Economist: Iraq is witnessing an economic recovery.
Economist Haider Al-Sheikh confirmed that the Iraqi economy is experiencing a recovery, pointing out that the rise in the US dollar exchange rate against the Iraqi dinar is due to several reasons.
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During his appearance on the Iraqi Affairs program with Faeq Yazidi, the sheikh said that Iraq is currently experiencing an economic revival following the conclusion of the Arbaeen pilgrimage, noting that the demand for the US dollar has exceeded supply, which has led to an increase in its exchange rate against the Iraqi dinar in Baghdad and the Kurdistan Region. He explained that the increased demand for the dollar is due to several factors, including the approaching winter season, the approaching return of schools, and other occasions that Iraq will witness next September, all of which contribute to an increase in the dollar exchangerate. He stressed that this increase is volatile and not fixed, due to the amount of demand for the dollar in the markets.
Haider Al-Sheikh: Sanctioning Iraqi banks will raise the price of the dollar.
Al-Sheikh added that the dollar's value and the economy in general are held back by non-economic factors such as politics and security, noting that there is economic calm in Iraq due to politicians' preoccupation with elections. He pointed out that any security or political event in the region will have an economic impact on Iraq, the dollar's value, and even oil prices in global markets. He noted that the central bank's provision of dollars in the parallel market contributes to achieving exchange rate stability.
Regarding the work of exchange offices and its impact on the exchange rate, Al-Sheikh said that National Security prevents unlicensed exchange offices from operating. He noted that some offices have facades that use debit cards and Key Cards to withdraw salaries. He explained that these offices do not openly sell dollars because they fear censorship. Henoted that field visits are being conducted in Baghdad to prevent dealing in dollars.
Haider Al-Sheikh: There is commercial fraud in food prices.
Regarding the rise in food prices when the dollar exchange rate rises, Al-Sheikh said that traders import food products in dollars from outside Iraq, pointing out that there is a rise in food prices due to the rise in the dollar exchange rate, stressing that this rise in food prices is slight, because the change in the exchange rate is simple and does not affect food prices, indicating that if the dollar exchange rate rises to more than 150,000 dinars for $100, then there will be a direct impact on food prices, pointing out that the lack of adequate oversight is the reason for the failure of food prices to decrease when the dollar exchange rate falls, indicating that there is commercial fraud where traders reduce the price of food products but at the same time reduce the quantity.
Haider Al-Sheikh: US sanctions affect the dollar exchange rate.
Regarding the US Treasury's measures against Iraqi private banks and their impact on the dollar exchange rate, Al-Sheikh said that approximately 35 Iraqi banks have been sanctioned by the US Treasury on charges of money laundering, dollar smuggling, and other offenses. He noted that whenever the US imposes sanctions on Iraqi banks, it directly leads to a rise in the dollar exchange rate against the dinar, especially since there are dollar deposits in these sanctioned banks.
Association of Banks: Payment points increased to 60,000, and more than 18 million electronic cards were issued.
The Iraqi Private Banks Association announced on Sunday the issuance of more than 18 million electronic payment cards across the country, while noting that the number of payment points has increased to approximately 60,000.
Ali Tariq, executive director of the Iraqi Private Banks Association, told the Iraqi News Agency (INA), "The issuance of electronic cards in the country is witnessing a significant increase, particularly following government decisions to promote electronic payments and oblige government and private institutions to collect electronically."
He explained that "the number of cards issued has exceeded 18 million in Iraq, while the number of electronic payment points has increased from 7,000 to approximately 60,000, with further increases expected in the coming period."
He added, "Banks continue to support various projects," explaining that "financial ceilings for small, medium, and large projects are determined by each financial institution based on the nature of the project, its capital, and the number of employees."
Iraqi banks face a battle for survival: reform or exclusion?
raqi banks have no choice but to integrate into the reform process led by the Central Bank in collaboration with an international consulting firm. This process has become a prerequisite for remaining within the financial system. As the deadline approaches, banks find themselves facing a reality that requires restructuring, whether through full compliance with standards, merger, or liquidation, as part of a long-term plan aimed at restoring confidence and reconnecting Iraq to global markets.
Jamal Kocher, a member of the Parliamentary Finance Committee, told Al-Alam Al-Jadeed, "The banking reform plan represents a serious opportunity to restructure the financial sector in Iraq according to clear international standards. It is not merely a technical measure, but rather a project to rebuild confidence in Iraqi banks, both domestically and internationally."
Koger adds, "Reform will not succeed if it is limited to the administrative dimension. Rather, it requires a clear political will that guarantees the independence of financial decisions, free from partisan interference, as well as providing a legal and legislative environment that helps banks adhere to the required standards."
He explained that "having a reliable international partner contributes to developing a precise roadmap and provides Iraq with an opportunity to reintegrate into the global financial system is crucial," emphasizing that "the agreement with an American company to restructure Rafidain Bank represents part of this broader project and serves as a model that can be replicated across other banks if successful."
Last year, the Central Bank contracted with the American firm Oliver Wyman to conduct a comprehensive study of the banking sector. The firm recently completed its work, submitting an initial report three weeks ago, followed by a final report containing a comprehensive package of recommendations and measures.
The final report outlines a set of mechanisms to address existing banking challenges, most notably regulating dollar transactions and strengthening oversight and compliance systems. These aspects are still under discussion between the Central Bank and the consulting firm, in an attempt to arrive at a practical formula that can be implemented within the Iraqi market.
The Central Bank of Iraq recently held two expanded meetings with representatives of approximately 70 banks in Baghdad and Erbil, with the participation of Oliver Wyman experts, to discuss implementation mechanisms and potential challenges. The majority of banks expressed a desire to embark on this path, while some remain hesitant due to their familiarity with old operating methods.
The plan, prepared by the American company after a comprehensive study of the banking sector, sets out a set of conditions and measures it deems necessary to reform the system. It calls for gradually increasing capital to 400 billion dinars, reducing the influence of family ownership, strengthening anti-money laundering systems, and urging banks to embrace digital transformation.
For his part, Mustafa Akram Hantoush, a financial and banking expert, told Al-Alam Al-Jadeed that “these conditions pose a major challenge for the sanctioned banks, as it is difficult to adhere to the required capital increase of 400 billion dinars (approximately $300 million), which requires discussions between the Central Bank and these banks to reach an acceptable formula.”
Hantoush explains that "the Central Bank may open a new dialogue with the consulting firm to reach a compromise, either by extending the capital increase period to more than three years, or by reducing the required amounts to be closer to the capabilities of Iraqi banks."
The reform plan is implemented in three main phases, extending until 2027. It includes a gradual increase in banks' capital, a restructuring of their boards of directors, and a regulation of ownership ratios, so that relatives' stakes do not exceed 40 percent, in contrast to international standards, which stipulate a 10 percent limit. This flexibility is a response to the unique nature of the Iraqi environment, according to officials.
These conditions present banks with limited options, including merger or liquidation in the event of failure to comply. This represents the greatest challenge facing small and penalized banks. This has prompted proposals to open a new dialogue with the consulting firm, with the aim of amending some of the requirements, whether by extending the capital increase period to more than three years or reducing the required capital amounts.
According to prominent banker Mahmoud Dagher, the deadline for submitting a commitment to reform measures ends on September 30. The Central Bank will begin the actual evaluation in the first quarter of 2026, and banks will be evaluated based on their compliance with international standards. Otherwise, non-compliant banks will be barred from dealing in foreign currency and will be isolated from the international banking system.
“The plan takes into account the specificity of the Iraqi environment, both in terms of ownership ratios and capital increases,” Dagher explained in televised statements followed by “Al-Alam Al-Jadeed.” While noting that the Central Bank may accept a gradual increase in capital (50 billion dinars annually until 2027) and flexible adjustments to family ownership ratios, he pointed out that “the banks’ licenses will not be withdrawn immediately, but they will remain under surveillance, and with repeated warnings, they may be forced to choose a merger. If they fail, they will be removed from the reform and banking system entirely.”
Meanwhile, economic expert Ahmed Abdel Rabbo, speaking to Al-Alam Al-Jadeed, believes that “banking reform is a necessity that cannot be ignored, but the imposed conditions represent a severe challenge for banks, particularly with regard to increasing capital at such a rapid pace. These banks are already suffering from international sanctions and a decline in their stock market shares, making it difficult to secure the required funds.”
Abdul Rabbah explains that "the majority of Iraqi banks were founded on family foundations, so demanding that they sell 90 percent of their shares is unrealistic and difficult to implement in the foreseeable future."
He explained that "the final course of action for unresponsive banks, namely withdrawal or liquidation, is the most dangerous, as it places thousands of depositors facing an uncertain fate. A bank that holds depositors' money cannot simply be liquidated without finding clear guarantees or solutions to protect their rights." He noted that "the Central Bank promised banks that responded to the Oliver Wyman plan that US sanctions would be lifted, which is an uncertain path."
It is an American consulting firm, founded in New York in 1984 by two businessmen named Alex Oliver and Bill Wyman. It has more than 60 offices in Europe, North America, the Middle East, and Asia Pacific, and employs more than five thousand people.
The company operates in multiple sectors in Iraq. In November 2024, the Ministry of Transport announced a contract with the company to provide consulting services for the Development Road Project.
Kurdish opposition: The region's ruling families control and manage wealth for foreign parties.
Kurdish political opposition figure Omid Mohammed accused the ruling families in the Kurdistan Region on Saturday of seizing the resources of the Kurdish people and diverting them for personal gain. He asserted that all laws in force in the region are subject to the will of these families, ignoring any legal or constitutional framework.
“The region is not run according to the law, but rather according to the dictates of powerful political families who act as tools in the hands of external parties seeking to destroy the Kurdish people,” Mohammed told Al-Maalouma News Agency. He noted that “these families are the head of the snake in the region, having destroyed and sold everything.”
He added, “More than 300,000 barrels of oil are smuggled daily, with the proceeds going into the pockets of influential people, while Kurdish citizens suffer from stifling economic and security crises.” He explained that "even the services they speak of are being sold to citizens at prices they cannot afford, while employees' salaries are stolen and citizens are left to face their fate."
Mohammed noted that "the situation in Baghdad is safer and the cost of living is lower than in the region, where the cost of services is ten times what it is in the capital." He also criticized "the events that took place in Sulaymaniyah last Thursday, which were the result of individual party decisions implemented outside the framework of the law and without any legal justification."
It is noteworthy that popular discontent in the region's cities is increasing significantly, amid repeated accusations that the ruling families monopolize political and economic decision-making, while voices are rising demanding governmental and legislative intervention to stop the current smuggling and financial waste.
Prime Minister's Advisor: Forming a team to improve credit ratings is a step towards comprehensive economic reform.
The Prime Minister's Financial Advisor, Mazhar Mohammed Salih, explained on Sunday the importance and tasks of the joint national team tasked with improving Iraq's sovereign credit rating. He noted that this step reflects the government's seriousness in implementing sustainable economic reforms and preparing the country for global financial integration.
Saleh told the Iraqi News Agency (INA): "Prime Minister Mohammed Shia al-Sudani's directive to form a joint national team to improve Iraq's sovereign credit rating is not merely an administrative step, but rather a clear declaration that Iraq has entered a new phase of serious and systematic economic reform."
Saleh emphasized "the importance of the national team in strengthening governance, economic reform, improving transparency and accountability in financial institutions, and managing financial risks more professionally to mitigate economic fluctuations."
He added, "All these steps are aimed at developing the business environment, attracting foreign investment, and supporting financial stability by re-examining the country's monetary and fiscal policies on a sustainable basis."
He explained that "the team will work in accordance with the National Development Plan 2024-2028, which aims to reduce dependence on oil as the primary source of income and diversify the national economy, as these are among the highest goals of sustainable development and stability."
He pointed out that "the national team's tasks will be at both the national and international levels, and will focus on strengthening international confidence in the Iraqi economy, which will open the door to financing and investment, and contribute to raising Iraq's credit rating, which means reducing the cost of borrowing and increasing opportunities for external financing. It will also confirm the seriousness of the government and its economic program in adopting sustainable economic reforms and preparing Iraq for more effective global financial integration."
Earlier, Prime Minister Mohammed Shia al-Sudani directed the formation of a joint national team to improve Iraq's credit rating.
Can budget tables save Iraq from a financial crisis? An expert answers.
In this context, economic expert Salah Nouri explained to {Euphrates News} that "the success of these schedules depends on several key factors, most notably the nature of the spending schedules. If an austerity portfolio focuses on only necessary expenditures, it may mitigate the severity of the crisis."
He added, "It also requires resolving issues with the US Federal Reserve to ensure the full transfer of oil revenues."
Nouri stressed the "necessity of maintaining the planned oil selling price in the general budget, which reaches $70 per barrel," noting that "taking these factors into account will be a decisive factor in the budget's ability to confront financial challenges and ensure economic stability for the country.
Parliamentary Committee: Budget tables will arrive before the elections.
Al-Saadi told Al-Furat News Agency that the committee is awaiting the government's 2025 budget schedules, which it has delayed sending.
He expected that the budget schedules would reach the House of Representatives in October (a month before the parliamentary elections scheduled for November), with the aim of approving them as soon as possible. He stressed the importance of approving these schedules, especially given the overdue financial dues owed to contractors.
Al-Saadi emphasized the importance of the role of contractors, describing them as "partners in the work," and stressing the need to support and encourage them to complete vital projects that serve citizens.
Credit rating
Yasser Al-Mutawali
As part of its relentless efforts to strengthen Iraq's economic and financial position on the international map, the government of Prime Minister Mohammed Shia al-Sudani continues to implement an ambitious reform program for the financial and banking sector. This program aims to advance the national economy by stimulating global investment and attracting it to the Iraqi market. This is part of a comprehensive vision that prioritizes financial stability and diversification of sources of income.
The latest step in this reform vision is the formation of a "Joint National Team" headed by the Governor of the Central Bank of Iraq, with high-level representatives from the Ministries of Finance, Oil, and Planning, along with specialized economic and financial institutions, the Prime Minister's Office, the Securities Commission, and representatives from the banking sector. This team's primary mission is to coordinate directly with leading international credit rating agencies (Moody's, S&P, and Fitch) to improve Iraq's sovereign credit rating.
Improving credit ratings is a strategic tool for opening broader horizons for direct and indirect foreign investment. The Securities Commission's representation on this team will support the attraction of regional and international companies (production and service) to establish investment partnerships with the Iraqi private sector, or to participate in financial markets by investing in Iraqi stocks.
This initiative also builds on previous reform efforts, most notably the Central Bank of Iraq's contract with global firm Oliver Wyman to prepare a banking reform document for private banks. This document has reached advanced stages of implementation after completing the necessary reviews.
In a related context, Rafidain Bank is entering into a partnership with K2 International to develop its performance and enhance the efficiency of its international banking and credit operations.
These comprehensive steps reflect the government's serious commitment to strengthening financial institutions' governance and risk management, and developing the business environment, in line with economic reform plans. They also underscore its commitment to adopting a comprehensive national strategy to improve credit ratings, thereby enhancing international confidence in the Iraqi economy.
To ensure the success of these efforts, it is recommended to study successful regional and international experiences in this field and draw on lessons learned. However, achieving the desired progress depends on addressing structural challenges, foremost among which are combating corruption and bureaucracy, and creating a transparent legal and banking environment that protects the rights of all stakeholders, including banks, investors, and individuals.
In short, these reforms represent a glimmer of hope for putting Iraq on a path to sustainable financial development, but their success will depend on tangible results and the ability to pass the test of true economic transformation.
Parliamentary Committee: Budget tables will arrive before the elections.
Al-Saadi told Al-Furat News Agency that the committee is awaiting the government's 2025 budget schedules, which it has delayed sending.
He expected that the budget schedules would reach the House of Representatives in October (a month before the parliamentary elections scheduled for November), with the aim of approving them as soon as possible. He stressed the importance of approving these schedules, especially given the overdue financial dues owed to contractors.
Al-Saadi emphasized the importance of the role of contractors, describing them as "partners in the work," and stressing the need to support and encourage them to complete vital projects that serve citizens.
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KRG Delegation Arrives in Baghdad to Discuss Salaries, Oil And Revenues
A delegation from the Kurdistan Regional Government (KRG) arrived in Baghdad on Sunday, 24 August 2025, to hold discussions with the Iraqi federal government officials on salaries, oil, and revenue-sharing arrangements.
According to information obtained by PUKMEDIA, the KRG delegation is scheduled to meet with representatives of the Iraqi Financial Monitoring Bureau and the Ministries of Planning and Finance. The talks aim to reach a mutual understanding on the issue of non-oil revenues.
One of the main objectives of the visit is to prepare a joint report that could help establish clarity on the non-oil revenues of the Kurdistan Region. The KRG maintains that, under the Iraqi Constitution and the federal budget law, it retains 100% of revenues generated by its ministries. However, it has expressed willingness to transfer 50% of customs and income tax revenues, while handing over 100% of revenues generated by federal institutions operating in the Kurdistan Region.
The federal government, by contrast, argues that under Iraq’s Financial Management Law, regional ministries are obliged to transfer 50% of their total revenues in addition to 100% of customs and tax revenues. This divergence has become the central point of contention between Baghdad and Erbil, following earlier disputes over oil exports.
So far, only an agreement on the transfer of 50% of customs revenues has been reached. Other key issues — including income tax and the broader scope of local revenues — remain unresolved.
Salary payments for public sector employees in the Kurdistan Region have long been a contentious issue between Erbil and Baghdad. The dispute mainly centres around the KRG's oil revenues and non-oil revenues.
Public employees in the Kurdistan Region are still awaiting their June salaries, despite the fact that the calendar has already entered August.
The Kurdistan Region delegation's meeting in Baghdad ends without reaching a final agreement.
New meeting"... A government official sets a date for sending salaries to Kurdistan Region employees.
A "senior" Iraqi government official has set a date for the June payment of salaries to employees in the Kurdistan Region. This comes as a delegation representing the region is meeting with ministerial committees in Baghdad today.
A delegation from the Kurdistan Region arrived in Baghdad to complete discussions with ministerial committees affiliated with the Federal Council of Ministers regarding the oil file and the financial obligations and dues between the two parties.
A source in the Kurdistan Regional Government's Ministry of Finance and Economy, who requested anonymity, told the Jabal platform on Sunday, August 24, 2025, that "the Kurdistan Regional Government delegation is scheduled to meet with ministerial committees this morning to discuss the payment of salaries, oil exports, and how Erbil will deliver non-oil revenues to Baghdad."
Last week, Iraqi Prime Minister Mohammed Shia al-Sudani approved the payment of salaries due for the sixth month of the year to Kurdistan Region employees, subject to certain conditions.
For his part, a senior Iraqi government official, who requested anonymity, told Al-Jabal, "If the regional government implements the conditions, a decision regarding the payment of salaries will be made next Tuesday, with the funds to be sent within the next Wednesday or Thursday."
Al-Maliki warns of the collapse of the political process and praises the candidate vetting campaign.
State of Law Coalition leader Nouri al-Maliki warned of the "collapse" of the political process if parliamentary elections are not held on schedule. He also stated that the Accountability and Justice Commission cannot be abolished due to its constitutional mandate. He also praised the role of the Electoral Commission in vetting candidates for the upcoming elections.
peech by the head of the State of Law Coalition, Mr. Nouri al-Maliki, during his meeting with a group of families of martyrs and wounded. Mr. al-Maliki: We highly appreciate the sacrifices of the martyrs, wounded, and victims of terrorism, and we renew our support for their families.
Mr. Al-Maliki: Thanks to the sacrifices of the martyrs and the wounded, we live in a country where we enjoy freedom and a decent life after its landmarks were lost under the rule of the defunct Baath Party.
Mr. Al-Maliki: With the sacrifices of the martyrs and the wounded, we were able
to restore Iraq after some had bet that the country was finished.
Mr. Al-Maliki: Iraq will remain strong and resilient with its sons.
Mr. Al-Maliki: The terrorist attacks that entered Iraq came
from various countries around the world that wanted to destroy the country and its people.
Mr. Al-Maliki: Iraq is our country and we will not allow anyone to transgress against it.
Mr. Al-Maliki: The elections are coming and will be held on time and will not be changed.
If they are postponed, the political process and the legitimacy of Parliament and the government will collapse.
Mr. Al-Maliki: No one can abolish the Accountability and Justice Commission,
and its fate is linked to the constitution. Its absence means chaos.
Mr. Al-Maliki: We appreciate the Commission's role in verifying the names of candidates
participating in the elections.
Mr. Al-Maliki: We are facing a national and constitutional obligation, and we call on our people to call for elections, as they are the basis for forming a government and sustaining the political process.
Mr. Al-Maliki: Iraq is governed by a democratic system whose policies are based on
the will, voice, and contribution of the citizen in the process of shaping, stabilizing, and changing the system.
Mr. Al-Maliki: Elections have conditions and controls, and they are not a walk in the park. If they are postponed, a disaster will befall the country.
Mr. Al-Maliki: The most qualified must be chosen, and the will of the voter must be respected.
This will must not be transformed into a buying and selling operation by those who have the money.
Al-Sudani opened 11 hot files
In a new battle against "corruption mafias," oil platforms are under the Integrity Commission's scalpel.
The fight against corruption has entered what appears to be a bolder phase with Prime Minister Mohammed Shia al-Sudani announcing the opening of 11 vital files for investigation, placing the oil platforms in the southern ports at the forefront of attention.
Mohammed Othman Al-Khalidi, a member of the Reconstruction and Development Coalition, confirmed in an interview with Baghdad Today on Sunday (August 24, 2025), that Al-Sudani “launched an unprecedented step by referring these files to investigative committees affiliated with the Integrity Commission, in order to uncover the tools and entities that transformed public funds into a source of looting and reaping billions annually.”
Al-Khalidi added that "combating corruption is no less dangerous and important than confronting terrorism, as it targets the state's infrastructure and economy." He noted that "government measures represent a direct attack on financial influence networks and a guarantee of maximizing non-oil revenues, which will help protect the national economy from oil price fluctuations."
According to the spokesman, these steps represent "an attempt to correct the economic trajectory and strengthen Iraq's ability to confront global financial changes," emphasizing that Al-Sudani "chose to confront corruption mafias on thorny issues that have been difficult to hold accountable for years."
The oil docks in the southern ports have been one of the most controversial issues in Iraq in recent years. Repeated accusations have been leveled of widespread corruption related to operating contracts, collections, and fees. Previous parliamentary estimates indicate that some influential parties were reaping billions of dinars annually by exploiting loopholes in the management of these docks.
The Integrity Commission and the Financial Supervision Bureau had previously recorded several observations regarding these contracts, but political pressures prevented a comprehensive resolution of the issues.
US report: Trump's threat of sanctions on Iraq aims to isolate al-Sudani
The American website “Real Clear World” considered that the customs duties imposed by President Donald Trump on Iraq and the threat of additional sanctions,
It has political dimensions aimed at isolating Prime Minister Mohammed Shia al-Sudani and his new electoral alliance.
In addition to pushing Baghdad towards normalization with Israel and reducing Iranian influence in the country.
The report stated that Washington imposed tariffs on Iraqi goods.
Although Iraq is not considered an economic competitor to the United States, he explained that this step is not based on commercial considerations as much as it reflects political calculations.
Among them are distancing Iraq from China, restricting Tehran's influence, and influencing the results of the upcoming elections in which Al-Sudani is running.
Pointing out that the sanctions policy may lead to weakening confidence in Washington as a partner,
In exchange for the need for diplomacy based on common interests in the fields of economy, energy and education.
President Barzani, US Senator Joni Ernst hold talks on security in Iraq, Kurdistan Region
Kurdistan Region President Nechirvan Barzani met Sunday with U.S. Senator Joni Ernst, a member of the Senate Armed Services Committee, to discuss security challenges in Iraq and the Kurdistan Region, the Kurdistan Region Presidency said in a statement.
The meeting focused on U.S. support for sustaining peace and stability in Iraq, the security situation in Iraq and the Kurdistan Region, the ongoing threat of ISIS in Iraq and Syria, and recent developments in the Middle East.
Full statement from the Kurdistan Region Presidency:
President Nechirvan Barzani welcomed US Senator Joni Ernst, member of the Senate Armed Services Committee, and her accompanying delegation.
The meeting focused on US support for sustaining peace and stability in Iraq, the security situation in Iraq and the Kurdistan Region, the ongoing threat of ISIS in Iraq and Syria, as well as recent developments in the Middle East and their impact on the wider region.
Both sides underlined the importance of joint US, Iraq and the Kurdistan Region efforts to preserve peace and stability and to counter the activities and threats of ISIS, which remains a serious threat to security in both Iraq and Syria.
President Nechirvan Barzani expressed his gratitude to the United States for its continued support to Iraq and the Kurdistan Region in the fight against terrorism.
Senator Ernst reaffirmed the United States’ commitment to Iraq and the Kurdistan Region, stressing the importance of peace, stability, and the unity of political forces and parties within the Kurdistan Region.
The meeting, also attended by the US Consul General in the Kurdistan Region, covered a range of other issues of mutual concern.
AND
Kurdistan Region President Nechirvan Barzani received the Head of the European Union Delegation to Iraq, Ambassador Thomas Seiler, on Sunday afternoon, August 24, 2025, to bid him farewell as his mission ends.
A statement issued by the Kurdistan Region Presidency said that during the meeting, Nechirvan Barzani expressed his gratitude and appreciation for Seiler's work and efforts to develop the European Union's relations with Iraq, wishing him success in his new duties, and emphasizing the Kurdistan Region's desire to strengthen relations and expand the horizons of joint cooperation with the European Union.
The statement read: For his part, Seiler thanked Nechirvan Barzani and the relevant authorities in the Kurdistan Region for their support and cooperation during his tenure, and emphasized the European Union's commitment to assisting and supporting Iraq and the Kurdistan Region.
He pointed out that relations between Erbil and Baghdad, and the general situation in Iraq and the Kurdistan Region, constituted another aspect of the meeting, which was attended by the head of the European Union office in the Kurdistan Region.
US Forces in Sudden Withdrawal from Ain al-Asad, Victory Bases in Iraq
US forces began a sudden, phased withdrawal from Ain al-Asad and Victory bases in Iraq on Sunday following an embassy order, a top Iraqi official told Kurdistan24. Some troops have been moved to Erbil. The full evacuation is expected within days.
as of 3:11 am PDT
American military forces have initiated a sudden withdrawal from the major Ain al-Asad and Victory Base Complex (VBC) in Iraq, a high-level source within the Iraqi government told Kurdistan24 exclusively on Sunday.
The withdrawal began this morning following what the source described as an order issued by the American Embassy in Baghdad.
According to the source, the withdrawal is being conducted in phases. A portion of the American soldiers departed from both bases this morning, with a complete evacuation of the two sites expected to be finalized within the next few days.
The source stated that the Ain al-Asad base housed approximately 2,000 American soldiers, while Victory Base Complex (VBC), located within the perimeter of Baghdad International Airport, is occupied by an additional number of soldiers.
It was also indicated by the source that a portion of the military personnel who have withdrawn have been transferred to Erbil.
MP attacks US: Terrorism is a pretext for keeping its forces in Iraq
MP Rafiq Al-Salihi, from the Sadiqoun bloc, criticized the US embassy's statements on Sunday regarding the growing threat of terrorist organizations in Iraq, considering it a blatant attempt to justify the continued US military presence and the violation of national sovereignty.
Al-Salihi told Al-Maalouma Agency that “the repeated talk about the threat of terrorist groups has become a pretext used by Washington to justify its military presence in the country,” noting that “the United States seeks, through these statements, to raise security concerns and exaggerate threats with the aim of imposing its political agendas.”
He added that “the US embassy has repeatedly interfered in Iraq’s internal affairs, whether through statements or field movements, which represents a violation of diplomatic norms,” calling on the Iraqi government to “take a firm stance towards these actions that affect national autonomy.”
Al-Salihi pointed out that “the United States has not adhered to its previous pledges to end its military presence, but rather continues to use the terrorism issue as a political pressure card,” stressing that “Iraq possesses the security capabilities that qualify it to protect its territory without the need for any foreign presence.”
The US Embassy in Baghdad recently stated that "threats to Iraq's security and stability remain," referring to the activity of terrorist groups, which sparked a wave of criticism within Iraqi political circles
Economist: Iraq is preparing for an austerity budget.
The government faces structural challenges in preparing its upcoming budget, which is expected to be submitted to Parliament before the end of the year, amid concerns that financial measures are insufficient to address potential economic crises.
Economists have identified three key factors that will determine the effectiveness of the upcoming budget: the nature of spending policy, relations with US federal authorities, and the ability to maintain an oil price of $70 per barrel.
Economic expert Salah Nouri confirmed in statements monitored by Kalimat Al-Akhbari that "moving toward an austerity policy that targets only necessary expenditures will be a crucial element in alleviating financial pressure," noting that "fluctuations in the global oil market force decision-makers to adopt a more conservative approach."
Economic estimates indicate that any decline in oil prices below the budgeted level will lead to a fiscal deficit, potentially forcing the government to resort to borrowing or reduce investment spending programs, at a time when the infrastructure is suffering from significant deterioration.
Resolving the dispute with Washington over the mechanisms for transferring Iraqi oil revenues through the international banking system represents an additional challenge, as this issue directly impacts the flow of oil revenues, which constitute more than 90% of the general budget's resources.
These challenges come amid growing financial needs for the service sectors and mounting pressure on the government to improve living standards, placing it in a difficult position between controlling spending and meeting growing popular demands.
he knows the game
Bahaa al-Araji: Washington will not withdraw from Iraq and threatens Parliament.
Former Deputy Prime Minister Bahaa al-Araji revealed on Sunday that the United States had sent threats to the parliament's leadership to obstruct the vote on the law to expel foreign forces, stressing that parliament "will not return to sessions" at this time due to these pressures.
In statements to the "Half Circle" program, followed by Kalima News, Al-Araji explained that "American forces will not withdraw from Iraq, and what is currently happening is merely a rationing of their numbers." He described the recent statement by the US embassy regarding the expansion of terrorism as "merely a warning" and not an actual warning.
He noted that "some of the concerns of Sunni and Kurdish forces are legitimate," referring to their concern about a potential security vacuum following any US troop withdrawal, adding that "Sunni forces fear a US withdrawal" for security reasons.
Al-Araji expressed his surprise at the "denial of the Popular Mobilization Forces' role in liberating areas" from ISIS, affirming his rejection of the "foreign decision to dissolve the armed factions," while noting that "some neighboring countries are wary of these factions," without naming them.
On domestic politics, Al-Araji predicted that State of Law Coalition leader Nouri al-Maliki would support renewing Prime Minister Mohammed Shia al-Sudani's term, describing the latter as "a man of action, not words," unlike the US Secretary of State, referring to Antony Blinken.
In a related context, Al-Araji pointed out that "Shiite rule, with the exception of Iraq, derives its legitimacy from Iran."
What is behind the withdrawal of US forces from Iraq?
summary
The United States has long viewed the rapid timetable for withdrawal from Iraq as an opportunity for Iran, ISIS, and other malign regional actors, jeopardizing regional stability and human security. Washington should also remember its history of precipitous withdrawals from counterterrorism missions, as policymakers are still haunted by the memory of the failed withdrawal from Afghanistan in 2021, as well as the fact that just three years after concluding their combat mission and withdrawing from Iraq, US forces found themselves returning to the country to fight a new terrorist organization that exploited the vacuum left by US forces.
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