Is JPMorgan pulling the rug out from under the Iraqi Central Bank?
Political researcher Hussein Al-Shalakh warned on Wednesday of the repercussions of bringing the American bank “JP Morgan” into managing financial transactions related to Iraq, considering that the move may represent a form of hegemony over the Iraqi economy and an undermining of the country’s sovereignty over its funds.
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Al-Shalakh told Al-Maalouma that “Iraq does not currently have full sovereignty over its funds,” noting that “a delegation from Washington recently met with Prime Minister Ali al-Zaidi and discussed with him the JPMorgan Chase bank and the role it could play in the Iraqi financial system.”
He added that "JP Morgan will be an occupation of the Iraqi economy, because it will give it great power to control the movement of money and commercial transactions," noting that "the expansion of the bank's role may be reflected in the mechanisms of import, foreign trade and the movement of Iraqi money."
Al-Shalakh explained that “JP Morgan will take full control of the import file, thus pulling the rug out from under the Central Bank of Iraq,” indicating that “Iraqi traders were previously able to conduct import operations through the official banking system, at the official exchange rate of 1320 dinars per dollar through the Central Bank of Iraq, which transfers the amounts to the supplying companies outside the country according to the approved procedures.”
He added that “JP Morgan’s involvement in managing these operations may transfer a large part of the movement of Iraqi funds to a new banking route,” considering that “the funds related to Iraqi oil revenues, even if they are freed from some restrictions related to the American financial system, may find themselves under the control of JP Morgan.”
Al-Shalakh revealed that “this path may lead to an increased dependence of Iraqi foreign trade on the bank to a point where Iraq may not be able to import anything except through JPMorgan, which he considered a direct threat to the country’s financial and economic independence.”
The political analyst believes that "the problem is not related to a specific bank as much as it is related to the weakness of the Iraqi financial system and the inability of successive governments to build a national banking system capable of managing funds and foreign trade away from external pressures and influences," noting that "the continued dependence of the Iraqi economy on oil, along with the weakness of the banking sector and the absence of real economic reforms, have made the country more vulnerable to being affected by international financial decisions and procedures."
Al-Shalakh pointed out that "the economic and financial situation in Iraq is a direct result of the nature of the governing system and the failure of successive governments to manage economic affairs over the past years," stressing that "addressing the crisis requires building a strong and independent banking system, reforming financial institutions, and reducing dependence on oil, thereby enhancing the state's ability to manage its resources and achieve genuine financial sovereignty."
The Iraqi treasury is looking for a way out... Borrowing, oil bonds, and the digital dinar are on the table for discussion.
Experts favor traditional tools in the short term but warn of legislative challenges.
The pressures facing the Iraqi treasury are prompting a range of proposals to address the liquidity crisis, from diversifying revenues and borrowing to restructuring spending, and even ideas like a digital dinar and using oil as a financing tool. Experts believe that implementing these new tools requires legislation and financial and economic arrangements, making traditional solutions the most feasible in the short term.
These pressures come amidst the continued application of the 1/12 spending limit, which allows the public finances to manage spending and finance essential obligations until the budget is approved. Meanwhile, the government is discussing measures aimed at rationalizing spending, diversifying revenues, and reducing dependence on oil.
Hussain Al-Daraji, a member of the parliamentary finance committee, told Al-Mada, "The current approach should focus on diversifying revenues and capitalizing on the current crisis to create an additional resource for the state, rather than treating the liquidity problem as a temporary crisis that will end as soon as oil prices improve or exports return to their previous levels."
Al-Daraji added that “previous financial policies have caused disasters in the Iraqi economy due to continued reliance on oil and the failure to build stable resources from other sectors. Therefore, the current stage requires genuine measures to rearrange spending priorities and enhance non-oil revenues, while seeking financing tools that will not increase the state’s burdens in the future.”
In this context, the proposal to adopt a digital Iraqi dinar has resurfaced, after being presented as a means that could help reduce reliance on paper currency and facilitate salary payments through electronic wallets and accounts. However, according to experts, this proposal does not represent a solution to the deficit problem or the lack of resources, as addressing the liquidity crisis requires first securing financial sources capable of covering government spending, while digital transformation represents a tool for managing and circulating money more efficiently.
Economic expert Dirgham Muhammad told Al-Mada that “the digital dinar proposals, as well as oil bonds, are difficult to implement at present because they require time, arrangements, and legislation, especially since oil represents the primary resource of the Iraqi state, and any transaction involving it outside the traditional framework of sale requires a law that allows its use as collateral for loans or to obtain financing.”
Mohammed added that “a digital dinar also requires legislation and financial and economic arrangements that are not currently available. Therefore, the immediate solutions will remain within the traditional framework, including domestic borrowing, attempting to market oil through unconventional means and opening new markets, as well as increasing export volumes through alternative outlets, whether through regional agreements or land routes via Turkey and Syria.”
Among the proposals put forward by experts to address the liquidity crisis is the sale of a portion of future oil through bonds or financial instruments, whereby the government would receive payment in advance from citizens or banks at a fixed price, in exchange for settling these bonds later according to an agreed-upon pricing mechanism.
This proposal faces objections related to the need for clear legislation regulating the mechanism for selling oil in this way and determining the quantities that can be offered. There are also concerns about the risks of volatile crude oil prices in global markets and the potential losses that could result from fixing the selling price in advance if prices rise later. Furthermore, it is essential to identify the entity that will manage these bonds, the mechanism for their settlement, and how to guarantee the rights of the state and the parties involved.
Economists believe that the liquidity issue has shifted from a crisis related to the timing of salary payments to a broader test of the state's ability to manage its resources. Traditional tools, such as borrowing, restructuring spending, and increasing exports, appear to be the most feasible in the short term. Conversely, resorting to tools like the digital dinar and oil bonds requires more mature legislation and a more robust financial and banking infrastructure to address the repercussions of the current situation.
Qalibaf: Our visit to Iraq will witness practical steps to enhance security and common prosperity.
Iranian Parliament Speaker Mohammad Baqer Qalibaf stated that his planned visit to the Iraqi capital, Baghdad, later on Wednesday will focus on several key areas, most notably strengthening joint security between the two countries.
Qalibaf wrote in a post on the “X” platform, saying, “During this visit, we will take practical and significant steps to consolidate the self-security and common security of both countries, and to achieve prosperity for both peoples.”
He added, "The relationship that unites the Iranian and Iraqi peoples is an unbreakable historical relationship. Our neighborliness was based on brotherhood in the harshest of days, resistance to foreign interference, and belief in the common destiny of both countries; and this past full of lessons will be the beacon for the future."
This comes in conjunction with what an informed source revealed last Monday, that a high-level Iranian delegation headed by the Speaker of the Iranian Parliament, Mohammad Baqer Qalibaf, will visit the Iraqi capital, Baghdad, on Wednesday, to hold talks with a number of Iraqi officials and political figures.
The source told Shafaq News Agency that the visit will include discussions on a number of political, security and economic issues, foremost among them allowing Iraq to pass its oil through the Strait of Hormuz, in light of the developments taking place in the region.
He added that the delegation will also discuss the issue of restricting the weapons of Iraqi factions to the state, in addition to conveying the Iranian government’s viewpoint on this issue and the position on the measures taken by Baghdad in this direction, noting that the talks will also address Iranian concerns about the possibility of a renewed outbreak of war in the coming period, and regional developments and their repercussions on Iraq, Iran and the region.
The issue of armed factions is one of the most sensitive issues facing the Iraqi government, with the approach of September 30, which the main political forces have set as the deadline for restricting weapons to official institutions.
The State Administration Coalition, which includes the most prominent Shiite, Sunni and Kurdish political forces, stressed during its meeting on August 5 the need to restrict weapons to the state, and considered the parties that carry out activities that threaten the security of the country outside the framework of official institutions as “outlaws and must be fought.”
The coalition warned that any armed activity outside the framework of the state after September 30 would be dealt with according to the anti-terrorism law.
Following this, Iraqi security and military forces raised their readiness level throughout the country, and the leave of a number of commanders and officers was cancelled, while security agencies began implementing field movements and exercises in anticipation of any emergency or friction that might develop into an armed confrontation.
Last week, Baghdad witnessed hours of security tension coinciding with threats by armed factions to retaliate against Saudi Arabia after strikes targeted Popular Mobilization Forces sites, before it ended with contacts and a dawn meeting between Prime Minister Ali Faleh al-Zubaidi and Badr Organization leader Hadi al-Amiri, which led to a mutual calming and opened the way for diplomatic action to address the crisis.
Al-Amiri later called on the "Islamic Resistance" factions to postpone any military response against Saudi Arabia and to prioritize "Iraq's higher interest," but he returned and stressed during a meeting with a number of Popular Mobilization Forces leaders the importance of maintaining a high level of readiness.
The plan to restrict weapons does not have a unified stance from the armed factions.
While some forces expressed a willingness to reorganize their military and security relationship with the state, other factions, including Kataib Hezbollah, Harakat al-Nujaba and Kataib Sayyid al-Shuhada, announced their refusal to relinquish their military capabilities, and linked any discussion about their weapons to the end of the presence of foreign forces and ensuring the protection of Iraq from external attacks.
The September 30th date also coincides with the deadlines related to ending the military presence of the international coalition in Iraq, which some factions use as a basis for linking the future of their weapons to the withdrawal of foreign forces.
Lifting subsidies and tightening tax collection: Al-Zidi's government approves a new package of economic decisions.
The Prime Minister's Media Office stated in a statement received by Noon News Agency that, as part of the government's measures to increase export and import capacities, the recommendation regarding the purchase of crude oil was approved, based on the price of the State Oil Marketing Company (SOMO) or the price set in the general budget, whichever is lower, with a discount of (30%), to be determined annually, starting from September 1, 2026, and paid to the public treasury, provided that its financial effects are reviewed in detail, with the implementation of the aforementioned study being based on lifting subsidies on the prices of petroleum products for all sectors, with the exception of the main products supplied exclusively to citizens (gasoline, gas oil, kerosene, and liquefied gas) from September 1, 2026.
He added that "any support granted to any sector reduces the share of the public treasury, and the proposed mechanism will be presented to the Federal Board of Financial Control for the purpose of adopting the amended accounting policy to avoid future audit observations."
In the oil sector as well, the council voted, according to the statement, to approve the mechanisms for exporting Iraqi oil through specialized international and local companies, and through different outlets, provided that the contracts are for a period of (3) working months starting from September 1, 2026.
The recommendation regarding exceptional approvals to increase export and import capacities was also approved, authorizing the Minister of Oil to create additional transport routes for the contracts concluded and currently in force, and the authority to renew those contracts, in addition to authorizing him to approve the import of petroleum products when needed to ensure the stability of their supply and prevent crises, provided that the Oil Pipelines Company completes the work of expanding the loading platforms.
The statement indicated that the council approved the commencement of work before signing the contract for the projects to rehabilitate the (IT2A) station and a supporting unloading station for the (IT1) station with a capacity of (300,000 barrels/day) in a way that ensures the speed of preparing imported raw materials, and in a way that does not affect the principles of competition and transparency.
Regarding the procedures for regulating oil sales mechanisms, the Council approved the recommendation related to the mechanisms for advance payment of the prices of Iraqi oil sales, and the methods for companies purchasing the value of shipments to deposit, and advance payments into the relevant accounts belonging to the Ministry of Finance and the Central Bank of Iraq.
He explained that the Council also approved the continuation of payments to the Basra Gas Company for the value of its products delivered to the South Gas Company, as it is a self-financing company, and that Cabinet Resolution (308 of 2026) be amended, in addition to approving the donation of the Ministry of Oil, with an amount of 5 billion dinars to the Ministry of Health, allocated for the purchase of medicines, medical and laboratory supplies.
In the electricity sector, the statement confirmed the approval of the recommendation of the Central Review and Approval Committee for Referrals at the Ministry of Electricity, regarding the adoption of Request for Proposals (RFP) documents in the electricity distribution sector.
According to the same statement, the Council approved the adoption of the principle of prepayment of customs duties and estimated tax deposits on imported goods, starting from October 1, 2026. The importer is required to deposit the foreign exchange transfer funds for import purposes with authorized banks, and these funds will not be transferred until the importer has paid the estimated customs duties and tax deposits through the ASYCUDA system and approved electronic payment mechanisms, and transferred them to the public treasury accounts and the relevant accounts at the Ministry of Finance, within (15) days.
He continued: “The calculation of customs duties and estimated tax deposits shall be based on the initial data provided by the importer, including the commercial invoice, shipping documents, or import and customs classification, type of goods, their origin and value, in accordance with the approved customs tariff schedules.”
As part of the government's efforts for administrative and financial reform, the Council voted to amend the instructions for regulating write-off procedures and accounting treatments, which include sending all government entities the minutes of write-off of debts and assets to the Federal Financial Control Bureau for auditing before the decision to write off is taken by the authorized entity, and the Ministry of Finance amended the instructions for regulating write-off procedures and accounting treatments (1 of 2022) to ensure the aforementioned amendment, according to the statement.
The Cabinet approved the Ministry of Transport/Air Navigation Company funding the Ministry of Finance with an amount of 15 billion dinars, allocated to border crossings, to develop the infrastructure of the Rabia, Al-Walid and Safwan crossings, in addition to suspending the implementation of Cabinet Resolution (963 of 2025) until the end of 2026, provided that the local market is monitored during the suspension period.
The statement concluded by saying that "the Council voted to approve the extension of the Independent High Electoral Commission's occupancy of school buildings until December 31, 2027, provided that the Commission submits a plan that includes time limits for vacating the occupied classrooms and school buildings in stages. The Minister of Trade or his designee was also authorized to negotiate and sign the draft agreement for economic, trade, scientific, cultural, artistic and sports cooperation between Iraq and the Republics of Nigeria and Zambia."
The Cabinet approves a new mechanism for pricing crude oil.
In a move aimed at restructuring the economic portfolio and enhancing export and import capacities, the government took a series of sovereign decisions during the fifteenth regular session of the Council of Ministers, which was held on Tuesday evening under the chairmanship of Council Chairman Ali Faleh Al-Zaidi, which included the oil, finance, electricity, infrastructure, and international relations sectors.
As part of the government's procedures to increase export and import capacities, the recommendation regarding the purchase of crude oil was approved, based on the price of the State Oil Marketing Company (SOMO) or the price set in the general budget, whichever is lower, with a discount of (30%), to be determined annually, starting from (September 1, 2026), and paid to the public treasury, provided that its financial effects are reviewed in detail, with the implementation of the aforementioned study being based on lifting subsidies on the prices of petroleum products for all sectors, with the exception of the main products supplied exclusively to citizens (gasoline, gas oil, kerosene, and liquefied gas) from (September 1, 2026), and that any subsidy granted to any sector reduces the share of the public treasury, and the proposed mechanism is presented to the Federal Board of Financial Control for the purpose of adopting the amended accounting policy to avoid future audit observations.
In the oil sector as well, the Council voted to approve the mechanisms for exporting Iraqi oil through specialized international and local companies, and through different outlets, provided that the contracts are for a period of (3) working months starting from the date of (September 1, 2026).
The recommendation regarding exceptional approvals to increase export and import capacities was also approved, authorizing the Minister of Oil to establish additional transport routes for existing and current contracts, and to renew those contracts. The Minister was also authorized to approve the import of petroleum products when needed to ensure a stable supply and prevent crises, provided that the Oil Pipelines Company completes the expansion of loading platforms. Furthermore, approval was granted to commence work prior to contract signing for the rehabilitation of the IT2A station and a supporting unloading station for the IT1 station, with a capacity of 300,000 barrels per day. This will ensure the rapid delivery of imported raw materials without compromising the principles of competition and transparency.
As part of the procedures for regulating oil sales mechanisms, the Council approved the recommendation related to the mechanisms for advance payment of the prices of Iraqi oil sales, and the methods for companies purchasing the value of shipments to deposit, and advance payments into the relevant accounts belonging to the Ministry of Finance and the Central Bank of Iraq.
The council approved the continued payment of dues to Basra Gas Company for the value of its products delivered to South Gas Company, as it is a self-financing company.
The Council approved the Ministry of Oil's donation of (5) billion dinars to the Ministry of Health, allocated for the purchase of medicines, medical supplies, and laboratory equipment. In the electricity sector, the recommendation of the Central Review and Approval Committee for Referrals at the Ministry of Electricity was approved, regarding the adoption of Request for Proposals (RFPs) in the electricity distribution sector.
To enhance the procedures for collecting fees and taxes, the Council approved the adoption of the principle of pre-payment of customs duties and estimated tax deposits for imported goods, starting from (October 1, 2026), and the importer depositing the amounts of foreign transfer for import purposes with the authorized banks, and not transferring the amounts except after the importer pays the amounts of customs duties and estimated tax deposits through the (ASYCUDA) system, and the approved electronic payment mechanisms, and transferring them to the accounts of the public treasury and the competent accounts in the Ministry of Finance, within (15) days, and that the calculation of the amounts of customs duties and estimated tax deposits be based on the initial data provided by the importer, including the commercial invoice and shipping documents, or import, customs classification, type of goods, origin and value according to the approved customs tariff schedules.
As part of the government's efforts toward administrative and financial reform, the Council voted to amend the instructions regulating write-off procedures and accounting treatments. This amendment requires all government entities to submit records of debt and asset write-offs to the Federal Board of Supreme Audit for review before the authorized body makes a write-off decision. The Ministry of Finance was also tasked with amending Instruction No. 1 of 2022, which regulates write-off procedures and accounting treatments, to ensure compliance with these amendments. Furthermore, the Cabinet approved the Ministry of Transport/Air Navigation Company's allocation of 15 billion dinars to the Ministry of Finance for border crossings, specifically for developing the infrastructure at the Rabia, Al-Walid, and Safwan border crossings.
The Council approved the recommendation to suspend the implementation of Cabinet Resolution (963 of 2025) until the end of (2026), provided that the local market is monitored during the suspension period.
The council also voted to approve the extension of the Independent High Electoral Commission’s occupancy of school buildings until (December 31, 2027), provided that the commission submits a plan that includes time limits for vacating the occupied classrooms and school buildings in stages.
As part of the government’s measures to strengthen international relations, the Minister of Trade, or whomever he authorizes, was given the power to negotiate and sign the draft agreement for economic, trade, scientific, cultural, artistic and sports cooperation between Iraq and the Republics of Nigeria and Zambia.
America flies over Iraq and imposes its conditions behind the scenes... Washington's messages paralyze the government in Baghdad.
Maysar al-Shammari, a leader in the Wisdom Movement, confirmed that the American administration had sent reservations about some political forces assuming ministerial portfolios in al-Zidi’s government, indicating that external interventions and pressures represent an influential factor in deciding the cabinet file.
Al-Shammari told Al-Maalouma that "the American side sent messages containing reservations about a number of names proposed for ministerial portfolios, especially the candidates for security ministries, which contributed to slowing down the process of completing the government formation and preventing reaching a final agreement on the nominated names."
He added that "the current data does not indicate any signs of holding a session of the House of Representatives soon to vote on the remaining members of the cabinet, as the disputes and interventions related to some of the candidates are still preventing the issue from being resolved."
Al-Shammari pointed out that "the issue of completing the cabinet may be postponed until after September 30, if the political complications continue and no understandings are reached regarding the names that have parliamentary and political acceptance."
He pointed out that "the moves aimed at forming the new government are currently facing some obstacles," considering that "the continuation of some pressures directly affects the process of completing the government and delays the resolution of a number of important ministries."
These developments come at a time when completing the cabinet remains one of the most significant challenges facing al-Zaidi's government, amidst political and parliamentary anticipation for filling the vacant ministerial posts and ending the instability surrounding the government's formation.
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State economic integration
The government of Prime Minister Ali Faleh al-Zaidi is adopting a program for financial reform and rationalizing spending in parallel with diversifying sources of revenue and reducing dependence on oil. The Ministry of Public Finance is facing pressure in providing the necessary liquidity to cover public expenditures, with a public spending volume of about 7 trillion and 800 billion dinars, which is not an exaggeration in relation to the size of the wealth of the Iraqi economy, and it would not have affected the size of liquidity or the money supply were it not for the systematic and organized corruption that has been dividing the state’s revenues for years into more than half.
The security operations conducted by the government to pursue corrupt individuals have revealed the enormous sums of money seized from those arrested, while investigations into other suspects continue. Beyond the issue of corruption itself, efforts to increase state resources necessitate measures and laws that do not harm citizens by imposing additional financial burdens that could overburden them due to flawed past economic policies.
Among the possible solutions for the state is to start collecting taxes owed by foreign and local companies and to expand electronic automation in government institutions to reduce financial waste, prevent duplication of work, and collect fees in a legal and proper manner, not by sharing them with other investors as happens in the matter of electricity privatization in some residential areas. In addition, there is the need to audit outstanding advances and loans and recover them from companies and individuals, and to work on reviewing collection contracts in state institutions to determine the size of the revenues that these institutions receive compared to the investor's share. Some contracts have the investor's share reaching 75 percent of the revenues compared to 25 percent for the state, without knowing the details of the level of service provided by the investor and whether it actually warrants this percentage or is just corruption that drains the state's resources.
Another issue is the need to pay attention to the multiplicity of legislation and decisions that conflict with the investment law and confuse the investment environment instead of benefiting from its financial returns. Perhaps the question that arises regarding the reality of the economy in Iraq is, where do the solutions lie? Is it in institutional reform and combating corruption in a real and unambiguous way, or in controlling the state’s revenues in all their forms, whether local or foreign, in a centralized manner that is not subject to any political interference, or both together?
The strength of the economy lies in coordinating the work of the security, economic and political system with an integrated structure in which politics ensures the success of the other systems that run the life of the citizen. When there are gaps that work to prevent the integration of these systems with each other with the aim of enriching themselves at the expense of public money, it is not possible to talk about any reform or economic development in the country, because public money will remain permissible under the names of projects and illusions of economic returns, and thus remain in the cycle of our only source of income, oil and nothing else.
The 2026 budget is stalled... The Iraqi government faces a test regarding salaries, projects, and spending.
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In this context, economic analyst Sabah Zangana told Sputnik: “The absence of a financial budget in Iraq may lead to the spread of rumors among citizens regarding the financial crisis plaguing the country, and the extent to which the government is able to secure salaries and other financial entitlements.”
Zangana stressed that "failure to approve the budget will lead to many economic problems in Iraq, especially in light of the uncertainty in the markets."
Pressure on investments and projects
Iraqi Dinar Drops Against Dollar Amid Market Instability
At a glance
- Dinar hits 154,250 per $100 in parallel markets; street rates exceed 154,750.
- Erbil Currency spokesman links decline to poor finances and high USD demand during salary distributions.
- Rates vary between 154,500 and 154,750 across Erbil, Slemani, and Duhok.
The Iraqi dinar has dropped against the U.S. dollar, and $100 is being traded in the Kurdistan Region's parallel markets at 154,250 dinars, while the sale of dollars outside the markets has reached more than 154,750 dinars.
Key Statement and Focus Area
- Kaifi Khoshnaw, spokesman for the Erbil Currency Market, attributes the decline of the dinar to Iraq's poor financial situation and the increased demand for the dollar during salary distributions.
- Khoshnaw stated that the continuous change in prices at present is linked to the level of supply and demand of foreign currency in the markets, which directly affects commercial transactions and the purchasing power of citizens in the markets.
According to the Erbil spokesman, the value of the dinar against the dollar will remain unstable until the general financial situation in Iraq completely stabilizes.
During salary distributions for the government public sector, the value of the dinar drops because citizens convert a part of their salaries into dollars.
In Iraqi markets, he noted, there is a price difference of 250 dinars for every $100 between provinces.
The value of the dinar fluctuates daily by 1,000 to 2,000 dinars in the markets.
Dollar exchange rates vary across Kurdistan Region cities including Erbil, Slemani, and Duhok, as well as other Iraqi provinces, ranging from 154,500 to 154,750 dinars per $100.
The spokesman for the Erbil Currency Market described these regional price disparities as standard market behavior.
FYI
In recent weeks, the Iraqi dinar has faced heightened volatility in parallel markets, with the exchange rate climbing from roughly 152,500 dinars per $100 in early August to over 154,750 dinars.
Market instability has been further exacerbated by rumors surrounding a state-proposed currency redenomination plan to drop three zeros from the banknotes.
Jabar Goran, spokesperson for the Slemani Currency Exchange Market, told Channel 8 that dropping three zeros from the dinar would force individuals holding illicit cash reserves to reveal their sources, freezing tens of trillions in hidden funds.
The spokesperson dismissed rumors of a dinar devaluation, stating it is unnecessary due to rising revenues, and predicted the market rate could strengthen to 146,000–147,000 IQD per $100 if regional trade channels remain stable and geopolitical tensions ease.
Iran, Iraq Move to Remove Banking Barriers
Senior Iranian and Iraqi officials discussed ways to remove banking obstacles and facilitate access to Iranian foreign-exchange resources held in Iraq.
Iranian Central Bank Governor Abdolnasser Hemmati held separate meetings with his Iraqi counterpart Nizar Nasser Hussein and Finance Minister Faleh Sari during his visit to Baghdad, focusing on banking and economic cooperation.
Hemmati stressed the need to accelerate mechanisms allowing Iran to use its funds held in Iraqi banks and called for easier banking procedures for Iranian traders and exporters, particularly for transferring funds.
The Iranian and Iraqi central bank chiefs agreed to continue consultations to achieve practical solutions for managing and accessing Iran’s foreign-exchange resources. Hemmati also invited Hussein to visit Tehran to finalize banking agreements
In his meeting with the Iraqi finance minister, Hemmati presented technical proposals aimed at speeding up the settlement of Iran’s financial claims. The two sides also discussed expanding economic cooperation and using Iranian contractors’ technical capabilities in Iraqi development projects.
Hussein welcomed closer economic ties, saying Iran and Iraq should make better use of their natural resources and skilled workforce to expand technical, engineering and financial cooperation.
Iran demands the acceleration of the removal of banking restrictions on its funds in Iraq.
Iran has demanded the acceleration of the removal of banking restrictions imposed on its funds and resources in Iraqi banks, while a source in the Iraqi Ministry of Electricity said that $11 billion is deposited in Iran’s account at the Iraqi Commercial Bank, while the Iranian funds that must be paid by Baghdad amount to about $2 billion.
Maliki Says Coordination Framework Sets Up Committee on State Control of Arms
Nouri al-Maliki says the Coordination Framework has established a committee to address state control of weapons, with the body expected to begin work soon.
Nouri al-Maliki, head of the State of Law Coalition, said Tuesday that the Coordination Framework has formed a specialized committee to address the issue of bringing weapons under state control, with the committee expected to begin work soon in coordination with the Iraqi government.
Maliki made the remarks during a meeting with Joshua Harris, chargé d’affaires at the US Embassy in Iraq, during which the two discussed political and security developments.
According to a statement from the media office of the State of Law Coalition leader, the meeting also addressed the future of bilateral relations between Iraq and the United States and ways to develop them across various fields, in line with the Strategic Framework Agreement between the two countries while preserving Iraq’s sovereignty and independence.
The issue of the government’s efforts to bring weapons under state control was also discussed during the meeting.
Maliki said the Coordination Framework had formed a committee dedicated to the issue and that it would soon begin working in coordination with the government to identify an appropriate mechanism for implementing the process.
He stressed the importance of addressing the issue through dialogue and mutual understanding in a way that preserves national unity and Iraq’s security.
Maliki also reiterated that the state and constitutional institutions are the only foundation and authority for managing security and military affairs.
For his part, Joshua Harris expressed support for the government’s efforts to strengthen state institutions.
He also stressed the importance of continued coordination between Iraq and the United States in a manner that serves the interests of the Iraqi people.
The meeting comes as the two sides discuss the future direction of bilateral relations and the mechanisms for addressing security issues while maintaining Iraq’s sovereignty and the role of its constitutional institutions.
The UAE decides to halt financial transactions and trade exchanges with Iran
The United Arab Emirates decided on Tuesday to suspend all financial transactions and trade exchanges with Iran until further notice, in light of the repeated attacks.
The UAE Ministry of Foreign Affairs denied all allegations regarding the status of the economic relationship with Iran, and affirmed its firm commitment to dialogue, cooperation and regional integration, as essential means to promote peace, stability and prosperity in the region.
The ministry stressed that the UAE remains committed to preserving the integrity of the international financial system, in line with international law and the highest global standards.
The UAE Ministry of Defense announced that it had detected two ballistic missiles coming from Iran towards the country, while the first fell outside the country's territorial waters, while the second fell in the territorial waters.
The ministry indicated that assessments showed that the two ballistic missiles detected coming from Iran were targeting maritime traffic and had fallen into the sea.
Al-Zaydi calls on Turkish companies to invest in airport and railway construction and operation projects as part of the development path
Prime Minister Ali Faleh al-Zaidi affirmed to a delegation of Turkish businessmen on Tuesday that Iraq is witnessing a promising development phase, urging Turkish companies to capitalize on available investment opportunities.
A statement from his office indicated that "Prime Minister Ali Faleh al-Zaidi received on Tuesday the former Turkish Deputy Prime Minister and Minister of Treasury and Finance, Lutfi Elvan, and his accompanying delegation, which included a number of Turkish officials and businessmen."
During the meeting, they discussed "prospects for bilateral cooperation between the two countries, particularly in the economic and investment sectors, and ways to strengthen the partnership, thereby opening up broader avenues for joint work and encouraging Turkish companies to participate in implementing strategic projects across various development sectors in Iraq."
The Prime Minister emphasized that "Iraq is experiencing a promising development phase, calling on Turkish companies to take advantage of available investment opportunities, especially in airport construction and operation projects, railway projects within the Development Road project, and the construction of a metro line connecting the holy cities of Najaf and Karbala. He also highlighted investment opportunities in the electricity sector through the construction of thermal power plants and solar energy projects, as well as dam projects and the development of the agricultural sector."
For his part, the former Turkish Deputy Prime Minister expressed the readiness of major Turkish companies to enter the Iraqi market and invest in it, stressing the growing confidence in the investment environment in Iraq, in light of the support and facilities provided by the government to enhance development paths and achieve economic growth.
The new budget for 2027 aims, according to Finance Minister Falih al-Sari, to allocate resources 0:08
based on results, in a way that enhances the efficiency of public fund usage and prevents any attempts at waste or exploitation 0:15
through the corridors of corruption. The government, through the Ministry of Finance, aspires to move beyond the current circumstances by strengthening and developing 0:23
financial management tools, continuing the path of reform, and enhancing non-oil revenues — especially after 0:30
the repercussions of the closure of the Strait of Hormuz, which left direct impacts on the national economy. In a proactive step, 0:36
the Ministry of Finance approved the draft of the National Guide for Program and Performance Budgeting 0:43
and subjected it to a final review with the participation of the World Bank. This will help approve a clearer budget 0:50
in determining priorities and monitoring what is achieved from programs and projects. 0:59
Economic experts stress the importance of program budgeting instead of traditional line-item budgeting, because it focuses on spending 1:06
and monitoring performance indicators of government institutions, generating non-oil financial revenues, giving 1:12
priority to economic spending, and reducing waste of public funds. The program and performance budget revives 1:21
both popular and official hopes of achieving aspirations and ambitions for generating new revenues far from 1:28
oil rents, while guaranteeing operating expenses — especially salaries — and ensuring they are paid on time, as well as protecting the national economy from 1:37
the repercussions of the war in the region. Thus, under the direction of Finance Minister Falih al-Sari, 1:43
Iraq is moving, for the first time in its history, to prepare a financial budget based on programs and performance 1:50
rather than line items — a qualitative shift aimed at controlling the pace of spending and protecting public funds.
Advisor to the Prime Minister, Mudhir Muhammad Salih, confirmed that the digital Iraqi dinar is a promising strategic project, but it is not an independent solution to the 0:09
cash liquidity crisis. He noted that its success is linked to expanding banking services and strengthening infrastructure. Salih said that the sovereign digital currency 0:19
will be a digital form of the Iraqi dinar, with its value remaining equal to the paper dinar. He explained that it could help reduce 0:27
reliance on cash, accelerate payments, enhance financial inclusion, and limit the informal cash economy. He added that paying salaries 0:36
digitally is both practically and technically possible, but it requires expanding banking services, electronic payment devices, 0:43
improving communications and internet infrastructure, completing the legal frameworks, and strengthening cybersecurity. He emphasized that the digital dinar is part of 0:53
economic reform and not a substitute for it.
