them. That’s why Zaidi’s efforts will not really change the relationship. In fact, the concessions the PM gains from Trump will likely help Tehran continue to manipulate Iraq’s banking system.
SOURCES
Kurdistan 24, “Iraq, U.S. Reach Understanding to Reinstate Restricted Banks to International Banking Channels,” 7/18/26
No comments:
Post a Comment