Former MP: The government faces two paths: borrowing or raising the exchange rate.
Former member of the parliamentary finance committee, Abdul Hadi Mouhan, confirmed that the new government faces two paths: either external borrowing or increasing the exchange rate domestically in order to increase revenues under the current circumstances.
The video for this My FX Buddies Blog is below here:
Mohan told Al-Maalomah, "There are two paths for the new government led by Ali Al-Zidi to ensure the securing of expenses, especially operational ones, by moving towards external borrowing, which is the most dangerous path that Iraq will face if it goes in this direction."
He added that "the second path that the government may resort to in order to increase its revenues is to go towards raising the exchange rate, which is the least dangerous path compared to going towards external borrowing, which is a double-edged sword for Iraq."
He indicated that "the government will most likely move towards raising the exchange rate in the upcoming budget in order to address the existing inflation and the deficit in the federal budget, and to ensure that the economic situation does not collapse."
Rule of law: There is no longer enough time to send the 2026 budget
Ali Al-Azirjawi, a member of the State of Law Coalition, said that there is no longer enough time to send the 2026 budget.
Al-Azirjawi added that it is necessary to resort to preparing an "emergency plan similar to the Food Security Law that is quickly agreed upon to ensure the continued operation of the government and ministries in an organized and rational manner."
He added that "adopting an emergency plan is a realistic option in light of the current challenges," noting "the importance of expediting the vote on it within the Cabinet and then approving it so that it can take its executive role as quickly as possible."
Al-Azirjawi explained that "Iraq faces a number of economic challenges, most notably the size of its internal and external debt, which requires serious solutions, in addition to security challenges and regional tensions that further complicate the overall situation."
Prime Minister's Advisor: Iraq is on the verge of major economic changes under the guidance of Al-Zaidi
The Prime Minister's Advisor for Financial Affairs, Mazhar Muhammad Saleh, confirmed on Wednesday (May 27, 2026) that Iraq is going through an important transitional phase at the economic level, noting that the directives of Prime Minister Ali al-Zaidi have brought about a shift in the philosophy of managing the state's financial and economic affairs, which paves the way for broad transformations during the coming period.
Saleh said in a statement followed by “Baghdad Today” that “Al-Zidi assigned the Minister of Finance the duties of Deputy Chairman of the Ministerial Council for the Economy, which is a measure that reflects the philosophy of the modern state that sees the Ministry of Finance as a sovereign institution concerned with planning the economic future, and not just an entity for distributing salaries.”
He pointed out that "Iraq is about to undergo broad changes in its economic structure," noting that "the Prime Minister has asked the Ministry of Finance to prepare a long-term plan and move from the role of treasurer to a ministry that leads the reform of the philosophy of the economic system and creates a balanced partnership between the state and the market, within the framework of Iraq Vision 2035."
Saleh explained that "the Ministerial Council for the Economy has become the main engine for economic policies, and that it will lead the next phase by transforming temporary solutions into sustainable institutional work aimed at reforming the structure of the national economy."
He also explained that "implementation includes comprehensive oversight extending from the Financial Control Bureau to ministries such as industry and agriculture, reaching the oversight of financial markets," stressing that "the citizen is the primary goal of development programs and improving the standard of living."
In the same context, Saleh stressed that “the Central Bank of Iraq is independent in its work, but it coordinates within the Ministerial Council for the Economy, which is headed by the Ministry of Finance,” explaining that “there is a Council for Economic, Monetary and Financial Stability in which all essential economic files are presented.”
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Al-Sadr announces the separation of the "Peace Brigades" from his movement and the joining of its members to the state.
On Wednesday, the leader of the Shiite National Movement, Muqtada al-Sadr, announced the separation of the "Peace Brigades" from the movement and the joining of its members to the state, while calling on the "Popular Mobilization Forces" to separate from "partisan and sectarian" orders.
Al-Sadr said in a statement, which was received by Shafaq News Agency, that "the decision came from the general interest of the nation, and in line with the dangers surrounding the nation."
He added that the civilian entities attached to the "Saraya" will move to Al-Bunyan Al-Marsous without any headquarters, weapons, uniforms, addresses, or anything else.
Al-Sadr expressed his gratitude to "the military formations of the Peace Brigades for all their greater and lesser jihad, and may God forgive all those who did not conform to our religious, doctrinal, and social tastes in general."
He expressed his hope that all the Popular Mobilization Forces would separate themselves from "partisan and sectarian orders," especially after the "factions" handed over their weapons to the state, as they had been advised to do years ago.
Al-Sadr's decision comes in conjunction with political moves to address the issue of the "factions'" weapons and hand them over to the government.
The Peace Brigades represent the military wing of the Shiite National Movement (formerly the Sadr Movement) led by Muqtada al-Sadr. It is an armed formation that officially falls under the umbrella of the government’s Popular Mobilization Forces (Brigades 313, 314, and 315), and it undertakes prominent security tasks in several Iraqi regions, most notably the city of Samarra.
Some political forces and armed factions are showing "flexibility" regarding the issue of restricting weapons to the state, after having been rigid on this subject, according to what a government source told Shafaq News Agency earlier, who added that the process of handing over weapons will be within a specific time mechanism.
The ministerial program of Ali al-Zaidi’s government, which won the confidence of the Iraqi parliament on Thursday, May 14, included a clause restricting weapons to the state, and he emphasized it during his speech after gaining the confidence.
Prior to that, an informed source had revealed to Shafaq News Agency on May 9 that the Coordination Framework had agreed with Prime Minister-designate Ali al-Zaidi to form a committee tasked with disarming armed factions, coinciding with the call made by the leader of the Sadrist movement, Muqtada al-Sadr.
The head of the executive council of the Al-Nujaba Movement, Nazim Al-Saidi, one of the most prominent armed factions, confirmed on May 15 that the “weapons control” clause included in the new government’s program does not include “resistance weapons” but rather those that cause “chaos.”
The Prime Minister appreciates Mr. Al-Sadr's stance on the integration of the Saraya Al-Salam formations into the state.
Prime Minister Ali al-Zubaidi praised the announcement by the leader of the Shiite National Movement, Muqtada al-Sadr, that the Saraya al-Salam (Peace Brigades) would join the state. He also called on other armed factions to follow the same national path and operate under the umbrella of the state. In a statement received by Mawazin News, al-Zubaidi said, "We appreciate the responsible national stance announced by the leader of the Shiite National Movement, Mr. Muqtada al-Sadr, which includes the integration of the Saraya al-Salam formations into the state and placing them under the command of the Commander-in-Chief of the Armed Forces, in order to support state institutions and consolidate their authority and the rule of law." He added, "We affirm that this initiative represents an important step towards strengthening internal stability, enshrining the principle of the state's monopoly on weapons, and supporting security forces in performing their national and constitutional duties."
He continued, "In this context, we call on all armed factions to follow the same responsible national path and operate under the umbrella of the state and its official institutions to ensure the protection of Iraq, preserve its sovereignty, and enhance security and stability, based on the principle that the state is the only entity authorized to monopolize weapons and enforce the law." He explained, "The current stage requires the concerted efforts of everyone, prioritizing the supreme national interest, preserving Iraq's unity, security, and stability, and strengthening citizens' trust in their constitutional institutions." A strong state governed by the rule of law.
n the assembly of the righteous
Nouri al-Maliki opens his office doors for two hours to receive well-wishers on the occasion of Eid al-Adha.
The media office of Nouri al-Maliki, head of the State of Law Coalition, announced today, Tuesday, that it will open its doors to receive well-wishers on the occasion of Eid al-Adha, explaining that the reception will be tomorrow, Wednesday, at the Al-Abrar Complex located in the Al-Jadriya area of Baghdad, from 10 am until 12 pm.
The media office of Nouri al-Maliki stated in a statement received by 964 Network that “the head of the State of Law Coalition, Mr. Nouri al-Maliki, will receive well-wishers on the occasion of the blessed Eid al-Adha on Wednesday, May 27, 2026, at the Al-Abrar Complex located in Baghdad/Al-Jadriya, from 10 am until 12 pm.”
Crises are plaguing the Iraqi market as Eid al-Adha approaches.
In the heart of the capital, Baghdad, and with the start of the blessed Eid al-Adha, the market witnessed a significant decline this year, compared to previous years, as purchasing power decreased due to fears of tensions in the region and the dollar crisis in the country, which negatively affected the reality of the Iraqi market.
A reporter from “ Roj News ” surveyed the opinions of citizens inside one of the main markets in the capital, where Mohammed Reda said that “the purchasing power in the market is not at the required level, as the Iraqi street follows internal and external policies, and today there are external wars between great powers, which led to the closure of the Strait of Hormuz, which is the only way for goods to pass through for traders and citizens in Iraq.”
He adds that “prices are unprecedentedly high, and there is a fear among citizens regarding the completion of the government formation and the issue of the rising dollar, and this has led to a contraction in the market.”
He adds: “Last year the purchasing power was better, as those who used to buy 10 pieces now buy 5. Also, the goods that reach us are few, and we hope that the government will resolve these crises and not rely on a single trade route.”
The country is experiencing a “fluctuating” economic situation, starting with the absence of a budget and the rise of internal debt to about 90 trillion dinars, due to the large deficit.
In addition to this, the government imposed taxes on thousands of goods of various kinds, which led to a significant increase in prices, amid controversy over its decisions and demonstrations by merchants, but without backing down from them.
For some time now, the Iraqi market has been experiencing a general recession. During the past holidays (Eid al-Adha and Eid al-Fitr), purchasing activity in Baghdad markets declined and was not as it had been before, due to several reasons, including the economic situation and the instability of the political situation.
Rahi's success also indicates that "people are heading to the market to buy Eid clothes, and the market is good, and after this crisis that went through the Middle East, things are good, thank God."
Hassan Faleh believes that “the market is good before Eid, the market ends completely after Eid, and after Eid the movement stops completely, and now the movement is good.”
Finally, citizen Saif Mohammed complains that “the situation is bad, and those who have money will not spend it. People have stopped buying and spending money, unlike in previous years. The market has a lot of commercial activity, but no one is buying.”
Iraqi markets have often experienced setbacks during holidays in recent years, and even with the approach of the New Year holiday, the Iraqi market remains inactive, and there is no great demand for purchasing supplies for this occasion.
Observers have attributed this decline to citizens' fear of spending money due to political instability, in addition to the lack of large financial resources, which is also related to the state's failure to disburse funds to projects and contractors, the lack of job opportunities in the private sector, and the focus on appointments only.
this happened later in the day Cali time so it would've been on May 28th early morning probably.
Axios: US military shot down 4 Iranian attack drones
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Could the US Federal Reserve SAVE Iraq’s Economy?
