BAGHDAD (Dispatches) – Iraq said Saturday that the September 30 withdrawal of U.S.-led occupation forces will represent a “strategic milestone and historic transformation” for the country, as Baghdad prepares to end a foreign military presence that has lasted more than two decades.
Sabah al-Numan, spokesman for the commander-in-chief of the Iraqi Armed Forces, said the date would mark “the culmination of a long period of sacrifices and a major shift in Iraq’s sovereignty and stability,” according to the Iraqi News Agency.
Al-Numan said the decision was based on the readiness of Iraq’s armed forces and security agencies, which he said had demonstrated their ability to control territory, counter threats and manage national security “completely independently.” 
He added that Iraq has demonstrated its ability to defeat terrorist groups and prevent the spread of terrorism.
The statement follows Prime Minister Ali al-Zaidi’s August 12 reaffirmation of the September 30 deadline, telling U.S. Central Command Commander Gen. Brad Cooper that “October 1 would mark a new day in Iraq’s statehood” and that Iraq would be free of any foreign military presence.
But while the military occupation is set to end, the United States’ financial stranglehold over Iraq will persist. Since the 2003 invasion, Iraq’s oil export revenues – which account for approximately 90% of government income and 75% of GDP – have been deposited at the Federal Reserve Bank of New York under an arrangement that gives Washington direct control over Baghdad’s finances.
Under the mechanism, the U.S. can withhold or delay delivery of Iraqi oil revenues at will. In April, Washington suspended a $500 million cash shipment to Baghdad while also halting military cooperation projects, using the leverage to pressure Iraq to disband anti-terror groups. 
U.S. officials have also previously threatened to freeze Iraq’s New York Fed accounts should Baghdad move to expel U.S. forces.
The U.S.-led occupation was established in 2014 after Daesh seized large areas of Iraq and Syria. Iraq declared military victory over the group in December 2017, but occupation forces remained in the country– an arrangement that critics say allowed Washington to maintain military leverage long after its stated mission was complete.
The September withdrawal will remove U.S. troops but leave Washington’s financial control architecture intact, ensuring American leverage over Iraqi sovereignty endures. 
The United States has sanctioned more than 30 Iraqi banks in recent years and continues to dictate the terms of Iraq’s access to its own oil wealth.