The Iraqi financial market is facing a sharp contraction amid investor withdrawals and declining deposits.
Economic expert, Manar Al-Obaidi, said on Sunday that the Iraqi financial market is experiencing a sharp contraction due to investor withdrawals and a decline in banking sector deposits, according to data for the first half of 2025.
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Al-Obaidi explained in a Facebook post monitored by (IQ) that "the year 2025 witnessed a 7% decline in private sector deposits in banks, while the Iraq Stock Exchange recorded a significant decline in trading value from 53 billion dinars per month in the first half of 2024 to 32 billion dinars per month in 2025, peaking in June at only 22 billion dinars."
He added: "Trading is concentrated in the hands of only five companies out of 104, and the decline in foreign investors increases the challenges, which calls for a comprehensive regulatory review to enhance transparency and attract new companies."
He pointed out that "this contraction reflects a loss of confidence in the market, despite the strong financial results of many companies, while we are witnessing a significant growth in unregulated forex platforms, which increases risks for investors."
Al-Abidi concluded by saying, "Reforming the market requires aligning it with global markets, introducing modern technologies such as artificial intelligence, and encouraging the listing of strategic companies to enhance the market's attractiveness and build the confidence of local and foreign investors."
Minister of Finance: Continuing partnership with the World Bank to support the government's financial reform priorities
Minister of Finance, Taif Sami, affirmed today, Sunday, the continuation of the partnership with the World Bank to support the government's priorities in financial reform.
A statement by the ministry said, "Minister of Finance Taif Sami affirmed the continuation of the partnership with the World Bank to support the government's priorities in reform and improving financial management."
The statement indicated that "this came during her reception of the Director of the World Bank Office in Iraq, the Middle East and North Africa, Emmanuel Salinas, where existing areas of cooperation were discussed and programs and projects supported by the World Bank were discussed, especially those related to economic reform plans and the development of public spending systems."
The Director of the World Bank Office expressed "the mission's commitment to continue providing technical and advisory support to enhance the Iraqi government's efforts to achieve economic stability and sustainable development."
Al-Sudani: 5G service represents a "qualitative step" to enhance the telecommunications sector in Iraq.
Prime Minister Mohammed Shia Al-Sudani affirmed, today, Sunday (August 31, 2025), that the advanced (5G) service represents a "qualitative step" to enhance the communications sector in Iraq, during his sponsorship of the signing of the founding contract for the National Company for Mobile Communications Services.
The Prime Minister's media office stated in a statement received by Baghdad Today that "Al-Sudani sponsored today, Sunday, the signing of the founding contract for the National Mobile Telecommunications Services Company, as a public joint-stock company, which was previously approved in the government program, with contributions from three entities: the State Employees' Retirement Fund, the Trade Bank of Iraq, and the Al-Salam Public Company affiliated with the Ministry of Communications."
He added that "the Prime Minister appreciated the efforts made by the Ministry of Communications in this regard," noting the need to complete the procedures to provide the service, especially since it will be coupled with the advanced (5G) service, which will be available to all citizens."
Al-Sudani stressed, according to the statement, that "the establishment of the National Company for Telephone and Transmission Services, which was approved in the government program, represents a qualitative step in the field of enhancing telecommunications services, given the significant development they are witnessing, which requires the company to compete with other companies in order to provide the best telecommunications services that now cover all areas of life, especially the economy, education, and the development witnessed by the country."
The Prime Minister explained that "this step represents the first of three government entities to establish a mobile phone company, which will be open to subscription by citizens to contribute to the company's capital. This represents one of the paths adopted by the government to strengthen the non-oil economy." He noted that "the establishment of the company does not mean restricting the private sector, but rather creating an atmosphere of competition with the aim of providing the best services to citizens."
Japanese Ambassador: The Memorandum of Understanding with Iraq paves the way for economic integration between the two countries.
Japanese Ambassador to Iraq Akira Endo affirmed on Sunday that the memorandum of understanding with Iraq will contribute to strengthening relations between the private sectors of both countries, Japan and Iraq.
In a speech he delivered following the signing of the Memorandum of Understanding between Iraq and Japan on (developing educational programs and pursuing projects in the fields of technology, engineering, mathematics, and arts), which was attended by the correspondent of the Iraqi News Agency (INA), Ando expressed his "happiness to celebrate this valuable moment in the journey of Japanese-Iraqi friendship and the signing of the Memorandum of Understanding between Gakken Holding Company and the Iraq Development Fund ( IDF )."
He added, "We have noticed an improvement in the political, economic, and security situation, as Iraq enjoys stability under the wise leadership of Prime Minister Mohammed Shia al-Sudani. The Iraqi government is pursuing a balanced diplomacy aimed at building good relations with neighboring and regional countries, and a diplomacy of economic partnerships aimed at strengthening economic relations." He expressed Japan's appreciation for these efforts by the Iraqi government.
He added, "Since 2003, the Japanese government has implemented an aid program with grants worth approximately $2.8 billion to rebuild living infrastructure, such as schools, in addition to $11.5 billion in yen loans to rehabilitate and develop infrastructure, such as electricity, water, sanitation, and oil."
He continued, "Japan has become one of the leading donors of official development assistance to Iraq in recent years," noting that "Japan has consistently provided support to the Iraqi people to help them continue their journey toward a brighter future, by supporting their efforts in nation-building, economic reconstruction, and development alongside the Iraqi people."
The Japanese ambassador stated that the Iraq Development Fund highlighted the areas of education, agriculture, housing, digital transformation, manufacturing, food security, and the environment, noting that the Iraqi government has prioritized these areas under the leadership of the Sudanese Prime Minister.
He explained that " Gakken has been one of the leading Japanese companies since its founding in 1946. Over the course of nearly 80 years, it has contributed to the overall reconstruction of the country by enhancing the academic capabilities and social skills of all Japanese citizens, especially in the field of science." He expressed his hope that " Gakken's expertise in Iraqi educational fields will be employed to enhance the development of human resources that will lead Iraq's future industries, which will contribute to the country's reconstruction and economic development after the war."
He added, "The signing of the Memorandum of Understanding between Gakken and the Iraq Development Fund ( IDF ) is a very important and timely event that will contribute to strengthening relations between the private sectors in Japan and Iraq in terms of information exchange, support, promotion, and coordination of businesses."
Kurdistan announces that its negotiating delegation has submitted the necessary data regarding its employees' salaries to Baghdad.
The Kurdistan Regional Government (KRG) confirmed on Sunday that its negotiating delegation had submitted the necessary data and information regarding its employees' salaries to Baghdad.
The KRG said in a statement that its Prime Minister, Masrour Barzani, "chaired a meeting today with the government delegation tasked with negotiating with the federal government. During the meeting, he listened to a detailed report from the negotiating delegation on the latest developments in the technical and legal discussions with the federal government."
The delegation was quoted as saying that it "provided the federal government with all the necessary data and information, supported by the required clarifications on various issues and files."
The KRG stressed the "need to continue dialogue and intensify efforts to accelerate the pace of negotiations, with the aim of reaching an agreement that guarantees the region's constitutional rights, financial dues, and salaries."
The Prime Minister met with the Kurdistan Regional Government (KRG) negotiating delegation with Baghdad
On the outcome of the negotiations
Prime Minister of the Kurdistan Region of Iraq The Kurdistan Regional Government delegation has provided detailed data and information to the federal government. "We emphasize the need to accelerate the process of negotiations and reach an agreement," he said.
Prime Minister Masrour Barzani has chaired a meeting with the Kurdistan Regional Government (KRG) negotiating delegation with the federal government.
“At the meeting, the delegation presented the latest results of their discussions on technical and legal issues with the federal government and indicated that they have provided complete data and information and provided necessary explanations on all issues and issues.
“We stressed the importance of continuing the negotiations and accelerating the negotiation process towards reaching an agreement and providing constitutional and legal rights, salaries and financial entitlements of the Kurdistan Region,” Masrour Barzani said.
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The salary has not come
link
Employees are waiting for their salaries
10:30 am cali time
Those who receive their salaries through my account are standing in front of ATMs waiting for their salaries to arrive, but no salaries have arrived yet and they are likely to return today with empty pockets.
The Kurdistan Regional Government (KRG) has announced that the salaries of the Kurdistan Regional Government (KRG) employees will be distributed at 6:00 pm today. The salaries will be distributed at 6:00 pm today.
More than 465,000 employees receive their salaries through my account
The sixth month salary will be distributed today. Those whose account cards are active can withdraw their money through ATMs.
Main story My account teams are working intensively to register employees in the banks in my account, compared to last month, more than 65,000 employees receive their salaries.
The Iraqi Ministry of Finance has deposited 690 billion dinars into the account of the Kurdistan Regional Government (KRG) for the sixth month salaries .
"For the sixth month salary, 465,600 employees will be able to withdraw their money through ATMs at 6 pm today," my account team told Ava .
The 465,600 salaried employees are divided into employees, pensioners, Peshmerga and security forces .
- Civil servants: 254 thousand 230 salaried employees.
Peshmerga and security forces: 191,000 salaried employees.
- Pensioners: 20 thousand 500 salaried employees.
An explanation from my account for those salaried employees whose credit cards have not been activated
Some of the participants of the My Account project have received their account cards for more than a year, but they have not been activated yet.
What you need to know: 465,600 employees will receive their salaries through ATMs this week, so far out of about 1 million employees, 900,000 have been registered.
More information: About 75,000 salaried employees have been given back their bank cards, but can not withdraw their salaries, some of these salaried employees have received their cards for more than a year.
Official statement: The team of "My Account" told Ava that the reason for not activating these cards is due to the installation of ATMs by banks, because for 1,000 salaried employees, one device is installed, according to the number of salaried employees.
"We will fix the problem completely in the next few weeks and the cards will be valid," the My Account team said.
Oliver Wyman...and the guillotine of laws
Iraq witnessed a radical transformation after 2003, requiring a comprehensive restructuring of its legislative and economic systems in line with the principles of a market economy and a modern state.
With the beginning of the change phase, specifically since 2006, a committee was formed to review the laws, which was metaphorically called the “Guillotine of Laws,” with foreign support and guidance. It included seasoned experts in legal reform, politics, and economics. Its mission was to review and refine the existing laws and legislation dating back to the previous era, and to abolish and amend anything that conflicted with the regime’s philosophy.
Although the committee was able to cancel hundreds of laws and legislation, it failed in some laws.
As I watch and follow, within my interest and specialization in economic and banking affairs, what the international company Oliver Wyman is doing today to correct the declining performance of banks and laws came to my mind, just to compare the mission of the previous Laws Guillotine Committee and the Oliver Wyman Company, not to compare, but to discover the connection between the different missions in two different times.
Now let us examine the tasks that Oliver Wyman carries out through a reform document to advance the Iraqi banking reality, as it is considered a banking guillotine that works to correct and refine errors in banking operations and rectify their paths in accordance with what is practiced in developed countries.
As usual, this reform document was met with objections from the banks, as it conflicted with their capabilities and potential to implement its provisions.
The Association of Banks has made exceptional efforts, in cooperation with the Central Bank of Iraq, to meet the banks' requirements and overcome the difficulties they face. The desired results were achieved by reconsidering the contested paragraphs and extending the implementation periods, particularly regarding the issue of increasing capital.
So far, the results seem good and give hope for facilitating the implementation process by banks.
As someone interested in banking as an important sector of the economy, and out of ethical and professional responsibility, I must pursue the results to the end.
In this context, I had a conversation with a seasoned, knowledgeable expert who was close to the event, so I took the initiative to ask him:
How do you view this document? And what is your assessment of its future results?
He replied, "We agree on the importance of the Central Bank, the Association, and the government working to achieve economic reform. Hence, the importance of the document in promoting our banks to keep pace with changes."
As for my assessment of the results, I record my reservations about the fact that what was achieved was limited to reducing its concerns to the challenge of the paragraph on raising capital and time periods only. However, it did not delve into the rest of the paragraphs of the document, which include difficulties that are no less important than raising capital and time periods, and may even be more serious.
This requires re-reading the remaining paragraphs of the document with the help of legal, economic, and financial experts to determine whether the banks are capable of implementing the agreement.
Therefore, I advise you to be careful when signing the contract to know the banks’ capabilities and potential to provide the other requirements and implement them easily and smoothly so that the losses are not doubled.
This expert opinion or warning is important because the decision to implement the document and its amendments is binding and final.
I feel a sense of professional and ethical commitment and concern for my country and its economy, which requires me to be vigilant and evaluate reform paths whenever necessary.
Prime Minister: The government is keen to support laws that provide the best environment for attracting investment.
Prime Minister Mohammed Shia al-Sudani affirmed on Sunday that the government is keen to support laws and decisions that provide the best environment for attracting investment, given the remarkable stability.
The Prime Minister's Media Office said in a statement followed by Al-Masry, "Prime Minister Mohammed Shia'a today received a group of businessmen and heads and representatives of 17 Turkish companies operating in various fields and sectors, in the presence of the Chairman of the National Investment Commission, the Executive Director of the Iraq Development Fund, a number of advisors and the Ambassador of the Republic of Turkey to Iraq, indicating that "during the meeting, ways to develop understanding and cooperation in the water sector were discussed, within the framework agreement for cooperation in the water file that entered into force in September 2024, after it was signed by the Prime Minister and Turkish President Recep Tayyip Erdogan."
Al-Sudani emphasized "the government's commitment to continuous communication with Turkish companies, in light of the distinguished relationship between the two countries, which has witnessed growing development over the past two years, based on the vision and will of the leadership of both countries regarding the importance of developing bilateral relations and partnerships." He emphasized that "the gateway to the economy, investment, and business is one of the most important pillars of partnership, developing relations, and strengthening commercial and economic ties."
The Prime Minister stated that "the government is keen to support laws and decisions that provide the best environment for attracting investment, given the remarkable stability, and seeks to strengthen the presence of Turkish companies to implement their projects, given their significant presence in Iraq, with the volume of trade between the two countries exceeding $20 billion." He also pointed to Iraq's progress with the development road project and the opportunities it will provide to strengthen the partnership between Iraq, Turkey, and the rest of the countries in the region.
For his part, the Turkish ambassador expressed his appreciation for the Prime Minister's efforts to strengthen and develop relations and partnerships between the two countries, stressing that the relationship is not limited to the political aspect alone, but also encompasses economic and investment cooperation to complete projects in Iraq.
Iraqi Deputy Speaker Shakhawan Abdullah: Iraq Still Needs U.S. and Coalition Support
In an interview with Kurdistan24, Abdullah strongly opposed the proposed Popular Mobilization Forces (PMF) bill, stressing that it “will not be passed in parliament because it is harmful to all Iraqis.”
Shakhawan Abdullah, Deputy Speaker of the Iraqi Parliament, on Sunday underscored Iraq’s continued need for U.S. and international coalition forces, citing the ongoing threat of ISIS to the country’s security and stability.
In an interview with Kurdistan24, Abdullah strongly opposed the proposed Popular Mobilization Forces (PMF) bill, stressing that it “will not be passed in parliament because it is harmful to all Iraqis.”
Turning to the situation in Kirkuk, he said, “Unfortunately, the conspiracies in Kirkuk are not over yet. Any shortcomings in the administration of the province should be addressed by the governor, as this is in the best interest of the residents.” He added that all political actors must focus on serving the people of Kirkuk, recalling that previous commitments to the city had been fulfilled.
On the financial crisis affecting the Kurdistan Region, Abdullah criticized Baghdad for failing to send public employees’ salaries on time. “The June salary should have been sent a month ago, and not postponed until today. We should be discussing the July salary now, but unfortunately, the Baghdad authorities are content with starving the people of the Kurdistan Region,” he remarked.
He stressed that the Kurdistan Regional Government (KRG) has fully met its obligations under agreements with the federal government, leaving “no excuse” for Baghdad to delay the salaries.
Meanwhile, Kurdistan Region Prime Minister Masrour Barzani met on Sunday with the KRG negotiating delegation to review the latest round of discussions with the Iraqi federal government, the KRG Department of Media and Information announced.
The delegation presented an update on their talks in Baghdad, which focused on technical and legal matters between the two sides.
The meeting highlighted the importance of continuing the negotiation process and accelerating efforts to secure a comprehensive agreement that guarantees the Kurdistan Region’s constitutional and legal rights, including the salaries and financial entitlements of its citizens.
The salary dispute has been one of the most contentious issues in relations between Baghdad and Erbil. For years, delays and disagreements over budget transfers and oil revenues have led to recurring crises, leaving hundreds of thousands of public employees in the Kurdistan Region without regular salaries.
Oil exports through the Iraq-Turkey Pipeline have been suspended since March 2023 following a ruling by the International Chamber of Commerce (ICC) that halted independent Kurdish oil sales. Oil exports have long been a contentious issue between the KRG and the federal government, impacting the region's economic stability and development.
The suspension has significantly affected the KRG's revenue, which heavily depends on oil exports. This has led to financial challenges for the region. Efforts to resolve the issue through negotiations between the KRG and the federal government are ongoing.
The Deputy Speaker of Parliament accuses the federal government of deliberately delaying the salaries of regional employees.
Deputy Speaker of the Iraqi Parliament, Shakhwan Abdullah, criticized on Sunday what he described as the federal government's deliberate delay in funding the salaries of public sector employees in the Kurdistan Region. Abdullah told reporters from Kirkuk Governorate that "the federal government could have made the decision to pay the June salaries 20 days or a month ago, because nothing has changed," adding that "the government delights in the suffering of our employees and enjoys delaying the disbursement of their salaries."
Regarding the salaries for July and the following months, Abdullah indicated that "the disbursement mechanism has not changed and will remain as it was in June, but the decision regarding revenues and other issues will be in the hands of the federal Council of Ministers." On Thursday, August 28, the Ministry of Finance and Economy in the Kurdistan Region announced the deposit of non-oil revenues for last June into the bank account of the federal Ministry of Finance at the Central Bank of Iraq branch in Erbil, amounting to 120 billion dinars in cash.
On August 26, the Federal Council of Ministers approved the payment of salaries to Kurdistan Region employees for June 2025, in exchange for the regional government paying 120 billion dinars as a non-oil revenue payment.
A source revealed early last month the details of the agreement between Baghdad and Erbil regarding the resumption of the region's oil exports. The agreement stipulated that the Kurdistan Region government would receive 240 billion dinars in revenues for May and June, at 120 billion dinars per month, in addition to the delivery of 230,000 barrels of oil per day to Baghdad, in exchange for Baghdad sending the salaries of the region's employees.
The roots of the crisis between Baghdad and Erbil go back to chronic disagreements over oil export mechanisms and the unification of public revenues. However, it has escalated since May 2025 when the federal government refused to send salaries, deepening the financial dispute between the two sides.
Mazhar Saleh: The rise in gold prices in Iraq and the world reflects international economic transformations.
Saleh told Al Furat News Agency, "This rise reflects the market's reaction to the uncertain future of foreign currencies, particularly the decline of the dollar against rising local and global gold prices."
He explained that "globally, with geopolitical tensions and trade wars escalating, investors are turning to gold as a safe haven amid rising international economic risks. He pointed to massive investment flows into gold exchange-traded funds (ETFs), which are witnessing unprecedented levels, in addition to an unprecedented increase in central banks' demand for gold, with annual purchases approaching 1,000 tons, in an attempt to bolster their reserves and reduce reliance on the dollar, which has contributed to raising global prices."
Saleh predicted, based on reports from Goldman Sachs, a global financial services company, that the price of gold will reach $3,700 per ounce by the end of 2025, and may exceed $3,880 if the global economic situation deteriorates.
On the local level, Saleh noted that the establishment of the "Gold City" has contributed to stimulating the local market and surprising increases in demand for wholesale gold, which has had a significant impact on local retail prices, especially since Iraq is a net importer of gold.
He added that "the historic rise in gold prices is supported today by a number of global speculative and investment factors, most notably the weak dollar, anticipation of interest rate cuts, geopolitical tensions, and increased central bank gold purchases. Saleh explained that despite the volatility in gold prices, there does not appear to be an imminent bubble burst towards a downside, with prices expected to remain at high levels or gradually rise in the coming months, which could impact prices locally."
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