Float, Devalue, or Hold? A Deep Dive Into the Future of the Iraqi Dinar 🔥🇮🇶

My perspective on the dinar and economic reform, based on what Dr. Nabil Al-Marsoumi wrote about them.

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With all due respect to you, my dear professor Dr. Nabil Al-Marsoumi, and with all due appreciation for your knowledge and expertise, from which I have always benefited, I hope you will allow me to present the following points to you, in response and commentary on what you wrote about economic reform a few days ago, as follows:

1- The “White Paper” was never a reform paper, and it never will be. In it, the wrong measures and government corruption were imposed on the people, as they were exposed to inflation due to the reduction in the exchange rate of the dinar, and stagnation prevailed in the markets due to the contradictions in the economic measures, not to mention the exploitation of the economic crises by those in power and their entourages to make profits and accelerate the wheel of smuggling.

2- I agree with you, my dear professor, that the economic crises in developing countries are caused by errors in macroeconomic policies, and I also agree with you on the necessity of cooperating with the International Monetary Fund and the World Bank. However, I do not agree with you, nor with the pillars of the Iraqi government that approved the “White Paper” prepared by the World Bank, with nominal Iraqi participation, regarding many of the items and measures contained in the ill-fated White Paper.

I do not agree with placing the plans to address the Iraqi economic crises under the authority of the World Bank or others. Rather, I call for the solutions to be purely Iraqi, in cooperation with international financial institutions, as Iraq is full of good economic personnel, both inside and outside the government.

3- In my view, seeking to reduce the exchange rate of the Iraqi dinar is an economic crime that should only be resorted to in extreme emergency situations, when other means are exhausted. Iraq has multiple available means to address its economic crises, such as borrowing, rationalizing the budget, reforming food rations and social welfare, regulating salaries, limiting appointments, and eliminating underemployment, among others. These measures will be painful, as you mentioned, but they are certainly better than the effects of stagflation, which will burden the rich before the poor.

4- Floating the Iraqi dinar, in the current state of the Iraqi economy, contradicts the most basic rules of economics, not to mention its contradiction with reason and logic. Economically, floating occurs in a balanced free market where there is a real opportunity to achieve a fair exchange rate. This is impossible to achieve in the current Iraqi economy, as the only party that possesses dollars and hard currencies is the Central Bank of Iraq. As for the Iraqi market, it obtains hard currencies from the Central Bank, because Iraq is an importing country and not an exporting one, and most traders do not possess hard currency because they do not export, but rather they depend on the Central Bank to provide foreign currency liquidity. Consequently, there is no balanced market in which hard currency is available to everyone, and it is a market governed by what the Central Bank provides of hard currency, so competition becomes impossible, and achieving a fair exchange rate becomes impossible.

5- Promoting the idea of floating the dinar and reducing its exchange rate in the markets and among the general public is extremely dangerous. It is a preemptive move for possible future measures that may not happen, and if they do happen, they may not be soon. Occupying the markets with this type of idea presented as a solution is harmful and not beneficial. Therefore, I recommend staying away from it and leaving the idea of floating the dinar and reducing its exchange rate to the next government.

6- The economic reform process will be harsh and costly for the poor and those with limited and middle incomes, as you mentioned. The government must strive to alleviate the burden of this harshness and cost by improving economic, security, and social performance, and by formulating a national reform paper, with the participation of the concerned parties, the government, society, and markets, and with the assistance of local, international, and UN financial institutions.

6- Economic reform measures will not be effective unless they are accompanied by good intentions from those who take them. Corruption and mismanagement have brought Iraq to this state, and its continuation means the inevitable failure of reform measures. I think the time has come for the marginalized class of the national elite and entrepreneurs in the markets to take their place in the constructive and effective contribution to managing the course of the economy in Iraq, whether those in power accept it or not.

Al-Rafidain: 2,495 savings accounts, 136 current accounts, and 27 deposits opened for customers last month

 

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Al-Rafidain Bank announced on Sunday that it had opened 2,495 savings accounts, 136 current accounts, and 27 deposits for customers during the past month.

A statement received by Al-Rabaa said: "In a clear sign of growing public confidence and an accelerated shift towards international standards, Rafidain Bank recorded remarkable banking activity during November, culminating in the opening of thousands of new accounts in its branches across Baghdad and the provinces."

It added that "the number of savings accounts opened for citizens reached 2,495 in local and foreign currencies, in addition to 136 current accounts and 27 deposits, directly reflecting the diversity of banking products offered by the bank and its ability to meet the needs of different segments of customers."

He emphasized that "this advanced performance confirms the position of Al-Rafidain Bank as a leading national banking institution, combining geographical reach, quality of services, and commitment to international professional standards, with a focus on providing a secure and flexible banking experience that meets the expectations of individuals and institutions alike."

The bank noted that it "continues to develop account opening and deposit services in accordance with sound regulatory controls, thereby promoting a culture of savings and investment and supporting financial inclusion and economic development in Iraq, calling on citizens to visit its branches to learn about the details of the banking services and benefits available."

He added that "this activity is part of Al-Rafidain Bank's vision to consolidate its role as a state bank with international standards, leading the banking transformation, embodying trust, and placing the customer at the heart of the banking process."

Financial controversy escalates... Government explains the mechanism for announcing revenues and disbursing salaries

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The Prime Minister's Advisor for Financial and Economic Affairs, Mazhar Muhammad Salih, revealed the sovereign entity responsible for announcing the total monthly public revenues.

Saleh told Iraq Observer, “The Ministry of Finance is the sovereign body responsible for announcing the total monthly public revenues, whether oil or non-oil, in addition to cash revenues resulting from borrowing or any other financial flows.”

He added, “The disbursement of monthly salaries depends on the actual schedules submitted by ministries, agencies, and government institutions, which are approved by the Accounting Department to determine the monthly funding allocated for salaries and allowances. He added that these schedules are prepared in precise detail and include all details related to salaries and allowances, in addition to tax, pension, and legal deductions.”

Saleh's remarks came at a time when Iraq is witnessing widespread controversy over the size of salary expenditures, after official data and expert analyses showed that the actual figure for salaries may exceed 7.5 trillion dinars per month, while the Ministry of Finance states that the total spending on salaries amounts to only 6 trillion dinars.

Government comments after dollar rise: Temporary fluctuation

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The Prime Minister’s financial advisor, Mazhar Muhammad Saleh, confirmed on Sunday (December 14, 2025) that the fluctuation of the dollar is temporary and is not based on real economic data, while indicating that the government continues to fix the official exchange rate at 1320 dinars with the support of strong reserves.

Saleh said in a press statement followed by “Baghdad Today”, that “what happened in the parallel exchange market during the past few days is nothing more than an emergency and temporary fluctuation resulting from the effects of inaccurate information known in economic analysis as “color noise”, which is confused information that is mostly based on rumors, and leads to short-term speculation in the unregulated money market.”

He added that "transitional periods usually witness such price movements, especially as the country continues in the post-legislative election phase, and in parallel with the implementation of the customs governance system and its digital procedures in accordance with international standards, including customs tracking systems and modern digital applications that enhance transparency and discipline in the commercial and financial environment together."

Saleh explained that “the aforementioned fluctuation in the price of the dollar against the dinar in the parallel market has not left a substantial impact on the stability of the general price level, as monetary policy continues to achieve its operational and intermediate goals in stabilizing prices in general and maintaining the stability of the official exchange rate in particular, a path that is reflected in the decline of the annual inflation growth rate to normal fractional levels not exceeding 2.5% annually.”

He explained that "the policy of maintaining a stable exchange rate is an approved policy based on fundamental principles, foremost among them the efficiency of foreign reserves supporting the stability of the official exchange rate of 1320 dinars per dollar."

Saleh affirmed that “international institutions, foremost among them the World Bank and other multilateral global financing institutions, view with satisfaction the government’s reform steps in the banking sector and the general financial and economic sector, which encourage the investment environment, especially the move towards strengthening the partnership between the state and the private sector, all of which are among the basic pillars for building a diversified economy that supports the paths of sustainable development identified by the methodology of Iraq Vision 2050.”

Al-Rafidain Bank announces the addition of (20) branches to the anti-money laundering and counter-terrorism financing system.

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Rafidain Bank announced today, Sunday, that (20) additional branches have joined the anti-money laundering and counter-terrorism financing system.

In a statement followed by Al-Masra, the bank said, “Under the patronage of the Director General of Al-Rafidain Bank, Ali Karim Hussein, Al-Rafidain Bank, represented by the Anti-Money Laundering and Terrorist Financing Reporting Department, announced the addition of (20) branches to the Anti-Money Laundering and Terrorist Financing (AML) system, as part of its phased plan to expand the application of advanced control systems in all its branches.”

He explained that “this development comes within the framework of the institutional strategy of Al-Rafidain Bank, which aims to strengthen the financial security system and raise the levels of integrity and transparency in daily banking operations, in line with the requirements of good governance and risk management.”

The bank affirmed that “the adoption of this advanced system reflects its serious commitment to applying internationally recognized standards in the field of combating financial crimes, particularly compliance requirements, customer due diligence (CDD/KYC), and managing money laundering and terrorist financing risks, as well as moving forward with updating technological and supervisory structures, in order to ensure the protection of customers’ funds, enhance confidence in the banking institution, and improve the quality of services provided.”

The National Higher Committee for Regulating Virtual Assets is exploring the development of a comprehensive regulatory framework in accordance with best international practices.

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he National Higher Committee for Regulating Virtual Assets held its first meeting at the Central Bank of Iraq in Baghdad, chaired by His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq. This meeting aligns with the state's efforts to establish a modern regulatory framework for dealing with digital assets, including virtual and encrypted assets, in line with the rapid transformations in the global financial economy .

The committee comprises high-level representatives from relevant national entities, including regulatory, legal, financial, and supervisory bodies and institutions, as well as those concerned with scientific, technical, and communications aspects, among others. This ensures a comprehensive and integrated vision when developing the targeted framework.

The meeting discussed the global landscape of digital assets and adopted international regulatory experiences, particularly models that balance encouraging financial innovation with maintaining monetary and financial stability, while adhering to compliance requirements, combating money laundering and terrorist financing, and mitigating risks, especially cyber risks. The committee also emphasized the importance of developing a national regulatory framework based on clear definitions and precise classifications. This framework should adopt a gradual and flexible approach that considers the nature of risks, enhances user protection and transparency, improves service efficiency, and provides a sophisticated and stimulating licensing environment.

This meeting comes within the framework of a strategic governmental direction led by the Central Bank of Iraq in cooperation with the relevant authorities, with the aim of building a safe and sustainable digital financial environment, and enhancing the readiness of the national financial system to deal with modern technological developments, in line with international standards adopted by global financial and regulatory institutions, and contributing to supporting financial inclusion, consolidating confidence in the financial sector, and protecting the monetary sovereignty of the country.

 

Central Bank of Iraq, 
Media Office, 
December 14, 2025

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From ratification to government formation: crucial constitutional steps in the path of the new Iraq

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Member of Parliament, Muhammad Jassim Al-Khafaji, revealed today, Sunday (December 14, 2025), the constitutional steps for forming the Iraqi government after the Federal Court approved the lists of elected MPs in the sixth session.

Al-Khafaji explained in a statement received by "Baghdad Today" that "the ratification of the lists of deputies by the court may be imminent, with the possibility that the court will ratify all the names or exclude some of them."

He added: “After ratification, the President of the Republic calls for the first session of the House of Representatives to be held within a period not exceeding 15 days, during which the 329 representatives will take the constitutional oath, and then the Speaker of the House and his two deputies will be elected, with each member having the right to nominate himself.”

He added that "after that, the nomination process for the presidency will be open for three days, according to the conditions of the law, which include that the candidate must be over 40 years old, have a university degree, political experience, and a good reputation. The president will be elected during a session that does not exceed 30 days from the first session."

He continued: “In the final stage, the new president of the republic tasks the candidate of the largest parliamentary bloc, currently the coordinating framework, with forming the government. The tasked candidate presents the ministerial program within 30 days, to be voted on and a new government is formed with full constitutional powers, while the parliament begins to exercise its oversight and legislative role.”

Al-Khafaji pointed out that "this scenario follows the constitutional timelines, with the possibility of the political reality differing for multiple and well-known reasons."

After the Federal Court's approval, Parliament will convene on the 9th of next month.

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Member of Parliament Baqir al-Saadi confirmed that the Federal Supreme Court's ratification of the final results of the general elections represents a crucial constitutional turning point for the new parliament to begin its work and paves the way for its first session to be held within the
specified timeframe.

Speaking to Iraq Observer, al-Saadi explained that the ratification will be officially recorded within ten days, immediately followed by the swearing-in ceremony for the members of parliament. He predicted that the first session would be held at the beginning of next month, specifically on the ninth, in accordance with the established constitutional timelines.

He noted that the coming period will witness accelerated political activity, particularly with leaks circulating about potential candidates for the position of Prime Minister, amidst ongoing consultations among political blocs aimed at reaching a consensus formula for forming the new government.
The Federal Supreme Court had previously announced its ratification of the final results of the parliamentary elections, thus establishing the constitutional framework for the subsequent political processes and the formation of the legislative and executive branches.

Sudani: Our relationship with Washington is witnessing continuous development and progress.

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Prime Minister Mohammed Shia al-Sudani stressed to US Chargé d'Affaires Joshua Harris on Sunday the need to complete the economic, trade and investment cooperation achieved between the two countries, while the termination of the United Nations mission in Iraq was also discussed .

A statement from his office, received by the Mail, said that Al-Sudani “received today, Sunday, the US Chargé d'Affaires to Iraq, Joshua Harris, where bilateral relations between the two countries and ways to develop joint cooperation were discussed, as well as reviewing developments in the regional and international situation, while emphasizing the importance of joint coordination to confront existing challenges in a way that contributes to imposing stability and security in the region .”

He affirmed that "bilateral relations are witnessing continuous development and progress, given the mutual keenness and interest to continue developing them in various fields and sectors, in order to achieve mutual interest and benefit ."

Al-Sudani pointed to "the importance of continuing to work and build on the economic, trade and investment cooperation achieved between the two countries, in light of the memoranda of understanding and joint agreements, and in a way that contributes to supporting various development and service paths ."

 

For his part, the US Chargé d'Affaires congratulated Iraq on "the end of the UN mission's mission, which indicates that it has entered a new phase of stability, prosperity and development, stressing his country's keenness to continue cooperating with Iraq in its efforts to achieve development and stability ."

The United States announces its continued support for Iraq in achieving development, security, and stability.

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Prime Minister Mohammed Shia' al-Sudani Receives US Chargé d'Affaires to Iraq ••••••••••  Prime Minister Mohammed Shia' al-Sudani received the US Chargé d'Affaires to Iraq, Joshua Harris, on Sunday. During the meeting, they discussed bilateral relations and ways to enhance cooperation, as well as reviewing regional and international developments. Emphasis was placed on the importance of joint coordination to address existing challenges and contribute to stability and security in the region. His Excellency affirmed that bilateral relations are witnessing continuous development and progress, reflecting the mutual commitment to further growth across various fields and sectors, in order to achieve mutual benefit. Mr. al-Sudani pointed to the importance of continuing to build upon the economic, trade, and investment cooperation achieved between the two countries, in light of the memoranda of understanding and joint agreements, and in a manner that supports various developmental and service-oriented initiatives. For his part, the US Chargé d'Affaires congratulated Iraq on the conclusion of the UN mission, which he said signifies the country's entry into a new phase of stability, prosperity, and development.

He affirmed his country's commitment to continuing cooperation with Iraq in its efforts to achieve development and stability.

•••••  Media Office of the Prime Minister,  December 14, 2025

Iraq on Edge: Salary Cuts & Dollar Spike Fears — What Comes Next?

Salaries and the dollar are on the brink of collapse... Warnings of decisions that could shake economic and living stability.

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Economic and financial affairs expert Ahmed Al-Tamimi warned on Saturday (December 13, 2025) of serious social and economic repercussions that may result from any government move to reduce employee salaries or raise the exchange rate of the dollar against the Iraqi dinar in the coming period.

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Al-Tamimi told Baghdad Today that “any measures of this kind, even if they come under the pretext of confronting a potential financial crisis, will not constitute a real solution, but will lead to widespread negative results that affect the economic and social stability of the country.”

He explained that “resorting to citizens’ income as a first option to address the financial deficit reflects a failure in managing public resources, and contributes to deepening the economic recession, increasing poverty and unemployment rates, in addition to eroding the purchasing power of a large segment of society.”

Al-Tamimi explained that “reducing salaries or raising the dollar exchange rate will directly affect the prices of goods and services, especially basic ones, which will increase the cost of living for citizens and negatively affect the overall stability.”

He pointed out that "the Iraqi economy has real alternatives to address any financial crisis, including combating waste and corruption, activating fair tax collection, reviewing unnecessary expenditures, as well as diversifying revenue sources and reducing the almost total dependence on oil."

He stressed that “any financial treatment must be based on well-thought-out structural reforms, not on hasty decisions that affect the citizen’s income,” calling on the government to adopt transparency in presenting the financial challenges, and to involve experts and relevant authorities in formulating solutions, in order to ensure the protection of the middle and poor classes.

Al-Tamimi concluded by saying that "monetary and job stability is a red line, warning that any harm to it will cost much more than any potential financial crisis, in the short and long term."

Recently, concerns have grown that the government may resort to exceptional financial measures to address economic pressures and liquidity shortages, amid fluctuating oil prices and rising public spending.

These warnings come amid past experiences that have proven that any change in salaries or the dollar exchange rate directly affects the livelihood of citizens and the prices of goods, making the issue of monetary and job stability one of the most sensitive and influential issues on social and economic stability in the country.

"A quantum leap"... Al-Ahli Bank of Iraq signs its largest digital expansion deal to launch more innovative banking services 

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The National Bank of Iraq praised the investment developments taking place in Iraq, stressing that this is a strategic step that enhances the digital transformation in the country, while noting that the development of banking services is in line with the highest international standards. 

The bank said in a statement, "The bank has approved the purchase of 51% of the shares of both the Iraqi Electronic Gateway for Financial Services Company (SWITCH) and the Digital Future for Electronic Distribution Services Company," noting that "the General Assembly approved the authorization of the authorized manager, Ayman Omran Abu Dahim, to sign all agreements, documents and papers necessary to complete and implement the

investment decisions." 

He explained that "this step is an integrated business model that combines the banking solvency and advanced technological capabilities of the two companies, enabling the bank to launch an innovative digital services system that includes developing national payments, enhancing financial inclusion for individuals and small and medium-sized enterprises, as well as expanding the network of partnerships with global financial institutions. This expansion comes in light of the increasing demand for financial technology solutions and smart payment applications in the Iraqi market."

He explained that "this investment opens the door for the bank to integrate its banking expertise with the technical capabilities of the two companies, which will enhance the development of advanced electronic payment services, transfers, digital wallets, and points of sale, in addition to launching

rapidly evolving digital platforms that meet market needs and keep pace with digital transformation trends." 

For his part, the Chairman of the Board of Directors of the National Bank of Iraq, Basim Khalil Al-Salem, said that “the purchase of 51% of Switch and Digital Future companies is a strategic step that reflects confidence in the ability of the Iraqi economy to lead the digital transformation in the region. This expansion is in line with the bank’s vision of building an advanced financial system based on innovation and advanced technologies, and supporting the development of banking services in accordance with the highest international standards.” 

Ayman Abu Dahim, the authorized manager of the National Bank of Iraq, said, “This investment represents a qualitative leap for the National Bank of Iraq, as it provides an advanced technological infrastructure that enables the bank to expand its digital services and launch new products that meet the growing market needs. The integration of the bank’s expertise and the technical capabilities of the two companies will contribute to strengthening the electronic payments system and providing smart and secure solutions that enhance the customer experience and support the digital transformation in the Iraqi banking sector.”

Kurdistan Region Finance Ministry to Rudaw: We will send 120 billion dinars to Baghdad within 24 hours

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The Ministry of Finance in the Kurdistan Region announced that it has made all the necessary preparations and that it will deposit 120 billion dinars of local revenues into Baghdad’s account within 24 hours, as soon as the decision to disburse salaries is issued by it.

 

The salaries for the month of October have not yet been distributed to employees of the Kurdistan Region, due to the Iraqi Ministry of Finance not yet sending the funds.

 

On Saturday, December 13, 2025, a source in the Ministry of Finance of the Kurdistan Region told Rudaw Media Network: “We have made all the preparations, and as soon as the decision to disburse salaries is issued in Baghdad, we will immediately, within 24 hours, deposit an amount of 120 billion dinars into the account of the Iraqi Ministry of Finance.”

 

According to the information, the audit of the October payroll list, which was sent by the Kurdistan Regional Government to Baghdad on November 25, has been completed; all that remains now is for the Iraqi Minister of Finance, Taif Sami, to sign the disbursement order and direct it to the accounting department.

 

According to the agreement concluded between Erbil and Baghdad, and for the purpose of disbursing monthly salaries by Iraq, two conditions were met: the delivery of oil and the sending of 120 billion dinars of non-oil revenues monthly to Baghdad.

Coordination between the Central Bank, Al-Rasheed Bank, and Key Card to protect citizens' accounts

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Electronic monitoring to reduce fraud and hacking

 

The Central Bank of Iraq announced on Sunday several mechanisms for receiving and following up on citizens' complaints with banks, payment companies, and other relevant authorities, amid a rise in electronic fraud cases. The bank emphasized its commitment to strengthening electronic and on-site oversight of the financial sector, alongside ongoing awareness campaigns to promote financial literacy. In this context, Al-Rasheed Bank stressed that protecting customer accounts is a top priority, utilizing advanced monitoring systems, and warned against sharing confidential data or interacting with suspicious links. For its part, Key Card explained that most fraud cases stem from users disclosing verification codes, emphasizing that sharing these codes effectively hands over funds to fraudsters. The company added that it continues to coordinate with the Central Bank on awareness campaigns and efforts to protect bank accounts.

 

Haider Ghazi – Director of Media at the Central Bank of Iraq, speaking to the official newspaper, as reported:

The bank receives citizens’ complaints through its official electronic platform, in addition to the government’s (Aur) platform, where they are sorted and transferred to the competent authorities from banks, electronic payment companies or money exchange entities, to take the necessary actions and inform the bank of them in preparation for informing the complainants.

Central Bank oversight is carried out at several levels, including electronic oversight via the national switchboard that connects all banking and non-banking financial institutions and electronic payment companies, as well as surprise field visits and periodic audits of files and transactions.

The bank's work is based on official laws, instructions, and regulations published on its website in the form of circulars and instructions that are in effect.

The bank continues to launch banking education and awareness campaigns through newspapers and various media outlets, with the aim of promoting financial literacy and increasing financial inclusion rates, which contributes to reducing opportunities for fraud and exploitation of citizens.

Amal Al-Shuwaili – Media Director of Al-Rasheed Bank:

Protecting customer accounts from electronic fraud is a top priority for the bank.

Adopting advanced monitoring systems that prevent unauthorized access to user data.

The bank does not request any personal or confidential information via phone calls or text messages.

We urge citizens to keep their passwords confidential, not to interact with unknown links or untrusted entities, and to report any suspicious activity immediately.

We would like to point out that the bank continues to broadcast awareness guidelines through its official pages to reduce the spread of electronic fraud methods.

Mohammed Ali – Assistant Director of the Financial Affairs and Banking Awareness Department at “Key Card” Company:

The majority of online financial fraud cases that citizens experience are related to sharing their confidential data or verification codes with untrusted parties.

All transactions made via credit card are subject to a strict verification system, and no financial transaction is executed until a secret code containing full details about the type of transaction is received.

Sharing this code by the citizen practically means handing the money over to the fraudster.

The company’s electronic system is the only entity authorized to send login messages to the application or verification codes for transfers, as well as notifications related to withdrawal and deposit operations.

Any messages received from outside this system are considered unofficial. Ali noted that most scams occur through fake links or pages impersonating organizations offering donations, gifts, loans, or advances.

Continued coordination with the Central Bank in implementing extensive awareness campaigns, including warnings about online fraud pages and direct field awareness, with the aim of protecting funds and bank accounts.

Saleh's statement: The US interest rate cut weakens the dollar and boosts the appeal of gold.

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The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed on Saturday that the decision of the US Federal Reserve to pursue an accommodative monetary policy by reducing US interest rates leads, in principle, to a decline in the relative attractiveness of dollar-denominated assets, through a decrease in the returns on dollar assets, especially bonds and short-term debt instruments, which reduces the advantage of returns compared to other currencies.

Saleh explained in his interview with Al-Furat News Agency that “this decline usually leads to a weakening of the US dollar against major currencies, and at the same time stimulates capital flows towards emerging markets, as well as enhancing the attractiveness of gold as a safe haven within the investment portfolio stabilization strategies of global financial market forces, as well as for central banks in managing and diversifying their reserves between foreign currencies and gold.” 

He explained that "the strength of this effect is not absolute, as it depends to a large extent on accompanying factors, foremost among them inflation levels, real interest rates, and the policy directions of major central banks issuing reserve currencies worldwide." 

He noted that "lowering the federal interest rate makes returns on dollar assets less attractive, which leads to a decline in demand for the dollar and a relative weakening of it against other currencies. This weakness is often seen as a signal that encourages investors to redirect their capital towards markets with higher returns, particularly in strong emerging economies." 

Saleh added that “our country, by virtue of being within the sphere of the dollar’s dominance, benefits from a relative advantage represented by the low cost of borrowing and financing in dollars, especially since the American currency still dominates about 60% of global lending and borrowing operations, which practically means a decline in the cost of global financing due to the central pivotal role of the dollar in the international financial system.” 

He stressed that “geopolitical risks, crises and wars remain crucial factors that may boost demand for gold regardless of the direction of US interest rates, unless the chances of global peace and stability increase, indicating that in such uncertain environments gold remains the most prominent safe haven to hedge against losses in financial markets, especially those related to dollar-denominated assets.”

An economist reveals the secret behind the withdrawal of deposits from Iraqi banks.

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 An economic expert, Salah Nouri, revealed the main reasons behind the decline in deposits in Iraqi banks, attributing this to global economic developments and interest rate policies that directly affected the behavior of depositors within Iraq.

Nouri told Al-Furat News Agency that: “The US Federal Reserve’s resort to lowering interest rates during periods of economic recession leads to a decrease in returns on bank deposits, which prompts individuals and companies to withdraw their money and look for investment alternatives that achieve better returns.”

He added, "The decrease in interest rates is not in the interest of the groups that have bank deposits, as a large part of the liquidity is directed towards buying gold as a safe haven, which leads to an increase in its prices as a result of increased demand, in addition to the trend towards investing in securities markets such as stocks and bonds."

The expert explained that "Iraq is affected by these changes due to its connection to the global economy," noting that "the Central Bank of Iraq adopts a monetary policy based on diversifying investments, which includes holding US debt bonds, buying gold, and investing in the Euro, with the aim of reducing risks and enhancing financial stability."

He stressed that "the decline in deposits does not necessarily reflect weakness in the banking sector, but rather expresses a change in the orientations of investors and depositors as a result of global economic conditions and monetary policies."

Returning to Al-Kadhimi's "White Paper"... Former MP: No government will approve it and there is no budget

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Jamal Kojar, a member of the Finance Committee in the outgoing parliamentary session, ruled out on Saturday the implementation of the "White Paper" project for economic reform, explaining that the current government has no powers, in addition to the absence of a budget.

Kujer told Shafaq News Agency, "Talking about implementing the White Paper and carrying out economic reforms is incorrect, and it is not legally possible, considering that the current government is finished and cannot implement any economic measures."

Kujer explained that "implementing the White Paper requires studying and including the economic reform paper in the budget law, and this law does not currently exist."

It is worth noting that the White Paper is a project adopted by the government of former Prime Minister Mustafa Al-Kadhimi, to serve as an economic reform program, and it was written by the Emergency Cell for Financial Reform.

Al-Kadhimi had announced on August 2, 2022, the launch of the economic reform plan within the White Paper that he had previously announced as a program for his government’s work.

The outgoing government, headed by Mohammed Shia al-Sudani, launched several economic papers, most notably those related to the banking sector and its restructuring, and work began on them.

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Following US warnings about the fate of Iraq... what will happen?

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A message from the "Al-Fatah" alliance

The Fatah Alliance, headed by Hadi al-Amiri, responded to statements by the US envoy to Iraq, Mark Savaya, in which he warned that "Iraq is facing a critical moment, either stability or deterioration and disintegration."

 

“Iraq is a strong and patriotic country, and it is capable of overcoming all political, economic and security challenges without external interference that imposes preconceived positions, and such statements do not reflect the reality of the Iraqi situation, which has demonstrated great resilience in facing crises during the past years,” said Mahmoud Al-Hayani, a leader in the coalition, in an interview with Al-Jabal on Saturday, December 13, 2025.

 

Al-Hayani explained that “national dialogue between Iraqi political forces is the real guarantee for the country’s stability, not external threats or pressures, and the Iraqi people are capable of preserving their unity and sovereignty, and the state continues to perform its duties towards citizens despite the difficult circumstances.”

 

He added, "Iraq is moving forward on the path of construction and reform, and will not allow any party to reduce its future to two contradictory options, as reality is more complex and richer than just the dichotomy of stability or disintegration."

 

"Subliminal messages"

For his part, Abbas al-Jubouri, director of the “Al-Rafid Center” for Media and Strategic Studies, told Al-Jabal that “Safaya’s statement carries clear and implicit messages regarding American orientations towards Baghdad, and these statements are not just a general warning, but reflect Washington’s vision of what it considers to be the strategic priorities for Iraq, starting with political stability and reaching economic and security reforms.”

 

Al-Jubouri explained that "the American envoy focuses in his statements on three main axes, the first of which is political and institutional stability. He indicated that Washington stresses the need to achieve broad consensus among Iraqi political forces and to enhance the effectiveness of state institutions to ensure a strong government capable of making decisive decisions, which reduces internal divisions."

 

The second axis, according to al-Jubouri, includes managing regional and international alliances. He stressed that "Safaya's statement reflects the United States' desire to maintain Iraq's role as a strategic ally, while monitoring relations with Iran and other regional countries, and strengthening security and intelligence cooperation with Washington." 

 

The third axis focuses on “economic and security reforms,” noting that “the phrase (deterioration and disintegration) carries an implicit warning about the continued weakness of the Iraqi economy and the decline of public services, which may open the door to foreign interventions or increase the influence of armed groups, making economic and security reforms a direct American concern.”

 

The director of the Strategic Center added that "the US envoy's method of expressing these messages through a tweet on social media reflects what he described as 'soft pressure' on Baghdad," noting that "Washington seeks to deliver clear messages without resorting to direct threats, while maintaining a wide diplomatic margin."

 

Al-Jubouri stressed that "the timing is sensitive, and Iraq is going through major challenges on both the internal and regional levels, which makes following up on American messages and their potential demands a necessity for all political forces and civil society."

Sudani: The end of UNAMI's mission does not mean the end of the partnership between Iraq and the United Nations.

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Outgoing Prime Minister Mohammed Shia al-Sudani said on Saturday that the end of the UNAMI mission’s work in Iraq does not mean the end of the partnership between the country and the United Nations, while welcoming the selection of former President Barham Salih to be the new High Commissioner for Refugees.

This came in a joint press statement held by Al-Sudani with the Secretary-General of the United Nations, Antonio Guterres, on the sidelines of the official announcement ceremony for the end of the mandate of the United Nations Assistance Mission for Iraq (UNAMI).

Al-Sudani said in the statement, "We highly value the work of the UNAMI mission in Iraq since its establishment in 2003 in a country that has suffered greatly from dictatorship, wars and terrorism, but Iraq emerged victorious thanks to the sacrifices and courage of its people."

He added that the end of the UNAMI mission does not mean the end of the partnership between Iraq and the United Nations, but rather represents the beginning of a new chapter of cooperation, especially in the areas of development, comprehensive economic growth, and providing advice. He further stated that “our relationship with the United Nations through the UNAMI mission was pivotal and effective in meeting Iraq’s needs and helping it until it reached the stage of being fully self-reliant.”

Al-Sudani went on to say that "the relationship file today has moved from crisis management efforts to long-term development planning efforts, and reliance on self-efforts (...) to achieve security, stability and prosperity through the efforts of Iraqis despite the various challenges."

He added, "We have succeeded in consolidating the foundations of democracy through holding the sixth parliamentary elections, and before that there were the provincial council elections and the Kurdistan Region Parliament," considering that "this confirms our commitment to the constitution and the law."

Al-Sudani also pointed out that "the recent elections were described as the most organized and credible and took place in a free atmosphere, and they recorded a remarkable increase in the participation rate, which exceeded 56 percent."

The caretaker prime minister of Iraq added, "We look forward to establishing relations with the United Nations based on a balanced partnership, mutual respect, and through joint programs towards a supportive partnership focused on sustainable development."

He continued, saying, "During this critical and sensitive period in the region and the world, we adopted a balanced foreign policy based on securing interests and preserving sovereignty, and we were able to strengthen and develop our regional and international relations, and spare the country the repercussions of conflict and crises in the region."

Al-Sudani expressed his welcome for the selection of former Iraqi President Barham Salih to fill the position of United Nations High Commissioner for Refugees, saying that this step "means a lot in supporting this important humanitarian issue, and that Iraq, with its political and influential figures, contributes to finding solutions and providing international support and assistance to refugees, not only in the region, but throughout the world."

The outgoing Prime Minister announced that "in recognition of the role and sacrifices of the United Nations, especially the late Sergio Vieira de Mello and his colleagues, we announce the naming of one of the streets of the capital, Baghdad, extending from the Dar al-Diyafa intersection to the Ibn Sina Hospital intersection, as United Nations Street."

Al-Sudani concluded his statement by saying that "a memorial will be placed next to the Unknown Soldier monument in honor of the United Nations' role in Iraq in previous years."

Iraqi Foreign Minister: Ending the UNAMI mission in Iraq reflects the progress and stability achieved.

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United Nations Secretary-General Antonio Guterres expressed his pride in the ongoing cooperation with Iraq on Saturday, while Iraqi Foreign Minister Fuad Hussein affirmed his country's appreciation for the international organization's role during previous phases.

A statement from the Iraqi Ministry of Foreign Affairs, received by the Iraqi News Agency (INA), stated that "Foreign Minister Fuad Hussein received the Secretary-General of the United Nations, Antonio Guterres, upon his arrival at Baghdad International Airport."

The statement explained that "this visit came on the occasion of the announcement of the end of the work of the United Nations Assistance Mission for Iraq (UNAMI), after years of carrying out its tasks in supporting the political process, promoting stability, and providing advice and assistance in various fields."

During the reception, the Minister affirmed the Iraqi government's appreciation for the role played by the United Nations and UNAMI in supporting Iraq during previous phases, noting that "the termination of the mission's work reflects the progress and stability achieved, and embodies Iraq's ability to manage its national affairs and strengthen its sovereignty and constitutional institutions."

For his part, the Secretary-General of the United Nations expressed his "pride in the existing cooperation with Iraq," stressing "the continued support of the international organization for Iraq through new cooperation frameworks that are appropriate for the next stage, and that enhance sustainable development and international partnership."

United Nations Secretary-General Antonio Guterres arrived in Baghdad this morning to participate in the official ceremony marking the end of the mandate of the United Nations Assistance Mission for Iraq