The Prime Minister's advisor: Al-Zidi's government has taken measures to preserve the purchasing power of the dinar and curb inflation.
The Prime Minister's Financial Advisor, Mazhar Muhammad Salih, affirmed on Saturday that the government, headed by Ali Falih Al-Zaidi, has taken measures to preserve the purchasing power of the Iraqi dinar and curb inflation.
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Salih told the Iraqi News Agency (INA) that "the policy of stabilizing the official exchange rate is based on a fundamental objective: protecting the external value of the national currency and maintaining the stability of the general price level." He pointed out that "the stability of the exchange rate has contributed to strengthening confidence in the Iraqi dinar and supporting the purchasing power of citizens."
Salih added that "the relationship between the stability of the exchange rate and the stability of prices of goods and services in the local market has remained strong, given the limited impact of the parallel market on the pricing system and the effectiveness of monetary policy." He explained that "financing imports through the official banking system and relying on the state's foreign reserves has contributed to providing imported goods at stable and controlled prices."
He continued, stating that "government policies aimed at maintaining the stability of prices for public goods and services, along with the expansion of modern commercial distribution methods, particularly cooperative stores and advanced marketing models, have strengthened competition and contributed to reducing inflationary pressures and supporting price stability."
Saleh explained that "among the most prominent factors putting pressure on the value of the national currency are the decline in official reserves, uncontrolled monetary expansion, and excessive reliance on oil revenues, which are currently subject to geopolitical constraints imposed on the freedom of energy markets, in addition to political and regional tensions and their impact on foreign currency flows and economic confidence."
He emphasized that "raising the value of the Iraqi dinar cannot be achieved through quick administrative decisions, but rather through a long-term reform process based on the stability of monetary and fiscal policies, diversification of national income sources, and strengthening confidence in the local currency." He noted that "the stability of the dinar remains a direct reflection of the stability of the macroeconomy and its ability to withstand local and international changes, which is what the government is working on through a package of measures to strengthen the value of the Iraqi dinar. These measures include working to enhance foreign reserves, diversify the national economy and reduce dependence on oil, achieving stability in the balance of payments, as well as controlling the parallel market, reforming the banking system, expanding the use of electronic payment methods, and promoting financial inclusion."
The Association of Iraqi Private Banks, with a delegation headed by Mr. Wadih Al-Hanzal, participated in the 2026 Arab-European Banking and Economic Summit, hosted by the French capital, Paris, and organized by the Union of Arab Banks under the patronage of French President Emmanuel Macron.
Miles Caggins: Oil companies want guarantees
Miles Caggins, spokesman for the Kurdistan Regional Petroleum Industry Association (Epicur)
The former spokesman of the Kurdistan Regional Government (KRG) said that the main reason for the non-resumption of oil production companies in the Kurdistan Region was security threats and drone and missile attacks.
Companies were at risk
Miles Caggins, in an exclusive interview with Channel 8, said that recently after the ceasefire between Iran and the United States and the calm of the war situation, companies resumed operations secretly, but again the companies were attacked, so they stopped working.
Guarantee operational security
He said the companies have clearly told the relevant authorities that they will not resume work until the security of their work is guaranteed.
Debt is still debt and has not been repaid
Regarding the $1 billion debt of the companies, which was agreed between the Iraqi government and the Kurdistan Regional Government, the former spokesman of Epicor said: "So far, the debt has not been recovered, but the companies have not made this the main problem.
Resumption of corporate operations
In a meeting between the Kurdistan Regional Government (KRG) delegation and Iraqi Prime Minister Ali Zaydi, he called on the oil companies to resume operations and promised to implement their demands.
The Iraqi economy under the democratic political system: between legitimacy and legality
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Dr. Haitham Hamid Mutlaq Al-Mansour
Jean-Jacques Rousseau said, “The constitution is not merely a legal document, but a social contract reflecting the consensus of the general will.” In this sense, as established by modern constitutional thought, the democratic state cannot be understood simply as a set of legal texts, but rather as a legitimate system based on a balance between legal rules and social acceptance. Therefore, the institutional economist Douglas North stated, “An efficient economy needs institutions that regulate behavior and generate trust.”
With this precise framing of the role of institutions in developing the outputs of the political and economic system to benefit both production efficiency and equitable distribution, modern institutional economics is based on linking the legal structure of the state with its capacity to generate trust and stability. From this perspective, the problematic relationship between legitimacy and legality in the economic and political systems becomes not merely a legal issue, but a matter of institutional and social performance simultaneously. Therefore, the central question in the general vision for building the Iraqi economy arises: How does the economic system interact with the duality of legal legitimacy and social legality within a democratic experiment that is still in its formative stages?
In post-2003 Iraq, the economic system was established within a relatively clear constitutional and institutional framework. Public policies are managed through elected institutions, budgets are approved through parliamentary mechanisms, and monetary and fiscal policies are implemented within formal legal frameworks. This grants the Iraqi economy a degree of legitimacy, meaning adherence to the constitutional and legal framework in economic decision-making and implementation.
However, while this legitimacy is necessary, it does not necessarily guarantee economic legitimacy, which means public acceptance of the outcomes of economic policies in terms of fairness and efficiency. In political reality, this legitimacy is under increasing pressure due to weak economic diversification, excessive dependence on oil, and the widening gap between public resources and the level of services provided to citizens.
The disconnect is evident between a legally legitimate but socially unstable economy, where public trust is contingent on results rather than procedures. As the state's ability to improve living standards, reduce unemployment, and combat corruption diminishes, its economic and political legitimacy declines, even if it maintains legal standing.
The democratic political system in Iraq represents a complex model of a transitional state attempting to reconcile legal legitimacy with political and social legitimacy in an environment still suffering from institutional weaknesses, multiple centers of power, and varying levels of trust in the state. Political legitimacy is under constant pressure due to a clear gap between the state and society. Weak public services, inconsistent government performance, widespread corruption, and high unemployment rates have all contributed to the erosion of trust in political institutions, even those that remain constitutionally legitimate. This has created a disconnect between the legality of power and its social acceptance.
This separation has produced what can be described as an incomplete procedural democracy—a democracy that produces governments through the ballot box, but does not always succeed in generating sustained legitimacy. Elections in Iraq often renew formal legitimacy, but they do not address the root causes of the legitimacy crisis linked to economic and social outcomes.
The emerging democratic political structure in Iraq has contributed to maintaining a minimum level of stability, but at the same time, it has made legitimacy more dependent on political balances than on competence or achievement. This has led to the emergence of a "consociational-rentier" political system, in which the state is run more through distribution networks than through effective productive institutions.
Economically, the discrepancy between legitimacy and legality is reflected in the nature of public policies. A government's "legitimacy" does not necessarily mean it is capable of implementing genuine economic reforms, as weak social legitimacy limits its ability to make difficult decisions such as reducing public spending, reforming the subsidy system, or restructuring the rentier economy. Thus, economic policy becomes hostage to short-term political balances, rather than being part of a long-term development vision. The multiplicity of power centers within the political system—among parties, official institutions, and social forces—has fragmented the very concept of legitimacy. Legitimacy is no longer the exclusive domain of the central state, but is distributed among various actors, weakening the system's ability to produce unified and stable decisions, whether in the political or economic sphere.
Furthermore, rentierism has contributed, in one way or another, to undermining the legitimacy of economic decision-making, as oil resources are used as a tool to manage political legitimacy through public employment, subsidies, and transfers, rather than building a diversified, productive economy. This pattern deepens the link between legitimacy and rent distribution, making political stability more dependent on the state's ability to finance public spending than on institutional reform.
In conclusion, it can be said that the democratic system in Iraq rests on a fragile balance between a relatively stable constitutional legitimacy and a volatile political and social legitimacy. This imperfect balance makes the system vulnerable to recurring cycles of protest and political tension whenever the gap widens between government performance and public expectations.
The future of the democratic experiment in Iraq will be determined by the extent to which the political system can bridge this gap by transforming legal legitimacy from a mere procedural framework into a tool for generating legitimacy based on performance and competence, not just on holding elections. Sustainable democracy is not based on legitimacy alone, but on its organic integration with a renewed social legitimacy grounded in the equitable distribution of wealth, the efficiency and effectiveness of resource allocation, and, consequently, trust between the state and society.
In conclusion, it can be concluded that reducing the gap between legitimacy and legality is not achieved by legal reform alone, nor by separate economic measures, but rather through
a three-way integration: an effective law enforcement state, a productive economy, and institutions capable of transforming performance into sustainable social trust.
Here's a summary provided by Ai hahaha
- Iraq has established a legally legitimate democratic system with elected institutions, parliamentary budget approvals, and formal legal procedures for economic policy.
- However, this legal legitimacy has not translated into strong social legitimacy. Many citizens do not trust or accept the outcomes of the system due to persistent problems: heavy oil dependency, weak economic diversification, poor public services, high unemployment, and widespread corruption.
- The democratic experiment in Iraq has created a "consociational-rentier"
system, where power is shared through political quotas and oil revenues are used to maintain stability through subsidies, public jobs, and patronage rather than building a productive economy. - This has resulted in incomplete democracy: elections regularly renew legal legitimacy, but fail to deliver meaningful economic improvements, leading to recurring crises of public trust and periodic protests.
- The author argues that true stability requires bridging the gap between legality and legitimacy by shifting from a rent-based distribution model to a productive, efficient economy supported by strong institutions that can generate sustained public trust.
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The preacher of Abu Hanifa Mosque, regarding the disarmament of factions: We hope this step will bring stability to Iraq.
Abdul Wahab al-Samarrai, the imam and preacher of Friday prayers at the Abu Hanifa al-Nu’man Mosque in Baghdad, praised the federal government’s steps to disarm the factions, stressing that this is a sovereign matter and should remain exclusively in the hands of the relevant authorities in the country.
Al-Samarrai said in his Friday sermon: “The government has thankfully taken this important step, which we hope will achieve stability, security, peace, and coexistence. There is no security as long as there are many armed groups and others who are unarmed.” He added that “these issues must be sovereign matters in the hands of the state exclusively.”
The head of the Security Media Cell, Lieutenant General Saad Maan, announced yesterday, Thursday, the launch of the first practical steps to integrate armed factions into the official security system, through the handover of the headquarters and weapons of the “Saraya al-Salam” in the city of Samarra, in response to the initiative launched by the leader of the Shiite National Movement, Muqtada al-Sadr.
In another part of his speech, Al-Samarrai addressed the formation of the Supreme Sovereign Council for Integrity, Oversight and Recovery of Public Funds, saying: “We hope that this council will be serious, hardworking and strict, and that it will not differentiate or distinguish between one corrupt person and another, so that the Iraqi people’s trust in the government remains.”
This comes in conjunction with the directive issued by the Iraqi Prime Minister, Ali al-Zaidi, at the end of last May, to form the Supreme Sovereign Council for Integrity, Oversight and Recovery of Public Funds, headed by him and with the membership of: the Head of the Financial Control Bureau, and the Head of the Integrity Commission, to carry out the oversight follow-up of ministries, non-ministerial entities and governorates on essential and important issues, in order to stop the waste of public funds and recover state funds, with the outcome of the Council’s work to be sent to the judiciary.
According to a statement issued by his office, the Prime Minister also directed that the economic feasibility of projects be verified, and that there be specialized subcommittees to audit government contracts in order to ensure their compliance with applicable laws and instructions.
The US Treasury imposes new sanctions on Iran
The US Treasury Department announced on Friday a new round of sanctions against Iran, affirming its continued efforts to prevent Tehran from accessing global trade.
The department stated in a press release: "The United States will continue to tighten the noose on Iranian economic activities and disrupt its access to international markets."
According to Reuters, the sanctions target a network of individuals, entities, and tankers that smuggle Iranian-origin liquefied natural gas (LNG), falsely labeling it as originating from Oman, and transport it to South and East Asia.
The Treasury statement, as reported, said: "This network exploited front companies in the UAE and China, as well as foreign bank accounts, to transport millions of barrels of Iranian LNG while concealing this fact to evade US sanctions."
US Treasury Secretary Scott Bisnett explained, according to the statement: "The Treasury Department will continue to disrupt the operations of Iran's shadow fleet and its clandestine banking networks, and prevent Iran from accessing global markets."
The ministry also imposed sanctions on an Iranian money exchange company, Mehrdad Karamian Nik & Co., and its officials, saying they transferred hundreds of millions of dollars in foreign currencies on behalf of Iranian banks listed on sanctions lists.
Khamenei's advisor: A meeting between Trump and Iran's Supreme Leader is not currently possible
The military advisor to Iran's Supreme Leader, Mohsen Rezaei, stated that a meeting between US President Donald Trump and Ayatollah Mojtaba Khamenei, the Supreme Leader of Iran, is currently impossible. Rezaei explained in an interview with CNN that the reason is that President Trump has brought the negotiation process to a standstill. When asked about the possibility of a meeting between Trump and Khamenei, Rezaei replied, "This will not happen.
We are currently in the initial stage of negotiations, and Mr. Trump has brought the negotiation process to a dead end. This will not happen." It is worth noting that Trump has said he would be willing to meet with the Iranian leader if it would contribute to reaching an agreement between Washington and Tehran. For his part, Iranian Foreign Minister Abbas Araqchi, in a televised interview, commented on Trump's remarks regarding a potential meeting with the Iranian leader, saying, "In my opinion, we must be realistic and think and live in the real world."
He added, "Mojtaba is now the Supreme Leader of the regime and has a very close and influential presence in the course of the country's developments." Araqchi emphasized that Mojtaba "is in complete control, and due to security considerations, the security services recommend..." By not increasing his public presence,” he said.
Parliamentary Defense Committee: Four important laws on the parliamentary agenda after the recess
The Parliamentary Security and Defense Committee confirmed on Thursday
that four important laws will be discussed and undergo their first and second readings after the end of the parliamentary recess.
Committee member MP Yasser Watout told Al-Maalomah, “Four important laws will be discussed and undergo their first and second readings, leading to a vote, after the end of the parliamentary recess, that is, after July 1st.”
He added that “the most prominent of these laws concerns amending the law governing the service of the Internal Security Forces, in addition to other equally important laws.” He pointed out that “the Security and Defense Committee is serious about finalizing these laws and expediting the necessary procedures and amendments in order to complete the first and second readings and proceed to a vote.”
Watout emphasized that “these laws are of great importance in guaranteeing the rights of members of the security and military forces,” explaining that “the proposed amendments will take into account all opinions, including those of security leaders, to ensure the enactment of more effective and efficient laws.”
MP: The session to complete al-Zaydi's cabinet will be held soon, and the same names will not return.
MP Mohammed Karim Al-Baldawi, a member of the Coordination Framework, confirmed on Thursday that there is an agreement to hold a session of the House of Representatives in order to complete the vote on the remaining ministerial lineup of Prime Minister Ali Falih Al-Zidi’s government.
Al-Baldawi told Al-Maalouma that "the political blocs are moving towards replacing the previous names nominated for the nine ministerial portfolios, and presenting new figures who are suitable for the requirements of the stage and to fill the vacant positions."
He added that "through this approach, the parties seek to give themselves and society a greater sense of reassurance by putting forward new names that enjoy wider acceptance."
Regarding the coordination framework, Al-Baldawi stressed that it is “strong and cohesive despite the existence of differing viewpoints on some contentious issues among its components,” indicating that “the framework represents the backbone of the political process, and whoever bets on influencing its unity is mistaken, and everyone must work to preserve it.”
He pointed out that “weakening the coordination framework means weakening the entire political system in the country.”
Political circles are awaiting the scheduling of a session to complete the vote on the cabinet of Ali Faleh al-Zaidi's government, aiming to resolve the dispute that arose from the previous session. This dispute stemmed from political accusations leveled against Speaker of Parliament Haibat al-Halbousi, alleging he deliberately obstructed the approval of certain ministerial nominees and prevented them from being presented for a vote of confidence.
Al-Saadawi stresses the need to find solutions before making any decision regarding the financial aspect.
Former member of the Parliamentary Finance Committee, Abdul Hadi Al-Saadawi, stressed the need to find solutions and remedies before the government takes any decisions regarding the country's financial situation.
Al-Saadawi told Al-Maalouma, "A series of measures must be taken before making any amendments or issuing any decisions concerning the exchange rate in local markets to ensure the preservation of the value of the Iraqi dinar."
He added, "There is a clear difference between the foreign currency sold through the official sales window and the same currency sold in local markets, with the difference reaching more than 20 points."
He explained that "the government has taken good steps, as has the Central Bank, which has taken a series of measures to address the country's financial and monetary situation," noting that "financial solutions require courageous decisions from the government to address the economic situation, especially given the optimism surrounding the government's ability to address the country's economic situation."
