Ramadan revives the Iraqi dinar and official expectations of a continued decline in the dollar
The exchange rate of the US dollar in the parallel market in Iraq declined significantly during the first and second weeks of Ramadan, recording 1,480 dinars per dollar, or less than that, from 1,520 dinars before the beginning of the month.
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The decline is due to several factors, most notably the strict measures taken by the Central Bank of Iraq to control imports and electronic money transfers, in addition to the decline in economic activities of the Iraqi citizen during the month of Ramadan.
"strict measures"
Government advisor Alaa Al-Fahd says the decline in the dollar price in the parallel market is due to the Central Bank’s implementation of strict measures aimed at controlling imports and electronic money transfers.
He added that this measure reflects the success of the Central Bank's monetary policy, as Iraqi banks have begun to implement correspondence operations with international banks with which they have commercial relations.
He added that diversifying the currency basket contributed significantly to easing pressure on the dollar, and that most imports of consumer and food goods are financed through the official platform of the Central Bank and at the official price, stressing that any trading outside this framework is considered unofficial dealing.
Al-Fahd praised the Central Bank’s announcement of implementing digital transactions and encouraging tourism, stressing that these steps contributed to easing pressure on the parallel market for exchange rates.
Al-Fahd expected the market to remain stable, especially with most of the needs of Ramadan and the Eid season being covered through the official platform and at the official price, noting that expectations indicate a continued decline in the dollar price in the coming period.
The exchange rate of the dollar against the dinar increased significantly in the last week before Ramadan, recording 1,520 dinars per dollar for sale and 1,510 dinars for purchase in the main stock exchanges, but in the first week of Ramadan, the exchange rate recorded a significant decrease, reaching 1,465 dinars per dollar for sale and 1,475 dinars per dollar for purchase in the main stock exchanges in Baghdad, Erbil and Basra.
In the second week of Ramadan, the exchange rate rose slightly, recording 1,485 dinars per dollar for sale and 1,480 dinars per dollar for purchase, with a variation up or down not exceeding two and a half dollars.
The exchange rate of the Iraqi dinar against the dollar is affected by several main factors, including:
-Daily sales volume in currency auction
-Central Bank procedures related to external transfers
-The need of traders to import goods, especially from countries subject to US sanctions, which increases the demand for the dollar in the parallel market.
-Smuggling the Iraqi dinar to other countries to benefit from price differences.
"Ramadan is a game changer"
For his part, economic expert Ahmed Al-Ansari believes that the decline in demand for the dollar during the month of Ramadan is mainly due to the decline in economic activities of the Iraqi citizen, which is evident in the decline in the movement of real estate, cars and basic services.
Al-Ansari explained that the weak purchasing power of citizens also contributed to reducing the volume of imports, which led to a reduction in demand for the dollar in the parallel market.
He added that the Central Bank's measures aimed at reducing imports through the black market and encouraging traders and importers to import through approved banks and convert the dollar at the official price were an additional reason for this temporary decline.
Al-Ansari expected a strong recovery in the markets after Ramadan and by Eid al-Fitr, which could lead to a slight increase in the dollar price or a return to its previous level, stressing that the dollar price is greatly affected by the strength of supply and demand in the market, as it rises whenever demand for it increases in the parallel market.
He pointed out that the continuation of the facilities provided by the Central Bank, such as providing travelers' dollars, will encourage citizens to deal at the official price and avoid exchange offices and banks that sell dollars at higher prices.
On February 7, 2023, the Council of Ministers approved the decision of the Board of Directors of the Central Bank of Iraq to amend the exchange rate of the dollar against the dinar, equivalent to 1,300 dinars per dollar, obligating banks to sell at a rate of 1,310 dinars per dollar and at a rate of 1,320 dinars per dollar for currency transfer operations when using electronic cards while traveling or online, with a ceiling of 3,000 dollars at the official rate granted to each traveler who presents a visa and a travel ticket with his official passport.
Attention! Trump Bans Iran’s Electricity, Not Gas: Al-Sudani’s Advisor Returns from Washington
Aladdin: Saudi billions arrived
The political advisor to the Prime Minister seems very confident that Iranian gas will continue to flow to Iraq, because Washington's sanctions are only related to the import of Iranian electricity. Farhad Alaeddin reviewed aspects of his long visit to the American capital and the messages exchanged between the two sides, expressing his reassurance that Iraq has become a meeting ground, to the point that Saudi billions have begun to flow in the field of investment and signed a rare security agreement with Iraq.
Farhad Alaa El-Din, in an interview with the media figure Samer Jawad:
About 46% of electricity production in Iraq depends on Iranian gas, and the American exception is still in effect. The ban was on importing electricity, but the Americans requested diversifying the sources of imported gas, and this is what we are working on in terms of preparing the infrastructure and heading towards Qatar and others to buy gas.
We work as one cell with the Ministry of Foreign Affairs, and our work supports the work of the Minister of Foreign Affairs. We try to correct some of the rumors about Iraq and clarify some of what is circulated in the media, as we constantly go to Congress to correct some points of view about the smuggling of the dollar and other things.
Visits are routine between countries, and the Prime Minister does not want to visit any country for the purpose of taking pictures, but rather there must be files for discussion, and if there is a visit by the Prime Minister to Washington, we will announce it at the time.
We told the Iranians that you are our neighbors and partners and we have many common interests, but we have relations and partnerships with the United States, and we told the Americans that as well regarding our relations with Iran, and this level of credibility in dealing has generated great respect for this government from Washington and Tehran.
We look at Syria as an independent and neighboring country, and we look and see what Al-Julani will do and how he will deal with the situation. The formation of a government of one color is a question, and the events on the Syrian coast have generated great concern.
We have concerns about the expansion of ISIS, and we have information about the organization obtaining weapons and equipment from the remnants of the Assad regime forces, with its fighters leaving some of the prisons that were broken, and the matter may develop into an attack on Al-Hawl camp, but we are still monitoring the situation there.
China is the largest customer of Iraqi oil, and perhaps the largest trading partner. This is also the case with Russia. The partnerships with them are economic, not political, and they deal with Baghdad on this basis. We do not want to side with one pole at the expense of the other.
Relations with Saudi Arabia are at their best, and for the first time Saudi billions are flowing into Iraq, and for the first time we have signed a security agreement with it since 1982, and our political positions towards Syria and Gaza are very close.
Iraq has transformed from an arena of conflict to an arena of meeting, and our role is important in preventing the ignition of the fuse between America and Iran. In the end, countries are the ones who choose through whom they send their messages. Sometimes Oman or Switzerland are chosen, and sometimes communication is direct through delegates to the United Nations.
UNAMI's mission will end at the end of this year. Such a mission exists only in troubled countries, and we want to get out of this category. For the same reason, we want to end the missions of the international coalition after eliminating ISIS.
We still need some technical support from some UN organizations such as UNDP, UNICEF and 24 other UN organizations, and these organizations will continue their work regardless of the work of the UN mission.
We are waiting for the opinion of the new US administration about ending the mission of the international coalition in Iraq, and the end of this mission will enable the country to know what it needs from foreign forces.
Prime Minister Affirms Iraq's Commitment to Expanding Economic Ties with US
this picture is from when he was here last April
Prime Minister Mohammed Shia al-Sudani affirmed Iraq's commitment to expanding economic relations with the United States.
The Prime Minister's Media Office stated in a statement that "Prime Minister Mohammed Shia al-Sudani received a phone call on Sunday from US National Security Advisor Michael Waltz, where both sides affirmed their commitment to strengthening and deepening the strategic partnership between Iraq and the United States."
It added that "the discussions focused on enhancing bilateral cooperation in the economic and security fields, where the Prime Minister affirmed Iraq's commitment to expanding economic relations with the United States, encouraging American companies to invest in the growing Iraqi market, and reviewed the important reforms and initiatives implemented by his government to create a more stable, transparent and attractive environment for investors."
For his part, the US National Security Advisor, according to the statement, "encouraged the Prime Minister to rely more on American companies, and work to solve problems and overcome obstacles facing those companies operating in Iraq, including the Kurdistan Region of Iraq, to encourage them to work and invest in Iraq."
The statement continued, "The two sides stressed the importance of joint efforts to build a strong Iraq capable of relying on itself. The discussions also included addressing issues and the role of American companies operating in this field. In this context, the United States renewed its commitment to supporting Iraq's energy independence and expressed its readiness to cooperate to accelerate the achievement of this goal."
Regarding the security file, National Security Advisor Waltz, according to the statement, stressed "the United States' steadfast commitment to the security and stability of Iraq in the face of regional and international challenges. The two sides also stressed the importance of continuing cooperation to ensure Iraq's sovereignty and stability in the long term, especially in light of the turbulent conditions witnessed in the region."
Waltz added that "ending the exception for electricity supplied from Iran is linked to the maximum pressure policy, which confirms the importance of bilateral coordination to avoid any potential negative effects on Iraq's stability."
The call reaffirmed "the solid partnership between Iraq and the United States, as the two sides expressed their shared vision for a secure, prosperous and sovereign Iraq."
Monetary Policy in Iraq and Opportunities for Monetary Stability and Digital Transformation
Today, the widely circulated Emirati economic magazine Investments in the Arab countries, Egypt and North Africa published the exclusive analytical study prepared by Counselor Samir Al-Nusairi, a member of the International Union of Arab Bankers, which pointed out several factors, most notably monetary policy, opportunities for monetary stability and digital transformation. The study clarified the economic changes after 2003, when the need for radical reform of the Central Bank emerged and a new law was issued that confirmed its independence and established its primary role in protecting the country’s resources.
And defining its tasks in confronting money laundering and attempts to finance terrorism, which are at the forefront of the challenges facing the Central Bank of Iraq. As well as maintaining the bank's independence and enabling it to perform its mission without government interference and making it an effective institution that guarantees the interests of society as a whole. In addition to its control over the stability of the exchange rate and the management of the money supply. She pointed out that the process of selling foreign currency needs a deep understanding in light of the major accusations that the bank is exposed to without evidence proving the existence of suspicions of corruption or money laundering or currency smuggling, and that selling currency is a waste of public money, as this description is not related to economic science. She explained that the Central Bank of Iraq is concerned with financial stability, managing the payment system, managing foreign reserves, licensing and monitoring banks and financial institutions, as it is responsible for setting preventive controls, in addition to other tasks related to monetary issuance and publishing data, indicators and economic forecasts.
And managing monetary policy that aims to stimulate the national economy, balance the balance of payments and achieve monetary stability. She pointed out that monetary stability represents the starting point towards economic stability and this requires monetary stability represented by the ability of the monetary authority to achieve price stability at targeted levels.
The study prepared by “Consultant Samir Al-Nusairi” revealed the challenges of monetary policy, the most prominent of which is the rentier economy, which relies on 95% of the general budget revenues, and the weak activation of the real sector and other productive sectors. The study pointed out that financing the state’s general budget deficit represents the biggest challenge facing monetary policy, and is inversely proportional to the independence of the Central Bank when this deficit is financed by the bank purchasing treasury transfers and rediscounting them.
The Central Bank has deducted treasury transfers during the period from the end of 2015 until now for the purpose of paying salaries and dues to contractors and farmers. The study pointed out that the financial markets, stock and bond markets, capital markets, and money markets are limited, which misses opportunities to employ local savings and limit the phenomenon of hoarding and withdrawing liquidity to employ it in real sectors. It pointed out the weakness of the banking system, which represents a fundamental pillar of the economy and the main link in it and an important arm of the Central Bank in achieving monetary stability. It confirmed the dominance of government banks over the sector by more than 80%. The problem of bad debts and credit concentration. Weak institutional governance. And receiving financial shocks due to the decline in real sector activity. The study noted the decline in local investment and the increase in foreign savings.
Counselor Samir Al-Nusairi, a member of the International Union of Arab Bankers, pointed out that the achievement of digital transformation in the banking sector, which the Central Bank began in 2016, has clear stages included in its first, second and third strategies.
During the past two years, cooperation between the Central Bank and the government, with the personal support and follow-up of the Prime Minister and his chairmanship of the Digital Transformation Committee, was an essential step to activate and accelerate the transformation to digital government and the transition from a cash economy to a digital economy, as the amount collected from digital payments reached (7.6 trillion Iraqi dinars) in October 2024, after it was (2.6 trillion Iraqi dinars) in December 2023. The rate of digital transformation and electronic payment increased to 48.5% compared to 20% in the past years. The study continued that Iraq now has an advanced infrastructure capable of accommodating electronic payment tools and financial services. It will soon move to digital banks, where smartphones will lead various banking operations. This transformation will facilitate financial access to services for citizens, and provide vital data at the national level on the nature of transactions, their content, supervision, and compliance achieved through this comprehensive system. The study also indicated that banking reform has now entered the phase of transformation to digital banks, and the Central Bank is currently examining and auditing about 70 requests to license new digital banks in accordance with the precise controls and conditions adopted by the Central Bank. This constitutes a real and promising start for technical banking development in Iraq to bridge the technical gap with countries of the world in this field.
The study pointed out that the current stage is witnessing a significant development in the electronic payment system through the increase in the number of ATMs, which exceeded 4,000, the number of electronic cards issued exceeded 17 million cards, the number of POS devices reached about 63,000 devices, and the number of credit portfolios also increased. It explained that the financial inclusion rate increased to 40% after it was 20% two years ago, and that Iraqi banks are witnessing qualitative transformations in their banking operations, especially with regard to future banks that will transform from traditional entities to smart digital platforms and issue digital financial identities that facilitate financial transactions without the need for banks. It said that the financial and banking system will witness the decline of paper currencies to be replaced by digital payments for central banks, and that the Central Bank is moving to create its own digital currency to gradually replace the paper process as is happening in some central banks in the world, as well as working to establish a data center in Iraq similar to the major centers in the world, considering it in the digital economy the basis for artificial intelligence, applications, big data analysis and the Internet, and that the Central Bank of Iraq has started promising steps in this direction.
Is Iraq Stepping Into the Future of Cryptocurrencies? Al-Sudani’s Advisor Reveals Developments
Saleh said in a statement to {Euphrates News}, "Iraq continues to monitor global developments regarding cryptocurrencies, and the decision to join this field depends on many economic and legal factors that are being carefully studied."
He pointed out that "Iraq, since 2017, has imposed a ban on dealing in cryptocurrencies due to risks related to financial crimes and sharp fluctuations in their prices, in addition to consumer protection."
Regarding the latest developments, Saleh explained that "the Central Bank of Iraq stressed in February 2023 the prohibition of the use of cards and electronic wallets for the purpose of speculating in digital currencies," stressing that "there is no current decision to grant licenses for cryptocurrencies at the present time."
On the other hand, he pointed out that "the future of cryptocurrencies may change significantly in the coming years, especially if major economic powers take steps towards regulating these currencies more strongly, which may open the way for Iraq to study these options in the future."
Saleh added, "In a remarkable move, US President Donald Trump issued an executive order to create a strategic reserve of Bitcoin, reflecting the US trend towards integrating cryptocurrencies into its official reserves such as gold and precious metals," considering it "an attempt to control any disruptions in the international monetary system as long as Bitcoin is traded in US dollars and on most global exchanges, such as Coinbase, Binance, Kraken, and others."
He explained that "the price of Bitcoin is often measured in dollars because it is the global reserve currency and the most widely used in financial markets. Based on the above, Bitcoin will be one of the cryptocurrencies denominated in US dollars that will be subject to the regulation and dominance of the Federal Reserve Bank and will be given a stronger legal position in the scope of trading it as a currency in the global classification after granting legal legitimacy to the Bitcoin unit, from the highest monetary authority in the world, which is the US Central Bank or the Federal Reserve Bank of the United States."
Saleh added, "The US Federal Reserve will have a role in legal supervision as a global digital payment and reserve currency and will ensure that Bitcoin is covered by the dollar itself, which gives the United States of America dominance over any encrypted monetary trends outside its monetary system denominated in dollars, which is essential for the expansion of the US monetary system to the world and with control from a central government body this time outside the decentralization of the cryptocurrency market."
He pointed out that "the first cryptocurrency, Bitcoin, was invented in 2008 when a person or group under the pseudonym Satoshi Nakamoto published a research paper entitled "Bitcoin: A Peer-to-Peer Electronic Cash System", which laid the foundation for a decentralized digital cash system based on blockchain technology."
“In 2009, the first Bitcoin network was launched and mining began for the first time, making it the first tradable cryptocurrency. After that, thousands of other digital currencies emerged, such as Ethereum, Ripple, and Litecoin, and cryptocurrencies have become an important part of the modern digital economy. It is a rapidly changing digital world,” Saleh concluded.
These positions coincide with accelerating global trends, as former US President Donald Trump issued a decision to establish a strategic reserve of Bitcoin, reflecting the United States’ intention to integrate cryptocurrencies into its official reserves, such as gold and precious metals.
In this context, many financial reports have confirmed that Bitcoin is often measured in US dollars, which enhances the dominance of the US currency in the global financial system.
Trade announces completion of hypermarket branches in Baghdad and plans to include Kurdistan Region
Zahra Al-Kilani, Director General of the General Company for Central Markets at the Ministry of Trade, said in a press statement: “The issue of central markets and their locations is of interest to the Iraqi citizen,” noting that “after the completion of our projects in the capital, Baghdad, we will begin in the governorates, starting from Nineveh and ending with Basra.”
She added, "There is an idea that there will be branches of the hypermarket also in the Kurdistan Region," noting that "work has been completed in Baghdad Governorate, and there are supposed to be 150 branches throughout Iraq."
Iran is on fire.. angry protests and an unprecedented collapse of the "Toman"
Iran is witnessing an unprecedented escalation in the wave of popular protests, with the deterioration of economic conditions and the collapse of the national currency to record levels, as the price of the US dollar reached 95,300 tomans, while the price of the gold bar exceeded 79 million tomans.
This decline in the value of the currency comes after statements by Iranian Supreme Leader Ali Khamenei, in which he renewed his rejection of negotiations with the United States, which led to an escalation of uncertainty in the markets .
The demonstrations spread to various Iranian cities, where Tabriz, Sanandaj, Hormozgan, Marivan and Bijar witnessed widespread protests by telecommunications company retirees, who have been continuing their weekly gatherings every Monday for several months.
The protesters demanded updating social welfare allocations for the years 2022 and 2023, addressing the problems of supplementary insurance, and disbursing previous dues according to current prices .
In the energy sector, workers at the fourth South Pars refinery demonstrated against low wages and poor working conditions, stressing that they suffer from “low salaries compared to the increasing cost of living .”
In the health sector, nurses and workers at Mardani Azar Hospital in Tabriz held a protest rally, demanding an improvement in their salaries and addressing living problems. They raised the slogan, “The silence of every nurse is a betrayal of a colleague.”
In Tehran, employees of the University of Tehran held a protest on March 16 Street, rejecting the low salaries and the disparity in their increases between the university’s different departments.
Job applicants at the Ministry of Agricultural Jihad also staged a protest in front of the headquarters of the Employment Affairs Organization, after the number of announced jobs was reduced from 19,000 to only 10,000, which led to thousands of applicants being deprived of job opportunities .
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Disagreements paralyze the Iraqi parliament in Ramadan...the boycott continues
Independent Iraqi parliament member Jawad al-Yasari said on Tuesday that the parliament session will not be held due to the continued boycott of the sessions by most of the representatives, in protest against the failure to include the service and retirement law for the Popular Mobilization Authority on the agenda .
Al-Yasari told Shafaq News Agency, "The indicators confirm that the parliament session for today, Tuesday, will not be held, as happened in previous sessions, due to the continued boycott of most of the representatives, especially from the Coordination Framework blocs, of the sessions in protest against the failure to put the service and retirement law of the Popular Mobilization Authority to a vote."
He added, "Holding a parliament session during the month of Ramadan seems difficult in light of the ongoing political disputes and conflicts, which means that the sessions will remain suspended until after the Eid al-Fitr holiday, until an agreement is reached between the political parties on passing the law."
The Iraqi Parliament is expected to hold its regular session today, with the agenda including several topics, including voting on the draft law amending the fourth amendment to the Industrial Investment Law for the Private and Mixed Sectors No. 20 of 1998, in addition to voting on a decision to recommend to the Ministry of Education to reinstate the trial system .
The Council is also scheduled to discuss the report of the interim parliamentary committee to follow up on the preservation of state property, the first reading of the draft law to cancel the law ratifying the agreement exempting holders of diplomatic and service passports from entry visas between Iraq and Cyprus, and the first reading of the proposed law amending the second law of the Mukhtars Law No. 13 of 2011 .
The agenda also includes a report and discussion of the second reading of the proposed fourth amendment to Law No. 6 of 2000 on the Progression of Medical and Health Professionals .
It is noteworthy that the independent MP, Hussein Al-Saabari, revealed to Shafaq News Agency, last Sunday, that there is a tendency to dissolve the Iraqi Parliament and go to early elections, in the event that its sessions continue to be disrupted .
The House of Representatives is witnessing a continuous disruption of its sessions, due to the lack of a legal quorum to hold them, despite announcing the agenda and setting the date of the session .
Al-Alaq: Iraq has one of the highest gold reserves in the Arab world, at 162 tons.
The Governor of the Central Bank, Ali Al-Alaq, confirmed today, Tuesday, that Iraq has one of the highest gold reserves among Arab countries, amounting to 162 tons.
Iraq, World Bank discuss enhancing financial cooperation
Finance Minister Taif Sami stressed the importance of the ongoing partnership with the World Bank, and Iraq's aspiration to benefit from the technical and financial support provided by the bank in implementing strategic projects to stimulate economic growth and provide job opportunities, especially in areas including infrastructure and human development. This came during her reception of the World Bank Representative to Iraq, Jean-Christophe Carret, and his accompanying delegation.
The meeting discussed ways to enhance economic and financial cooperation between Iraq and the World Bank. It reviewed a number of key topics related to enhancing financial stability in Iraq, in addition to discussing development projects that the two parties seek to implement with the aim of achieving sustainable development.
For his part, the World Bank representative expressed the bank's commitment to continue supporting Iraq in achieving its development goals, noting that the World Bank pays great attention to enhancing Iraq's ability to face economic and development challenges, with a focus on sustainable development and achieving comprehensiveness in the benefits achieved.
The Black File"... Revenues Parallel to Oil Lost Outside the State Treasury: 3 Proposed Solutions (Details)
Today, Wednesday (March 12, 2025), the representative of the Patriotic Union of Kurdistan, Bryar Rashid, raised decisive questions about what he described as the “black file” in Iraq, noting that non-oil revenues, which are equivalent in size to oil sales revenues, do not enter the state treasury in full.
Rashid confirmed, in a statement to “Baghdad Today”, that “all countries in the world depend on internal revenues such as taxes and service fees, which are used to finance salaries and expenses, but the situation in Iraq is different, as non-oil revenues reach the Ministry of Finance in very small amounts compared to their actual size.”
He pointed out that "this file is one of the most prominent hotbeds of corruption in the country, as revenues are recorded at low numbers that do not reflect their actual reality," calling for a review of the mechanism for collecting them and ensuring that they are delivered to the state treasury according to their actual numbers.
Rashid stressed that "continued reliance on oil as a primary source of income is no longer a sustainable option, especially with the increase in expenses and salaries," noting that "large sectors, such as border crossings and government services, can generate huge revenues equivalent to oil revenues, if they are controlled and managed transparently."
He concluded his speech by calling for serious government action to address this issue, which he described as "one of the biggest doors of corruption in the country," stressing that "ignoring it will lead to continued financial waste and weakening of the national economy."
Non-oil revenues in Iraq have always been a thorny issue that reflects the challenges of administrative and financial corruption in the country. Although Iraq has diverse sources of income, such as taxes, customs, government service fees, and tourism revenues, these resources are not clearly reflected in the state’s general budget, as they are recorded in modest numbers.
Experts believe that enhancing transparency, improving the collection system and combating corruption are the most prominent solutions proposed to reform this file. This may enable Iraq to finance a large part of its budget away from complete dependence on oil, which will achieve economic stability in the long term.
Iraqi government source to Rudaw: Tomorrow, salaries of Kurdistan Region employees will be paid
Iranian President to Trump: I will not negotiate with you.. Do whatever you want!
Iranian President Masoud Pezeshkian said he "will not negotiate with his US counterpart Donald Trump while he is issuing threats," days after Trump said he had sent a letter to Iran's highest authority urging Tehran to negotiate a nuclear deal.
I will not negotiate with you under threat. Do whatever you want," Pezeshkian was quoted as saying by state media on Tuesday, addressing Trump.
"It is unacceptable for us for the United States to issue orders and make threats. I will not negotiate with you, Trump. Do whatever you want," Pezeshkian added.
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