Central Bank Presents Dollar Reform Plan to U.S. Does it Pass?

The Central Bank Governor discusses with the American side support for monetary stability.

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The Governor of the Central Bank of Iraq, Mr. Ali Mohsen Ismail Al-Alaq, received the Chargé d'Affaires of the United States Embassy in Iraq, Mr. Josh Harris. They discussed prospects for strengthening the strategic partnership between the two countries and emphasized the importance of supporting monetary and economic stability, in line with the requirements for political and security stability in Iraq.

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For his part, the Governor expressed his gratitude for the continued support provided by the United States, represented by the Treasury Department and the Federal Reserve, particularly during the quarterly meetings. He also reviewed the banking reform plan and the notable progress made in stabilizing foreign exchange transactions and regulating dollar sales according to best practices and international standards.

At the conclusion of the meeting, Mr. Harris expressed his full readiness to continue supporting the efforts of the Central Bank of Iraq, enabling it to achieve its goals in promoting financial and monetary stability.

 

Central Bank of Iraq, 
Media Office, 
February 5, 2026

 

this is an article 

The Central Bank presents its plan to the US Embassy to regulate dollar sales

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Harris and Al-Alaq meeting

The Governor of the Central Bank of Iraq, Ali Al-Alaq, discussed with the US Chargé d'Affaires, Joshua Harris, on Thursday (February 5, 2026), supporting monetary stability in line with the requirements of political and security stability in Iraq. Harris praised the significant reform developments pursued by the Central Bank of Iraq. It was also emphasized that “financial security” is the main driver of political stability in the country, with a comprehensive review of the successes of the “reform plan” led by the bank to regulate dollar sales and foreign transfers.

The media office of the Central Bank of Iraq stated in a statement received by 964 Network that “His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Ismail Al-Alaq, received the Chargé d'Affaires of the Embassy of the United States of America to Iraq, Mr. Josh Harris, where they discussed prospects for strengthening the strategic partnership between the two countries, and emphasized the importance of supporting monetary and economic stability, in line with the requirements of political and security stability in Iraq.”

The statement explained that “Mr. Harris affirmed the United States’ keenness to strengthen its relations with Iraq, and to support everything that would consolidate stability and keep the country away from any factors that might contribute to destabilizing its situation.”

The statement affirmed that Harris “praised the significant reform developments undertaken by the Central Bank of Iraq, and the distinguished and productive relationship it maintains with the US Treasury Department and the Federal Reserve.”

The statement continued, “For his part, His Excellency the Governor expressed his thanks and appreciation for the continued support provided by the United States of America, represented by the Treasury Department and the Federal Reserve, especially during the quarterly meetings, while reviewing the banking reform plan, the remarkable progress in stabilizing foreign transfer operations, and regulating the sale of dollars in accordance with best practices and international standards.”

He added that “at the end of the meeting, Mr. Harris expressed his full readiness to continue supporting the efforts of the Central Bank of Iraq, enabling it to achieve its goals in promoting financial and monetary stability.”

The general budget law: Can it be issued in the event of a constitutional vacuum?

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 A financial advisor confirmed that the 2026 budget law can be issued in the event of any constitutional vacuum, after consulting the opinion of the Supreme Federal Court.

The Prime Minister’s financial advisor, Mazhar Muhammad Salih, explained on Thursday that government spending will continue according to the (1/12) rule until the 2026 budget is approved, while noting that the monthly salaries of employees, retirees and welfare amount to 8 trillion dinars.

Continuation of fiscal policy

Saleh said : “The fiscal policy has been carrying out its duties since the second month of this year 2026 in accordance with the provisions of the amended Federal Financial Management Law No. (6) of 2019, by spending at a rate of (1/12) of the actual current public expenditures for the year 2025.”

He explained that “public finances benefit from the provisions of paragraph (29) of the aforementioned law, which allows the financial authority to adopt temporary financing mechanisms and liquidity management in the event that spending cannot be carried out according to the legally legislated regular budget.”

He added that “the aforementioned provisions confirm the principle of temporary financing in the event of a delay in the approval of the budget law or a temporary shortage of liquidity necessary for spending. This allows the Ministry of Finance to take transitional financial measures that ensure the continued disbursement of priority expenditures without delay. Foremost among these are salaries, wages, pensions and social welfare allocations, which are estimated at about eight trillion dinars per month.”

The possibility of issuing the general budget law

Regarding the possibility of legislating the budget law in the event of a failure to elect a president, Saleh explained that “this is a rare occurrence, but it may impose itself due to the necessities of the supreme national interest, especially since the House of Representatives is the constitutional body competent to legislate the budget law. In this context, the possibility of issuing the 2026 budget law can be considered after consulting the opinion of the Supreme Federal Court, as it is a constitutional court specializing in resolving the problems of parliamentary sessions, especially in cases of the complete absence of the president.”

He also pointed out that “the President of the Republic, Abdul Latif Jamal Rashid, and the Prime Minister, Mohammed Shia Al-Sudani, are still in a position of legal responsibility at the moment, which allows, in principle, the request to prepare a draft of the federal general budget law and submit it to the House of Representatives to begin the legislative process, if the elected legislative authority wishes to do so.”

The Ministry of Finance denies that the treasury is empty or that there will be no salaries for employees next month - Urgent

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The Ministry of Finance denied on Friday that the treasury was empty of funds or that there would be no salaries for employees next month.

The Ministry of Finance stated in a statement received by (Al-Rabia): “We categorically deny the validity of what has been circulated on some social media sites regarding the statement that there will be no salaries next month or that the treasury is empty of funds.”

The ministry confirmed that "this information is false and was not issued by any official body," stressing that "the salaries of employees and retirees are secured and are disbursed according to the approved procedures and timings, and there is no truth to what is being reported by biased channels and websites."

The ministry called on citizens and the media to "rely on official sources for information and not to be swayed by rumors or unreliable pages that aim to stir up anxiety and confusion in public opinion."

Iraq achieves a leap in gold reserves: third in the Arab world and 28th globally

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The latest official global gold reserves data for February 2026 revealed that Iraq has made new progress in the ranking of gold-owning

countries, after raising its reserves of the yellow metal to more than 174 tons, advancing to 28th place globally instead of 29th.

According to the data, Iraq’s gold reserves reached 174.6 tons, compared to 170.9 tons in the previous month, representing 24.6% of the country’s total foreign currency reserves, a clear indication of Iraq’s growing reliance on gold as a hedge and a support for monetary stability amid global economic fluctuations.

Globally, the United States continued to top the list with a huge reserve of 8,133 tons, followed by Germany with 3,350 tons, then Italy in third place with 2,451

tons, France in fourth place with 2,437 tons, while Russia came in fifth with a reserve of 2,326 tons.

As for the Arab countries, Saudi Arabia topped the list of Arab countries with a reserve of 323 tons, followed by Lebanon with 286 tons, while Iraq came in third

among Arab countries with a reserve of 174.6 tons, ahead of a number of other Arab countries.

The data showed that Iraq continued to bolster its gold reserves during 2025, purchasing one ton in March, 1.6 tons in June, 3.1 tons in July, 2.5 tons in August, and 3.8 tons in October, in a policy that reflects a growing trend towards strengthening safe assets and supporting financial stability.

Dollars, politics, and factions: Pressure points surround the anticipated cabinet.

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Baghdad/Al-Masalla: According to sources contacted by Al-Masalla, the coordination framework must act today under the pressure of a delicate political equation that seeks to spare Iraq American anger that could quickly turn into economic and political sanctions, in exchange for showing a higher degree of rationality in the process of forming the next government, at a time when unannounced signals are intensifying regarding red lines related to the shape of the cabinet and its balances.

In Baghdad, political leaks and diplomatic readings converge to confirm that any government perceived as being close to armed factions will quickly lose international cover. This puts the forces involved in the coordination framework to the test of managing influence without provoking external partners, especially with an economy that depends on oil revenues for more than 85 percent of its income and a financial system that is highly sensitive to sanctions.

In parallel, there is growing concern within political circles that any potential American escalation could directly affect the dollar, the exchange rate, and import activity, which opens the door to social unrest that is difficult to contain, at a time when state institutions are still suffering from fragility that has accumulated over the years.

On social media, a political analyst on the X platform said, “The messages are clear to anyone who wants to read them. Washington is not compromising on the form of government this time, and any disregard could bring back the scenario of financial pressure.” Conversely, a political activist wrote on Facebook, “Iraq cannot tolerate a Saddam-era government; pragmatism has become a necessity, not an option.”

Within the coordination framework, unannounced assessments speak of efforts to present a government with a calmer facade, while reducing the political appearance of the factions, in an attempt to buy time and avoid a direct confrontation, amid a growing realization that the phase of gray settlements is nearing its end.

It appears that Iraq is at a pivotal moment, where the form of government becomes a message in itself, either reassuring the outside world and providing relative internal stability, or a costly gamble that could return the country to a cycle of pressure and isolation.

The US State Department: We will use all our tools to prevent Maliki's return.

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The US State Department revealed on Thursday evening a firm and strongly worded position regarding the upcoming political alliances map in Iraq, stressing that the US administration is prepared to use "a full range of tools" to ensure the implementation of President Donald Trump's vision regarding the Iraqi issue.

In a special and exclusive response to Shafaq News Agency, the US State Department spokesperson conveyed a direct warning against repeating past governance scenarios, indicating that current US policy requires an Iraqi government capable of working "effectively and respectfully" with the United States.

The State Department spokesman also relayed President Trump's warning, which read: "The last time Maliki was in power, the country slid into poverty and chaos... That should not be allowed to happen again."

The American response continued, quoting Trump, that the policies and ideologies he described as "crazy" would lead, if Maliki were re-elected, to a complete cutoff of American aid, warning that "if the United States is not there to help, Iraq will have no chance of success, prosperity, or freedom."

The State Department spokesman concluded by saying, "We have clearly communicated these intentions to the Iraqi political leadership," stressing that Washington is prepared to use "the full range of tools" to enforce this policy and prevent a repeat of governance experiences that harm common interests.

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Waiting for the "fatal mistake"

 

35,000 American soldiers surround Iraq: They will not hesitate to "take control of Baghdad" if it takes this step!

 

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With rising tensions between Iran and the United States, and increasing talk of the possibility of the confrontation expanding from a war of mutual strikes to a wider clash, notable warnings emerged from Iraqi military expert Alaa al-Nashou , who warned that any use of long-range missiles by Iraqi factions against American forces or interests could open the door to a "new occupation of Iraq," in light of a large American military buildup surrounding the region.

These warnings coincide with international press reports about the transfer of Iranian missiles to Iraqi factions, with the monitoring of an unprecedented American naval and air buildup near Iran and Iraq, and with parallel discussions about the possibility of Yemen becoming a new ground operations arena, which puts Iraq at the heart of a complex regional equation in which it could slip back into the forefront of confrontation if the scope of the clash widens.

Iranian long-range missiles on Iraqi soil?

Western newspapers reported intelligence indicating that Iran, for the first time, supplied Iraqi armed factions with long-range surface-to-surface missiles, in a move interpreted as part of an advanced deterrence strategy in case Tehran is subjected to a large-scale American or Israeli strike.

According to these leaks, some of these missiles were stored at sites inside Iraq and possibly in other countries in the region, with the aim of providing a rapid response capability against American and Israeli bases or targets, while reducing the need to launch missiles from Iranian territory itself. This scenario, if accurate, means that any decision to escalate missile attacks will not be isolated from Iraqi territory, but could be implemented from within Iraq or through factions politically and militarily affiliated with it.

The situation became even more complex and dangerous about a week ago when some factions announced the establishment of what they called an "underground missile city" inside Iraq, showcasing missile capabilities buried deep underground that are difficult to detect or target with a single strike. This announcement, regardless of the accuracy of its field details, adds a new layer of anxiety; it reinforces the image of Iraq in the eyes of the United States as a potential missile launchpad in any major confrontation, and simultaneously increases the likelihood of it becoming a direct target should a decision be made to respond to or curtail these capabilities militarily.

From here, Alaa Al-Nashou poses a critical question: If long-range missiles are launched from Iraqi territory towards American targets, will all of Iraq be treated as a “hostile platform” justifying a broader military intervention?

US military buildup encircles Iraq and Iran

The report speaks of a highly complex regional military landscape, including the presence of large US naval groups in the northern Arabian Sea, the Red Sea and the eastern Mediterranean, advanced fighters of various types stationed at air bases spread across the countries of the region, and ground forces ready to move.

The military expert adds that “approximately three Marine divisions have been brought in, meaning that about 35,000 American soldiers are now present in American bases surrounding Iraq and surrounding Iran,” as he put it, explaining that this size of deployment is not only aimed at directing air or missile strikes, but also creates the possibility of moving part of these forces to ground operations if the political and military doors are opened for that.

It is true that the public American political discourse focuses more on “deterrence and pressure” than on “full-scale invasion” as happened in 2003, but the reading of the escalation stems from experience with the Iraqi reality: whenever the country turns into a shooting range for Americans, Washington becomes more willing to exploit this reality to justify expanding the military presence and imposing new security realities on the ground.

Warning of a "new occupation" and rules of engagement

In the widely circulated intervention, Alaa Al-Nashou links three key elements:

Arming the factions with long-range missiles, as reported by Western press reports.

-The current US military buildup around Iraq and Iran, including naval and air forces and Marine Corps units.

-American control over the rules of engagement in the region, meaning that most air and sea fire lines today pass through an American decision or are under direct American supervision.

Al-Nashou concludes that “if what has been published is true, and Iraqi factions proceed to use these missiles against the United States, then this will be a recipe for a new occupation of Iraq,” expecting that Washington will use such an attack to justify the introduction of additional ground forces under titles such as “protecting American forces and interests” or “preventing Iraq from becoming an Iranian missile platform.”

In his view, “America today controls the rules of engagement,” and there is virtually “no major front line in the region outside of American will,” meaning that any ill-considered decision from within Iraq could once again plunge it into the heart of a battle whose rules are drawn outside its borders.

Yemen as a parallel front in American calculations

The scenario is not limited to Iraq, but indicates that part of these forces could be used in ground operations in Yemen, following waves of airstrikes targeting sites belonging to the Ansar Allah group, and repeated talk about the need to "secure navigation" in the Red Sea and the Gulf of Aden.

According to this interpretation, Yemen may become the first testing ground for broader ground operations, supported by allied local forces, while the possibility of expanding operations to other countries – including Iraq – remains, if the fronts overlap and different Arab territories are used to put pressure on the United States or to target its interests.

Modern US weapons and the "post-Maduro" scenario

In addition, warnings are increasing in military and strategic circles about the qualitative development in the modern American weapons system, especially those that have been tested or brandished in sensitive cases such as Venezuela during the Nicolas Maduro crisis, where Washington sought to establish a new model in conflict management based on a combination of crippling sanctions, naval blockade, intelligence pressure, and the threat of using long-range precision strikes without the need for a full-scale ground invasion.

This pattern of thinking makes the “occupation” in its new form less dependent on tanks entering the capital, and more based on paralyzing command and control centers, targeting vital infrastructure, and supporting loyal local forces on the ground, thus turning the targeted state into an open space for foreign influence without a formal declaration of occupation.

Hence the danger of repeating this scenario in Iraq if its territory turns into a platform for factions’ missiles against the United States; as Washington could find in that an opportunity to employ its technological superiority and its air, naval and electronic weapons to impose new security realities, under the slogan of “protecting forces and interests” or “preventing the repetition of the Maduro model in the Middle East,” while the Iraqis pay the price for a battle whose tools are moved from outside their borders.

Between "full occupation" and "expanding the military presence"

Alaa Al-Nashou’s warnings do not necessarily mean that Washington is heading towards repeating a carbon copy of the 2003 invasion, but they highlight a wider range of options, starting with expanding existing military bases and tightening their procedures, passing through deploying special forces and rapid response forces in larger numbers, imposing closed military zones or “safe corridors” in some provinces, and ending with imposing a kind of “undeclared security tutelage” over the Iraqi decision, through political and economic pressure.

In this case, armed action from within Iraq – especially if long-range missiles are used – becomes a decisive factor in pushing Washington towards more aggressive options, even if it does not reach the level of a full-scale invasion in the traditional sense of the word.

What does all this mean for Iraq today?

Reading the current situation places Iraq at a clear crossroads: either it maintains a reasonable distance from the missiles of a "major war" and prevents its territory from becoming a platform for strategic clashes between America and Iran, or it slips—intentionally or through miscalculation—into the arena once again, with all the risks this entails for its sovereignty, the unity of its institutions, and its economic and security situation.

The essential message in these warnings is that whoever decides to exert missile pressure on the United States may not be the same person who bears the cost of the reaction on the ground. The real cost will be paid by the state, society, economy, and ordinary Iraqis if the door is opened to a broader military presence, under any name.

Indonesia's historic growth exceeds expectations amid geopolitical challenges and currency pressures

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According to official figures released on Thursday, the Indonesian economy experienced a strong recovery in 2025, becoming the largest economy in Southeast Asia with a growth rate of 5.11 percent, surpassing the previous year's performance and achieving the fastest annual growth rate since 2022, thanks to a combination of strong consumer spending and massive investments. 

 

These results were driven primarily by an exceptional performance in the last quarter of the year, which recorded growth of 5.39 percent, exceeding analysts’ expectations of only 5.01 percent, as a result of the financial stimulus packages injected by the government worth more than 16 trillion rupees, which included direct support measures such as rice distribution and tax exemptions for the tourism sector.

Despite these positive figures, which bolster President Prabowo Subianto's ambitions to achieve 8 percent growth by 2029, the landscape is not without significant challenges, including international trade tensions, US tariffs, and declining foreign investor confidence. This growth coincided with shifts in fiscal and monetary policy, including a 150-basis-point interest rate cut and a leadership change at the Ministry of Finance, with Purbaya Yodi Sadiwa replacing Sri Mulyani Indrawati. This move triggered market turmoil, leading to capital outflows and a record low for the rupee against the dollar due to concerns about transparency and the budget deficit.

While the government is targeting 5.4 percent growth for 2026, relying on sovereign wealth fund investments and public spending programs, skeptical voices from economists and local research centers are emerging, pointing to a gap between official data and the reality on the ground. Their doubts are based on contradictory indicators such as declining tax revenues, stagnant foreign investment, falling car sales, and a contraction in industrial activity, in addition to reports of layoffs that may suggest the announced household spending figures are inflated and do not reflect the true economic situation of citizens.

Iran's Revolutionary Guard seizes two ships carrying smuggled fuel

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Iranian state media reported on Thursday that the Iranian Revolutionary Guard had seized two ships in the Arabian Gulf carrying more than one million liters of smuggled fuel.

She added that the crews of the two ships consisted of 15 foreigners and that they had been referred to the judicial authorities.

This comes as diplomats seek to hold nuclear talks between Iran and the United States amid warnings from US President Donald Trump that "bad things" could happen if an agreement cannot be reached, with US warships heading near the Iranian coast.

Tensions continue between the United States and Iran. US President Donald Trump expressed hope for reaching an agreement with Iran after Supreme Leader Ayatollah Ali Khamenei warned that any attack on Tehran would trigger a regional war.

Trump has been threatening military action against Tehran for weeks in response to the crackdown on recent protests. Washington has reinforced its forces in the Middle East and deployed the aircraft carrier USS Abraham Lincoln to the region.

The reinforcements raised concerns among regional countries about the outbreak of a war that would exacerbate the 

The International Development Bank participates as a Diamond Sponsor of the 49th Baghdad International Fair

We at the International Development Bank are pleased to share with you moments of success and distinction from the 49th Baghdad International Fair.  The bank provided diamond sponsorship for the event, reflecting our unwavering commitment to supporting the country's development and prosperity by supporting the most prominent economic event in Iraq.

Since the first day, February 1, 2026, our distinguished booth has welcomed all our valued visitors from both the individual and corporate sectors. We provided them with an overview of our ambitious vision and our role in supporting the Iraqi economy, and we witnessed significant interaction from attendees.

At the International Development Bank, we are committed to providing innovative banking solutions that meet the aspirations of both individuals and businesses. Whether you are looking for opportunities to save your money, flexible financing solutions for your small and large projects, or digital banking services that keep pace with the latest technologies, we are here to offer you the best throughout the fair, from February 1 to 7, 2026.

From dollar to dinar... Exchange rate policy confuses

From dollar to dinar... Exchange rate policy confuses oil companies and threatens their employees!

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The Central Bank of Iraq's decision to convert payments to contractors working with oil companies from US dollars to Iraqi dinars has sparked widespread controversy in economic circles. This comes amid warnings of potential financial and operational repercussions for subcontractors, the labor market, and the stability of the oil sector.
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Experts believe that continuing with this mechanism could impose additional financial burdens on companies that rely on dollars for their transactions, impacting their operational capacity and business continuity.
Economic expert Nabil al-Marsoumi stated in a tweet that "more than 200 Iraqi companies contracted with oil licensing companies, employing over 50,000 Iraqi workers, are threatened with significant financial losses and layoffs due to the Central Bank's directive to disburse their payments in dinars at the official rate—even though their contracts and expenses are denominated in dollars." He explained that "the losses stem from the large difference between the official and parallel exchange rates for the dollar against the dinar," warning of "the collapse of companies due to the exchange rate policy."
For his part, Mahmoud Hassan, a representative of an oil company, stated during a demonstration organized by subcontractors working for an international oil company that "Iraqi companies operating in the oil sector have been facing a crisis for over a year without any solutions," warning of "repercussions that could lead to the collapse of a large number of them."
Hassan explained in a press statement that "the contracting companies, which employ more than 40,000 Iraqi workers, are under financial pressure after receiving their payments at the official rate of 131,000 dinars per $100, while the parallel market rate is around 155,000 dinars." He emphasized that "the difference is causing direct losses." He added that "the continuation of this situation will force companies to reduce their operations and lay off workers, and may lead to their complete shutdown," noting that "a number of them have already begun to be unable to pay salaries."
Hassan called on the Central Bank to "intervene urgently to find a solution that takes into account the nature of these companies' work and their obligations," warning that "the continuation of the crisis will negatively impact the oil sector and the labor market."
In Iraq, secondary oil companies operate—varying from project to project—and undertake the execution of service, supply, maintenance, construction, and transportation works within contracts with local or international oil companies. Contracts are binding on the contracting parties.
In this context, economist Hamza al-Jawahiri stated that "contracts stipulating payment in dollars must be honored," explaining that "payment in another currency constitutes a clear violation of the contract terms." He emphasized that "companies can resort to the competent courts, based on the legal principle that contracts are binding on the contracting parties."For his part, energy expert Ahmed Sabah said that "converting company dues from dollars to dinars may lead to the gradual exclusion of some foreign companies, while focusing on companies that accept dinar transactions." He explained that "many Western companies rely on external supply chains that require payment in dollars to secure equipment and services."
He added that "this measure is not sustainable in the long term, especially given that the current government is a caretaker government, which reduces the chances of implementing decisions with long-term strategic impact." He predicted that "major foreign companies will refrain from expanding or entering into new contracts if this mechanism continues," considering that "the decision may be temporary and subject to change if negative effects emerge on the investment climate or the pace of work in the fields."
Strengthening the Dinar or Market Losses?For his part, economist Dirgham Muhammad Ali believes that “attempts to curb the parallel dollar market have prompted the Central Bank to take measures to bolster confidence in the dinar,” but he noted that these measures “were not fair given the continued gap between the official and parallel exchange rates.” He emphasized that “the policy of forced currency conversion causes losses for traders and deprives the market of a vital channel for the legitimate injection of dollars,” calling for “either the adoption of a fair exchange rate or the creation of a different mechanism for dealing with foreign companies.”
Economic circles warn that the collapse of subcontracted oil companies working with international and local firms will disrupt maintenance, logistics, and equipment operations in oil fields, threatening production stability—in addition to the loss of tens of thousands of jobs, given these companies' reliance on Iraqi labor. This could also weaken supply chains and increase operating costs, prompting some foreign companies to scale back their operations or refrain from new projects, which would negatively impact the oil investment environment and the role of the local private sector.

Al-Marsoumi warns: Central Bank decisions threaten more than 50,000 workers with losses and mass layoffs

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Iraqi economic analyst Nabil Al-Marsoumi warned of serious financial repercussions that could affect local companies contracted with oil licensing companies, stressing that more than 200 Iraqi companies employing more than 50,000 workers are now threatened with large losses that could lead to the dismissal of large numbers of their employees.

Al-Marsoumi explained in a tweet he posted on his Facebook page that these risks came as a result of the Central Bank of Iraq’s directive not to disburse dollar transfers to those companies in dollars, and obliging them to convert them to dinars according to the official rate, even though their contracts were concluded in dollars.

He pointed out that the losses result from the large difference between the official and parallel exchange rates of the dollar against the dinar, noting that companies’ contracts and operating expenses are done in dollars, which exacerbates the financial burdens and threatens the continuity of their work.

It is noted that companies transfer their employees’ dues in dollars, while banks disburse them in Iraqi dinars at the official rate of 131,000 dinars, even though the dollar’s ​​price in the market exceeds 145,000 dinars, which has sparked widespread objections from employees regarding this procedure.

US accepts Iran’s request to move talks from Turkiye to Oman, say reports

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The United States has agreed to Iran’s request to relocate upcoming talks between the two sides from Turkiye to Oman, Axios reported on Wednesday, adding that the talks are expected to be held in Febrauary 6.

Citing an informed source, the report said discussions are still ongoing regarding the possible participation of Arab and Islamic countries in the talks.

Earlier, Iran’s Foreign Ministry spokesperson Esmail Baghaei stated that “the place and time of the talks are not a complicated matter and should not be used as a pretext for media manipulation.” He also revealed that Turkiye, Oman, and other countries in the region have expressed readiness to host the talks, describing this willingness as important for Tehran. 

Evasion" and "Accountability": The Sudanese directs addressing tax "obstacles" facing the private sector until the 2026 budget is approved.

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#Private Sector

Joint committee to unify tax procedures with Kurdistan

The head of the caretaker government of Iraq, Mohammed Shia al-Sudani, directed that the "tax obstacles" facing the private sector be addressed until the general budget for the new year 2026 is approved, as well as the formation of a joint committee with the Kurdistan Region to proceed with the process of unifying tax procedures between the two sides.

 

On Wednesday, February 4, 2026, Al-Sudani chaired a meeting of the Supreme Committee for Tax Reform, in the presence of the Director General of the General Authority for Taxes and its senior staff, and a number of advisors to the Prime Minister in the economic and financial field.

 

A statement from the Sudanese office said that “the meeting discussed the mechanism for unifying tax accounting procedures, the most prominent obstacles facing companies in the tax field, as well as a detailed discussion of the (Tax Accounting) Law, which falls under the tax reform program adopted by the government,” adding that “the meeting witnessed a discussion of the file of unifying tax procedures between the Kurdistan Region of Iraq and the Federal Ministry of Finance, the issue of internal (double taxation), and finding legal solutions and effective procedures for addressing it.”

 

The meeting also discussed the issue of "tax evasion" and "putting forward legal proposals to address this problem, in order to help and encourage companies and investors to adapt their financial and legal status, in addition to discussing the legal solutions offered to resolve the tax problems faced by the private sector."

 

The Prime Minister affirmed the government's commitment to addressing this important issue within an integrated program to maximize non-oil revenues, directing that a draft resolution be prepared and submitted to the Cabinet to address tax obstacles facing the private sector and Iraqi companies, pending the approval of the 2026 general budget law.

 

Al-Sudani also directed the formation of a committee from the Ministry of Finance and the Tax Authority to communicate with the tax institution in the Kurdistan Region in order to reach advanced stages in unifying tax procedures.

International Finance Corporation: Iraq is moving rapidly towards a better economic future

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The resident representative of the International Finance Corporation, Bilal Al-Saghir, confirmed on Wednesday that the investment package launched in Iraq amounts to approximately one million dollars in the energy, health and industry sectors, while noting that Iraq is moving rapidly towards a better economic future. 

Al-Saghir told the Iraqi News Agency (INA): “The institution is concerned with developing the private sector in emerging economies by providing investment services primarily, in addition to consulting services.”

He added that "the investment package launched amounts to approximately one million dollars and relates to providing a range of financial, funding and advisory services to a large number of projects."

He added that "part of these projects are in the energy sector, including gas conversion and preventing its flaring and converting it into energy, while the other part relates to the health, industrial and banking systems," noting that "this comes as a translation of our desire to invest more in Iraq."

He continued: "We will announce a large group of projects very soon," noting that "Iraq is moving forward rapidly towards a better future."

He affirmed that "the organization believes in the ability of Iraq and Iraqis to achieve a sustainable economy," expressing his "happiness to participate in this trip."

Central Bank Governor: Talks with US officials addressed purely technical issues

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Central Bank Governor Ali Al-Alaq confirmed on Wednesday that talks with US officials addressed purely technical issues. 

Al-Alaq said in a message to the American Bloomberg agency, which was seen by the Iraqi News Agency (INA), that "the talks held with the American side in Türkiye dealt with purely technical issues."

He added that "the talks did not touch on matters of another dimension."

 A member of parliament from the Kurdistan Democratic Party reveals the date of the parliamentary session dedicated to electing the president of Iraq.

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Shirwan al-Dubardani, a member of the Iraqi parliament from the Kurdistan Democratic Party, revealed that the parliamentary session dedicated to choosing the new president of the republic will be held next Saturday at the latest, noting that the parliament must announce its agenda 48 hours before the session.

 

Al-Doberdani stated in a statement to the “Al-Jabal” platform on Wednesday, February 4, 2026, that “there are talks among members of parliament about holding the session dedicated to choosing the president of the republic during next Saturday or Monday, but there is greater emphasis on holding it on Saturday, February 7.”

 

Al-Doberdani added that "Parliament should announce its agenda 48 hours before the date of its parliamentary session, and if the session is scheduled for next Saturday, the House of Representatives must announce the agenda during tomorrow."

 

The prevailing political custom in Iraq grants the position of President of the Republic to the Kurdish component, but the lack of agreement among the Kurdish parties regarding a candidate for the position prevents the implementation of the constitutional entitlement, despite the expiration of the constitutional deadline set for the process of choosing the new president on January 28th.

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An expert responds to the customs statement regarding "increased revenues after implementing ASYCUDA": It decreased by 52%

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Economic expert Nabil Al-Marsoumi indicated on Wednesday, February 4, 2026, a decrease in customs revenues by 52% after the implementation of the ASYCUDA system, in response to a statement by the Iraqi General Authority of Customs, which indicated that customs revenues had increased after the implementation of the ASYCUDA system.

 

Al-Marsoumi said in a post followed by “Al-Jabal”, “The General Authority of Customs said that customs revenues have increased after the application of ASYCUDA, as they reached 137 billion dinars in January of this year, while the same authority had previously published its revenues for 2025, and they amounted to two and a half trillion dinars, meaning that the monthly average of customs revenues was more than 208 billion dinars last year, and this means that customs revenues for last month have decreased by about 71 billion dinars compared to the monthly average achieved last year, with a decrease of 52%.”

 

Earlier today, the Iraqi Customs Authority announced that customs revenues had risen to more than 137 billion dinars during the first month of 2026.

 

The Customs Authority announced in a statement carried by the official news agency that revenues had increased to more than 137 billion dinars during the month of January.

 

The authority added that "revenue details have increased after Decision 957 came into effect in all customs centers," adding that "revenues are expected to increase during the coming months after reducing the value rate percentages for prices in the ASYCUDA system to 25%, with directives to exempt accumulated goods from additional fees and to expedite procedures in customs centers."

Inflation and salary delays shrink Iraqi women’s beauty spending

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Iraqi women are cutting back sharply on cosmetics as rising prices, delayed salaries, and stagnant incomes squeeze household budgets. Dressing tables once filled with perfumes and makeup now hold only basic items, reflecting a broader shift toward necessity spending.

Inflation has pushed cosmetics from routine purchases to discretionary extras. Many women describe reprioritizing essentials as living costs climb. “Stretch your legs only as far as your blanket allows,” Ikhlas Salman, 29, told Shafaq News. Earning 800,000 dinars ($537) a month at a state ministry —a salary unchanged for seven years— she said prices have “completely transformed,” forcing her to opt for cheaper substitutes.

Delayed public-sector wages have intensified the strain, amplifying price hikes across markets, including beauty products. New government taxes and customs fees on telecom cards, internet services, and other goods, introduced to boost non-oil revenues, have added to costs. Low-income public employees appear most affected, burdened by water, electricity, internet, neighborhood generators, and basic family expenses.

Speaking to Shafaq News, Asmaa Khudair noted that a skin ointment she used more than doubled in price, prompting a switch to a cheaper alternative that proved ineffective. University student Mariam Karim, meanwhile, warned that counterfeit cosmetics are spreading as prices climb. Original cosmetics, she explained, are now prohibitively expensive, while imitation brands carry health risks.

For Thuraya Bassem, non-essentials have vanished as her vanity now holds only lipstick, eyeliner, and one perfume. “Repeated salary delays are pushing families into debt between pay cycles,” she added.

Lower-cost cosmetics shops and whitening mixtures have multiplied in popular neighborhoods, fueled by social media marketing. Beauty specialist Hiba Kamal told Shafaq News that demand for original products, such as hair dyes and shampoos, has dropped sharply. Salon hair-dye services in modest areas rose from about 40,000 dinars ($27) to over 60,000 ($40), she said, cautioning that higher prices are encouraging counterfeit or smuggled goods without medical oversight.

Economic analyst Khaled Al-Jaberi described the market as sliding into “slow economic fragmentation,” with the middle class absorbing most of the impact. Weak regulation, he argued, has allowed low-quality products to flood the market, driven by short-term profit behavior, poor enforcement, and falling incomes. Reliance on taxes and fees in a fragile economy, he added to Shafaq News, deepens pressure on livelihoods and expands the informal sector. “The issue isn’t trade,” he said, “but taxation without production and consumers left unprotected.”

Retailers cite higher shipping costs and recent tax decisions as immediate triggers for price increases. One shop owner, speaking anonymously to our agency, said some traders have paused imports while awaiting clearer guidance, pushing distributors to raise prices on existing stock. Bureaucratic delays, complex paperwork, and slow money transfers have also disrupted imports, risking spoilage, especially for heat-sensitive cosmetics.

Trump and Iraq: The monarchy is Washington's idea, and the solution is Fuad Hussein.

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Aras Habib and a surprise about Maliki

 

The Secretary-General of the Iraqi National Congress Party, Aras Habib, returned  to gathering information about the latest Iraqi developments, according to which the American envoy, Tom Barak, now supports “changing the Iraqi regime and restoring the monarchy,” without this meaning “permanent ruin” of the relationship between Nouri al-Maliki and Donald Trump, as Foreign Minister Fuad Hussein can “play an important role in saving the situation,” according to his expression about this minister (a prominent Kurdish leader, and also a Shiite), as he says, in an interview with journalist Samer Jawad.

Aras Habib:

“Safaya” is a million times more merciful than “Tom Barrack,” who said at a meeting in Turkey that “democracy is not suitable for Iraq,” and that it should have a monarchy similar to the system of the Kingdom of Saudi Arabia. Here we say that it is in Iraq’s interest to make a distinguished relationship with Tom Barrack to save the country.

America has conditions for Iraq, and everyone should know them. These conditions are that the factions be dissolved and integrated into the Popular Mobilization Forces, that weapons be in the hands of the state, that all ballistic missiles be destroyed inside Iraq, and that Iraq not interfere in the affairs of others.

What prompted Trump to tweet was a “tattling” that came out of Syria, and based on it, Trump took a position against Mr. Maliki. The tattling was a file full of all of Mr. Maliki’s statements in the recent period, and it is possible that Trump’s opinion towards Mr. Maliki will change in the coming period.

Trump’s opinion can be changed through negotiations, and the best person to negotiate with him from among the Iraqi figures is Mr. Fuad Hussein, as we do not have a person in Iraq with the qualifications and deep connections in negotiation like him.

We Shiites do not know what we want, and I would like to ask who is the negotiator for the framework? With all due respect to them, they do not have any negotiator, and throughout all these years they have not had a lobby in America to make a direct relationship with the president, and I do not know what they are waiting for? Since 2003 until now they have not made a lobby that works for the Shiites and for Iraq.

A leader in the Hikma movement: Maliki will withdraw and the coordination framework will revert to the original six names.

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Fahd Al-Jubouri, a leader in the National Wisdom Movement, said in a televised interview:

The lack of Kurdish consensus on the presidency is not new.
The coordination framework did not obstruct the presidential election
. This week will be crucial in selecting candidates for both presidencies
. New scenarios regarding al-Maliki's nomination will be presented and announced tomorrow
. The next government should not be headed by a controversial figure, both domestically and internationally
. Current circumstances are completely unfavorable for al-Maliki's nomination as prime minister.
We do not expect al-Maliki to form a government
. The religious authority's stance is part of the political forces' reservations about al-Maliki
. Why didn't the majority that nominated al-Maliki attend parliament?
Al-Maliki will withdraw, and the coordination framework will revert to the original six names.

Badr Organization leader Mu'in al-Kadhimi stated in a televised interview:
"There is internal acceptance for the continued nomination of Maliki for Prime Minister
. Maliki is capable of monopolizing weapons in the hands of the state
. Withdrawing support for Maliki will give Trump the opportunity to expand his influence and will lead to further problems."

Baghdad International Fair: An effective platform for connecting Iraq to global markets

 

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The Baghdad International Fair train has reached the middle of its stations, amidst a wide interaction from Iraqi and international participants, reflecting the importance of this economic event and the real opportunities it holds for cooperation and partnership.

 Over the past few days, the exhibition halls have witnessed remarkable activity, including direct meetings and exchanges of experiences between participating companies and delegations, reflecting a shared desire to build mutually beneficial economic relations.

 

The exhibition continues to play its role as an effective platform for linking the Iraqi market with its regional and international counterparts, and opening new horizons for partnerships that contribute to supporting the national economy and achieving sustainable development.

On its fourth day, the exhibition began its activities by organizing the Iraqi-Bulgarian Forum, which aims to enhance economic cooperation between the two friendly countries. 

 

Mechanisms for cooperation

The Director General of the Private Sector Development Department at the Ministry of Trade, Dr. Malik Khalaf Al-Duraie, said: The current stage requires developing mechanisms for economic cooperation in line with the changes taking place in the Iraqi market and the increasing openness to international partnerships, indicating that the volume of trade exchange between Iraq and Bulgaria reached about 300 million dollars, distributed across several sectors, which reflects the existence of a common ground that can be built upon and expanded in the next stage.

Al-Duraie explained in an interview with Al-Sabah that the future vision focuses on activating the work of the Iraqi-Bulgarian Trade Council through well-defined plans and clear programs, aimed at increasing the volume of trade exchange by no less than 20 percent, based on market needs and the capabilities of both parties. He added that the ambition is not limited to import and export activity, but rather is directed towards moving towards real investment partnerships, especially in the fields of industry and agriculture, which will contribute to transferring expertise, enhancing local production, and achieving mutual economic benefit for the two countries.

 

Iraq's growing importance

For his part, the representative of the Iraqi Ministry of Foreign Affairs, Dr. Abdul Salam Saddam, considered the forum to be a reflection of the growing importance of Iraq on the global stage, and an affirmation of its position as an important link in its regional and international environment.

Saddam added to Al-Sabah that the forum represents a promising opportunity for participating countries and companies to strengthen cooperation frameworks and build economic and developmental partnerships that serve common interests and contribute to supporting development and stability efforts, stressing the Ministry of Foreign Affairs’ keenness to support such events that open new horizons for communication and economic openness.

 

Great efforts

Valentin Nikolov, the Chargé d'Affaires of the Embassy of the Republic of Bulgaria in Baghdad, praised the efforts made by the Iraqi government and the business community in organizing this forum, which aims to enhance economic cooperation and open new horizons for communication between the two countries. He considered the holding of such forums a real opportunity to develop economic cooperation and exchange experiences, in a way that serves common interests and strengthens the bilateral partnership.

Nikolov added to Al-Sabah that business fields represent a basis for organizing economic relations between Iraq and Bulgaria, and that Bulgarian companies have extensive experience in the industrial, energy and agricultural sectors, as well as other investment fields, indicating that Bulgaria pays great attention to working in Iraq within clear and transparent frameworks, which contributes to building sustainable partnerships that serve both parties.

 

Supporting positive decisions

Meanwhile, the head of the Federation of Iraqi Chambers of Commerce, Abdul Razzaq Al-Zuhairi, believes that the reality of the Iraqi private sector has become more distinguished in the current stage, supported by a number of positive decisions that have contributed to strengthening its role and stimulating its activity within the market.

Al-Zuhairi told Al-Sabah that these steps have clearly impacted the development of the work of the Iraqi-Bulgarian Business Council, which has become a positive model for joint economic cooperation. He pointed out that the goal is to reach a clear and effective Iraqi economic map that focuses on strategic sectors that serve the Iraqi market and meet its needs, and contribute to achieving sustainable growth and balanced partnerships with friendly countries.

 

A launchpad for strengthening cooperation

Meanwhile, the head of the Iraqi-Bulgarian Business Council, Salah al-Din Saleh, stated that the council is a launchpad for strengthening economic cooperation and encouraging mutual consultations between businessmen in the two countries, noting that the council works to create real job opportunities and provide a suitable environment for communication between Iraqi and Bulgarian companies, which contributes to building sustainable partnerships.

In his interview with Al-Sabah, Saleh stressed the importance of exchanging technical and knowledge-based expertise, noting that this path would attract promising investments and consultations, enhance economic development, and support productive sectors, thus achieving common benefit and keeping pace with the requirements of the next stage.

 

Insurance sector

The exhibition witnessed a remarkable presence of the insurance sector, as the representative of the Iraqi Union Insurance Company and the insurance sector, Dr. Karrar Abdullah Jaber, explained that the presence of insurance companies at the Baghdad International Fair comes within the framework of keenness to spread insurance culture in Iraq and to demonstrate the importance of this vital sector and its role in supporting economic and social stability, stressing that the insurance sector represents a fundamental pillar in protecting individuals and institutions, and contributes to reducing risks and supporting various economic activities.

Jaber told Al-Sabah newspaper that the specialized teams participating in the exhibition were keen to explain the role played by insurance companies and the diverse services they provide, which cover various fields and sectors, and to highlight the positive results that have directly impacted citizens. He emphasized that these teams worked to clarify the importance of insurance in public life and its role in supporting the national economy and serving all segments of society, as promoting insurance awareness contributes to building a more stable market. Confidence.

 

Purchase the service

In addition, Kawthar Salah Abd, representative of the Retirement and Social Security Department for Workers at the Ministry of Labor, was keen to highlight the department’s participation in the Baghdad International Fair, noting that it aims to clarify the mechanisms for benefiting from social security, the conditions of participation, and the resulting consequences.

In an interview with Al-Sabah, Abd explained that specialized teams explained the rights of those covered and the importance of social security in providing job and social stability. She added that the department has introduced a "service purchase" service for those who have reached retirement age but do not have enough service time. Through this service, they can purchase the required service period to fulfill the retirement requirements, which contributes to including a wider segment of the population in retirement benefits and strengthening social protection. For the workers.

 

A new experience

On the sidelines of the exhibition, New Yolk presented a new experience in the Iraqi market in investing in livestock.

The company's representative, Hawraa Abdul Amir, told Al-Sabah: "We have table egg production fields inside and outside Iraq, and the company's doors are open to the public to invest and obtain profits according to legal formulas. This is a unique experience in Iraq."

 

Foundations of a promising future

In addition, a number of traders and business owners expressed their country’s companies’ desire to engage in large commercial and industrial activities with Iraq. While they affirmed that the future of the Iraqi economy is large and important in the Arab world, they explained that the markets of Mesopotamia possess the elements of a promising future.

Nasser bin Abdullah Al-Sawafi, owner of a perfume and oil company from the Sultanate of Oman, said on the sidelines of the Baghdad International Fair: His country has had participation in the Iraqi market through the Baghdad International Fair for five years, noting that his company, which has commercial partnerships with the Gulf Arab states, is participating in the fair for the first time.

Al-Sawafi promised that participation in the exhibition would be "successful," explaining that the Iraqi market welcomes Omani goods.

He predicted that his country’s companies would have a promising future in Iraq, strong trade relations between the two brotherly countries, and the creation of a deep economic partnership and dialogue focused on investment and private sector activity, expressing his hope to facilitate the entry of citizens between the two countries to strengthen ties in all fields.

 

Egyptian desire

Meanwhile, Hani Mahmoud, a trader in the cotton industry, expressed his company's keenness to have priority in entering the local market, describing the Iraqi market as one of the strongest Arab markets currently in terms of purchasing power.

Mahmoud added to Al-Sabah that most Egyptian companies have a clear desire to expand their activities in general, calling for the exhibition to be extended to more than a week in order to allow for important commercial partnerships to be established between Arab and foreign delegations and Iraq.

Meanwhile, Zaidan Saud Al Abdullah, the owner of a perfume and cosmetics company and an Emirati businessman, stated that he works in the organizing body for international exhibitions in which his country participates, indicating that he has participated in more than five exhibitions in the capital, Baghdad.

Al-Abdullah added, in an interview with Al-Sabah, that his country seeks to open broad trade horizons with Iraq, appreciating the Baghdadi demand for Emirati products, which made it the first among Gulf companies, encouraging his country to open large stores for its products inside Iraq.

 

Business partnerships

In a related context, Murad Kamal, owner of the Jordanian National Paints Company, said that this is his company's second participation in the exhibition, noting that he found good interest among Iraqis in creating commercial partnerships with countries in the region because they have a promising market and a great economic future.

Kamal explained to Al-Sabah that his company had completed several contracts with the Iraqi side, while calling for special facilities for Jordanians in terms of entry and import, and for allowing Iraqi goods to enter as competitors with products from other countries.

He pointed out that the Jordanian side, in turn, will work to facilitate the activity and trade of Iraqis there, especially since several meetings have taken place between joint chambers of commerce between the two countries, which will result in actual measures on the ground.