Experts skeptical of US lifting bank sanctions amid political, economic uncertainty

ERBIL (Kurdistan 24) –  Despite calls from the Iraqi parliament’s finance committee, experts believe the lifting of US banking sanctions on sanctioned Iraqi banks is unlikely in the near future.

This skepticism is rooted in the current regional volatility and concerns that Iraq might be drawn into geopolitical conflicts.

The Iraqi dinar’s exchange rate against the dollar is once again a focal point, prompting the Financial Committee to request Washington to lift sanctions on certain banks. The committee argues that these sanctions negatively impact the dinar's stability.

However, economists believe this demand is premature, emphasizing the need for these banks to first comply with US Federal Reserve requirements.

Economic expert Safwan Qusay stated, "These restricted banks are undergoing re-auditing by international companies, including K2 Integrity and other American firms, to identify past shortcomings in financial transfers."

He highlighted the necessity of adhering to the demands of the US Federal Reserve, Citibank, and JP Morgan before any sanctions relief can be considered.

The intertwining of economic and political factors further complicates the situation. Some parties are attempting to distance Iraq from its agreements with the United States, prompting the US to exercise caution in lifting sanctions.

Political analyst Hussein al-Janabi noted, "The United States wants Iraq as a strategic ally. Any weakness in this relationship is perceived as a threat to its regional presence, leading to economic pressure."

If efforts to remove sanctions fail, banking experts predict a restructuring of some of the 14 banks accused of money laundering and illicit dollar dealings with Iran.