Experts: Banking reforms are necessary to enhance financial stability.
The Iraqi banking sector is undergoing a pivotal phase marked by comprehensive reform and institutional development. The Central Bank, in collaboration with private banks, the government, and the global consulting firm Oliver Wyman, is implementing a strategic plan aimed at enhancing financial stability, diversifying the economy, and gradually transitioning from a cash to a digital economy.
Experts believe these efforts pave the way for ending restrictions on Iraqi banks' dollar transactions and opening new horizons for the banking sector to achieve sustainable development.
pivotal stage
Economic expert Dr. Mustafa Hantoush explained that "the Central Bank and the banking system are going through a critical phase that could lead to the end of restrictions imposed on Iraqi banks' dollar transactions." He pointed out that "the Central Bank's decision to extend the deadline for increasing the capital of banks included in the reform to more than two years, instead of the previous deadline of the end of this year, reflects a state of joint cooperation with these banks and supports them in facing challenges."
Final Report
Hantoush told Al-Sabah: “The Central Bank has contracted with Oliver Wyman to conduct a comprehensive study of the banking sector,” noting that “the company completed its study and submitted its initial report three weeks ago, while the final report was issued recently, including a package of mechanisms to address banking challenges and regulate dollar transactions.” He added that “these mechanisms are currently under discussion between the Central Bank and the consulting firm,” expecting “the dialogue between the two sides to continue to reach compromises, whether by extending the capital increase period to more than three years, or reducing the required amounts in line with the capabilities of Iraqi banks.”
tangible progress
For his part, Economic and Banking Advisor Samir Al-Nusairi stated that "the measures and efforts led by the Central Bank of Iraq, in cooperation and consultation with private banks, have yielded tangible progress in implementing the objectives, mechanisms, and standards of the comprehensive banking reform project. This progress is being made in partnership with the government and the global consulting firm Oliver Wyman, and within the framework of the Central Bank's third strategy."
productive sectors
Al-Nusairi explained to Al-Sabah that "the project came in response to current economic challenges and an effort to enhance the banking sector's role in supporting sustainable development by activating non-oil productive sectors, diversifying sources of national income, achieving financial stability and economic growth, regulating foreign trade financing, supporting infrastructure projects for digital transformation, and expanding the use of electronic payment tools to achieve financial inclusion."
international recognition
Al-Nusairi explained that "the reform and development plan for the banking sector for the period 2025-2028 focuses on developing the banking system and ensuring its compliance with international banking and accounting standards, building a modern, flexible, and inclusive banking sector, enhancing citizens' confidence locally, and obtaining international recognition for its transparency and commitment to standard criteria, ensuring the confidence of global correspondent banks. It also aims to rehabilitate restricted or weakly active banks to enable them to return to full operations. It also aims to focus the role of banks on financing and development lending, enhancing financial inclusion and increasing its percentage. It also aims to move from a cash economy to a digital economy by withdrawing funds circulating outside the banking cycle – which constitutes approximately 80 percent – and integrating them into the banking system."
Evaluation and classification
Al-Nusairi pointed out that "what has been achieved during the years 2023, 2024, and until mid-2025 represents 'ambitious' levels in building the foundations upon which the reform project is based, which has enabled the evaluation and classification of banks according to their level of achievement of objectives." He noted that "there are banks that have achieved remarkable progress, while others still need additional time, while exceptional efforts are being made by the Central Bank and the administrations of some troubled banks to rehabilitate them." Central Bank Governor Ali Al-Alaq had previously revealed details of the banking reform plan, particularly regarding the foreign partner and the plan's objectives, stressing that the foreign partner is not a condition of the reform plan, while indicating that the banking reform is based on international laws and standards.
Reform plan
Al-Alaq said, "The banking reform plan is not a surprise, but rather a well-thought-out plan, and it took more than a year to develop in coordination with banks and international bodies. It was agreed upon the need to review the Iraqi banking sector after years of practical experience."
He pointed out that, "After numerous problems emerged, all parties agreed to adopt a plan that would place our banks within international standards and practices, and within the framework of the Central Bank Law and the Iraqi Banking Law. Therefore, the standards are not innovative, but rather stem from the Central Bank Law."
Parliamentary Finance Committee: Hosting the Ministers of Finance and Planning and the Governor of the Central Bank to ensure the disbursement of retirees' salaries.
The Parliamentary Finance Committee decided to host the Ministers of Planning and Finance, the Governor of the Central Bank, and officials of the relevant departments, in the coming days, to develop the necessary solutions to ensure the regular disbursement of retirees' salaries.
Sudani responds to the Kurdistan Regional Government (KRG) on the issue of salaries
A decisive meeting will be held in Baghdad on this year's salaries, Sudan will decide on an obstacle to sending salaries and officially respond to the Kurdistan government. The Iraqi government delegation, which met with the Kurdistan delegation last week
, will visit Sudan at 12 noon on Sunday and prepare a new report, which was prepared on Thursday between the two delegations and the Iraqi government and will be presented to Sudan.
What does the report contain?
The focus of the discussions in recent weeks has been on non-oil revenues. This report covers all domestic revenues, including customs, border crossings and all other revenues.
Last week, the Kurdistan Regional Government (KRG) delegation clearly responded to the Iraqi government's excuses with constitutional articles and the budget law. For example, the Kurdistan delegation told the Iraqi delegation, “We rely on Article 51 of the Financial Management Law for 50 percent of non-oil revenues. This article clearly states that 50 percent of customs revenues
go to Erbil and 50 percent to the Iraqi government.
A senior Iraqi government official told Ava that the results of Thursday's meeting will be presented to Sudan tomorrow and if there are no comments, it will be approved
. “Last week we
informed them that if the Kurdistan Regional Government and Iraqi delegations do not reach an agreement, the issue will be taken to the State Council or the Federal Court.
What you need to know: All these changes come at a time when Dr. "There is a lot of progress between Erbil and Baghdad regarding non-oil revenues and I think we will reach an agreement these days," Iraqi Foreign Minister Fuad Hussein said. Erbil and Baghdad agree and Sudan decides.
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The regional finance department is dissatisfied with the Commercial Bank for its delay in disbursing employees' salaries.
he Kurdistan Region's Ministry of Finance and Economy expressed concern on Sunday over the difficulties faced by Sulaymaniyah residents in receiving their salaries due to delays in the operations of the Trade Bank of Iraq.
The ministry said in a statement received by Shafaq News Agency, "About 24,000 employees are receiving their salaries this month through TBI Bank, and that the regional government, during the period from September 1 to 3, transferred approximately 27 billion dinars to the aforementioned bank for distribution to all its employees."
The ministry called on the Trade Bank of Iraq, as the sole government bank involved in this project, to "adhere to its contractual responsibilities under the accounting project by providing the necessary staff and technical teams to operate ATMs throughout the region, particularly in the city of Sulaymaniyah."
She stressed that she "has urged TBI Bank branches and employees to work longer hours than usual to ensure that salaries reach all beneficiaries without disruption. She also stressed the need to strengthen the bank's infrastructure to prevent a recurrence of such situations in the future."
She noted that she will continue to cooperate with the Central Bank of Iraq and all participating banks to ensure the provision of continuous and reliable banking services within the "My Account" project to all citizens of the Kurdistan Region.
SOMO: Baghdad has not received a single barrel of KRG oil yet.
The Director General of the State Oil Marketing Organization (SOMO), Ali Nizar Al-Shatri, confirmed that the federal government has not yet received a single barrel of oil from the Kurdistan Region, despite the recent Cabinet decision to receive 230,000 barrels per day.
Al-Shatri said in a televised interview on the "Hadith Al-Youm" program, broadcast on the "Eshan" platform, that production in the region's fields has declined significantly since the Paris court's ruling in 2023 and Turkey's halting of oil flows through its territory, in addition to the drone strikes that targeted some fields.
He explained that production decreased from 2,081,000 barrels per day before the strikes to only about 63,000 barrels afterward.
He added that production has begun to increase again, prompting the Cabinet to approve the receipt of 230,000 barrels per day, 50,000 of which will be allocated for domestic consumption and the remainder for export.
But he stressed, "We have not received a single barrel of oil from the region yet."
In early August, the Ministry of Natural Resources in the Kurdistan Region of Iraq announced that it had reached an agreement with the Iraqi government on the mechanism for oil exports.
The ministry said in a statement, "The agreement was signed by 23 delegations from both sides, including 17 members from the Iraqi Ministry of Oil."
She explained that "the meetings began on July 17, and during this period, all fields in the Kurdistan Region were visited. After assessing the technical issues in many of the discussions, an agreement was reached on August 11 regarding the oil export mechanism."
The ministry added, "After securing and collecting 50,000 barrels of oil to meet local needs, the remainder will be delivered to the State Oil Marketing Organization (SOMO) for export."
SOMO: Baghdad and Erbil Reach Have a Good Understanding on Oil Exports
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Ali Nizar, Director of Iraq’s State Organization for Marketing Oil (SOMO), announced on Sunday, 7 September 2025, that the Iraqi government and the Kurdistan Regional Government (KRG) have a good understanding regarding the resumption of oil exports from the Kurdistan Region through Türkiye.
Nizar explained that Baghdad has agreed to reduce the Kurdistan Region’s daily export quota from 400,000 barrels to 230,000 barrels—or even less—due to declining production levels in the region. He added that another key element of the talks concerns international oil companies, which require guarantees to continue operating safely and to resolve outstanding disputes. “If these issues are addressed soon, it will benefit the region and help end the conflict,” Nizar said.
However, oil and energy expert Bahjat Ahmed told PUKMEDIA that no final agreement has yet been reached. He argued that delays are partly due to oil companies “acting against international business principles and becoming entangled in political conflicts,” which has complicated progress.
Ahmed stressed that, under existing contracts, oil companies have no authority to interfere in export arrangements through Türkiye’s Ceyhan port or in Baghdad’s agreements with Erbil.
Oil exports from the Kurdistan Region remain suspended, despite being one of the main points under negotiation between Baghdad and Erbil.
The disputes between Baghdad and Erbil have persisted for more than three years, with no agreement reached on resuming oil exports. This ongoing deadlock has had direct consequences for public sector salaries in the Kurdistan Region.
In the past eight months, the federal government has transferred funds for only six salary payments, while the fate of two additional payments unresolved.
The Baghdad-Erbil agreement and oil companies encourage Türkiye to open the Ceyhan export pipeline.
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A report by TRT World news website discussed Turkey's aspirations for the success of the ongoing negotiations to resume Kurdistan Region oil exports between Baghdad, Erbil, and international oil companies operating in the region. The report indicated that Turkey would be prepared to restore the Iraq-Turkey Ceyhan export pipeline to full capacity, expand cooperation between the two countries in the field of natural gas, and support the "Development Road" project as a corridor for energy products.
"We are seeking to take both the energy transition and our long-standing relations with Iraq to a new level," Turkish Deputy Minister of Energy and Natural Resources Ahmet Berat Cankar said during his participation in the Baghdad International Energy Forum on Saturday.
The report, based on the Turkish official's statements, indicates that Turkey sees greater potential for energy cooperation with Iraq and is closely following efforts to restart oil flows and pumping through the Iraq-Turkey-Ceyhan pipeline.
"The Kirkuk-Ceyhan pipeline has been operating since the 1970s. There has been recent talk of the imminent resumption of oil flows. We are closely following this with Iraq," the Turkish Deputy Minister of Energy and Natural Resources said at the Baghdad International Energy Forum.
Noting the importance of energy relations between Turkey and Iraq, Cankar said, "We were told that negotiations between international oil companies operating in the Kurdistan Region, the Kurdistan Regional Government, and the central government in Baghdad are nearing completion. God willing, once these issues are resolved, we expect the pipeline to be fully utilized."
He added that the Iraq-Turkey-Ceyhan export pipeline could be developed from a broader perspective, noting that the two countries are also negotiating cooperation in the fields of natural gas, electricity, and the "Development Road" project as a corridor for energy products.
"The potential for energy project activity in Iraq is much greater than in the past," said Jonkar, stressing that efforts are ongoing to build the necessary infrastructure. He pointed out that the goal is to make energy cooperation between the two countries a driver of stability and prosperity, enabling a more confident outlook for the future.
John Harris, CEO of British Gulf Keystone, a member of the APICORP group of international oil companies operating in the region, stated earlier this month that oil companies are looking forward to reaching an agreement with Baghdad and Erbil to resume the region's oil exports through the Iraq-Turkey-Ceyhan export pipeline. Harris said that his company and other companies operating in the region continue to engage with relevant authorities in Baghdad and Erbil to find a solution that would allow the resumption of crude exports from the region's fields through the Ceyhan pipeline.
Harris explained, "We continue to engage with the relevant government agencies on negotiations to resume KRG oil exports, and in the coming weeks we will witness increasing momentum towards reaching a solution."
These discussions follow a visit by a delegation from the Iraqi Ministry of Oil and SOMO to the Turkish port of Ceyhan in August, where the Iraqi side completed technical procedures and reached an understanding with Turkey regarding the resumption of KRG oil exports.
The Baghdad International Energy Forum kicked off on Saturday, September 6, with a wide official and international presence, under the patronage of Prime Minister Mohammed Shia al-Sudani, and with the participation of the Secretary-General of OPEC and a number of other officials.
The forum comes at a sensitive time for global markets, amid discussions about price stability, the future of oil and gas, and the transition to alternative energy. The Iraqi Prime Minister highlighted the importance of holding the energy forum with broad international participation, considering it a vital platform for discussing global issues affecting market stability and ensuring energy security. He explained that the Baghdad International Energy Forum 2025 is an opportunity to highlight Iraq's growing role in the energy sector and strengthen its position as a founding member of OPEC and a major exporter in the global oil market.
It is worth noting that oil exports via the Iraq-Turkey Ceyhan pipeline have been suspended since March 2023, following a decision by the International Chamber of Commerce in Paris (ICC) to halt independent oil sales from the region. Oil exports have always been a point of contention between the three parties: Baghdad, Erbil, and international oil companies operating in the region, negatively impacting economic stability and development in the region and Iraq in general.
From TRT World
Sudan announces its position on the committee's report and Kurdistan's salaries
The Iraqi prime minister met with the Iraqi government's negotiating delegation and welcomed the joint document between Erbil and Baghdad.
Iraqi Prime Minister Mohammed Shia Sudani met with the Iraqi government's negotiating delegation in Baghdad on Sunday to discuss the distribution of revenue between Erbil and Baghdad.
The Iraqi delegation has handed over the joint document prepared with the Kurdistan delegation to Sudan, Kurdistan Workers Party (PKK) media reported.
A senior Iraqi government official said Sudan had received the report from the delegation, liked it and said he would read it and answer his position.
According to the news, the meeting was also attended by a senior Sudanese advisor, who is a legal man and legal expert, his attitude so far in the negotiations with Erbil has been good.
A condition hinders the Baghdad-Erbil agreement, and al-Sudani awaits a decision.
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An informed government source revealed, on Sunday (September 7, 2025), the latest details regarding the Kurdistan Regional Government delegation's discussions with the federal government, stressing that reaching a comprehensive agreement is still pending on a condition that has not yet been decided.
The source told Baghdad Today, "There is only one condition that is still obstructing the process of reaching an agreement, which is Finance Minister Taif Sami's request to hand over 50% of the federal and non-federal revenues that the region receives." He added, "The oil export issue has been resolved, as has the agreement to hand over half of the local revenues, and a commitment to begin localizing salaries. However, the regional government has not yet agreed to hand over 50% of all internal revenues, which include traffic, customs, taxes, electricity, health, water, and other revenues. Erbil, meanwhile, insists on limiting the commitment to handing over 50% of port revenues and federal revenues only."
Earlier today, Kurdish media reported that the Iraqi government's negotiating delegation submitted the minutes and results of its meetings with the Kurdistan Regional Government delegation to Prime Minister Mohammed Shia al-Sudani, in preparation for a final decision on the fate of this year's salaries.
A source in the Kurdish Ministry of Finance and Economy said, "The Iraqi delegation met with the Sudanese Prime Minister to discuss the details of the discussions held with the regional delegation. It is expected that the Sudanese Prime Minister will decide on the mechanism for distributing non-oil revenues and delivering them to Baghdad."
While attention is focused on Al-Sudani's decision, employees in the region are anticipating whether this thorny issue will lead to a practical breakthrough, or whether the dispute over revenues will keep the salary crisis unresolved indefinitely, according to observers.
Steve Lutes: US companies are ready to support economic diversification in Kurdistan.
The Vice President of the American Chamber of Commerce, Steve Lutes, confirmed that the Prime Minister of the Kurdistan Region, Masrour Barzani, seeks to diversify the economy in Kurdistan, stressing that American companies are ready to cooperate in this field.
A delegation from the American Chamber of Commerce, comprising more than 30 companies, is currently visiting Erbil to invest in various sectors within the Kurdistan Region.
Steve Lutes told Kurdistan 24 on Sunday that the delegation is not only listening to economic opportunities from officials, but is also seeking to connect with local businesspeople, with the goal of finding new partners and increasing trade and investment activity in the Kurdistan Region.
"Kurdistan Regional Prime Minister Masrour Barzani is focused on diversifying the economy, and we believe American companies will be able to seize these opportunities and contribute to achieving this goal," Lutz added.
Trump: I warned Hamas about the consequences of not accepting a deal, and this is my final warning.
Trump added to reporters: The Israelis agreed to my terms, and now it is Hamas's turn to agree as well.
He explained, "We demand the release of prisoners and their return from Gaza to their homes, and we all demand an end to this war."
Hamas: We are ready to sit down immediately at the negotiating table to discuss the release of all prisoners in exchange for a clear declaration of an end to the war.
Hamas said in a statement: We received ideas from the American side through mediators to reach a ceasefire agreement.
It added: We welcome any move that helps the efforts made to stop the aggression.
Hamas confirmed: We are ready to negotiate the release of prisoners in exchange for ending the war, a complete withdrawal, and the formation of an independent committee to manage the Gaza Strip.
It explained: A guarantee must be provided that the enemy will publicly and frankly commit to what will be agreed upon so that previous experiences are not repeated.
It stressed that the movement is in continuous contact with the mediators to develop the ideas presented by the American side for a comprehensive agreement that meets the demands of our people.
Araqchi: Iran agrees to enrichment restrictions in exchange for lifting sanctions
Iranian Foreign Minister Abbas Araqchi confirmed in an article published in the British newspaper The Guardian that Tehran is ready to reach a "real agreement" that includes restrictions on uranium enrichment in exchange for the lifting of Western sanctions imposed on it.
Araghchi stressed that missing this "brief opportunity" could have dire consequences for the region and the world, calling for giving diplomacy sufficient time to achieve satisfactory results.
In another part of his article, the Iranian foreign minister referred to his country's military capabilities, saying that the Iranian armed forces "are capable of defeating Israel," and that the latter "will have to seek aid from the United States."
Araghchi explained that Iran does not seek escalation, but at the same time, it will not compromise in defending its sovereignty, warning that the alternative to a diplomatic path would be further tension and instability in the Middle East.
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