In light of the liquidity crisis... Why doesn't Iraq resort to printing more currency?
Iraq is facing increasing challenges due to the scarcity of cash liquidity, which negatively affects the markets and daily financial transactions. While some are looking for quick solutions to overcome this crisis, the option of printing more local currency remains controversial, given the serious economic repercussions that may result from it.
the video for this blogpost is below here:
The Iraqi government faces challenges in managing cash liquidity in dinars, as it suffers from a chronic shortage of this currency, which affects its ability to meet its financial obligations to pay employee salaries, repay debts, and finance projects.
Since the 1990s, and specifically during the period of the economic blockade, Iraq has witnessed hyperinflation in its national currency (the dinar). This situation prompted the ruling regime at the time to take the decision to print the currency locally.
After 2003, the previously circulating currency was disposed of, new denominations with updated designs were issued, and the exchange rate of the Iraqi dinar was fixed against the US dollar based on a decision by the then civil governor of Iraq, Paul Bremer, who in turn announced the details of the new currency and its official exchange rate.
Iraq currently has a range of paper denominations that cater to various daily transactions, starting from small denominations such as 250, 500 and 1,000 dinars, all the way to larger denominations such as 5,000, 10,000, 25,000 and even 50,000 dinars that are used in major transactions.
Where is the Iraqi currency printed?
On January 19, 2025, the Central Bank of Iraq revealed new security features on circulating banknotes, with the aim of reducing counterfeiting and protecting the national currency.
According to economic observers, the Central Bank has included these signs in the new banknotes to raise awareness among the public, companies and banks alike.
A source in the Central Bank of Iraq spoke about details related to the process of printing Iraqi banknotes, indicating that “the currency was previously printed in Switzerland, but the printing is currently done at the British Institute in London,” which is considered one of the most prominent institutions specialized in printing currencies globally.
In an interview with Al-Jabal platform, the source explained that “Iraqi banknotes are manufactured according to high-quality specifications, aiming to prevent their rapid damage and ensure their ability to withstand daily use for long periods, through the use of modern materials and technologies that increase their lifespan.”
According to the same source, “the cost of printing one banknote ranges between 4 and 5 US cents, a cost that includes the use of the latest security technologies to prevent counterfeiting, such as watermarks, optically variable inks, and security threads.
In contrast, the Central Bank confirms that currency printing operations are subject to strict standards to ensure their quality and durability. The design of banknotes is also updated from time to time according to technical and security needs, to ensure the currency is protected from counterfeiting and improve its technological properties.
An option on the government's table
In addition, Mazhar Mohammed Saleh, the economic advisor to the Iraqi Prime Minister, says, “Financing the deficit in the general budget through the issuance of cash is a cautious approach, but it remains a possible option in light of the availability of high foreign reserves, capable of covering the money supply of the national currency by no less than 75%.”
Saleh added, during his interview with the “Al-Jabal” platform, that “resorting to this method is temporary and periodic, as 40% to 50% of the issued cash is directed towards internal transactions, not just external transactions, which makes it an available option when needed, provided that the coverage rate remains high according to the mentioned standards.”
Saleh continues his talk by saying: “The monetary policy in Iraq is proceeding according to balanced standards with the fiscal policy, and is consistent with the cycle of oil assets. In the event that oil prices fall to low levels, it is possible to resort to financing the deficit by borrowing from banks and deducting the borrowings from the monetary issuance authority, provided that the coverage equation is maintained until the end of the cycle of falling prices.”
Saleh points out that "the decline in oil prices to below their real value in energy markets is not unusual, and it happens sometimes, which requires dealing with it through balanced monetary and financial mechanisms to ensure the stability of the national economy."
It is noteworthy that the Central Bank of Iraq issued, in 2018, a second edition of banknotes in denominations (25,000, 10,000, 1,000, 500, 250).
The Central Bank also previously added some technical and technological updates to the 2003 issue for all types of local currency, except for the (50) dinar category, which was withdrawn from circulation in 2015, while at the end of 2015 it issued the (50,000) dinar category to complete the current series in circulation.
Pros and cons of printing
In this regard, financial expert Jalil Al-Lami said, during his interview with Al-Jabal platform, that “the issue of printing local currency is one of the most sensitive economic policies, given its direct impact on the financial and economic stability in the country.”
Iraq, according to Lami, sometimes faces cash liquidity crises due to economic and political challenges. Technically, it can resort to printing currency to cover the deficit, but this does not depend only on technical capacity, but is subject to complex economic determinants such as the level of foreign exchange reserves, the monetary policy of the Central Bank of Iraq, and general economic stability.
Al-Lami added that "the Central Bank of Iraq, as the only body authorized to issue the currency, adheres to strict standards to ensure that it does not harm the national economy," warning against "unstudied monetary expansion, which could lead to dire economic consequences.
Regarding the positives of printing currency, Al-Lami reviewed some of the potential positives of printing currency, including providing quick cash liquidity, which helps finance salaries and projects and pay urgent obligations, in addition to supporting the economy in crises such as wars or epidemics, in addition to stimulating local demand by increasing the money supply.
Regarding the negatives of printing currency, Al-Lami believes that it may lead to hyperinflation, as when currency is issued without real economic cover, it leads to an uncontrolled rise in prices, in addition to a loss of confidence in the national currency, in addition to the deterioration of the exchange rate as a result of the increase in the money supply without sufficient economic support, and the gap between wages and prices may widen.
Al-Lami suggested a number of sustainable solutions that could help Iraq confront liquidity crises without resorting to printing currency, including “reforming the tax system by improving tax collection and reducing tax evasion to increase government revenues and diversify sources of income, in addition to internal and external borrowing and reducing unnecessary expenses.”
Other proposals, according to Al-Lami, include “enhancing foreign investment and reforming the financial and banking sector.”
The former governor of the Central Bank, Mustafa Makhif, announced in 2022 that "the bank is working on completing a new denomination worth 20,000 dinars based on a study and comparative research with neighboring countries, and is working on completing the shape of the note and it will be announced in the coming days."
At the time, he also spoke about the “issue of deleting zeros from the local currency,” and stressed that “the process of deleting zeros from the currency requires enacting a law and making some amendments.”
Numbers and statistics
The Iraqi government decided to change the exchange rate of the Iraqi dinar against the US dollar in 2020, as the price was adjusted from 1,182 dinars per dollar to 1,450 dinars per dollar.
This decision sparked widespread popular discontent, especially after the prices of food and all commodities in the markets witnessed a significant increase, and this change was confirmed in the federal budget approved by the Iraqi Council of Representatives on March 31, 2021.
Data from economist Nabil Al-Tamimi indicate that printing any currency clearly contributes to increasing inflation, as the increase in the volume of cash in circulation leads to an increase in prices. Therefore, countries are keen to avoid printing money to cover the deficit in their budgets except in limited and studied proportions, through which they try to achieve a balance between the volume of cash circulation and economic activity, i.e. the gross domestic product, which is known as natural inflation.
Al-Tamimi continued, in his interview with Al-Jabal platform, saying: “In some cases, monetary authorities may resort to withdrawing part of the cash and drying up the markets to control inflation, despite the economic slowdown that may result from that.”
According to Al-Tamimi, “Increasing the volume of printing leads to an increase in demand for hard currency, especially in countries that depend on importing goods and services, such as Iraq. The more local currency in circulation in dinars, the higher consumer spending, and most of this spending goes to imported goods and services that are paid for in foreign currency, which leads to an increase in demand for the dollar.”
In a free market, Tamimi said, “this could lead to fluctuations in the exchange rate, but if the central bank intervenes through a currency auction, the daily sales volume will increase to maintain monetary stability.” Data indicates that the Iraqi central bank’s dollar sales have reached about $300 million a day, compared with about $180 million a day in previous years.
He added, "The Central Bank of Iraq relies on its foreign currency reserves on government revenues from oil sales, which change according to the fluctuations of the oil market, as the reserve ranges between 50 and 100 billion dollars. To ensure monetary stability, the Central Bank's accounts must be based on the minimum reserve, i.e. 50 billion dollars, to cover imports and control local demand for hard currency at approximately this level."
Al-Tamimi concluded his speech by saying, “The period from 2003 to 2019 witnessed a relatively balanced monetary policy regarding printing currency, as the total issued currency during this period amounted to about 55 trillion dinars. However, the monetary policy during 2020 and 2021 led to clear inflation, with the volume of issued currency doubling to more than 100 trillion dinars. This was reflected in a significant increase in prices, as the inflation rate reached about 15%.”
Many years ago, the Director of Issuance at the Central Bank, Ihsan Al-Yasiri, said, “The Central Bank of Iraq prints a thousand 25,000-dinar notes in the most reliable international companies at a cost of less than $60,” noting that “the bank will not spend a large amount of cash to print the new banknotes, because their cost is low.”
FEB 7 2025
Al-Sudani's advisor rebukes citizens for storing money at home and calls for investing it
"Support the national economy
Mohammed Sahib Al-Daraji, the technical advisor to the Prime Minister, confirmed today, Thursday, that the volume of investments in Iraq amounts to about 60 billion dollars, while he pointed out that there is a large cash mass among citizens outside the banking system, which makes it economically useless if it remains stored in homes, calling for it to be converted into investment projects that contribute to transforming it into assets that support the national economy.
Al-Daraji said in a statement to the official agency, followed by the 964 network , that “Iraq’s gross domestic product exceeded $260 billion, which makes the ratio of external debt compared to the domestic product at a very low level, which opens the door to a new phase of external financing, but with studied conditions,” noting that “Iraq’s external public debt witnessed a significant decrease, as it fell from $20.9 billion to $9.8 billion.”
He stressed, “The importance of funding being directed towards productive projects capable of paying off their debts on their own, rather than focusing on consumer or ill-considered projects.”
Regarding current investments, Al-Daraji pointed out that “the volume of local and foreign investments in Iraq amounts to about 60 billion dollars, most of which are in the real estate and housing sector, which is a good thing,” stressing “the necessity of strengthening the role of the Iraqi investor and supporting him to diversify investments.”
He pointed out that “there is a large cash mass held by citizens outside the banking system, which makes it economically useless if it remains stored in homes,” calling for “transferring this money to investment projects that contribute to transforming it into assets that support the national economy and enhance sustainable development.”
Today.. Sulaymaniyah is set to witness "massive" demonstrations after Friday prayers
A member of the Sulaymaniyah Protests Committee, Miran Muhammad Salih, revealed today, Friday (February 7, 2025), intentions to hold massive demonstrations in the city after Friday prayers in solidarity with the "Dignity Tent".
Muhammad Salih said in an interview with "Baghdad Today" that "massive demonstrations will start in Sulaymaniyah and head to the Dignity Tent on 60th Street near the United Nations office building."
He added that "the demonstrations will take place after Friday prayers to support the sit-in protesters demanding salaries, and settlement exclusively in federal banks, and the re-implementation of the promotions law, and this is an important step to pressure the regional government."
Meanwhile, Kurdish politician Latif al-Sheikh revealed yesterday, Thursday, that there is great difficulty in transferring the demonstrations and sit-ins from Sulaymaniyah to Erbil.
Sheikh said in an interview with "Baghdad Today" that "the repression and security measures of the authorities will prevent the protesters from reaching Erbil, although this is normal, and a right guaranteed by the constitution and the law, under the threat of freedom of demonstration."
He added that "the security authorities will prevent the protesters from entering Erbil, because the regional government wants the protests and sit-ins to remain limited, within the borders of Sulaymaniyah, so that the international community, including consulates and organizations, does not know about them."
Sources had revealed the intention of the Teachers' Council to move their sit-in from the Dignity Tent in Sulaymaniyah to Erbil starting next week.
An informed source confirmed on Tuesday (February 4, 2025) that there is a trend for a mass sit-in in all cities of the Kurdistan Region next Saturday.
The source told Baghdad Today that: "There is a trend and coordination between activists from Sulaymaniyah, Erbil and Dohuk to hold a sit-in in all cities of the region, including educational cadres in those cities."
He added that "the security services in Erbil and Dohuk have begun to move and monitor social media sites and cafes frequented by a number of activists, to prevent any demonstrations, while there is insistence on the participation of the governorates of Erbil and Dohuk in the sit-in, which will be in front of the United Nations offices, to demand salaries and settlement, and the reinstatement of the promotion and allowances law."
Member of Parliamentary Finance Committee warns of investment projects being affected by delay in 2025 budget schedules
Kocher told Al Furat News Agency, "The delay in the budget will hinder the implementation of vital projects and will affect the level of services provided to citizens," stressing that "employee salaries will not be affected in any way."
He called on the concerned authorities to expedite the approval of the budget to avoid disrupting vital sectors and ensure the continuity of economic development.
l-Sudani asks the Trump administration to continue granting Iraq an exemption from importing Iranian gas
Prime Minister Mohammed Shia al-Sudani called on Friday on the administration of US President Donald Trump to continue exempting Iraq from importing Iranian gas after the decision to cancel it.
US President Donald Trump recently cancelled the exemption granted to Iraq to import electricity and gas from Iran, as part of the new package of sanctions on Iran.
Al-Sudani said in an interview with Asharq Al-Awsat, "The previous (US) administration gave us an exemption from these sanctions," adding that "our government did not just request an exemption, but we also took the initiative to invest in the associated gas."
He added, "Iraq has a clear vision. In 2028, gas imports will end, and there will be clear energy independence," stressing that "in the end, we need this exception to continue throughout this period."
Al-Sudani also pointed out that Iraq has begun "the process of linking energy with neighboring countries in order to cover our needs, and this is part of the concept of integration that we seek with our brothers."
He continued by saying, "The connection with Jordan has been implemented and currently western Iraq is being supplied with energy. It is hoped that during this year the connection with Kuwait and the Gulf group will be completed. We have also started contracting for the connection between Iraq and Saudi Arabia. The connection with Turkey has also been implemented and we have started receiving energy and as a result from the European Union."
The Prime Minister continued, "The Iraqi government has found solutions, and we certainly expect our friends in the United States to understand the government's plans so that they will allow us to continue to use Iranian gas until our projects are completed, in which any imported gas will be dispensed with."
For many years, Iraq has relied on importing electricity and gas from Iran, especially during the peak of summer, and thus relies on the ongoing American exemptions, which are issued more than once each year.
Recently, Iraq has moved to import gas from Turkmenistan, and it will also pass through Iranian pipelines, but it has not yet been implemented due to logistical and financial problems.
Iraq prepares to implement the first historic transfer operation through the international (TIR) system
Will Iraq succeed in transforming into a digital economy?
In a move that could change the features of the Iraqi economic landscape, the Central Bank of Iraq announced that the government is working to develop regulatory frameworks to support the transition to a digital economy, with a special focus on electronic payment.
However, questions are being raised about the readiness of the infrastructure for this transformation, especially in light of the challenges related to financial corruption, weak electronic services, and the reliance of most sectors on cash transactions.
While official bodies stress the importance of moving to the digital economy to stimulate growth, citizens and merchants fear the imposition of ill-considered payment mechanisms that may hinder their interests, especially in light of the lack of trust in local banking systems.
Will the government succeed in convincing Iraqis to abandon cash in favor of electronic payment? Or will this initiative face failure as happened with previous projects?
Iranian currency plunges to record low after fresh US move
- It remains unclear how funding for Iranian activists and opposition figures would be affected by the USAID decision
TEHRAN: Iran’s currency plunged on Wednesday to a record low of 850,000 rials to $1 after US President Donald Trump ordered a restart to the “maximum pressure” campaign targeting Tehran.
Trump’s order calls for halting Iran’s oil exports and pursuing a “snapback” of UN sanctions on Iran. However, he also suggested he didn’t want to impose those sanctions and wanted to reach a deal with Iran.
The move comes as Trump’s moves to freeze spending on foreign aid and overhaul, or even end, the US Agency for International Development have been lauded in Iranian state media.
Meanwhile, ordinary Iranians worry what all this could mean for them.
“It encourages hard-liners inside Iran to continue repressions because they feel the US would have less capability in supporting Iranian people who seek freedom,” said Maryam Faraji, a 27-year-old waitress in a coffee shop in northern Tehran.
Iranian media say Trump’s cuts could stop the opposition in Iran
The state-run IRNA news agency said that “cutting the budget of foreign-based opposition” could “affect the sphere of relations” between Tehran and Washington.
Newspapers, like the conservative Hamshhari daily, described Iran’s opposition as “counterrevolutionaries” who had been “celebrating” Trump’s election as heralding the “last days of life of the Islamic Republic.”
They then “suddenly faced the surprise of cut funding from their employer,” the newspaper crowed.
Even the reformist newspaper Hammihan compared it to a “cold shower” for opponents of Iran’s theocracy abroad, an idea also expressed by the Foreign Ministry.
“Those financial resources are not charity donations,” Esmail Bagahei, Iran’s Foreign Ministry spokesman, said during a briefing with reporters. “They are wages paid in exchange for services.”
It remains unclear how funding for Iranian activists and opposition figures would be affected by the USAID decision.
The lion’s share of money for civil society in Iran has come through the US State Department’s Near East Regional Democracy fund, known by the acronym NERD, which grew as an American response to the Green Movement protests in 2009.
Complex networks and methods of smuggling dollars from Iraq to Iran.. American report reveals the details
An American report stated thatNumbersMassive Central Bank AuctionsIraqiIn selling hard currency, it raises doubts and concerns about the possibility of smuggling a large part of the currency to Iran.
Lost Fortunes: Iraqi youth risk all in the world of Crypto and Forex
Despite government warnings, digital trading in both cryptocurrency and foreign exchange (forex) continues in Iraq, mostly among young people eager for a quick buck. Many, however, do not consider the consequences and risks associated with these transactions.
The rise in crypto and forex trading comes after Iraq’s recent economic crises, including the government’s limitations on US dollar trading to stabilize the exchange rate.
Although there have been no official statistics on the number of Iraqis scammed through digital trading, economic experts believe the figures are substantial. However, since Iraq bans both crypto and forex trading, victims have no way to legally reclaim their losses.
Since crypto and forex transactions occur outside the banking system, the traders are more susceptible to fraud. Last year alone, dozens of young Iraqis lost their life savings due to digital trading.
20-year-old Saja Al-Saadi is one such victim. She told Shafaq News that she had saved five million Iraqi dinars (around $3,800) from work but was lured by digital trading platforms promising high returns, who instead stole her money in the blink of an eye. “I was devastated,” she said. “Since these platforms are illegal in Iraq, I couldn’t even file a complaint with the police to recover my money.”
Another victim, 45-year-old trader Abdul Amir Khalil, faced a much larger loss of over $250,000. Khalil turned to digital trading platforms to avoid banking procedures and streamline transactions. “After transferring $250,000 to a digital trading company, the platform disappeared overnight, and I was unable to recover the money due to blockchain encryption despite enlisting the help of IT specialists.” He told Shafaq News.
Many of these scams are operated by individuals who use untraceable crypto transactions to steal funds. Some are run by local networks that pose as investment firms, promising “huge returns,” using fake social media profiles and instant messaging apps like Telegram and WhatsApp to reach potential victims.
while the list of victims continued to grow, the Central Bank of Iraq (CBI) declared in 2022 that it does not license forex, stock, or crypto trading platforms.
The bank warned that fraudulent online companies falsely claimed to be licensed, using misleading advertisements to promote investments in stocks, crypto, gold, and oil.
According to Iraq’s Anti-Money Laundering and Terrorism Financing Law No. 39 (2015), digital trading is prohibited due to risks associated with fraud, illicit transactions, and economic instability. The use of electronic wallets and cards for crypto trading is also prohibited, due to “concerns over money laundering and financial crimes.”
Despite this prohibition, many traders bypass restrictions anyway using VPNs and international bank accounts or rely on middlemen in neighboring countries like Turkiye, Jordan, and the UAE to deposit and withdraw funds.
Economic expert Ali Dadoosh explained to Shafaq News that forex companies targeting Iraqi investors operate without oversight from the CBI or any regulatory body.
“Iraq lacks a legal framework for forex trading; there is no official regulatory body overseeing digital currency transactions,” he noted.
Dadoosh emphasized that while digital currency trading can be profitable for experienced investors, it carries significant risks for untrained traders.
According to Dadoosh, while non-crypto digital currencies are traceable and regulated by banks (if fraud is suspected, banks can freeze transactions or reverse transfers), crypto is encrypted, unregulated, and often used for illegal activities, including money laundering and drug trafficking, and recovering stolen crypto funds is nearly impossible.
While digital currencies offer advantages, such as lower transaction costs and faster transfers, Dadoosh warned that most Iraqis lack the expertise needed to avoid falling victim to fraud.
He advised young Iraqis to learn trading before investing and to only use well-established, legal companies and wait for new government regulations.
There have been voices inside Iraq calling on the government to regulate crypto and forex trade instead of prohibiting it, countries such as Egypt and Turkiye have already begun talks on legalizing crypto and forex trade regulations. The UAE has permitted it under strict regulations that ensure investor protection.
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Today FEB 8 2025
State Administration" postpones its expected meeting until further notice to give the Federal Court a chance
The State Administration Coalition decided to postpone the meeting scheduled to be held today, Saturday, until further notice in order to give the Federal Court a chance to address the decisions to ratify the single basket laws and the state order it issued to stop those controversial laws.
In this regard, informed sources told Shafaq News Agency, "Some of the framework forces and the state administration have visions and proposals that have not yet matured to be presented during the meeting that was supposed to be held today, in addition to giving the Federal Court the opportunity to address the appeal of the single-basket decisions (voting on draft laws of the general budget, general amnesty, personal status)."
She explained that "there is no comprehensive basis for holding this meeting on time," adding that "important files were supposed to be discussed, including the security, political and economic files, along with regional and international developments."
Last Wednesday, Prime Minister Mohammed Shia al-Sudani called on members of the State Administration Coalition to hold a meeting at the government palace today, Saturday, February 8, 2025.
A statement issued by Al-Sudani's office explained that the latter's call for holding the meeting aims to "discuss the general situation in the country and examine a number of files at the national level."
The State Administration Coalition called for an emergency meeting today, Saturday, at the government palace in the capital, Baghdad, to discuss a group of "important" issues.
An informed source informed Shafaq News Agency of this, and indicated that at the top of these issues is the recent escalation against the Federal Court after it issued the state order to stop the implementation of the three controversial laws.
As of Thursday, the courts in the Iraqi governorates began implementing the amendment to the general amnesty law in accordance with its provisions and the instructions issued by the Supreme Judicial Council in this regard, despite the objection of the Federal Supreme Court, the highest judicial authority in the country.
Last Tuesday, the Federal Court issued a federal order to stop the implementation of the three laws: personal status, general amnesty, and real estate, approved by the House of Representatives. However, this order was met with widespread rejection by Sunni political forces, and to a lesser extent, Kurdish ones.
In contrast, the Coordination Framework announced its support for the court’s procedures, stressing its constitutional right to monitor the laws.
It is noteworthy that this decision came after a number of representatives filed an appeal regarding the parliament’s vote on the laws collectively, while observers are awaiting a final decision from the court in the coming weeks.
The Iraqi Supreme Judicial Council ruled last Wednesday that it is not permissible to stop the implementation of laws that are legislated by the House of Representatives before they are published in the Official Gazette, while it considered the law amending the Personal Status Law and returning properties to their owners to require delaying the issuance of any decision related to them, stressing that the courts in the country are obligated to implement the general amnesty law.
The Iraqi Parliament session on January 21 witnessed the passing of “controversial laws” including amending the general amnesty law, amending the personal status law, and the law to return properties to their owners in Kirkuk.
The session also witnessed the collection of signatures to dismiss the Speaker of the Council, Mahmoud Al-Mashhadani, in protest against the voting mechanism, which some representatives considered a violation of constitutional procedures.
The "State Administration" coalition includes the Shiite parties (the Coordination Framework), the Sunni blocs (the Progress and Sovereignty Alliance), and the Kurdish parties (the Kurdistan Democratic Party, the Patriotic Union of Kurdistan), and since its formation it has aimed to support a consensus government to ensure the stability of the political process and implement agreements between the political blocs.
Will the 2025 budget be affected by oil price fluctuations? An economist explains
He added in his statement to {Euphrates News} that "the disbursement will not be within 1/12, because the government has obtained authorization for the three-year budget," adding that "it is not necessary to make adjustments to the numbers and the same numbers can be submitted for approval, unless there are changes in the table numbers."
Al-Mashhadani expected that "the changes in the 2025 budget will be minor," suggesting that "the price of a barrel of oil will be lower or remain at $70. He pointed out that the change will only occur if the price of oil changes, but the quantities produced will remain at their rates, especially after the issue of Kurdistan Region oil is resolved."
He explained that "this matter will not constitute additional obligations, noting that OPEC+ has imposed a reduction on Iraq due to smuggling."
Central and Southern Representatives Gathering to Nina: We submitted an official appeal during the voting session on amending the budget law
link still waiting for an answer to this
The Central and Southern Governorates Front confirmed that it had submitted an official appeal to the Federal Court during the voting session on the draft amendment to the General Budget Law.
MP Hussein Al-Saabri said in a statement to the National Iraqi News Agency ( NINA ), "We submitted an official request to the Parliament Presidency, accompanied by the signatures of 47 MPs, to amend Article 14 of the General Budget Law, and to rephrase the text of the amendment to Article 12 in a clearer manner," noting that "the amendment relates to adding a paragraph to the budget law to provide job opportunities and appoint graduates and certificate holders."
He added, "Parliament proceeded to vote on amending Article 12, without adding that paragraph, despite the approval of the Deputy Speaker of the House of Representatives of the official request signed by the MPs, and this is evidence of non-compliance with the internal regulations," indicating that "all legal measures were taken and a lawsuit was filed with the Federal Court regarding the voting session on amending the budget law."
The House of Representatives voted, in its session last week, on the draft first amendment to the Federal General Budget Law of the Republic of Iraq for the fiscal years 2023-2024-2025, No. 13 of 2023.
Parliamentary Finance Committee confirms unfairness of amending budget law
Member of the Parliamentary Finance Committee, Mustafa Al-Karawi, confirmed that: "Amending the budget is unfair because the region did not adhere to the provisions of previous budgets."
Al-Karawi said in press statements: “The budget amendment did not include timings that oblige the region to deliver oil revenues or even production quantities.”
He said that the region may demand in the coming period the profits of the operating oil companies. He said: "The oppressed Basra contributes 90% to the Iraqi budget."
He concluded: "The government is circumventing the law and handing over money to the region through loans."
Industry holds a conference on accelerating procedures and investment security
The Ministry of Industry and Minerals held a conference today, Saturday, on accelerating procedures and investment security.
The correspondent of the Iraqi News Agency (INA) stated that “the Ministry of Industry and Minerals, in the presence of its Minister and a large group of industrialists and businessmen, held a conference entitled (Accelerating Procedures and Investment Security).”
He added that “the conference aims to introduce the ministry’s steps towards automation and digital transformation of the services provided by the General Directorate of Industrial Development and the Directorate of Trademark Registration to support industrialists, traders and factory owners and encourage the establishment of new factory projects.”
Al-Sudani: 2024 expenditures from the investment budget amounted to 25 trillion dinars
Prime Minister Mohammed Shia Al-Sudani stressed today, Saturday, the concerted work to transform integrity into a social culture that disavows corruption and besieges it within society.
The Prime Minister's media office stated in a statement that "Prime Minister Mohammed Shia Al-Sudani sponsored the Internal Control Conference organized by the Federal Financial Supervision Bureau under the slogan (Control is the first line of defense in combating corruption and enhancing transparency)."
The Prime Minister stressed, in his speech, that "the conference aims to enhance the work of internal control and consolidate transparency in the performance of duty, in commitment to the first target in the work of the government program, which is represented by combating corruption, which is a basic criterion for the citizen's belief in the system and the political process as a whole," noting "the importance of internal control; as it is the system that corrects the course of the institution's work and guarantees preventing the waste of public money, and it does not mean bureaucracy and obstruction, but rather an honest and transparent path that deals with the law, its spirit and its goals before implementing its instructions."
He pointed out that "what was issued by the supreme religious authority last November proved the government's seriousness in making combating corruption a top priority, and that deviating from this path will affect the performance of the rest of the entitlements in combating unemployment, providing job opportunities, economic reform and services." He explained that "internal oversight is the first line of defense against corruption, to protect the government institution itself, and to purify its work, and the total amount spent on service projects for ministries and governorates during 2024 amounted to 12 trillion dinars," adding that "what was achieved during the past two years gave hope to citizens and confidence in the state and optimism that the country is on the right track."
He explained that "corruption has become like a virus, mutating and adapting itself in light of the measures taken by the oversight bodies, and decisive treatments have been put in place in government work with complete transparency and clarity, and within the framework of the law to combat corruption."
He continued: “We have made the issue of supporting internal oversight and developing its work at the forefront of the procedural links within the anti-corruption methodology, and the levels of internal auditing have been raised to general directorates to ensure full empowerment in their work in combating corruption,” noting that “we have proceeded to find legal legislation in accordance with the Constitutional Article (108) to regulate the work of the directorates and enhance their independence in performing tasks.”
He added: “We supported the recommendations of the first anti-corruption conference, most notably enhancing the work of internal oversight departments with human resources and competencies,” stressing that “periodic evaluation of the performance of those in senior positions is necessary to ensure the effectiveness and performance of government institutions, to prevent corruption.”
He noted that “we have directed to expedite the resolution and completion of reports, complaints and criminal cases, within the legally specified time limits, and we emphasize following up on issues related to public opinion, large amounts of corruption and senior state employees, to impose legal penalties on those convicted,” stressing “the need to emphasize enhancing confidence in accountability and accountability procedures, to ensure achieving general deterrence.”
The Prime Minister stressed, according to the statement, “the concerted effort to transform integrity into a social culture that disavows corruption and besieges it within society,” indicating “his support for all efforts that revealed small details of corruption and led to the recovery of huge sums of public money.” He added, “We have made the recovery of wanted persons and stolen funds a condition and a file in our international relations, and we support the outcomes of your conference and all blessed national efforts to enforce the law and protect Iraqis’ money.”
The Dilemma of Linking Baghdad to Tehran: US Sanctions “Will Destroy Iraq” Before Iran
The US administration's stance towards Iraq in light of the sanctions imposed on Iran raises questions about the future of Iraqi-US relations, especially with the escalation of economic and political pressures.
Strategic affairs researcher Nabil Al-Azzawi told Baghdad Today that Iraq is striving to distance itself from the escalation between Washington and Tehran, but US President Donald Trump’s decisions may complicate the situation, especially with regard to the use of the dollar in Iraqi-Iranian financial transactions.
Iraq between US sanctions and its dependence on Iranian gas
Iraq faces a real dilemma under these sanctions, given its heavy reliance on Iranian gas to operate power plants, especially as summer approaches when demand for energy increases.
Al-Azzawi's statements indicate that a sudden cut-off in Iranian gas supplies could lead to a severe energy crisis, at a time when alternatives, such as the Gulf electricity interconnection and solar energy, are still in their early stages and require more time to implement.
The US administration and its hardline stance
According to Al-Azzawi, the Trump administration is not showing flexibility in giving Iraq additional time to find alternatives, which puts the Iraqi government in a difficult position. Iraq finds itself facing two bitter choices:
1. Continuing to import Iranian gas despite sanctions, which may expose it to American pressure and new economic sanctions.
2. Adherence to sanctions and cutting off dealings with Tehran, which could threaten the stability of the electricity grid and lead to internal unrest.
Escalation potential and possible repercussions
Al-Azzawi warns that continuing to import Iranian gas without US approval could lead to a crisis in relations between Baghdad and Washington, and possibly the imposition of US economic sanctions on Iraq, further complicating the political and economic landscape. However, he points out that the Iraqi government is aware of the seriousness of the situation, and is seeking to play an urgent political role to prevent Iraq from falling into dangerous pitfalls.
Iraq's efforts to find compromise solutions
The Iraqi government is working to find solutions to avoid the crisis, through:
Conducting intensive contacts with the American side to convince it to give Iraq additional time until the electrical interconnection projects with the Gulf are completed.
Accelerating work on alternative energy projects, such as solar systems, to reduce dependence on Iranian gas.
Balancing relations between Washington and Tehran, by adopting a policy of neutrality and trying to reconcile conflicting interests.
Iraq finds itself in a delicate position between US pressure and sanctions on Iran on the one hand, and its dire need for energy on the other. While the government seeks to avoid escalation through diplomatic channels, the question remains as to the extent of its success in convincing Washington to grant it an additional period, and whether the proposed alternatives will be sufficient to bridge the energy supply gap in the coming period.
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