Economist warns: The dollar will explode if Iraq enters the war with Israel and Iran - Urgent
economic hell
As regional tensions between Israel and Iran escalate, Iraq stands at a dangerous juncture, the repercussions of which could extend beyond politics and security to the heart of the fragile economy, burdening ordinary citizens who still yearn for a lost stability. Whenever the drums of war beat in the region, Iraqi markets are the first to tremble, as fear turns into a frenzied race for the dollar, and the dinar becomes a burden rather than a security.
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In a scene that is repeated with every crisis, anxiety levels rise among traders and citizens, and the dollar begins to rise, as if reflecting the pulse of fear in the streets. As news of the potential for the conflict to expand continues, economists warn of an impending catastrophe, warning that any Iraqi involvement in the conflict will mercilessly ignite the foreign exchange market and push the prices of basic commodities to levels beyond the reach of ordinary citizens.
From this standpoint, the warning issued by economic expert Othman Karim, on Sunday (June 15, 2025), reflects a worrying reality, speaking clearly about the scenarios that could destabilize the dinar and threaten food security, if Iraq becomes embroiled in a war that is not its own, but one that will cost it dearly.
Karim told Baghdad Today, "The rise in the dollar exchange rate immediately after the Israeli strikes is a normal occurrence in the market, due to the fears of traders and those who own dinars and who resorted to quickly converting their currency into dollars."
He added, "The exchange rate will remain below 150,000 dinars for the time being, but if Iraq enters a state of war, prices will reach more than 160,000 dinars, and may rise further, significantly impacting food prices, especially if the seaports on which Iraq relies are completely closed."
The Middle East is witnessing an unprecedented escalation in tensions between Israel and Iran, amid an exchange of threats and military strikes that threaten to expand the conflict to neighboring countries.
Iraq, due to its geographical location and its intertwined relationships with the parties to the conflict, faces the possibility of slipping into a war, either directly or indirectly, raising widespread popular and economic concerns.
Iraq is a country that relies heavily on imports, particularly food, which arrive via seaports. This makes it vulnerable to fluctuations in regional and international markets.
The Iraqi economy also suffers from structural fragility, making it highly susceptible to political or security unrest. This was evident in previous crises that led to sharp fluctuations in the dinar's exchange rate against the dollar, directly impacting the prices of goods and services.
With recurring geopolitical tensions, Iraqi markets are in a state of constant suspense, with the dollar exchange rate being more influenced by sentiment and anxiety than economic data. This makes any military escalation in the region a direct cause of significant fluctuations that could impact citizens' daily lives.
The leader of the State of Law Coalition, Nouri al-Maliki, said that it is necessary to stand with Iran and support it in its confrontation with the Zionist aggression. He spoke about Iraq’s role in these circumstances, and cited the famous words of Imam Ali, “Do not be dry or you will break,” to the end of the will in Nahj al-Balagha, directed to the companion Malik al-Ashtar, from whom the leader of the State of Law Coalition, the Bani Malik tribe, descends.
Imam Ali ibn Abi Talib left a will for us, not just for Malik al-Ashtar, which is: “Do not be so tender that you will be squeezed, nor so dry that you will be broken.” This is the political style that should characterize those who manage the public affairs of the nation: neither be so tender, soft, and moist that those who are hostile to Islam will press them down and surrender, nor be so dry that without any management process that they will be broken and the nation will be broken by them.
Today, those who stand against the illegitimate Zionist entity are the sons and followers of Ali. We do not belittle our Muslim brothers who stood with us, but today's battle is a battle between the line of Ali and the line of Zionism.
Today, the sons of Ali achieved a great victory in making the world aware that what is said about the invincibility of the Israeli army is not true. They defeated the Israeli army, and these images that we are seeing from inside Tel Aviv are a great victory achieved by the Islamic Republic with the courage of the Commander of the Faithful.
The Islamic nation must stand with Iran against Zionism.
In Iraq, it is true that the battle is not on our borders, but the entire Islamic nation must stand with Iran, support it, and back it. War is not a picnic, and international institutions must stand with what is right.
Zionist behavior poses a threat not only to Iran and Iraq, but also to the Islamic nation and the entire world.
The aggression against the Islamic Republic of Iran is nothing but an attempt to subjugate this nation and this country to the dictates of the Zionists and the arrogant powers, after all previous methods to undermine its standing and its resistance approach had failed.
We see standing with the Islamic Republic and showing solidarity with it by all available means as a religious, moral, and humanitarian duty. We hope that this aggression will soon end and that the enemies will be defeated.
The Federal Court issues a decision that pleases Kurdistan employees.
The Federal Supreme Court in Iraq is expected to hold a session to rule on a case filed by a number of Kurdistan Region employees regarding salaries that the federal government has stopped sending to the region's employees.
"The Federal Supreme Court is expected to hold a session to consider the lawsuit filed against the federal government's decision to suspend the payment of employee salaries," Patriotic Union of Kurdistan (PUK) MP Sarwa Mohammed told the PUK's official website.
She added, "If all members of the Federal Court return to Iraq after performing the Hajj pilgrimage, the Federal Court will hold a special session to consider this case tomorrow, Monday. Otherwise, the session will be postponed, but in any case, it will be held this week, God willing."
She explained, "God willing, the Federal Supreme Court will issue a decision that serves the interests of employees in the Kurdistan Region, and we are working hard to support the employees' demands."
She said, "We believe in the necessity of addressing outstanding issues through dialogue and understanding, and we do not support the language of threats and escalation. The language of dialogue is the best way to resolve outstanding issues between the federal government and the Kurdistan Regional Government."
She pointed out that, "according to the information available to us, the Federal Court is expected to issue a decision that will please employees in the Kurdistan Region, as it previously issued a decision not to link employee salaries to any political or technical disputes."
Prime Minister's Advisor: Iraq is qualified to become a regional financial center with four strategic powers.
The Prime Minister's financial advisor, Mazhar Mohammed Salih, identified four factors that make Iraq a regional financial center on Sunday, stressing that Iraq possesses foreign reserves exceeding $100 billion.
“There are four elements of strength that make Iraq a regional financial center, the first of which is that it is the second largest producer of crude oil in the Middle East, and it has the fourth largest oil reserves in the world, through which it competes to take precedence in the global energy market, through more production and achieving financial flows that make it a financial and economic pillar in the economic geography of the Middle East, by achieving large financial surpluses that can be directed to investment in financial infrastructure,” Saleh told the Iraqi News Agency (INA).
He stated that "Iraq has foreign reserves exceeding $100 billion, which provides it with a significant financial safety margin, confidence in monetary stability, and high financial investment attractiveness."
He added, "The second factor is Iraq's unique geoeconomic location, which is a vital corridor linking the world's north to its south. This represents an open economic space between global markets and their financial and commercial attractions, with links that provide important climates for the concentration of regional financial markets, which will revolve around the strategy of the 'development project' linking Europe and the Gulf."
He continued: "The third factor is the demographic or human factor, and its foundation is the population boom, as the percentage of the population under the age of thirty is close, which makes Iraq one of the young nations. The high percentage of youth (more than 60% under the age of thirty) will provide a flexible human base that can be trained in financial technology, banking innovation, digital technology, and artificial intelligence." He noted that "the government is undertaking the establishment of an important college for artificial intelligence sciences as inputs to the financial labor market and its foundations."
He added, "The fourth factor is modernizing and restructuring governance in government-owned banks, given that they currently control 80% or more of banking activity." He emphasized that "the reform campaign being led by the government today for the aforementioned banks aims to transform Iraq into a global financial center after ridding it of the risks of bureaucracy and inefficiency inherited over many decades."
He pointed out "the importance of electronic payments and the gradual expansion of the use of bank cards, point-of-sale (POS), collection systems, and smart wallets, which have helped achieve significant leaps in digital financial inclusion. This is coupled with the presence of the Iraq Stock Exchange and the Securities Commission, which operate in a robust, integrated, and promising manner as an infrastructure to establish Iraq as a regional hub for consolidating the country's institutional financial stability."
He explained that "the legal, executive, and regulatory infrastructure requirements are the key lever for enabling this transformation. These include, for example, linking banks to effective electronic payment platforms and supporting the development of the current National Data Center to serve as the sovereign digital financial infrastructure that supports Iraq's efforts to transform into a regional financial center."
He pointed out that "Iraq's transformation into a regional financial center will be achieved through the collection and integration of financial, banking, and economic data, supporting smart monetary and financial policies, enabling financial technology and smart data analysis, enhancing transparency and governance of financial institutions, stimulating the non-banking finance sector, such as microfinance companies, reforming the insurance sector, and licensing financial technology ( Fintech ) companies."
He pointed out that "the current political, legal, and institutional stability that our country enjoys today, in a prosperous and solid manner, is the true basis for financial strength. There is no financial center without a stable and secure political and legal environment."
Saleh emphasized the importance of building regional and international partnerships, such as studying the importance of joining regional payment systems and financial structures of international groups such as the G20 or BRICS, or partnerships with strong financial centers in Singapore, Dubai, Hong Kong, and others.
International Chamber of Commerce: Investment companies' activity expands amidst the security situation in Iraq.
The International Chamber of Commerce confirmed on Sunday that investment companies' activity is expanding amidst the security situation in Iraq, while stating that large foreign companies' investments require Iraqi operating companies and staff.
"Iraq is a fertile country for investment, especially with the recent remarkable and successful steps taken by the government to overcome many administrative and legal issues to advance the private sector," Mohsen Al-Hamidawi, head of the International Chamber of Commerce in Iraq, told the Iraqi News Agency (INA).
He added, "The arbitration process between companies will help many companies invest in Iraq because their rights are now guaranteed from a legal and administrative standpoint, and the International Chamber of Commerce will continuously monitor all contracts concluded with companies."
He pointed out that "Iraq lost a lot years ago due to the lack of arbitration. Any problem that arose between companies and the Iraqi government would be referred to Abu Dhabi or France. Now, arbitration is available through the International Chamber of Commerce in Iraq. We have important conditions to protect these companies from procrastination and to secure their rights. Companies are now safer at work and more active in light of the security that Iraq enjoys."
He explained, "During the past two years of the government's tenure, more than 150 companies have signed contracts for oil, gas, and other projects, particularly the Development Road Project. More than a year ago, we officially announced to all companies worldwide, through the International Chamber of Commerce in Paris, the launch of the International Chamber of Commerce in Iraq. This has encouraged companies to enter and invest."
He explained that "large foreign companies that undertake major projects will inevitably need Iraqi companies and to employ Iraqi workers. This will encourage more small and large Iraqi companies to invest with foreign companies and take on what are called 'subcontractors' or major contracts. Iraqi companies, whether large or small, are not deficient and will deal with this event well."
The Coordination Framework mobilizes demonstrations in support of Iran: Iraq must be part of the solution.
Meeting in Al-Abadi's office
On Sunday, the Coordination Framework called on the Iraqi people, across all social, political, and cultural lines, to demonstrate in protest against the "aggression and in support of the Islamic Republic's steadfastness in confronting it." While expressing its categorical rejection of the violation of Iraqi airspace, the Framework emphasized the need for Iraq to continue its role as part of the solution and prevent the repercussions of the crisis from continuing.
The framework stated in a statement:
The Coordination Framework held its regular meeting at Dr. Haider al-Abadi's office, attended by Prime Minister Mohammed Shia al-Sudani and leaders of the framework.
The participants discussed developments in the region, and the leaders of the framework expressed their condemnation and denunciation of the continued aggressive behavior of this entity and its attacks on the Islamic Republic, which have resulted in the martyrdom of several leaders and scholars, dozens of martyrs, and hundreds of wounded civilians, as well as the targeting of infrastructure and economic and strategic sites, all of which portend an expansion and continuation of the war.
The participants called on the international community in general, and the countries of the region in particular, to stand up against the arrogance of this entity and force it to halt its aggression against the Islamic Republic. The framework also called on our proud people, from all walks of life, socially, politically, and culturally, to take to the streets in demonstrations denouncing the aggression and supporting the steadfastness and resilience of the Islamic Republic in confronting it.
Araqchi: We will prepare the ground for a return to diplomacy and negotiations, but with one condition.
Iranian Foreign Minister Abbas Araqchi stressed that the Islamic Republic has not abandoned diplomacy, noting that the cessation of Zionist attacks will open the way for the resumption of diplomatic dialogue.
Speaking to Iran Press, Araghchi pointed out that the Zionist attacks came at a time when Iran was seeking diplomatic progress.
He stressed that Iran is committed to its principles of resolving disputes through peaceful means.
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Details of the phone call between Al-Sudani and the Iranian President
Iranian President Masoud Pezeshkian called on Iraq on Sunday to be more cautious regarding its borders and airspace.
Pezeshkian said during a phone call with Iraqi Prime Minister Mohammed Shia al-Sudani, according to Iranian media, that "if the Zionist aggression against Iran continues, the Iranian response will be more severe and decisive." He
added, "Violating Iraqi airspace to attack Iran is clear evidence of the Zionist entity's criminality and its violation of international norms," indicating that "Iraq must be more cautious regarding its borders and airspace."
He continued, "Iran did not start the war, but we responded firmly, and if the aggression continues, our reactions will be more painful and harsh.
" Al-Sudani's media office also issued a statement a short while ago, stating that "Al-Sudani had a phone call with the President of the Islamic Republic of Iran, Masoud Pezeshkian, and expressed Iraq's solidarity, government and people, with Iran, which is being subjected to blatant Zionist aggression, stressing its concern for its security and stability, as they are linked to the security and stability of the region."
Al-Sudani also stressed "Iraq's keenness to prevent the war from expanding," pointing to "the Iraqi government-led efforts on various fronts to prevent the Zionist entity from violating Iraqi airspace."
According to the statement, Al-Sudani expressed "Iraq's readiness to provide all necessary assistance to address the effects of the aggression against the Islamic Republic of Iran, within the framework of solidarity that unites Islamic countries."
For his part, Pezeshkian thanked Iraq, according to the statement, for "its various official and popular activities, and for its declared and clear positions in rejecting the behavior of the Zionist entity and its repeated attacks on countries in the region, in addition to its crimes against the Palestinian people." He stressed "the importance of Islamic countries taking a unified position regarding these attacks and blatant violations of international law, which may extend to other Islamic countries."
660 people arrested for manipulating food prices and dollar exchange rates.
The Ministry of Interior announced on Sunday the arrest of 660 individuals for manipulating food prices and dollar exchange rates.
The head of the Ministry of Interior's Public Relations and Media Department, Brigadier General Muqdad Miri, said in a statement received by Al-Mada: "The Ministry of Interior has launched a major campaign to track down those manipulating food prices and those promoting a rise in the dollar exchange rate against the Iraqi dinar in an attempt to exploit the circumstances the region is experiencing."
He pointed out that "the Anti-Organized Crime Squads were able to arrest 660 people accused of price manipulation."
Parliamentary Finance: The government is determined to prepare the financial budget schedules.
The Parliamentary Finance Committee confirmed on Thursday that the government is working on preparing budget schedules that are in line with the country's financial reality.
Committee member Atwan Al-Atwani said in a statement followed by Lakma News that "the committee discussed with the Prime Minister the preparation of the budget, and stressed the need for it to arrive before the end of the year to give legal status to government spending, both operational and investment."
He added, "The government is determined to prepare budget schedules in line with the current financial reality, given the increase in operating spending and the need for investment spending to finance projects. We look forward to the budget being presented to the House of Representatives in the coming days."
Al-Atwani pointed out that "the government is keen to secure salaries despite the annual financial deficit," noting that "the government is taking serious steps to provide alternatives to financing the budget other than oil to ensure additional resources."
It was thought to be an earthquake. Initial images of the bombing of the vicinity of the Fordow nuclear facility in Qom, Iran.
In a clear video , an explosion was heard over the vicinity of the Fordow nuclear facility, located southeast of Qom, on Monday (June 16, 2025), as part of a new wave of escalation in the escalating regional war between Iran and Israel.
Smoke and light emission are visible in an area adjacent to the facility, likely at the time of the bombing, indicating a precise airstrike.
Circulating comments confirm that only areas above the surface were targeted, as the facility is fortified beneath a mountain, approximately 500 meters deep, and would not be easily affected by conventional bombing.
There are no reports yet of significant damage within the fortified nuclear facility, nor any reports of any radioactive leak or human harm.
Earlier today, a 2.5-magnitude earthquake was recorded in the Iranian city of Qom, located approximately 35 kilometers from Iran's Fordow nuclear facility.
Dubai is the global capital of cryptocurrencies.
Dubai has become the global capital of cryptocurrencies, thanks to the development of one of the most advanced regulatory frameworks in the world, according to a recent report by Access Newswire.
The website noted that the Dubai Virtual Assets Regulatory Authority (VARA), established by Law No. 4 of 2022 as the first independent regulatory body of its kind in the world, has begun to attract the attention of major trading platforms and companies operating in the crypto sector.
The website confirmed
The website added: “While the international arena is witnessing regulatory confusion, increasing enforcement operations, and a turbulent political climate, Dubai offers a different model: legal clarity and institutional stability.” The website highlighted the efforts of VARA and the regulatory areas that cover various activities related to digital assets, namely: consulting, brokerage, custody, trading, lending and borrowing, settlement, and investment portfolio management.
The website stressed that “what distinguishes the regulatory system in Dubai is not only its clarity, but its firm tone; it does not aim to support short-term speculation, but rather to establish a sustainable digital infrastructure that is compatible with international standards, including those of the Financial Action Task Force.”
Stefan Korsgaard, CEO of Aston VIP, which specializes in digital asset regulatory consulting in the UAE and the Kingdom, commented : United: "This is not an experimental sandbox. What is happening in Dubai is a long-term economic repositioning. The companies that come here are not adventurous, but rather institutions that are building on solid legal ground."
While some regulatory systems around the world remain unstable, Dubai offers a practical alternative. In Dubai, the system is already in place and working, and the government has supported this trend by enacting clear laws, along with major investments in digital financial infrastructure.
Korsgaard explains: "We are seeing increasing interest from Europe, Asia, and North America, not just from startups, but from large institutions as well. Dubai has become a trusted destination."
The site emphasized that Dubai does not view the regulation of digital assets as a temporary trend, but rather as part of a sustainable economic structure. The long-term goal is to integrate digital assets with the traditional financial system, through applications including real-asset issuance, institutional custody, and tokenized funds.
The website concluded its report by saying: "Under this thoughtful, rather than exception-based, regulatory approach, Dubai today offers one of the world's most robust legal platforms for founders and executives seeking a trusted environment, institutional investment, and a springboard into emerging markets."
Ansar Allah: Our operation was coordinated with the attacks carried out by Iran against the Israeli enemy.
Issued by the Yemeni Armed Forces In the name of God
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The Most Gracious, the Most Merciful. God Almighty said, "And God will surely support whomever He supports.
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He supports. Indeed, God is Powerful and Exalted in Might." God Almighty's truth.
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In victory for the oppression of the Palestinian
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and Iranian peoples, and in response to the crime of starvation
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and thirst
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committed by the Zionist enemy against our brothers.
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In the Gaza Strip, the missile force carried out a military operation.
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The Yemeni Armed Forces carried out a missile operation.
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targeted sensitive targets of the Israeli enemy in the occupied Jaffa area.
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with a number of hypersonic ballistic missiles.
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Palestine II type.
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at various times over the past 24 hours.
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This operation was coordinated with the operations carried out.
0:55 The Iranian Army
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and the Revolutionary Guards
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are carrying out operations against the criminal Israeli enemy.
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The operations have successfully achieved their goals, thanks to God.
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The Yemeni Armed Forces, the Islamic Republic of Iran
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people, army, and leadership, are
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bravely confronting, with willpower, determination, and faith
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the brutal Zionist aggression and are relying on God to
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deliver blow after blow to its facilities
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and its headquarters and bases. The Yemeni Armed Forces
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are proudly following these
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developments, confirming that they are committed to the covenant and promise with
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the people of Gaza and its loyal, free mujahideen until
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the aggression against them stops and the siege is lifted.
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To the rest of the Arab
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and Islamic countries and peoples, we say nothing but Jihad is a door to...
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The gates of Paradise are open, God has opened them for His special friends.
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So hurry so that the Israeli crimes do not stop...
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Your brothers in Gaza, for what befalls them today will come to an end.
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With you tomorrow, God is sufficient for us, and He is the best Disposer of affairs.
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The Master and the best Supporter. Long live Yemen, free and honorable.
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Independent, and victory to Yemen and to all the free people of the nation.
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Sana'a, Dhu al-Hijjah 146 AH
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Corresponding to June 15, 2025. Issued by
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Yemeni Armed Forces
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Parliamentary Finance: The 2025 Budget will see a deficit in investment aspects
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