The Central Bank confirms continued coverage of dollar transfers and guarantees payment of employee salaries.
The Governor of the Central Bank of Iraq, Ali Al-Alaq, confirmed on Saturday that the bank will continue to cover foreign transfers in dollars without interruption, stressing that the salaries of employees are secured and will not be subject to any interruption, with continued cooperation with the government.
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Al-Alaq said during a dialogue session within the “Sin” Dialogue Forum that the Central Bank “continues to cover foreign transfers in dollars on a daily and regular basis without any interruption.”
He explained that the bank has worked over the past years to regulate the sale of dollars through official and transparent channels that rely on strict control mechanisms and international standards, with the aim of enhancing financial stability and reducing speculation.
He explained that the procedures followed contributed to regulating external transfer operations and provided reassurance to the relevant international institutions, including the US Treasury and the Federal Reserve, noting that direct cash in dollars is the most sensitive and is subject to strict control.
Al-Alaq pointed out that the volume of imports in dollars has decreased significantly as a result of regulating operations, explaining that what is being withdrawn now is mainly focused on the needs of travelers according to a precise and controlled mechanism.
He added that the bank continues to sell cash dollars within the approved contexts, while continuously developing the external transfer system.
He revealed that a meeting he had with the Prime Minister-designate, Ali al-Zidi, addressed the issue of resources, the budget deficit, and the challenges related to the export sector, explaining that the Central Bank does not have the authority to lend to the government according to the law, but it allows the issuance and sale of government bonds within the prescribed limits.
He concluded by affirming that “employees’ salaries are secure and will not be interrupted.” He noted that the bank possesses strong reserves capable of supporting the country’s financial stability, while continuing its coordination and cooperation with the government.
The Prime Minister-designate arrives in Kurdistan accompanied by a delegation from the Coordination Framework
Baghdad/Al-Masalla: Prime Minister-designate Ali Faleh Al-Zaidi arrived in the Kurdistan Region on Saturday, accompanied by a delegation from the Coordination Framework.
The media office of the Prime Minister said in a statement received by Al-Masalla that the Prime Minister-designate, Ali Falih al-Zaidi, arrived in the Kurdistan Region of Iraq, accompanied by a delegation from the coordination framework.
Al-Zaidi and Barzani emphasize the need to form a strong government capable of facing challenges.
Baghdad/Al-Masalla: Prime Minister-designate Ali Faleh al-Zaidi and Kurdistan Democratic Party leader Masoud Barzani stressed on Saturday the importance of unifying visions and positions and working to form a strong government capable of facing challenges and overcoming crises.
A statement issued by the Prime Minister’s Media Office said that Prime Minister-designate Ali Faleh al-Zaidi met with Kurdistan Democratic Party leader Masoud Barzani in Erbil, in the presence of a delegation from the Coordination Framework.
The statement added that the meeting reviewed the overall situation in the country and the course of dialogues to form the new government, where the importance of unifying visions and positions and working to form a strong government capable of facing challenges and overcoming crises was emphasized, in a way that contributes to strengthening stability and development, and achieving the aspirations of all the people of Iraq.
The Prime Minister-designate: We have gained the acceptance and support of the Kurdish parties.
Prime Minister-designate Ali Faleh al-Zaidi and the head of the National Position Movement, Ali Hama Saleh, stressed on Saturday the importance of unifying visions and positions and prioritizing the national interest.
The Prime Minister’s Media Office stated in a statement received by Al-Maalomah that “Prime Minister-designate Ali Falih Al-Zaidi met with the head of the National Position Movement, Ali Hama Salih, during his visit to Sulaymaniyah Governorate, noting the acceptance of the Kurdish parties and their support for the new government.”
The statement added that "the meeting reviewed the developments in the general situation in the country and the steps taken to form the new government, in addition to emphasizing the importance of unifying visions and positions and prioritizing the national interest, in order to proceed with forming a government capable of facing challenges, consolidating stability, and fulfilling the aspirations of the Iraqi people."
The Central Bank Governor participates in the Sin Dialogue Forum
Under the slogan "Solutions are born and plans are formulated from the heart of crises," the Sin Dialogue Forum organized a dialogue session that hosted His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, with broad participation from decision-makers, experts, and specialists in various sectors. The session, titled "From Restricted Rent to Renewable Production: Iraq's Path Towards a Sustainable and Renewable Economy," focused on the transition towards a diversified and sustainable economy and reducing reliance on rentier resources. It also presented visions for enhancing national production and revitalizing various economic sectors.
His Excellency the Governor stated that the Central Bank is working to achieve economic and financial stability, despite the challenges facing the country, emphasizing that salaries are guaranteed and will not be interrupted, indicating the financial system's ability to continue operating.
He explained that the Central Bank has adopted a policy of "working quietly" to preserve monetary reserves and confront crises, including the repercussions of declining oil prices. He recalled the Central Bank's role during the 2014 crisis, adding that the current financial situation is less severe compared to that period, and that foreign transfers and cash sales to travelers are proceeding smoothly and efficiently.
His Excellency pointed out that the bank continues to support the government in addressing the accumulated financial imbalances resulting from the crises of past years, explaining that it has worked to regulate dollar sales and foreign transfers according to strict compliance standards, with the aim of enhancing transparency and financial stability in Iraq.
Central Bank of Iraq,
Media Office,
May 2, 2026
Elites gather: Washington is using the financial system to exert political pressure on Iraq.
The head of the
Iraqi Elite and Conscious Competencies Gathering, Hussein Ali Jassim, accused the United States on Saturday of controlling Iraq's oil revenues, which he said restricts the country's ability to conduct its banking transactions freely and independently. He indicated that Washington is exploiting this issue to serve its political and economic interests.
Jassim told Al-Maalomah News Agency that the United States continues to exert pressure on Iraq through the financial transfer system, preventing the country from dealing freely with several nations and negatively impacting the national economy.
He added that Washington is using this system as a tool for political pressure, controlling the flow of funds to various sectors and imposing restrictions on foreign transfers, particularly those related to trade and imports.
Jassim explained that Iraq still does not enjoy full financial sovereignty due to these interventions, which serve American interests without regard for the needs of the Iraqi market or the country's economic security requirements.
Mansour warns of inflation that will erode salaries and calls for restructuring the financial hierarchy.
Former MP Suzan Mansour warned on Saturday of a worsening cost-of-living crisis due to the inadequacy of current salaries in the face of soaring prices, especially as more than 30% of Iraqis now rely entirely on salaries and government subsidies that no longer cover basic needs.
Mansour told the Information Agency that "current salaries, especially for the lower ranks, are no longer commensurate with the difficult economic reality," explaining that "there is undeclared inflation eroding citizens' purchasing power at a time when retirees are suffering from a significant gap between their pensions and the cost of living."
She pointed out that "the weak financial allocations for the social welfare network reflect a flaw in the state's priorities, and that the large oil revenues should have been directed towards supporting vulnerable groups instead of the continued absence of reforms that increase poverty rates."
She added that "it is necessary to take real steps to restructure the salary scale and increase pension and social welfare allowances in line with the poverty line, and this measure is the only way to guarantee a minimum level of social justice in the country."
Economists tell Iraq Observer: Al-Zidi is capable of deciphering the code of monetary stability and strengthening the “reserve”
Amid growing talk of economic pressures and regional challenges, attention is turning to Iraq’s ability to maintain its financial stability, supported by positive indicators related to the size of its cash and gold reserves, along with official assurances that there is no real financial crisis, but rather challenges related to management and monetary policies.
In this context, the World Gold Council’s announcement that Iraq maintains a leading position among the largest countries possessing gold reserves stands out, as it ranked 29th globally with reserves amounting to 174.6 tons. According to specialists, this reflects an important support base for monetary stability and enhances market confidence in the Iraqi economy in the face of fluctuations.
These indicators coincide with assurances from the Parliamentary Finance Committee that there is no financial crisis. Officials point out that the problem lies not in a scarcity of resources, but in the mechanisms for managing them. This opens the door to potential reforms focused on improving spending efficiency and regulating liquidity.
Against this backdrop, economic circles have questioned whether the government will resort to using foreign currency reserves or expanding money printing as a quick fix to secure liquidity under the current pressures. However, indicators of fiscal and monetary policy suggest a different approach, one that avoids these options due to their potential repercussions on monetary stability and the exchange rate.
In this context, economist Ali Daadoush stated that “linking the ability to print money to the size of foreign reserves is an inaccurate oversimplification of the nature of modern monetary policy, especially in a rentier economy like Iraq.”
Daadoush explained to Iraq Observer that “the Central Bank does not treat reserves as a rigid cover for issuing currency, but rather as a strategic tool to ensure exchange rate stability, finance imports, and maintain confidence in the national currency.”
He added that “any monetary expansion not linked to a genuine increase in production will directly put pressure on the exchange market, depleting reserves and driving up inflation.”
He pointed out that “the real challenge lies not in the size of the reserves, but in how to manage liquidity to prevent it from being channeled into demand for dollars,” explaining that “resorting to printing money may provide immediate liquidity, but it carries cumulative monetary risks in the medium term.”
In parallel, experts believe that Iraq's stable gold reserves, coupled with consistent oil revenues, provide decision-makers with greater room for maneuver, especially given regional fluctuations that could affect trade and energy flows.
Furthermore, the challenges associated with the Strait of Hormuz or supply disruptions, while serious, do not negate Iraq's ability to adapt, given alternative transportation and export options and financial resources capable of absorbing short-term shocks, according to economic assessments.
With Ali Faleh al-Zaidi tasked with forming the new government, expectations point towards a more cautious approach to managing the financial sector, one that avoids quick fixes such as drawing on reserves or uncalculated monetary expansion, and instead focuses on reforming monetary policy tools and strengthening financial stability.
According to observers, the coming period may witness a move towards controlling liquidity, expanding the use of electronic financial instruments, and reducing pressure on the exchange market, in line with experts' calls to lessen reliance on temporary solutions.
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Next week is crucial for passing Al-Zaidi's government, even with a simple majority, and there is optimism about its economic success
MP Murtadha al-Ibrahimi stated that he believes the government will proceed next week, even if it only secures a simple majority (half plus one) with the current 23 ministries.
Speaking to Al-Mirbad during his appearance on the "Al-Mutabi" program, al-Ibrahimi said that al-Zidi was the Coordination Framework's choice as a compromise candidate and received unanimous support. This, he explained, gives him national momentum, followed by international endorsements, which he sees as a positive indicator for his government.
Al-Ibrahimi predicted that al-Zidi will succeed in managing the country and is capable of leading the next phase, which he believes will be primarily economic.
Regarding his approach to dealing with factions and consolidating weapons under state control, al-Ibrahimi acknowledged the challenges of the internal situation. However, he believes that with the cooperation of all political forces, in coordination with international and regional actors, and considering the shared interests that bind Iraq to other countries in the region, there are all indicators pointing towards the success of al-Zidi's government. He added that the ministerial program currently being drafted will be the effective solution for addressing the Iraqi situation.
Al-Ibrahimi further stated that, to date, the distribution of ministries has not been discussed as much as the process of establishing a mechanism or criteria for allocating sovereign and other ministries based on electoral merit and parliamentary representation.
He indicated that they are optimistic about the government of Ali Faleh al-Zaidi amidst all the internal, regional and international welcome, and this requires support to make his government a success so that he and his cabinet can reach the shore of safety with the Iraqi people, according to al-Ibrahimi’s expression.
Free services to promote financial literacy
47 banks and payment companies in the heart of Baghdad... a broad campaign to break the dependence on cash
2026-05-01 | 19:32 Dream City Mall (Baghdad)
As part of the “Financial Inclusion Week” activities, Dream City Mall in Baghdad was transformed into a meeting place that brought together more than 47 financial institutions, including government and private banks and electronic payment companies. The initiative, launched by the Association of Private Banks and sponsored by the Central Bank, aims to break the stagnation among citizens in interacting with electronic services and provide banking services and open accounts for free to citizens, in a step to expand the culture of electronic payment and spread financial awareness away from the corridors of official banks.
electronic transactions, facilitating access to loans and transfers via telephone, in addition to encouraging the use of payment cards and POS devices, to reduce reliance on cash and enhance financial transparency
The Association of Banks is holding similar events in the Kurdistan Region, Mosul, Maysan, Nasiriyah and Muthanna
Majed Michel, Director of Relations at the Association of Banks, told that“the campaign began on April 27 and will continue until May 3,” indicating that “the events held in Dream City are witnessing the participation of 47 financial entities, including government, private and Islamic banks, in addition to companies supporting the banking sector.”
He added that“the goal of this participation is to provide free banking services to citizens, promote the use of the electronic system, open bank accounts and spread financial awareness and culture.”
For her part, Yasmine Hamza, director of the Bank of Beirut branch in Baghdad, explained that“the bank’s participation comes in support of the national economy and the banking sector, and in appreciation of the efforts of the Central Bank of Iraq in developing financial services.”
She explained that“during Financial Inclusion Week, the bank offers free services including opening accounts and issuing bank cards, in addition to giving citizens the opportunity to learn about the various services offered by participating banks, such as remittances and electronic services, as part of an initiative supported by the Central Bank.”
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In the same context, Mohammed Ali Saad, Assistant Director of the Financial Inclusion Department at Key Card Company, said that“the company is participating in the Arab Financial Inclusion Week by providing informational services about bank cards issued by Al-Rafidain Bank, in addition to electronic payment solutions for merchants.”
He added that“the company provides citizens with services through the “Super Key” application and cards dedicated to employees and retirees, while it provides merchants with electronic payment systems and payment and installment platforms (BOS),” noting “a remarkable development in the adoption of electronic payment by citizens and the protection of their financial data.”
An Iraqi oil tanker has passed through the Strait of Hormuz and is making its way along the Omani coast.
Automatic ship tracking data revealed on Saturday that a supertanker carrying Iraqi crude oil transited the Strait of Hormuz in recent days, on a journey that began at export terminals in Basra.
A Bloomberg report stated that the supertanker, the Kin A (also known as the Helga), appeared on tracking screens off the coast of Duqm, Oman, after last being spotted more than three days prior, heading towards the strait after loading its cargo at Iraqi terminals.
The report explained that technical data on maritime traffic indicated the tanker likely transited the strait last Wednesday, and its reappearance on radar off the coast of Oman confirms that it has passed the critical shipping chokepoint in the Arabian Gulf.
On April 24, 2026, an official source in the naval force command reported that the ship "Helga," flying the flag of the Comoros Islands, had arrived at the Basra oil port to load one million barrels of crude oil. It had a crew of 30 people on board. The source indicated that this ship was the second to cross the Strait of Hormuz towards Iraqi ports, after the arrival of a previous ship flying the flag of Malta and belonging to a Greek company.
Ali al-Zaidi: We will form a government with a strong economy, with everyone's participation.
Prime Minister-designate Ali al-Zaidi confirmed on Saturday (May 2, 2026), during his visit to Sulaymaniyah Governorate, that he enjoys "great acceptance" among the political forces in the region, noting that the Kurdish parties have shown their clear support for the formation of the new government.
Al-Zaydi said in a press statement followed by “Baghdad Today”, that “the anticipated government will have a strong economy and be able to face the challenges”, noting that “there is great acceptance from the Kurdish parties supporting our government, in which everyone will participate.”
Prime Minister-designate Ali Faleh al-Zaidi met with Kurdistan Regional Government Prime Minister Masrour Barzani during his visit to Erbil, which he arrived in on Saturday morning, accompanied by a delegation of leaders from the Coordination Framework.
Al-Zaydi also met with the President of the Kurdistan Democratic Party, Masoud Barzani, in Erbil, in the presence of a delegation from the Coordination Framework. The meeting addressed the overall situation in the country and the course of the ongoing dialogues to form the government.
In the same context, Al-Zaidi held a meeting with the President of the Kurdistan Region, Nechirvan Barzani, during which they discussed the latest political developments in the country, before concluding his tour in Sulaymaniyah with a meeting with the President of the Patriotic Union of Kurdistan, Bafel Talabani, to discuss efforts to form the new government.
An American nuclear expert joins the negotiating team with Iran
Nick Stewart, a former US State Department employee, joined the negotiating team with Iran, working alongside Jared Kushner and US Special Envoy Steve Wittkopf, just before the Islamabad talks led by Vice President JD Vance faltered in early April, according to media reports followed by Kalima News.
Stewart's appointment by Jared Kushner was based on his previous experience at the Foundation for Defense of Democracies (FDD) and his expertise in nuclear affairs. This move coincided with a congressional request to U.S. officials, including Energy Secretary Chris Wright, to explain the absence of experts from the National Nuclear Security Administration or the Department of Energy from the negotiating team.
Wright responded to questions from the Senate Resources and Energy Committee during his testimony on April 21 by saying: "I am the first person, and I also have experience in the nuclear field, but members of our team concerned with nuclear nonproliferation are involved in this matter, and we have a specialized team that focuses on finding solutions to the Iranian crisis, according to its developments."
It is noted that Stewart previously worked for Congresswoman Claudia Teny, who described him as "one of America's foremost experts on Iranian policy," reflecting the technical weight he carries within the new negotiating team of the American administration.
Amid a funding crisis, the World Trade Organization cuts its budget by 10%.
The World Trade Organization is suffering from mounting financial and regulatory pressures that have prompted it to move towards a plan to reduce its spending by about 10%, in a move that reflects the magnitude of the crisis facing the organization in light of the increasing financial arrears of member states, especially the United States, in addition to a long disruption in its judicial mechanisms and a decline in its effectiveness in regulating the global trading system.
These developments come at a time of increasing tensions within the international trading system, especially with the return of broad tariffs imposed by the administration of US President Donald Trump, and the subsequent disruptions to supply chains and a decline in confidence in the multilateral trading system, according to Reuters on Saturday, May 2.
According to the document, the World Trade Organization is preparing to reduce its 2026 budget from 204.9 million Swiss francs, about $263 million, to 183.4 million francs, reflecting a growing funding gap due to delayed contributions from a number of members.
The austerity plan includes a hiring freeze, a reduction in the number of temporary jobs, and a decrease in reliance on non-permanent full-time staff, in an effort to maintain a minimum level of business continuity within the organization.
The proposed measures also include reducing electricity consumption and limiting daily operating expenses, in a clear indication that the organization is shifting to a “crisis management” policy rather than institutional expansion.
The United States is at the heart of the funding crisis.
The United States is the largest contributor to the organization's budget, but it has become one of the delinquent members in payment, after accumulating financial dues estimated at about 23.09 million Swiss francs, which is equivalent to about 11% of the annual budget.
According to Reuters, the documents show that Washington was placed in the first category of defaulters, a category that includes countries that are up to two years late in payment, which imposes administrative restrictions on them within the organization.
Despite a previous partial payment that allowed its name to be temporarily removed from the list of defaulters, it has returned to the first category again, in a development that reflects the continued financial and political pressures on the relationship between the two parties.
The impact of Trump's policies on the global order
This financial crisis within the organization comes in conjunction with the repercussions of the trade policies pursued by the Donald Trump administration, which relied on imposing wide-ranging tariffs on key trading partners.
These policies have disrupted the global trade system and weakened the role of the World Trade Organization in resolving trade disputes, especially after its Appellate Body was paralyzed since 2019 as a result of obstructing the appointment of judges.
Internal assessments indicate that these developments have contributed to a decline in the organization's ability to impose binding rules, which has opened the door to an escalation of unilateral actions between countries.
