U.S. Warns Iraq It Risks Losing Access to Key Bank Account if Troops Told to Leave

Loss of access to New York Fed account, where international oil sale revenue is kept, could creating cash crunch in Iraq’s financial system

Iraq’s parliament voted to expel U.S. troops, after a U.S. airstrike killed Iranian Maj. Gen. Qassem Soleimani Friday. Photo: Reuters
By
Ian Talley in Washington and
Isabel Coles in Beirut

The Trump administration warned Iraq this week that it risks losing access to a critical government bank account if Baghdad kicks out American forces following the U.S. airstrike that killed a top Iranian general, according to Iraqi officials.

The State Department warned that the U.S. could shut down Iraq’s access to the country’s central bank account held at the Federal Reserve Bank of New York, a move that could jolt Iraq’s already shaky economy, the officials said.

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