Zaidi seeks higher US dollar shipments to narrow Iraq's exchange gap
link Transcripción en español al pie de la página
“We are working in the current days to raise it to one billion dollars,” he said, adding that the government was seeking more than $1 billion and working to secure some shipments worth $2.5 billion to increase the supply of cash dollars in the market.
The video for this My FX Buddies blog is below here:
Iraqi Prime Minister Ali al-Zaidi said Friday his government is seeking to increase US cash dollar shipments to as much as $2.5 billion to narrow the gap between Iraq’s official exchange rate and the parallel market rate.
“The government is working quietly to address the gap between the official rate and the market rate,” Zaidi said in an interview with state media that aired Friday, adding that “the dollar rate may return in the coming period to 155,000 dinars per $100 or less.”
Earlier this month, Iraq devalued its currency, raising the official cash selling rate from 1,320 to 1,520 dinars per US dollar. The parallel market rate subsequently climbed above 170,000 dinars per $100, compared with 163,000 dinars the previous night.
The move came as the US-Israeli war against Iran disrupted oil exports, widening pressure on the government’s budget.
“The government is working to increase the quantities of cash dollars coming into Iraq, which would contribute to narrowing the gap between the official rate and the parallel rate,” Zaidi said.
The US cash shipments are physical dollar deliveries tied to Iraq’s oil revenues, which are held in an account at the Federal Reserve Bank of New York. Washington reportedly halted a shipment worth about $500 million in April amid pressure on Baghdad to curb the activities of Iran-backed armed groups and prevent illicit financial flows. Shipments continued in stages, with a new delivery arriving in Iraq on September 30, following understandings reached between Zaidi and US officials, according to Iraqi government spokesperson Haider al-Aboudi.
Zaidi said on Friday that the dollar could have reached 152,000 dinars per $100 without “the current regional circumstances,” adding that the US Federal Reserve had concerns about supplying Iraq with large quantities of physical dollars.
He said those concerns stem from fears in Washington about “the possibility that part of the cash dollars would reach the [armed] factions and be used in prohibited activities.” He added that Baghdad had “explained the reality of the internal situation to the American side many times.”
Washington has imposed sanctions and financial restrictions while pressing Baghdad to rein in Iran-aligned armed groups that have attacked US interests during the war.
Zaidi said shipments had been halted for months before his government took office on May 17. Following talks with Washington, deliveries resumed at around $140 million per month before increasing to $500 million.
“We are working in the current days to raise it to one billion dollars,” he said, adding that the government was seeking more than $1 billion and working to secure some shipments worth $2.5 billion to increase the supply of cash dollars in the market.
Iraq will soon be free of armed factions, weapons under state control: Iraqi PM
Iraqi Prime Minister Ali al-Zaidi said Friday that Iraq would soon be free of armed groups, with weapons exclusively in the hands of state security forces, as he defended his government’s fiscal measures and anti-corruption campaign.
In an interview with the state-run Iraqi Media Network (IMN), Zaidi said that "By June 30, 2027, no weapons will remain outside the framework of the state," adding that "Iraq will soon, God willing, be a state free of factions, like other countries in the world, and weapons will be exclusively in the hands of the Iraqi security forces.”
His remarks come amid continuing disagreements between the Iraqi government and powerful pro-Iran armed factions over Baghdad's efforts to bring all weapons outside state control under government authority.
The government initially sought to resolve the issue by September 30, coinciding with the end of the US-led coalition's military mission in Iraq, but later extended the deadline to June 30, 2027. Several Iran-backed factions have disputed the timetable, saying that no final agreement has been reached.
Under a 2024 agreement between Washington and Baghdad, the US military formally ended its Operation Inherent Resolve mission in Iraq on September 30, concluding a 12-year campaign against the Islamic State (ISIS) from within the country and shifting bilateral security cooperation to a new framework.
"The absence of foreign forces means the absence of the justification that was presented for carrying weapons outside the framework of the state," Zaidi said, emphasizing that "there is currently no American soldier in Iraq, neither within combat forces nor in the capacity of military advisors.”
Zaidi revealed that understandings have been reached with five factions to lay down their arms, saying that work has been completed with three of them. “Work is underway to complete procedures with two other factions in the coming period," he said.
His remarks also come as armed factions remain divided over bringing weapons under state control. While Kataib Sayyid al-Shuhada offered conditional support for arms control frameworks, Harakat al-Nujaba and Kataib Hezbollah continue to reject compliance with the government's timetable.
The group previously launched hundreds of drone and missile strikes under the Islamic Resistance in Iraq umbrella against American targets and diplomatic facilities.
Fiscal policy and disruptions to oil exports
Turning to economic policy, Zaidi defended his cabinet's recent adjustments to the national currency's value against the US dollar to safeguard public finances.
"The choices before the government were all difficult, but we had to take the necessary measures to protect the financial situation," the prime minister stated, noting that "the mistake was not in the government's decision to raise the dollar exchange rate, but in the previously taken decision to lower the exchange rate.”
The new exchange rate comes amid mounting fiscal pressures, with Iraq recording a budget gap of more than 29 trillion dinars ($22.4 billion) in the first seven months of 2026, according to Finance Ministry figures published earlier this month.
In early October, Iraq’s Council of Ministers approved a de facto devaluation of the Iraqi dinar, raising the official exchange rate from 1,320 dinars per US dollar to 1,520 dinars per US dollar for final beneficiaries.
Alongside currency adjustments, Zaidi outlined long-term targets to diversify state income beyond the energy sector, stating that his government "aims to raise the contribution of non-oil revenues to 30 percent of total revenues over the remaining years of its term.”
Since the US-Israeli war against Iran began on February 28, Iraq has been working to restore oil revenues severely affected by disruptions to shipping through the Strait of Hormuz, the country’s principal oil export route.
Commenting on Tehran's actions in the maritime corridor, Zaidi stated that "the Iranian goal in closing the strait does not relate to Iraq specifically, but rather is to exert pressure by raising energy prices in global markets.”
Oil revenues account for at least 88 percent of Iraq’s total state income, while around 90 percent of its pre-war crude exports - approximately 3.5 million barrels per day - passed through the Strait of Hormuz via the country’s southern ports.
Addressing the impact of the Strait of Hormuz closure on Iraq’s crude exports, Zaidi stressed the need to overhaul the country’s export infrastructure to prevent similar disruptions in the future.
"The current crisis provided an important lesson for Iraq, and it must be utilized to build an integrated system for transporting and exporting oil, so the repercussions the country faced are not repeated," he said.
Baghdad has sought to mitigate the disruption by diversifying export routes, including resuming shipments of Kirkuk crude through the Kurdistan Region to Turkey's Ceyhan port and transporting smaller volumes by tanker trucks through Syria.
"The government has laid out a plan to gradually raise Iraqi oil production capacity... targeting a production of 10 million barrels per day by 2032," Zaidi stated.
Zaidi said closing the Iraqi-Iranian border would harm both countries, warning that such a move amid the current crisis would amount to Iraq imposing an economic blockade on itself rather than on Iran. “Closing the Iraqi-Iranian borders is not in the interest of Iraq nor in the interest of Iran,” he said.
Anti-corruption efforts
Zaidi addressed the personal and political toll of his administration's ongoing anti-graft drive, stating the continuation of Operation Dawn "will cost me the loss of many friends and loved ones.”
"An official is faced with two choices: either preserve their relationships and friends and overlook the people's money, or draw clear lines for everyone when it comes to public funds," he stated.
"The government adopted the principle of 'prevention is better than cure' and worked through the Federal Board of Supreme Audit and the Federal Commission of Integrity to weaken opportunities for corruption and prevent it from occurring in the first place," Zaidi said.
Zaidi's statements come months after Operation Dawn, a large-scale nationwide anti-corruption campaign launched in late June by the prime minister in coordination with the Federal Commission of Integrity (FCoI).
In late August, government spokesperson Haider al-Aboudi detailed the financial results of the crackdown in comments to state media.
"The value of the funds, assets, or real estate recovered within the framework of the anti-corruption campaign is estimated at over 1.359 trillion dinars (over one billion dollars)," Aboudi told state media at the time.
Iraq ranked 136th out of 182 countries and territories in Transparency International's 2025 Corruption Perceptions Index, scoring 28 out of 100.
Exclusive: Iraqi PM Al-Zaidi Persuaded Washington to Accept Iran-Backed Militia Figure as Deputy
The appointment of Laith al-Khazali as Iraq’s deputy prime minister came after the Iraqi government appealed to the Trump administration to drop its opposition to the move over his ties to an Iran-backed militia, two Iraqi political sources told MBN.
Prime Minister Ali al-Zaidi argued that appointing a figure whose group had agreed to give up its weapons could encourage other armed factions to follow suit, the sources said. Al-Zaidi has pledged to bring weapons in Iraq under government control but delayed a deadline for the transfer due to opposition to the plan from some of the groups with backing from Tehran.
Al-Zaidi conveyed messages to the U.S. government through Tom Barrack, the U.S. special envoy for Iraq and Syria, according to an Iraqi source familiar with the matter in Washington, who is close to the Iraqi government and works to bolster its standing with U.S. policymakers.
The source, who declined to be identified because he was not authorized to speak to the media, said al-Zaidi told U.S. officials that he had to “reward those who have given up their weapons so that I can attract as many factions as possible.”
The source, who works in Washington lobbying groups and has advocated on behalf of more than one Iraqi government, added that Barrack relayed the messages to U.S. officials and that approval of the appointment followed.
Commenting to MBN on Laith al-Khazali’s selection as Iraq’s deputy prime minister, a U.S. State Department spokesperson said: “The United States expects Prime Minister Ali al-Zaidi to honor the commitments he made to President Trump in July: combating terrorism, preventing attacks on Iraqi territory or from Iraqi territory, and building a U.S.-Iraqi partnership that serves the interests of both countries.”
Ties to attack on U.S. forces
Laith is the brother of Qais al-Khazali, secretary-general of Asaib Ahl al-Haq, an Iran-backed armed faction that the United States has designated a Foreign Terrorist Organization since 2020. U.S. forces arrested Laith al-Khazali in 2007 over allegations related to an attack on American forces in Karbala in January of that year that killed five U.S. soldiers.
Al-Khazali was released from U.S. custody in June 2009. In 2019, the U.S. Treasury Department imposed sanctions on him, citing his leadership role in Asaib Ahl al-Haq, as well as allegations involving human rights abuses and the 2007 attack.
Asaib Ahl al-Haq was among the first factions to announce that it had begun handing over its weapons to the state, about four months ago. The group has not been linked to any recent attacks on U.S. interests, while other factions operating under the umbrella of what is known as the “Islamic Resistance in Iraq” have attacked American interests in Iraq and the wider region during the war in the Middle East.
Al-Zaidi announced on Thursday that his government was complete. The administration took office five months ago, and Parliament approved the appointment of 11 ministers and three deputy prime ministers, including Laith al-Khazali.
A source in the Coordination Framework, the ruling Shiite coalition, said al-Zaidi had promised Asaib Ahl al-Haq the deputy prime minister’s post in exchange for the group’s agreement to participate in efforts to place all weapons under state control.
The source, who requested anonymity because of the sensitivity of the information, added that the U.S. side initially objected to al-Khazali taking the position, putting al-Zaidi in an awkward position because the group had made its agreement to the disarmament initiative conditional on receiving the post.
In a post on X, Barrack described the decision by Asaib Ahl al-Haq and another faction to begin handing over their weapons to the state in June as “an important step forward.” He said it “represents the first building block of a renewed Iraqi governance model based on restoring sovereignty, consolidating lasting stability and opening new prospects for national renewal.”
Muhannad al-Janabi, a professor of security and foreign policy at Cihan University’s College of Law and International Relations in Erbil, said al-Khazali’s appointment could be viewed as an attempt to reassure Asaib Ahl al-Haq and its political bloc, the Sadiqoun Movement, as debate over bringing weapons under state control continues.
Al-Janabi told MBN that Iraq’s leadership had “begun to lean heavily” toward what he called a “reward scenario” in dealing with the issue of bringing weapons under state control, disarming factions or holding their members accountable.
He noted that the deputy prime minister’s post does not, in itself, confer independent executive powers on its holder. However, he said having a representative of Asaib Ahl al-Haq in the administration could give the group influence over its decision-making.
Initial U.S. opposition
In June, sources in al-Zaidi’s office told MBN that Joshua Harris, the U.S. chargé d’affaires in Baghdad, had conveyed the Trump administration’s opposition to the participation of armed factions in the government, even if they announced that they were giving up their weapons. Harris delivered the message during a meeting with al-Zaidi on May 31.
According to the sources, Washington does not view disarmament as a mere formality or political declaration. Instead, it requires something akin to a “probation and monitoring period” to ensure that the factions’ military and economic structures are dismantled and that they sever the organizational and ideological ties that give them independence from state institutions.
The same sources in al-Zaidi’s office said the Iraqi prime minister had told the U.S. side during the meeting that he wanted to give negotiations with the armed factions a genuine chance, citing concerns that any sudden confrontation could escalate into a broad security crisis with consequences for Iraq’s domestic stability and economy.
Sudani discusses expanding cooperation in oil, gas and energy with KBR
The head of the Reconstruction and Development Coalition, Mohammed Shia Al-Sudani, discussed with the head of KBR Sustainable Technology Solutions, Jay Ibrahim, ways to expand cooperation in the oil, gas and energy sectors, and to benefit from the company’s technical and advisory expertise in developing infrastructure and strategic projects.
The meeting addressed prospects for joint cooperation to develop the oil sector, enhance the efficiency of energy-related projects, invest in associated gas from oil operations, develop fields and increase their production capacity, and modernize existing facilities and raise their operational efficiency.
The two sides also discussed the possibility of employing the advanced technologies and engineering and consulting expertise that KBR possesses to support the oil sector development plans, and to contribute to the implementation of strategic projects in accordance with the standards of quality, efficiency and economic feasibility.
An Iraqi bank offers flexible banking solutions to three-quarters of a million customers.
The National Bank of Iraq affirmed its strengthening presence and position in the banking sector, relying on a wide network of branches and a growing customer base, noting the provision of an integrated system of banking services and solutions directed at individuals and companies to support economic activity and meet the financial needs of various segments of society.
The bank said in a statement that "the geographical spread of the bank is a testament to the expansion it has witnessed over the past years, as it has a network of 51 branches throughout Iraq, in addition to its branch operating in the Saudi capital, Riyadh, which contributes to facilitating trade and investment between the two countries. The bank also keeps pace with the daily needs of its customers through a network of more than 500 ATMs, enabling them to access banking services easily and flexibly."
He added, "To serve the business sector and large companies, the bank provides an advanced liquidity management system, which includes dedicated cash counting centers and large deposit processing centers in both Al-Saadoun and Al-Jadriya branches in Baghdad, in addition to a specialized center in Erbil, which contributes to enhancing operational efficiency, accelerating the completion of transactions and meeting the requirements of companies."
The National Bank of Iraq affirmed that "reaching a customer base of 750,000 customers reflects the trust it has gained over the past years, and its ability to respond to the growing needs of individuals and companies," noting that "maintaining this trust requires continuing to develop the quality of services and improve the customer experience."
The bank explained that "the integration of its branch network, digital channels, and the efficiency of its staff constitute a fundamental pillar in its strategy aimed at expanding access to financial services, providing more efficient and flexible banking solutions, and enhancing its contribution to financing economic activity in Iraq."
He explained that "this operational system, along with a range of digital solutions offered by the bank through its banking applications for individuals and companies, supported by an integrated call center operating around the clock (24/7), provides support and responds to customer inquiries, thus enhancing the ease of completing their banking transactions and ensuring their continued access to services."
U.S. Notifies Iraq of Iran Strike; PM Warns Armed Groups
At a Glance
Washington alerted Baghdad of a planned U.S. strike on Iran in the coming days.
Prime Minister al-Zaidi warned domestic armed groups that intervening will face legal consequences.
Major resistance factions refused to surrender their weapons or accept state-supervised compromises.
The Al-Shib border crossing with Iran was closed over tracking concerns regarding small "shadow groups."
The government ordered the closure of the Houthi office in Iraq and the deportation of its members.
Channel8 has learned that Washington has alerted Iraqi Prime Minister Ali Faleh al-Zaidi to a potential strike on Iran, prompting al-Zaidi to warn domestic armed groups against any intervention. This warning comes amid an ongoing impasse as major factions, including the Nujaba Movement and Kata'ib Hezbollah, remain unwilling to surrender their weapons
Key Statements and Focus Area
A political source close to the Coordination Framework revealed to Channel8 that al-Zaidi informed leaders of the bloc that the U.S. administration notified them of a planned strike on Iran in the coming days.
The source stressed that ongoing discussions regarding the collection of weapons under state control have yielded no practical progress.
Speaking to Channel8, the source noted that al-Zaidi emphasized that if armed groups enter the conflict, they will be confronted according to the law. However, Hadi al-Amiri, the Secretary-General of the Badr Organization, expressed reservations regarding al-Zaidi’s statements.
Some leaders within the Coordination Framework dismissed the likelihood of these groups targeting neighboring countries in support of Tehran.
This is due to the anticipated repercussions on al-Zaidi’s government, which could face heightened regional and international pressure.
The source told Channel8 that the entire Coordination Framework supports al-Zaidi’s government, and there is no political will to pull Iraq back into conflict.
On the same issue, The Cradle reported that the White House administration informed Ali Zaidi of its intention to strike Iran in the coming days.
According to Iraqi officials, Washington issued a stern warning against Iraqi interference, stating that any involvement by Iraq would heavily impact the country's political system and state stability.
Regarding state control over armed groups' weapons, the source confirmed that both the Nujaba Movement and Kata'ib Hezbollah remain unwilling to surrender their weapons, despite a prior agreement made before September 30 requiring all groups to do so.
According to the source, armed groups proposed keeping their missiles and drones under government supervision, but the Prime Minister firmly rejected the compromise and reaffirmed his commitment to restricting all weapons to state authority.
Meanwhile, Nujaba Movement official Abdul Qader Karbalai countered that their stance against participating in the political process remains completely unyielding. He emphasized that terms like "collection, handover, or disarmament" do not exist within the vocabulary of the Islamic Resistance.
The closure of the al-Shib border crossing with Iran has also drawn protests from resistance groups. According to Channel8's information, resistance factions are preparing to protest against the closure, though a date has not yet been set.
Civil organizations and activists had planned to protest on October 25 to commemorate the October 2019 demonstrations. However, they decided to postpone their movement to avoid their objectives overlapping with those of the resistance groups.
According to information, the closure of the al-Shib crossing is not solely due to the technical reasons cited by the government, but is driven by security concerns over the return of "shadow groups."
These are small factions consisting of 5 to 10 individuals, suspected of being utilized for attacks that are difficult to trace.
Meanwhile, the Al-Hurra channel reported that Prime Minister Ali Zaidi has decided to close the Houthi office in Iraq and deport Houthi figures currently in the country.
Commenting on this, the Channel8 source stated that while the number of Houthis in Iraq was high during the war against ISIS and the broader U.S.-Israeli conflict involving Iran, their current presence does not exceed seven individuals, none of whom are active or influential.
FYI
The administration of Prime Minister Ali Faleh al-Zaidi operates under a complex political arrangement backed by the Coordination Framework coalition.
While the coalition seeks to maintain state stability, it faces internal friction between official government policy and the strategic priorities of individual factions.
The official stance of the Iraqi executive branch remains firmly committed to national sovereignty, holding that decisions on foreign policy belong exclusively to state institutions.
This has complicated the government's long-standing security initiative to enforce a complete monopoly of weapons under formal state authority. Major factions like Harakat al-Nujaba and Kata'ib Hezbollah have resisted full disarmament, viewing their arsenals as integral to the regional Islamic Resistance.
Prime Minister al-Zaidi has subsequently rejected intermediate compromises, such as allowing armed groups to retain drones and missiles under loose government supervision.
Geopolitically, Iraq continues to pursue a policy of neutrality to avoid being drawn into direct military confrontations between Washington and Tehran.
Consequently, recent measures like closing the al-Shib border crossing reflect preventative strategies designed to insulate the state's political and financial systems from regional escalation.
A high-level Kurdish delegation arrives in Baghdad to discuss the region's entitlements in the 2027 budget.
link
A high-level negotiating delegation from the Kurdistan Regional Government headed to the capital, Baghdad, on Friday (October 23, 2026), to discuss the region’s financial obligations and rights within the draft federal budget law for 2027.
The Media and Information Department of the regional government stated in a statement received by "Baghdad Today" that the delegation includes the head of the Cabinet Office, the Cabinet Secretary, the head of the Coordination and Follow-up Department, the Undersecretary of the Ministry of Natural Resources, in addition to the Directors General of Budget and Accounting in the Ministry of Finance and Economy in the region.
She added that the delegation will hold official meetings with the Federal Ministry of Finance, in coordination with Kurdish representatives in federal government institutions, to continue the dialogue on mutual financial and oil obligations.
The department indicated that the talks aim to reach a common and fair understanding regarding the outstanding financial issues, and to ensure that the Kurdistan Region’s entitlements are included in the draft federal budget law for the next fiscal year.
Zaidi seeks higher US dollar shipments to narrow Iraq's exchange gap
“We are working in the current days to raise it to one billion dollars,” he said, adding that the government was seeking more than $1 billion and working to secure some shipments worth $2.5 billion to increase the supply of cash dollars in the market.
Iraqi Prime Minister Ali al-Zaidi said Friday his government is seeking to increase US cash dollar shipments to as much as $2.5 billion to narrow the gap between Iraq’s official exchange rate and the parallel market rate.
“The government is working quietly to address the gap between the official rate and the market rate,” Zaidi said in an interview with state media that aired Friday, adding that “the dollar rate may return in the coming period to 155,000 dinars per $100 or less.”
Earlier this month, Iraq devalued its currency, raising the official cash selling rate from 1,320 to 1,520 dinars per US dollar. The parallel market rate subsequently climbed above 170,000 dinars per $100, compared with 163,000 dinars the previous night.
The move came as the US-Israeli war against Iran disrupted oil exports, widening pressure on the government’s budget.
“The government is working to increase the quantities of cash dollars coming into Iraq, which would contribute to narrowing the gap between the official rate and the parallel rate,” Zaidi said.
The US cash shipments are physical dollar deliveries tied to Iraq’s oil revenues, which are held in an account at the Federal Reserve Bank of New York. Washington reportedly halted a shipment worth about $500 million in April amid pressure on Baghdad to curb the activities of Iran-backed armed groups and prevent illicit financial flows. Shipments continued in stages, with a new delivery arriving in Iraq on September 30, following understandings reached between Zaidi and US officials, according to Iraqi government spokesperson Haider al-Aboudi.
Zaidi said on Friday that the dollar could have reached 152,000 dinars per $100 without “the current regional circumstances,” adding that the US Federal Reserve had concerns about supplying Iraq with large quantities of physical dollars.
He said those concerns stem from fears in Washington about “the possibility that part of the cash dollars would reach the [armed] factions and be used in prohibited activities.” He added that Baghdad had “explained the reality of the internal situation to the American side many times.”
Washington has imposed sanctions and financial restrictions while pressing Baghdad to rein in Iran-aligned armed groups that have attacked US interests during the war.
Zaidi said shipments had been halted for months before his government took office on May 17. Following talks with Washington, deliveries resumed at around $140 million per month before increasing to $500 million.
“We are working in the current days to raise it to one billion dollars,” he said, adding that the government was seeking more than $1 billion and working to secure some shipments worth $2.5 billion to increase the supply of cash dollars in the market.
Barak: A new attack on Iran is possible this weekend, and Trump is keeping the door open for negotiations.
US Special Envoy to Iraq and Syria, Tom Barrack, said that a new attack on Iran this weekend, tomorrow or the day after, is possible, while stressing that US President Donald Trump is still leaving the door open for negotiations and reaching an agreement.
In an interview on Friday, October 23, 2026, Barak responded to a question about the possibility of an attack on Iran over the weekend by saying, "Absolutely, yes, that's possible," noting the continuation of American diplomatic efforts.
The US envoy stressed that Trump is serious in his positions, saying that the president "does not make empty threats without actions," while pointing out that the air strikes that targeted Iranian nuclear facilities in June 2025, along with the war that took place this year, contributed to removing the direct nuclear danger and threat, as he put it.
Al-Zaydi: American concerns about dollars reaching the factions have affected cash supplies.
Iraqi Prime Minister Ali al-Zaidi said on Friday evening that American concerns about dollars reaching the factions have affected the volume of cash supplies, while noting that the Iraqi government aims to obtain payments of up to $2.5 billion to address the exchange rate gap.
Al-Zaydi added in an interview with Al-Iraqiya channel, which was monitored by Shafaq News Agency, that “the Iraqi government has increased the supply of cash dollars from 140 million to half a billion dollars per month, and is working to increase shipments of American cash dollars to more than one billion dollars per month.”
He stressed that "the government is working to bring the dollar exchange rate back to 155,000 dinars or less," noting that "previous reductions in the dollar exchange rate did not benefit the citizen, and the differences went to speculators."
The Prime Minister explained that "the high exchange rate supports the industrial and agricultural sectors and enhances the competitiveness of Iraqi products," noting that "some neighboring countries are flooding the Iraqi market with their surplus production, which weakens the ability of local products to compete."
In the oil file, he said that "there was one million barrels being sold to the Ministry of Oil at a price of 5,000 dinars per barrel, and this matter contributed to creating loopholes for corruption. The price of locally supplied oil was re-evaluated, which provides the treasury with about 20 trillion dinars annually."
He added that "80 trillion dinars in revenues are expected within four years of changing the pricing of local oil," noting that "the government has imprisoned those involved in corruption in the Ministry of Oil contracts and subjected the contracts to auditing."
He explained that "oil exports fluctuate between halting and exporting due to regional conditions, and we are working on a pipeline network to export oil so that Iraq does not remain hostage to the Strait of Hormuz. We also seek to reactivate the Ceyhan route and diversify oil export outlets."
The Prime Minister stressed that "the Hormuz crisis deprived Iraq of benefiting from the rise in oil prices."
Regarding fees and taxes, Al-Zaydi pointed out that "the government waived revenues from fees and taxes to bring in basic goods at lower prices," explaining that "the exemption decisions included fruits and vegetables, most food items, medicines, and solar energy equipment and systems."
The Prime Minister concluded that "the government is thinking about the citizen's interest and is seeking to alleviate the economic pressure on him."
Regarding the relationship with Washington, Al-Zaydi confirmed that "American companies have begun working with Iraq and have started implementing projects within the areas of joint cooperation," noting that "the United States was chosen as a strategic partner based on its technological and economic capabilities."
He added that "the partnership with Washington and the development of the energy sector will make Iraq's influence in the region and the world different from previous years," stressing that "increasing oil production will enhance Iraq's position as one of the influential countries in the global energy market."
Al-Zaydi stressed the continuation of visits to other countries to strengthen political, economic and investment relations, explaining that "developing Iraq's foreign relations is an essential part of the state-building project."
On the other hand, Al-Zaydi said that “the four deputy prime ministers do not receive salaries and we have not appointed new employees for them,” adding: “I asked my deputies to be field-oriented and to visit the governorates, ministries and departments to find out the needs of the people.”
He revealed that "the government terminated the work of 72 advisors and created four positions for deputy prime ministers without additional costs," noting that "the three new ministries did not add any job burdens to the budget."
Regarding the challenges facing the government, Al-Zaydi revealed that he had been exposed to "threats and dangers during the past five months," stressing, "I will not back down, we will not abandon our responsibilities, and we will continue to perform our duties until the last moment of the government's term."
Al-Zaydi also revealed that he had refused to take over the position twice before, adding: "I am confident that whoever comes after me will complete the project of building the state and the nation."
He believes that "building national identity is the responsibility of the government, political forces, and community institutions," stressing that "the government is working on a project to build a strong and stable Iraqi state."
He added that "the government faces a great national responsibility concerning the fate of about 50 million people," noting that "demonstrating is a constitutional right and we will listen to all the demands of the protesters."
Here's How to Support My FX Buddies
ThanksSupport My FX Buddies
BuyMeACoffee CashApp:$tishwash
https://paypal.me/tishwash
.jpeg)
Trade: The Iraqi-American Business Council kicks off in Baghdad.
The Ministry of Trade announced on Wednesday the launch of the Iraqi-American Business Council in Baghdad, with official attendance and the participation of prominent business leaders and representatives from the Federation of Chambers of Commerce and private sector institutions in both countries.
The Ministry stated in a press release received by the Iraqi News Agency (INA): "On behalf of the Minister of Trade, Mustafa Nizar Juma, the Advisor to the Ministry of Trade, Mohammed Hanoun, inaugurated the Iraqi-American Business Council in Baghdad, in the presence of officials and representatives from the US diplomatic mission in Iraq, prominent business leaders and representatives from the Federation of Chambers of Commerce and private sector institutions in both countries, as well as the Director General of the Department of Economic Relations and the Director General of the Department of the Private Sector at the Ministry of Trade."
According to the statement, Advisor Mohammed Hanoun emphasized that "the launch of the Council represents an important strategic step in developing economic relations between the Republic of Iraq and the United States of America," stressing that "relations between countries gain their true depth from economic partnerships, productive investments, and projects that create job opportunities and transfer knowledge and technology."
Hannon explained that "the Ministry of Trade views this council as an expanded and direct platform for bridging the gap between the business communities, highlighting promising investment opportunities in Iraq, and facilitating communication between companies and investors to transform shared aspirations into projects and agreements with tangible results on the ground."
The ministry advisor added that "Iraq possesses economic strengths, natural and human resources, a large market, and a strategic geographic location connecting regional markets, all of which offer real opportunities for companies seeking to build long-term partnerships."
He pointed out that "the government's vision focuses on ensuring that the Iraqi-American partnership transcends traditional trade exchange, moving towards localizing industries and technology, training and developing Iraqi talent, establishing joint ventures that add value to the national economy and serve mutual interests, and facilitating the entry of American companies into the industrial, agricultural, health, technology, digital transformation, infrastructure, logistics, and supply chain development sectors."
He noted that "the Baghdad International Fair is a vital economic gateway that enhances the presence of American companies and institutions and opens the door to further partnerships and direct communication with the Iraqi private sector."
Hannon emphasized the government's commitment to developing the business environment, diversifying national income sources, and strengthening the role of the private sector. He stressed that the council's success requires continuous institutional work and transparent dialogue to address challenges and provide accurate economic data that enables investors and companies to make confident decisions.
Hannon called on all parties—government, economic institutions, and the private sector—to translate ideas, opportunities, and understandings into tangible action plans and investments that will positively impact citizens and contribute to the growth and development of the Iraqi economy.
Government spokesperson: The closure of the Al-Shaib border crossing was due to its lack of technical, technological, and developmental readiness.
Iraqi government spokesman Haider al-Aboudi confirmed on Wednesday, October 21, 2026, that the closure of the al-Shaib border crossing was due to its lack of technical, technological, and developmental readiness. While denying the presence of Houthi headquarters in Iraq, he indicated the continuation of coordination with Turkey and Iran to resolve the issues of armed groups, stressing at the same time that Iraq will not allow its territory to be used to threaten neighboring countries.
Al-Aboudi said: “The suspension of work at the Al-Shaib border crossing represents a step towards raising the level of technical and logistical readiness of the crossing, and it came as a result of its lack of technical, technological and developmental readiness,” indicating that “there are more than one border crossing that are witnessing smooth trade exchange with Iran.”
Regarding the news circulating about the existence of Houthi headquarters in Iraq, Al-Aboudi explained that “there are no headquarters indicated in this regard inside Iraq, and the matter does not require any direction or government decision regarding something that does not exist in the first place,” noting that “some insist on clinging to narratives circulating through social media.”
He added that "the presence of armed groups from other countries inside Iraq is contrary to constitutional principles," stressing that "Iraq will not be a launching pad for attacks on neighboring countries, and will not adopt and embrace any armed group participating in a particular conflict."
Al-Aboudi pointed to “high coordination with Turkey to resolve the issue of the Kurdistan Workers’ Party and remove its members from Iraq, as well as coordination with Iran through a high committee to resolve the issue of the presence of Iranian Kurdish militants inside Iraqi territory, specifically in the Kurdistan Region.”
He affirmed that "all these indicators and government policies confirm that the presence of armed elements affiliated with other countries will not be permitted within Iraqi territory," emphasizing that "Iraq will not allow threats to neighboring countries to be launched from its territory."
In the coming days
Al-Zaydi visits Sayyida Zeinab in Damascus and meets with Al-Sharaa... The government reveals the visit's program.
Government spokesman Haider al-Aboudi denied the existence of any headquarters or offices for the Houthi movement in Iraq, considering what is being circulated in this regard to be media misinformation. In an interview conducted with him by journalist Samer Jawad and followed by 964 Network , he stressed that whoever has evidence of the existence of Houthi offices in Iraq should present it and we will take the appropriate measures. He also indicated that Prime Minister Ali al-Zaidi will visit Sayyida Zeinab in Damascus in the coming days and is scheduled to meet with Syrian President Ahmed al-Sharaa.
Regarding the Iranian comment on the closure of the Al-Shaib border crossing, Al-Aboudi clarified that it was inaccurate, and that the crossing was the weakest logistically. A decision was made to develop and modernize it, and the Iranian side was officially notified through previously approved channels, while the rest of the border crossings with Iran remained open, with the exception of the Al-Shaib crossing temporarily.
Haider Al-Aboudi:
The Al-Shaib crossing is the weakest logistically compared to the rest of the crossings, so Al-Zaydi directed that this crossing be updated logistically, and we made a decision to implement this directive, and the Iranian side was informed according to a specific coordination, and the traders were informed of this, so that they could make their calculations because the goal of the crossing is to develop it first and foremost, and the Iranian side’s denial is inaccurate, and I contacted the official in charge of border crossings, and he informed me that the Iranian side had been notified, through the approved channels, and all crossings with Iran are now open, except for the Al-Shaib crossing.
There was no targeting of the crowd, and what happened was an explosion of old weapons and ammunition. However, the matter was linked to other events, because the Iraqi environment is full of events, and a fabricated rumor spreads quickly. This is similar to what was circulated today about the closure of Houthi headquarters in Iraq. This is also a rumor because there are no Houthi offices in Iraq at all. I call on anyone who has evidence of the presence of Houthis in Iraq to come forward with it, so that we can take the correct position.
This warehouse does not contain the weapons that were received from the armed factions. It is a warehouse for the weapons that we used to use, and the weapons of the factions that surrendered their weapons have no relation to this warehouse. As for the weapons and ballistic missiles that were received, they are stored well.
The government statement that speaks about those inciting the monopoly of weapons is not surprising, but rather it is within the context of the decision and the environment of the agreement that was concluded with the political blocs and factional forces, where they agreed to resolve this issue, meaning that the state is the one who decides on war and peace, and it is the official holder of weapons. There were some platforms that spoke outside of this context and liked to theorize about rebelling against this agreement, and therefore this statement was issued to remind everyone that the final decision is in the hands of the state and the Iraqi judiciary.
We do not target journalists nor do we restrict freedom of opinion because it is constitutionally guaranteed, but whoever threatens Iraq’s internal security and whoever tries to influence Iraq’s internal stability, the government will not stand idly by, no matter what party they belong to.
None of the ministers said, “We are a presidential body and you can’t make the decision however you want.” This statement is inaccurate, and I am speaking from my direct observations of the Cabinet.
There is coordination to resolve the issue of the Iranian armed elements present in Kurdistan, and what we heard recently about them being handed over to the Iranian government is under discussion and has not been formulated as an agreement, because there are international contexts for dealing with these armed elements.
Al-Zaidi discussed his visit to Syria with its foreign minister during his visit to Baghdad on the sidelines of the Conference of Foreign Ministers of the Organization of Islamic Cooperation. Al-Zaidi has other visits planned, including a visit to Lebanon. He will also visit Jordan, and the Prime Minister will visit Sayyida Zeinab. The Syrian foreign minister welcomed this visit positively.
There is a high level of understanding between Iraq, the US Federal Reserve, and the US Treasury. There are transfers of cash dollars according to the requests of the Central Bank. The bank now has sufficient liquidity to meet the requests, and there are no obstacles. A shipment of cash dollars will soon arrive in Iraq. From October 7, 2026, to this day, the Central Bank has injected $3 billion into the market.
The cancellation of Al-Muhandis Company is a sovereign Iraqi decision, taken by the government in accordance with the greater public interest.
Germany Orders Liquidation of Iran’s Bank Saderat Branch
At a Glance
Germany’s financial regulator BaFin has ordered the liquidation of Bank Saderat Iran’s branch in Hamburg.
The regulator had revoked the bank’s license in November 2025 after identifying legal and regulatory shortcomings.
The branch had 13 employees and €62.4 million in assets, according to BaFin.
The decision follows other measures targeting Iranian banks amid renewed sanctions.
Germany’s financial regulator has ordered the liquidation of Bank Saderat Iran’s Hamburg branch, following the revocation of its banking license and restrictions linked to sanctions against Iran.
Key Statements and Focus Areas
BaFin Orders Liquidation
Germany’s Federal Financial Supervisory Authority, known as BaFin, said the bank was no longer permitted to conduct banking business.
The regulator said it had revoked the branch’s license in November 2025 after the institution failed to address shortcomings identified by regulators and violated legal requirements.
A Hamburg court appointed a liquidator in September 2026, BaFin said.
Bank’s Financial Position
According to BaFin, the branch had:
13 employees
€62.4 million in assets
Wider Measures Against Iranian Banks
The action follows BaFin’s September 2026 declaration that a German branch of Iranian state-owned Bank Sepah was insolvent.
The measures come amid sanctions affecting Iranian financial institutions and tighter scrutiny of their operations in Europe.
Germany has ordered the liquidation of Bank Saderat Iran’s Hamburg branch, adding to regulatory action against Iranian financial institutions operating in Europe.
BaFin said the bank’s license had been revoked in November 2025 after it violated legal requirements and failed to remedy shortcomings identified by the regulator. A Hamburg court appointed a liquidator in September 2026.
The branch had 13 employees and €62.4 million in assets, according to BaFin. The bank did not immediately respond to a Reuters request for comment.
The decision follows action against Bank Sepah’s German branch, which BaFin declared insolvent in September 2026. Separately, the European Union reinstated previously suspended sanctions against Iran in September 2025, including financial restrictions affecting Iranian banks.
FYI
The liquidation highlights the growing constraints facing Iranian banks operating in Europe amid renewed sanctions and tighter financial oversight. Restrictions can affect cross-border payments, access to assets and the ability of banks to serve customers involved in Iran-related trade.
The Bank Saderat case also illustrates the distinction between sanctions-related restrictions and regulatory enforcement: BaFin cited legal and organizational shortcomings alongside the sanctions environment. The action against this branch does not, by itself, mean that all Iranian banks operating in Germany have been closed.
The Central Bank issues a decision prohibiting the International Development Bank from dealing in dollars.
The Central Bank of Iraq issued a decision today, Thursday (October 22, 2026), prohibiting the International Development Bank in Iraq from dealing in US dollars.
According to a letter issued by the Central Bank and received by "Baghdad Today", the Central Bank decided to prohibit the bank from trading in US dollars "in any way," within an official circular addressed to non-bank financial institutions.
It is noted that the International Development Bank in Iraq was included in a US decision issued last week imposing economic sanctions on it and preventing it from trading in dollars.
The Central Bank of Iraq decides to prohibit the International Development Bank from dealing in dollars.
On Thursday, the Central Bank of Iraq decided to prohibit the International Development Bank from dealing in US dollars "in any way whatsoever."
This came according to a document issued by the "Banking Supervision" department of the Central Bank, which was received by Shafaq News Agency.
The US Treasury Department announced last Thursday new sanctions targeting Iranian networks for circumventing international sanctions, including 16 individuals and 10 entities, among them an Iraqi bank.
The measures included, in a statement by the ministry translated by Shafaq News Agency, the International Development Bank for Investment and Finance (IDB), which is based in Iraq, as Washington accuses it of facilitating Iranian financial transactions and securing access to the US dollar, as well as maintaining relations with Iranian government entities and armed groups allied with Tehran inside Iraq.
Last Friday, the management of the International Development Bank for Investment and Finance rejected what it described as "the accusations of the US Treasury," stressing that it is dealing with the developments related to this matter with the utmost seriousness, responsibility and transparency.
Al-Zaidi Chairs Security Meeting on Protests and Air Defense
At a Glance
The Iraqi Prime Minister chaired a national security meeting on Thursday.
The council reviewed Iraq's current safety landscape and scheduled agenda items.
The government demanded that security forces protect peaceful demonstrations and treat protesters humanely.
The meeting prioritized strategic upgrades to the Air Force and air defense.
Iraqi Prime Minister Ali Faleh Al-Zaidi chaired a national security meeting, focusing on maintaining public safety during protests and accelerating air defense and air force upgrades.
Key Statements and Focus area
The meeting “stressed the need to ensure the safety and security of peaceful demonstrations, as guaranteed by the Constitution, in accordance with the laws and regulations in force.”
“The meeting reviewed the country's overall security situation, considered the agenda items, and adopted the necessary decisions and recommendations,” the statement noted.
Al-Zaidi, Commander-in-Chief of the Armed Forces, chaired a regular meeting of the Ministerial Council for National Security on Thursday, Sabah al-Numan, spokesman for the Commander-in-Chief of the Armed Forces said in a statement.
Officials emphasized the importance of treating demonstrators with respect and providing them with a safe environment.
They also stated that humane treatment must remain a top priority for all security agencies.
The council also discussed upgrading the military equipment and capabilities of security forces to counter modern threats.
In particular, officials prioritized bolstering the Air Force and air defense systems to safeguard national airspace and reinforce sovereignty.
FYI
Following the complete withdrawal of the U.S.-led Global Coalition, Iraq is rapidly modernizing its air defense infrastructure to secure its national airspace.
The exit of foreign defense systems exposed critical gaps, particularly after unilateral foreign airstrikes targeted Popular Mobilization Forces positions.
In response, Prime Minister al-Zaidi compressed the nation’s military upgrade timeline into an accelerated three-year fast-track, utilizing a specialized national fund to procure advanced global radar and missile defense networks.
Simultaneously, the Ministerial Council for National Security has mandated a human-rights-first approach to manage public assembly and maintain internal stability.
Moving past a history of escalation and excessive force by ill-prepared agencies, the government has enacted a zero-tolerance policy against violence directed at peaceful demonstrators.
This directive also supports a broader campaign to restrict weapons exclusively to state institutions, preventing unauthorized armed factions from intervening under the pretext of maintaining order.
Earlier this week, the Iraqi government ordered all state institutions to file criminal complaints against media incitement and unauthorized firearm support.
The Prime Minister's Media Office clarified that while constitutional guarantees for free expression remain protected, using media platforms to back outlawed groups or obstruct state weapon controls violates the Anti-Terrorism Law, subjecting instigators to penalties as severe as those for primary perpetrators.
The Central Bank requires banks to implement 79 scenarios for monitoring money laundering and
terrorist financing.
The Central Bank of Iraq has directed all licensed banks to implement updated scenarios for monitoring suspected cases of money laundering and terrorist financing, setting the end of December 2026 as the deadline for completing their activation on anti-money laundering (AML) systems.
The bank explained that the update is based on international standards, Financial Action Task Force (FATF) recommendations and Iraqi legislation, taking into account technological developments and financial products currently in use.
The updated scenarios included 79 cases, including warning indicators, potential risks, verification procedures and risk levels, most notably unjustified transfers, splitting of deposits and remittances, use of shell companies and invoices, misuse of cards and checks, and dealing with sanctioned entities.
The cases also include unclear sources of funds and suspicious increases in capital, with the aim of enhancing banks’ ability to detect suspicious transactions and verify the sources of funds and the nature of financial operations.
0:00 We spoke with them, and they initially set the amount at $140 million per month; I told them this was insufficient.
0:07 Negotiations followed, and we reached half a billion dollars. Hopefully, in the coming days, this will increase to a billion dollars. My goal is to secure over a billion dollars periodically.
0:16 They provide us with $2.5 billion to inject into the market, which helps close this gap. Were it not for the current events in the region, the gap would not exist—it should hopefully close soon.
0:25 Furthermore, strengthening the exchange rate helps foster the industrial and agricultural sectors.
0:32 Some neighboring countries employ a "market-flooding" policy against Iraq; they send whatever surplus production they have into Iraq, overwhelming the Iraqi markets.
0:41 Once the exchange rate rises, they can no longer compete. Look at China, for instance—it devalues its own currency specifically to boost its exports.
0:55 If a country were to appreciate its currency, its exports would decline. There are economic equations that work in the opposite way—contrary to the conventional understanding held by the average citizen.
1:03 —the average citizen.
