A government advisor reveals the truth about the devaluation of the dinar against the dollar.
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The Iraqi Prime Minister's economic advisor, Mazhar Mohammed Salih, confirmed that the country's monetary situation is stable and fine.
In a press interview, Mazhar Mohammed Salih said, "The country's monetary situation is stable and there is no fear over the issue of salaries at all," indicating that "the concerns being raised here and there in this regard are untrue and do not relate to the financial reality."
Some politicians and representatives have stated that there is a shortage of cash liquidity in Iraq and that salaries are "unsafe," according to them.
Regarding proposals to devalue the Iraqi dinar against the US dollar to provide more cash liquidity to support the government during the current period, Mazhar Mohammed Salih denied the government's intention to do so.
Al-Sudani's advisor explained, "I do not believe such a thing is being discussed by the government at the present time."
The government of former Iraqi Prime Minister Mustafa Al-Kadhimi had taken measures to secure cash liquidity by devaluing the Iraqi dinar against the US dollar, setting the official exchange rate at 1,450 dinars to the dollar instead of 1,200 dinars.
According to Mazhar Mohammed Salih, the current cash issue in Iraq is "around 100 trillion, and this is not fixed and fluctuates."
An Iraqi government bank combats suspicious financial transactions electronically "without human intervention.
Rafidain Bank's General Manager, Ali Karim, stated on Thursday that the bank has begun combating suspicious financial transactions, such as money laundering, through electronic technologies.
In a speech delivered at the "Governance Forum" held in Baghdad and attended by a Shafaq News Agency correspondent, Karim said, "Rafidain Bank has taken strategic steps to build an internal governance system that focuses on independence, integrity, and efficiency."
He added that the bank launched a comprehensive corporate risk program that includes operational, interest, and reputational risks, in cooperation with global distribution companies.
Karim continued, "Rafidain Bank recently acquired advanced systems in cooperation with international institutions, through which suspicious financial transactions will be monitored, analyzed, and even thwarted automatically and electronically, without any human intervention."
At the end of May, the Governor of the Central Bank of Iraq, Ali Al-Alaq, affirmed Iraq's commitment to combating money laundering and terrorist financing in cooperation with international partners.
The World Bank expects growth in the Iraqi economy in 2025 and 2026.
The World Bank expects the Iraqi economy to grow by 1.2% this year.
The bank said in statistics reviewed by Shafaq News Agency that "the Iraqi economy is expected to grow by 1.2% this year, up from negative 1.5% in 2024."
He added that economic growth in Iraq is also expected to rise to 4.4% in 2026, before declining to 3.1% in 2027.
He pointed out that "Libya is expected to be the Arab country with the fastest economic growth, with an estimated 12.3%, followed by Djibouti at 5.2%, and then Lebanon at 4.7%."
According to World Bank statistics, "Yemen will have the lowest economic growth, at -1.5%, followed by Syria, with a growth of 1%."
Prime Minister's Office: 100 US requests to participate in Iraq Investment Forum
The Prime Minister's Office confirmed on Thursday that the preparatory committee for the investment forum to be held in Baghdad has received 100 American applications to participate.
Deputy Director of the Prime Minister's Office, Ali Razouki Al-Lami, told the Iraqi News Agency (INA): "Some American companies have submitted a proposal to Prime Minister Mohammed Shia al-Sudani to host an investment forum for Iraq in the United States to bring American companies to the Iraqi arena, in order to support the Iraqi state and boost investment in Iraq."
He pointed out that "a large American investment delegation had previously attended, and agreements were concluded and signed between the National Investment Authority and the US Embassy."
Regarding the investment forum that will be held in Baghdad in the middle of this month, Razouki explained that "the US embassy in Iraq is interested in this forum, as it requested 100 invitations from the preparatory committee, which reflects the embassy's great interest, in addition to the efforts made by the rest of the embassies in this regard." He indicated that "there are great preparations and we hope that there will be cooperation from everyone to make this forum a success from the first session, so that it becomes a regular annual or biennial forum, to be a reason for opening the Iraqi field to all investors and capital."
Iraqi Private Sector Faces Four Key Challenges, Says Professor
The Iraqi private sector confronts significant obstacles that must be addressed to unlock the country's economic potential, according to Professor Frank Gunter of Lehigh University, speaking at the Iraq Britain Business Council (IBBC) Spring Conference in London recently.
Professor Gunter identified four critical challenges hampering private enterprise development in Iraq:
- Finance: Iraqi businesses struggle to access basic financial services including cross-country bill payments and funding. "The first source of funds is family, not a bank, not a loan, not a venture capitalist," Professor Gunter noted, emphasising that this reliance on family financing must change for sustainable growth.
- Education: The country faces challenges in both quantity and quality of education. Iraq had been making progress in reducing illiteracy until ISIS disrupted educational systems between 2014 and 2017, forcing many out of schools and creating refugee populations. The professor stressed the need to eliminate illiteracy, particularly among older workers, whilst improving educational quality to meet private sector demands for engineers and scientifically-trained personnel rather than bureaucrats.
- Infrastructure: Basic infrastructure remains deficient, with Iraq lacking reliable 24-hour electricity despite two decades of substantial investment spending.
- Regulatory Environment: This emerged as perhaps the most damaging constraint. Professor Gunter cited a recent World Bank study examining 50 countries, which found Iraq ranking last among 16 nations with similar economic development levels for regulatory quality. Even when compared to all 50 countries studied-including those with lower development levels and nations experiencing civil wars-Iraq ranked 45th.
The findings suggest substantial reform will be required across multiple sectors to create a conducive environment for private enterprise in Iraq.
US measures raise the dollar's value in Iraq, and an expert says war will push it above the 2,000-dinar threshold.
On Thursday, June 12, 2025, economic and financial expert Nasser Al-Kanani predicted that the dollar exchange rate in Iraq would rise again in the coming period due to recent tensions in the region. He also indicated that the exchange rate could exceed 200,000 dinars per $100 if war breaks out in the region.
Al-Kanani told Al-Jabal platform, "With the recent security tensions, threats, and American moves to withdraw diplomats from Iraq and some countries in the region, as well as the mutual US-Iranian threats, the dollar has risen significantly in the past few hours. This rise, according to the data, will continue in the coming hours and days with the increase in tension."
He explained that "this tension will push many citizens, as well as traders, to withdraw the dollar from the market, and increase import quantities for fear of any emergency that may occur due to the expected war in the region." He indicated that "the outbreak of any war in the region will raise the dollar high in the local market and will exceed 200,000 dinars for every 100 US dollars, and perhaps more than that. Therefore, the Iraqi economic situation will remain turbulent, anxious, and unstable during the coming period, which will witness a continuous rise in the exchange rate and perhaps the prices of some other basic commodities."
The region is witnessing tensions, marked by US withdrawals from several embassies, including Iraq, following Iranian threats to target US bases.
Earlier today, the US Embassy in Baghdad revealed that the evacuation of its citizens from Baghdad and the US Consulate in Erbil is mandatory, not voluntary, due to escalating regional tensions.
The embassy said in statements monitored by Al-Jabal that "the evacuation of our citizens is not voluntary, but rather a mandatory departure by official order."
She added, "The departure is immediate, and we will not reveal the number of employees leaving for security reasons," noting that "the departure order includes the embassy in Baghdad and the consulate in Erbil."
She pointed out that "the departure of non-essential government employees came due to escalating regional tensions."
Earlier today, the spokesman for the Commander-in-Chief of the Armed Forces, Sabah al-Numan, said that the evacuation of some US embassy staff was a "precautionary measure," stressing that "the pace of stability is increasing."
Al-Numan said in a statement received by Al-Jabal, a copy of which was received by Al-Jabal, that "all Arab and foreign diplomatic missions operating in Iraq enjoy the widest range of safe working conditions," indicating that "the evacuation of some US embassy employees from Iraq or other areas in the Middle East is a precautionary and regulatory measure related to them."
He added, "The evacuation decision has nothing to do with the presence of any security indicators on the ground within Iraqi territory."
Al-Naaman pointed out that "all security indicators and briefings confirm the escalation of stability and the restoration of internal security throughout the country."
He explained that "the security forces continue to implement their plans with high efficiency to ensure security and stability," noting that "intelligence and field reports do not indicate the existence of actual threats that would impact the work of the missions or the general situation in the country."
He continued: "The Joint Operations Command and other security agencies are monitoring all developments and confirming that they will continue to operate at a high level of readiness."
Regional escalation benefits Iraq "economically." Oil prices rise and revenues increase.
Economic expert Haider Al-Sheikh confirmed on Thursday (June 12, 2025) that the military and political escalation in the region could have a positive impact on the Iraqi economy, through higher oil prices in global markets, which would boost the state's financial revenues.
In an interview with Baghdad Today, Sheikh Al-Attiyah said, "Recent US statements regarding the possibility of a conflict with Iran, in addition to the decisions to evacuate employees from US embassies in Iraq and a number of Arab countries, have directly impacted oil prices and the economy in the region."
He explained that "the price of a barrel of oil jumped to more than $70 on Thursday night, before settling at $68.60, a direct indicator of the market's sensitivity to any potential political or military escalation."
Al-Sheikh added, "The rise in oil prices at this time has a direct impact on Iraq's financial revenues, as the country exports approximately 100 million barrels per month. With current prices, revenues have exceeded $6.75 billion in recent months."
He pointed out that "any return of the barrel price to above $70 would mean that monthly revenues could rise to more than $7 billion, which would provide Iraq with a significant financial breathing space, especially since the general budget relies primarily on oil as its primary source of funding."
It's worth noting that Iraq approved a three-year federal budget (2023–2025) in 2023 worth more than 153 trillion dinars annually, based on an estimated oil price of $70 per barrel, with a fiscal deficit estimated at more than 60 trillion dinars annually. With continued fluctuations in global prices and rising government spending, particularly on salaries and social support, the government faces increasing pressure to secure revenues and ensure financial stability.
Experts believe that any rise in oil prices, even if temporary due to geopolitical tensions, represents a temporary opportunity to improve cash flow and cover the deficit. However, complete reliance on volatile oil revenues places Iraq in a cycle of economic fragility unless genuine structural reforms are implemented in the overall economy.
Government advisor: The Iraqi dinar is stable, but the parallel market is witnessing a significant decline in the value of the dollar.
Saleh told Al Furat News Agency, "The success of monetary policy in adopting solid operational targets for external transfers, particularly for import financing purposes, has had a significant impact on this stability."
He added, "This policy is supported by highly commercially efficient foreign reserves, covering more than 15 months of imports, compared to the global standard of no more than three months as an indicator of the role of foreign reserves in price stability."
The Prime Minister's advisor explained that this "indicates a broad decline in the parallel exchange market during the current year," stressing that this decline "has had a positive impact on lower inflationary expectations."
Sudani urges de-escalation as US-Iran tensions raise fears of wider conflict
Iraqi Prime Minister Mohammed Shia' al-Sudani on Thursday warned of rising regional tensions amid faltering US-Iran nuclear talks and growing fears of military escalation, as he met with Arab ambassadors in Baghdad to call for restraint and support for Palestinian rights.
According to Sudani’s office, the premier “reiterated Iraq’s support for a fair and balanced approach to US-Iran negotiations that would lead to positive outcomes, stressing that escalation undermines prospects for resolution.” He also affirmed Iraq’s continued commitment to fostering agreements that enhance regional stability.
The US State Department on Wednesday warned its citizens against traveling to Iraq and ordered the evacuation of non-emergency staff from its embassy in Baghdad, citing safety concerns amid rising tensions with Iran. President Donald Trump later said the move was to protect personnel in a “potentially dangerous” Middle East.
Washington and Tehran have held five rounds of Oman-mediated negotiations to revive the 2015 nuclear deal, which Trump withdrew from in 2018. On Thursday, the UN nuclear watchdog declared Iran in “non-compliance” with safeguard obligations - the first such resolution in 20 years.
Trump has repeatedly warned of possible military action if diplomacy fails. Meanwhile, fears are mounting that Israel could target Iran’s nuclear facilities, a scenario Washington is seeking to avoid. Iran’s defense minister on Wednesday threatened to strike American bases in the region if Tehran comes under attack.
In Thursday’s statement, Sudani “emphasized Iraq’s stance on the root causes of conflict in the region, especially the centrality of the Palestinian cause,” the statement said. He described “the [Israeli] aggression against Gaza as a source of escalating tensions and instability” and warned against efforts to draw the region into further violence.
Iraq’s push for neutrality and de-escalation is linked to its longstanding support for the Palestinian cause and its ties to Iran, which backs Iraqi militia groups involved in attacks on US and Israeli targets in the region. Ongoing Israeli military operations in Gaza and the resulting humanitarian crisis continue to drive strong political and public sentiment in Iraq, with the government repeatedly calling for an end to Israeli strikes.
Sudani also “called on the international community to fulfill its responsibilities and bring an end to the ongoing genocide, ceasefire violations, and repeated assaults on Lebanon.”
He “reaffirmed Iraq’s longstanding role as an integral part of the Arab world” and said the initiatives presented at the Baghdad Summit were aimed at strengthening Arab integration, development, and constructive partnership.
In May, Iraq hosted the Arab League Summit for the first time in more than a decade. The summit focused on the war in Gaza and other regional developments, including Syria’s future following the fall of President Bashar al-Assad’s regime. During the event, Sudani pledged $20 million for reconstruction efforts in both Gaza and Lebanon.
According to Thursday’s statement, Arab ambassadors “commended the Iraqi government’s regional, Arab, and international positions.”
Al-Fatah: The smuggling of regional oil will not stop until the oil and gas law is passed.
Ali al-Fatlawi, a leader in the Fatah Alliance, confirmed on Thursday that oil smuggling from the Kurdistan Region will continue unless the oil and gas law is passed. He called on the government and political forces to engage in serious dialogue to reach a final agreement on the law and resolve the accumulated disputes between Baghdad and Erbil.
Al-Fatlawi said in a statement to the Al-Maalouma Agency, “The time has come to give priority to the approval of the oil and gas law, especially after the vote to amend Paragraph (12) of the Federal Budget Law,” stressing that “the approval of the law is the best way to stop the smuggling of oil from the region.”
He added that "the continued smuggling of oil negatively impacts the national economy and causes significant losses to the public treasure," warning of the repercussions of these operations on the country's economic autonomy.
Al-Fatlawi called on political forces to "assume their national responsibilities and exert pressure to expedite the passage of the law by completing the draft and agreeing on its main provisions."
It is noteworthy that media reports indicated that approximately 400,000 barrels of oil are smuggled daily from the Kurdistan Region, in the absence of clear federal oversight and the unknown fate of the financial revenues resulting from these quantities.
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