Financial inclusion rate in Iraq rises to 48.5%
Reflecting profound transformations in the financial landscape, Iraq has achieved a quantum leap in financial inclusion rates, recording an unprecedented increase. In light of this progress, official calls have emerged to enhance digital transformation.
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Prime Minister Mohammed Shia al-Sudani revealed that Iraq's financial inclusion rate has exceeded 40%, stressing that this achievement has been praised by international institutions such as the World Bank and the International Monetary Fund.
In this regard, Dr. Mazhar Salih Mohammed, Advisor to the Prime Minister for Banking and Financial Affairs, confirmed that Iraq has witnessed a positive leap in financial inclusion rates over the past year and the beginning of this year.
Mohammed said that the financial inclusion rate in Iraq has risen to 40% of the adult population, compared to 20% just three years ago.
Speaking to Al-Eqtisad News, he explained that this increase means that 40% of adults now have access to formal financial services, such as opening bank accounts, using electronic payment cards, and obtaining loans, in addition to increasing savings rates through legal banking channels.
He pointed out that these positive results were achieved thanks to the Central Bank of Iraq's efforts to enhance digital financial services, such as e-wallets and mobile payments, which have contributed to expanding the beneficiary base, particularly among women, youth, and residents of rural areas.
The Prime Minister's Advisor explained that financial inclusion not only enhances economic opportunities, but also contributes to improving financial stability by building a diversified banking asset base, thereby reducing financial risks. He called for continued efforts to develop the financial infrastructure, increase banking awareness, and design financial products that meet the needs of all segments of society.
Despite this progress, Saleh noted that there are still challenges facing financial inclusion, most notably weak trust in the banking sector, a poor banking culture, and the development gap between rural and urban areas. However, he emphasized that the Central Bank has plans to double the rate of financial inclusion by accelerating the transition to digital financial inclusion.
He explained that digital financial inclusion now covers a broad segment of the economic community, including individuals and businesses, by providing accessible and efficient financial services, including transactions, payments, savings, credit, and insurance, in a responsible and sustainable manner.
Mohammed emphasized the importance of digital transformation in reducing traditional cash transactions outside the banking system, given the legal risks they entail. He emphasized the role of financial technology in supporting digital banking governance, enhancing transparency, increasing the efficiency and speed of banking transactions, and ensuring the integrity of financial data for individuals and companies.
In addition, the Central Bank of Iraq affirmed its commitment to building a more inclusive and equitable digital financial system.
Adhraa Taha Mohammed, Assistant Head of the Bank's Financial Affairs Department, stated that financial inclusion has become a pillar of economic and social development. It not only means individuals having access to banking services, but also empowers them to make smart financial decisions that contribute to improving their lives and supporting the stability of society as a whole.
She explained that the government's drive to promote the use of electronic payment methods has become an urgent necessity imposed by modern developments, requiring all parties, whether academics, journalists, or institutions, to work together to guide society.
For his part, Wadih Al-Handhal, head of the Iraqi Private Banks Association, indicated that efforts are underway to achieve 60% financial inclusion in Iraq by 2025.
Al-Hanthal told Al-Eqtisad News that financial inclusion in Iraq increased by 48.5 percent this year.
He added, "We aim to reach 60% financial inclusion over the next year," stressing that the change is being implemented by the Supreme Authority, represented by the Prime Minister and his office.
Al-Handhal stressed the need to include financial inclusion in school curricula, starting from primary school and continuing through universities, to understand its details, practice it, and review it.
He explained that the number of bank accounts in 2020 reached 6 million, and reached 13 million in 2023.
For his part, economic researcher Ali Daadoush stressed the need to adopt ambitious plans to increase the coverage rate to between 60-80% by the end of 2027.
Daadoush stated that the path to achieving this lies primarily in simplifying the procedures for opening bank accounts for citizens, accelerating the digitization of financial services by developing the infrastructure of public and private banks, supporting the use of e-wallets and mobile payment services, and ensuring the protection of users' financial data.
Speaking to Al-Eqtisad News, the economic expert emphasized that one of the key pillars of achieving full financial inclusion is linking government services to the formal financial sector. He pointed out that the simplest way to achieve this is to receive salaries, social benefits, and retirement benefits through bank accounts or digital wallets, by converting salary MasterCard cards into active bank accounts for employees, while providing additional facilities such as opening a free account for an employee's family member.
Daadoush highlighted the importance of supporting small and medium-sized enterprises (SMEs) by providing simplified, government-backed credit facilities, with the activation of a bank account for these projects a key requirement to receive support.
The economic researcher also emphasized that enhancing confidence in the banking sector is a cornerstone of the success of financial inclusion efforts. This can be achieved through strict oversight of banks, combating corruption, and ensuring the highest levels of transparency, which will help rebuild citizens' confidence in the formal financial system.
Daadoush emphasized that these efforts cannot bear fruit without a complete transition to e-government, linking all government transactions—from paying fees and taxes to settling fines—to electronic payment methods.
Daadoush concluded his remarks by emphasizing that investing in financial technology (FinTech) has become an urgent necessity, emphasizing the importance of opening the way for fintech companies to offer innovative and rapid payment solutions under the supervision of the Central Bank of Iraq, which would contribute to enhancing financial innovation and achieving the goals of digital financial inclusion.
Baghdad dollar declines due to exhibitions, real estate, or nuclear negotiations?
Iraqi markets have recently witnessed a significant decline in the dollar exchange rate, reaching 1,440 dinars, after a period of highs and fluctuations amid Middle East tensions and US restrictions on Iraqi trade with sanctioned countries. The decline is contrary to expectations experienced by trading circles at the end of last year, which slightly disrupted the local economy. However, other experts who spoke to 964 Network attributed the almost sudden drop to a recession that has been looming for months in the Iraqi real estate and car markets, the largest domestic market for US currency trading. This may mean a decline in large-scale money laundering operations led by influential parties, as discussed in political and economic circles. This is in addition to the decisions of US President Donald Trump, who imposed large customs tariffs on China, which led to higher commodity prices in the United States, increased inflation, and harmed the dollar's position globally.
Experts also noted that the return of Washington and Tehran to negotiations has contributed to reducing demand for the dollar in Iraq, as the exchange rate fluctuation is primarily due to informal trade between Iraq and Iran. However, successful negotiations and the easing of the pressure on the Iranian banking system will ease the pressure on the Iraqi dollar.
Experts do not rule out another factor: the Central Bank's recent restrictions on Visa and MasterCard cards, which have contributed to limiting the withdrawal of dollars at the official exchange rate and their subsequent sale on the black market.
Mustafa Akram Hantoush, financial expert:
The dollar exchange rate should not exceed 1,320, even on the parallel market. The central bank sells dollars daily at this rate, exceeding $250 million. However, there are discrepancies. Any requests outside the central bank's platform are not covered, most notably trade with Iran, small traders, and the smuggling of some goods through Kurdistan. This trade is not officially covered, and therefore traders buy them from the parallel market.
Iranian situation negotiations
There are now negotiations in Iran. If they succeed and the noose is lifted on its banking system, this will ease the pressure on the Iraqi dollar, thus lowering the parallel exchange rate.
The solution lies in creating a genuine platform for financial transactions with Iran. Small traders must be covered by specialized companies that handle their needs, while smuggling must be stopped and the sanctioned countries that travelers visit must be addressed.
Khaled Haidar - Academic:
The Iraqi economy is linked to the global economy and its revenues depend on oil, which is priced in US dollars.
Trump and the American market
The US economy is currently experiencing a decline in retail sales, particularly after tariffs on countries, particularly China. This has had a significant impact on the US economy, with imported goods prices rising, inflation rates doubling, confidence in the US economy weakening, and interest rates declining. This, in turn, has impacted growth prospects.
Today's global economy is gradually beginning to rely on other currencies, such as the BRICS blocs, creating new influential poles on the global map.
Today, there is a degree of confidence in the Central Bank's performance regarding the dollar, particularly since it has restricted electronic transactions using cards used by travelers to obtain dollars at a low rate, then withdraw them abroad at the parallel market rate, profiting from the difference upon their return to Iraq and reselling them. This measure has greatly reduced fraud and dollar withdrawals.
There's also a trend today toward trading in gold, and its prices continue to rise, as it has become a safe haven and a better alternative to the dollar. Many are choosing to keep their capital in the form of gold bullion, which has affected confidence in the dollar and impacted its value.
Nabil Jabbar Al-Tamimi, economic expert, to 964 Network :
There are no political reasons for this decline, and it is within the normal range of fluctuations, given that the dollar previously reached 1,400 and then rose to over 1,500. Furthermore, there is no major event currently affecting the price, and the central bank's measures remain unchanged.
Iraqi real estate and car market stagnant!
Iraq is currently experiencing a recession in the car and real estate markets. This is primarily due to the fact that car dealers deal exclusively in dollars, not dinars. Furthermore, companies importing electric cars have emerged, and these companies are enjoying great popularity among Iraqis, in addition to accepting dinars.
Neglecting the dollar-denominated side of the market, whether in the auto or real estate markets, has led to a decline in demand for the dollar. This decline is relative, not exceeding 2.5% or 3%.
The tariffs imposed by Trump have not affected Iraq, and there is no connection between them. Regarding the negotiations between Iran and the US, in the event of tensions, demand for the dollar is expected to increase, and the rise in the price in Tehran is expected to be reflected in the Iraqi dollar, given the presence of unofficial transfers, which we have not witnessed. Furthermore, the existence of measures related to MasterCard cards and withdrawal transactions is expected to raise the price, because restricting cards stifles the markets, thus raising trading prices on the black market, but the opposite has happened.
The decline is due to internal factors. About six months ago, a clear recession began in the dollar-denominated auto and real estate markets. This recession reduced demand for the currency.
Ammar Hamad, Deputy Governor of the Central Bank, stated to the official newspaper:
The improvement in the Iraqi dinar's exchange rate against the dollar in local markets is due to the Central Bank's recent policy and the country's substantial financial reserves.
The decline will continue in the coming periods.
News For SAT APR 26 2025
Automation, economic reforms, and waste management top the agenda at Iraq's meeting with the World Bank and the International Monetary Fund.
A high-level Iraqi delegation held talks with the World Bank and the International Monetary Fund in Washington, D.C., on automation, economic reforms, and waste management.
A statement from the Ministry of Finance received by ( IQ ) stated that "Minister of Finance Taif Sami Mohammed, Governor of the Central Bank Ali Al-Alaq, and the accompanying delegation participated in the annual spring meetings of the World Bank Group and the International Monetary Fund held in the US capital, Washington, to discuss global economic challenges, economic development, financial stability, and other related issues, in addition to plenary sessions, seminars, and side consultations ."
The statement added that "the Minister of Finance began her participation in the first meeting with the Executive Director of the World Bank, Abdulaziz Al-Mulla, where the economic situation in Iraq and the role of the World Bank in supporting Iraq in its reform programs were discussed, particularly in the areas of maximizing revenues, reducing expenditures, digitization, electronic systems, and infrastructure, energy, and environmental projects ."
He added, "The Minister also met with the Regional Vice President of the International Finance Corporation (IFC), Hela Sheikh Rouhou, and discussed with her the most important obstacles to investment in Iraq, ways to address them, and the most important projects that the corporation is supervising in Iraq in the transportation, energy, and international trade finance sectors . " She explained that "the corporation can support projects of the Iraq Development Fund ."
The Foundation's Deputy Chairman emphasized "supporting the private sector and its projects, and supporting the agricultural and industrial sectors in Iraq ."
The delegation, headed by the Minister of Finance, held a high-level meeting with the World Bank's Vice President for the Middle East, Othman Dawani. The meeting discussed the portfolio of projects funded by the World Bank, particularly the railway project in Iraq. It was also agreed to review this portfolio to monitor the implementation of these projects, identify any obstacles to their implementation, and find solutions to implement and complete these projects within the specified timeframe .
The meeting, according to the statement, discussed "the government's priorities for future projects, for which the World Bank can provide support, including renewable energy, waste management, and transportation projects, particularly the metro, airports, and railways. The minister also discussed with Al-Dawani the issue of human development in Iraq, which is a government priority to be included in the World Bank's plans to allocate support and launch future projects in the education, health, employment, and social protection sectors ."
According to the statement, the Minister and the Governor of the Central Bank of Iraq attended "the ministerial meeting chaired by the Managing Director of the International Monetary Fund, Kristalina Gurevichi, and attended by the Ministers of Finance and Governors of the IMF countries. The discussions focused on the global economic situation, the increasing uncertainty and its economic impacts at the local and global levels, addressing the challenges and measures to be taken to enhance resilience, identifying strategies to maintain the macroeconomy, and managing debt sustainability. The meeting also focused on exchanging visions and experiences regarding economic reforms, enhancing the performance of government institutions, supporting and strengthening the private sector, and opening them up to be at the forefront of sustaining the economic resilience of the countries of the region ."
For her part, Kristalina explained the Fund's humanitarian support for conflict-affected countries, and that the Fund is committed to supporting the people of Gaza, Yemen, Syria, and Sudan. She emphasized the need for countries to implement medium-term reforms, build economic buffers, and diversify their economies to strengthen their foundations for financial sustainability and macro-stability .
The Iraqi delegation's agenda included "participation in a meeting with International Monetary Fund Managing Director Mohamed Maait, during which the spotlight was placed on specific reforms aimed at improving the performance of Iraq's financial sector, and the exchange of updates between the two sides on activating areas of partnership with the Fund ."
During the ongoing meetings, Finance Minister Taif Sami held a coordination meeting with the head of the International Monetary Fund's mission to Iraq, Jean-Claude. The meeting addressed discussions on the prospects for Iraqi economic growth through the government's reform program aimed at strengthening the oil and non-oil sectors, and how to maintain economic stability in Iraq in light of the global economic conditions .
The Minister, along with the Director of Technical and Financial Affairs and her technical team at the International Monetary Fund, responsible for providing technical support and expertise to the Ministry of Finance, discussed "the steps taken to provide technical support to the General Tax Authority and the General Customs Authority regarding the automation of their electronic systems and reviewing amendments to their laws. The latter expressed its readiness to provide technical support and training on these systems for customs and tax employees ."
The meeting also discussed "completing the requirements for the unified treasury account, reviewing the procedures implemented by the Ministry of Finance regarding this program, and proposing the provision of technical support for retirement and social security. A report on reform proposals for this sector will be submitted to the Iraqi government ."
The delegation discussed a range of economic issues and key financial policy forecasts during a meeting with Jihad Azour, Director of the IMF's Middle East and Asia Department .
For his part, the regional representative stressed "the Fund's commitment to supporting all financial, banking, and monetary reform programs adopted by the Iraqi government ."
It is worth noting that these annual meetings bring together central bank governors, ministers of finance and development, private sector executives, representatives of civil society organizations, and academics to discuss issues of global importance, including the global economic outlook, poverty eradication, economic development, and aid effectiveness .
The event features workshops, regional briefings, press conferences, and other events focusing on the global economy, international development, and the global financial system .
Finance Ministry discusses global economic challenges and financial stability in Washington
The Ministry of Finance discussed global economic challenges and financial stability on Saturday (April 26, 2025) during its participation in the annual spring meetings of the World Bank Group and the International Monetary Fund held in Washington.
The ministry stated in a statement received by Baghdad Today that "Minister of Finance Taif Sami Mohammed, Governor of the Central Bank of Iraq Ali Al-Alaq, and the accompanying delegation discussed global economic challenges, economic development, financial stability, and other related issues at the annual spring meetings of the World Bank Group and the International Monetary Fund, held from April 20 to 23, 2025 in Washington, in addition to plenary sessions, seminars, and side consultations."
The statement added, "Minister Sami began her participation in the first meeting with the Executive Director of the World Bank, Abdul Aziz Al-Mulla. Discussions focused on the economic situation in Iraq and the role of the World Bank in supporting Iraq in its reform programs, particularly in the areas of maximizing revenues, reducing expenditures, digitization and electronic systems, and infrastructure, energy, and environmental projects."
According to the statement, the minister met with "Hila Sheikh Rouhou, Regional Vice President of the International Finance Corporation (IFC), and her accompanying delegation, and discussed with her the most important obstacles to investment in Iraq and ways to address them, as well as the most important projects that the corporation is supervising in Iraq in the transportation, energy, and international trade finance sectors." She explained that "the corporation can support projects of the Iraq Development Fund."
Al-Sheikh stressed "support for the private sector and its projects, and support for the agricultural and industrial sectors in Iraq."
The statement indicated that "the delegation, headed by her, held a high-level meeting with the World Bank's Vice President for the Middle East, Othman Dawani, and discussed the portfolio of projects funded by the World Bank, especially the railway project in Iraq. It was agreed to review this portfolio to follow up on project implementation, identify work obstacles, and find solutions for the purpose of implementing and completing them within the specified timeframe." It noted that "the government's priorities for future projects, for which the World Bank can provide support, were discussed, with regard to renewable energy, waste treatment, and transportation projects, especially the metro, airports, and railways. The issue of human development in Iraq was also discussed, as it is a government priority to be scheduled in the World Bank's plans to allocate support and launch future projects in the sectors of education, health, employment, and social protection."
According to the statement, the Minister attended, "with the Governor of the Central Bank of Iraq, the ministerial meeting chaired by the Managing Director of the International Monetary Fund, Kristalina Gurevichi, and attended by the Ministers of Finance and Governors of the IMF countries. The discussions focused on the global economic situation, the increasing uncertainty and its economic impacts at the local and global levels, addressing challenges and measures to enhance resilience, identifying strategies to maintain the macroeconomy, managing debt sustainability, in addition to focusing on exchanging visions and experiences regarding economic reforms and enhancing the performance of government institutions, supporting and strengthening the private sector and opening the way for them to be at the forefront of sustaining the economic resilience of the countries of the region."
Cristalina explained that the Fund supports humanitarian efforts in countries affected by conflict, and that the Fund is committed to supporting the people of Gaza, Yemen, Syria, and Sudan.
The statement added, "The need for countries to implement medium-term reforms, build economic buffers, and diversify their economies was raised in order to strengthen their fundamentals of financial sustainability and macro-stability."
He added, "The Iraqi delegation's agenda also included participation in a meeting with International Monetary Fund Managing Director Mohamed Maait, during which the spotlight was placed on specific reforms aimed at improving the performance of Iraq's financial sector, and the exchange of updates between the two sides on activating areas of partnership with the Fund."
The statement noted that "during the meetings, Finance Minister Taif Sami held a coordination meeting with the head of the International Monetary Fund's mission to Iraq, Jean-Claude Guillaume. The meeting addressed discussions on the prospects for Iraqi economic growth through the government's reform program aimed at strengthening the oil and non-oil sectors, and how to maintain economic stability in Iraq in light of global economic conditions."
The Minister met with the Director of Technical and Financial Affairs and her technical team at the International Monetary Fund, responsible for the file of supporting and providing technical expertise to the Ministry of Finance. They discussed the steps for technical support for the General Authority of Taxes and the General Authority of Customs regarding the electronic automation of their systems, and reviewed the amendments to their laws. The Director expressed her readiness to provide technical support and training on these systems for customs and tax employees, in addition to discussing the completion of the requirements for the unified treasury account, and reviewing the procedures implemented by the Ministry of Finance regarding this program. She also proposed providing technical support regarding retirement and social security, and a report on reform proposals for this sector will be submitted to the Iraqi government.
In a related context, according to the statement, the delegation held a meeting with Jihad Azour, Director of the Fund's Middle East and Asia Department, where they discussed a range of economic issues and the most prominent financial policy forecasts. The regional representative, for his part, emphasized the Fund's commitment to supporting all financial, banking, and monetary reform programs adopted by the Iraqi government.
It is worth noting that these annual meetings bring together central bank governors, finance and development ministers, private sector executives, representatives of civil society organizations, and academics to discuss issues of global importance, including the global economic outlook, poverty eradication, economic development, and aid effectiveness.
The event features workshops, regional briefings, press conferences, and other events focusing on the global economy, international development, and the global financial system.
Iran: New rise in the toman against the dollar
Amid anticipation of the outcome of the third round of talks between the US and Iran regarding Tehran's nuclear program, held today, Saturday, on both the political and technical levels, the toman rose against the dollar, reaching 7,600 tomans for every $100.
Both the United States and Iran expressed optimism after the second round of talks in Rome on Saturday, after the first round was held in the Omani capital, Muscat.
Amid ongoing tensions between Iran and the United States and turmoil in the currency and gold markets, the dollar reached 107,000 tomans last month.
Al-Sudani succeeded in transforming trade relations with Türkiye into investment opportunities.. His advisor
"A transition that is happening for the first time"
The Prime Minister's Advisor for Investment Affairs, Mohammed al-Najjar, affirmed on Saturday that Iraq has become an attractive environment for Turkish investments, noting that Prime Minister Mohammed Shia al-Sudani has succeeded in transforming trade relations with Türkiye into investment opportunities.
Iraq is the first country in which Turkey will invest,” Al-Najjar said in a statement to the official agency, followed by 964 Network. “It is well known that Turkey is the one looking for investment opportunities and requesting investments, but we have succeeded, through government measures, in attracting investment environments in Iraq.” He pointed out that “the opportunities created by the Prime Minister have made Iraq an attractive country for Turkish companies, which constitutes an important platform for a large number of countries to enter and invest in the opportunities available in Iraq.”
He added that "the entry of Turkish investments into Iraq represents a turning point in relations between the two countries. This is the first time that relations have shifted from a commercial aspect to an investment aspect." He pointed out that "there are multiple areas for Turkey to invest in Iraq, including infrastructure, roads, energy, and communications, all of which represent significant opportunities for Turkish companies that have begun to invest, not just in contracting or commercial operations."
Al-Najjar explained that "Iraq has worked to transform its relationship with Türkiye into an investment relationship, including a path to development, which will constitute a fundamental pillar for Turkey as a starting point for investment."
The third round of negotiations between Iran and the United States concluded in Muscat.
The third round of indirect negotiations between Iran and the United States ended today, Saturday, in Muscat .
Iranian television reported that "the third round of Iranian-American negotiations in Muscat has concluded," stressing that "opinions were exchanged on the steps taken in a positive atmosphere ."
For his part, Iranian Foreign Ministry spokesman Esmail Baghaei confirmed in press statements in response to the possibility of the round continuing, that "the third round ended according to the agreed date ."
Omani Foreign Ministry: Iranian-US talks to resume with high-level meeting on May 3
Al-Busaidi added in a press statement that: "All the basic principles, objectives, and technical aspects were discussed during the current round of talks."
He pointed out that "the two sides agreed to resume negotiations next week, through another high-level meeting, tentatively scheduled for May 3."
The Iranian Foreign Ministry reveals details of the third round of indirect talks with the United States.
Baghaei told reporters on Saturday: "This round of indirect talks between Tehran and Washington began at 10:00 a.m. and is currently taking place, as in the previous two rounds, with the facilitation of the Sultanate of Oman and the participation of the heads of the Iranian and American delegations in two separate halls."
"The delegation of experts, headed by the two deputy foreign ministers for political and legal-international affairs, has also attended the negotiations and is carrying out its duties. It includes experts with experience in the field of lifting sanctions, including economists, bankers, and experts concerned with the nuclear field and dealing with the International Atomic Energy Agency," Baghaei continued.
The Foreign Ministry spokesman stressed that "the Islamic Republic remains steadfast in its principled positions on the need to end unjust sanctions and its willingness to build confidence regarding the peaceful nature of Iran's nuclear program."
"Experience has proven that reaching an agreement requires respect for Iran's legitimate rights under the Nuclear Non-Proliferation Treaty and assurances regarding the effective lifting of sanctions," Baghaei said.
Fitch Ratings: Iraqi banks will not be harmed by the decline in oil prices.
Fitch Ratings confirmed on Saturday that the Iraqi banking sector is not affected by the decline in oil prices due to its lower credit rating.
The agency said in a report seen by Shafaq News Agency that "the indirect effects resulting from the decline in oil prices and weak global growth may lead to a decline in government spending, severely impacting banking operating conditions in most Gulf and Middle Eastern countries."
She added, "The banking sector in Iraq has low credit ratings, with most banks classified as CCC. These ratings are unlikely to be affected by the negative impact of lower oil prices, especially given the central bank's strong ability to support government spending."
The agency noted that "credit conditions in Gulf banks could also deteriorate if profitability and cash flows decline for companies operating in affected sectors. However, they are well-positioned to absorb any deterioration in the operating environment, thanks to the strengthening of their financial reserves in recent years."
Fitch Ratings is one of the largest global rating agencies. Founded in 1914 and headquartered in New York and London, its mission is to assess the creditworthiness of countries and companies and provide reports that help investors determine the risks of loans and investments.
Fitch is one of the world's top three rating agencies, along with Standard & Poor's and Moody's.
Al-Sudani inaugurates the Al-Zaytoun Hotel Baghdad/Mövenpick
Prime Minister Mohammed Shia Al-Sudani inaugurated the Al-Zaytoun Hotel Baghdad/Movenpick, a private sector project in the capital, Baghdad, this evening, Saturday.
Al-Sudani opens the Mövenpick Hotel: Baghdad is rapidly becoming a major city.
Al-Kouri: Four laws will be voted on before the end of the legislative session.
MP Mudhar Al-Karwi confirmed on Saturday that four laws will be voted on before the end of the current parliamentary session.
Al-Karwi told Al-Maalouma that, “Despite the suspension of Parliament sessions during the past period, there is consensus among political forces to proceed with the resolution of four important laws, including amending the Ministry of Education Law after completing the first readings, in addition to other laws related to security institutions.”
Al-Karwi indicated that "between 20 and 30 draft laws may be postponed until the next parliamentary session," noting that "the coming period will witness movement to resolve a series of laws through the first and second readings, but in any case, there are four laws that will be resolved during the upcoming sessions."
He explained that, “There are five to six controversial laws that do not have political consensus on them, including the oil and gas law. Therefore, these laws are now postponed until the next session until the necessary political consensus is achieved to vote on them.”
It is noteworthy that Parliament has witnessed delays in holding its sessions in recent months, especially in light of the disagreements and intersections between political forces regarding several important laws.
A government advisor reveals the reasons for the dollar's decline.
The Iraqi Prime Minister's advisor for financial affairs, Mazhar Mohammed Salih, attributed the local currency's recovery against the US dollar to several factors on Saturday, including the use of electronic payment cards and financing foreign trade.
Salih said in a press interview that "any real economic basis is subject to the law of supply and demand, including, of course, the money markets," indicating that "the decline in demand for cash dollars is due to the increased use of electronic payment cards and the heavy reliance of the traveler sector on them, which is part of society's fast-paced culture."
Among the reasons for the local currency's improvement, Salih pointed to "the discipline with which the majority of travelers obtain their shares of cash dollars upon travel by receiving them at airports in a legal and regular manner, in addition to the flexibility of financing foreign trade for the private sector through correspondents of national banks and at the official exchange rate of 1,320 dinars per dollar.
" Salih also pointed to "the regular availability of dollars and foreign currencies after the removal of the previous payment platform and the completion of its operations, and the subsequent success in adopting the Central Bank's new mechanisms in this regard, in terms of compliance and high banking governance."
The government advisor emphasized that "these factors combined have helped reduce demand for cash dollars from the secondary or parallel market, in favor of less expensive and more flexible official payment alternatives." He considered this "a remarkable success for the Central Bank of Iraq's foreign and domestic monetary policy in achieving its goals of monetary stability and regular economic life."
2025 Budget tables with no horizon and a deficit of sixty trillion dinars
Iraq's 2025 budget is delayed beyond its expected date, raising questions about the government's ability to manage the financial crisis.
The parliamentary finance committee attributes this delay to the decline in oil prices, which constitute the backbone of the Iraqi economy.
The budget is based on an oil price of $70 per barrel, but current volatility in global markets makes this figure unrealistic, exacerbating the challenges of achieving financial stability.
Experts expect a massive fiscal deficit of up to 60 trillion dinars, a figure that reflects the fragility of the economic situation.
This is compounded by an accumulated deficit from the previous two years, which increases pressure on the government to find innovative solutions.
Analyses indicate that excessive reliance on oil makes the budget vulnerable to external shocks, while attempts at economic diversification remain limited and insufficient.
The delay in approving the budget highlights deeper problems related to economic planning and mismanagement of resources.
Observers criticize the lack of a clear strategy to address the decline in oil prices, while others call for structural reforms that include reducing public spending and strengthening non-oil sectors.
Public dissatisfaction has emerged with the recurrence of these crises without any radical solutions, while the turbulent political situation is exacerbating the budget approval process, with disagreements between political blocs delaying decision-making.
Analysts believe that this division hinders the ability to develop a unified economic vision, leaving the country in a cycle of impotence and confusion.
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Other Iraqi News SUN APR 27 25
Legal disputes and stalled negotiations are hindering the resumption of oil exports between Baghdad and Kurdistan.
The Kurdistan Oil Industry Association (EPICOR) confirmed on Sunday (April 27, 2025) that it had not reached any agreement with Iraqi government officials and the Kurdistan Regional Government regarding the issue of oil exports.
In a statement received by Baghdad Today, Epicor said, "The group's companies are ready to resume exports through the port immediately, provided an agreement is reached on the terms of contracts with international oil companies to pay their outstanding dues and debts."
The association emphasized "the importance of the government's commitment to implementing the Iraqi budget law," adding, "We have noted that contracts concluded between the Kurdistan Regional Government and international oil companies have been deemed legal by Iraqi courts."
She continued, "We have proposed several solutions to the Kurdistan Regional Government and the Iraqi government, including the proposal for international consultants, based on the Iraqi budget law and company contracts, but the proposal has not yet been approved."
Representatives of the Kurdistan Petroleum Industry Association (EPICOR) and other international oil companies attended a meeting with officials from the Iraqi government and the Kurdistan Regional Government to discuss resuming oil exports via the Iraq-Turkey pipeline, but they failed to reach an agreement.
Both the Iraqi government and the Kurdistan Regional Government have expressed a willingness to consider the option of paying companies' dues, but there has been no discussion or progress on this issue.
The Parliamentary Economic Committee highlights the importance of the Industrial Investment Law: It prohibits unjustified imports.
Yasser Al-Husseini, Deputy Chairman of the Parliamentary Committee on Economy, Industry, and Trade, emphasized that the law on industrial investment between the two sectors is very important and contains amendments that could revitalize the industrial sector.
Al-Husseini said, "The industrial investment law prohibits unjustified imports, in addition to preventing the entry of counterfeit goods into the country." He noted that "many goods enter Iraq through the Kurdistan border labeled 'Made in Erbil or Sulaymaniyah', when in fact they are manufactured in Türkiye, Iran, or Georgia."
Al-Husseini called for "controlling the illegal crossings into Kurdistan, as they bring in tons of goods and merchandise daily without being subject to customs duties," noting that "there are more than 27 uncontrolled crossings in Iraq."
He warned against "manipulating the production and expiration dates of some products due to a lack of oversight, which has turned Iraq into a warehouse for expired goods coming from various countries around the world."
The 25,000 denomination accounts for the largest share of banknotes in Iraq
revealed by the economic expertManar Al-AbidiToday, Sunday, the 25,000 category still accounts for the largest proportion of banknotes inIraq.
According to Al-Obaidi, the 25,000 dinar denomination still accounts for the largest share of banknotes, accounting for 32%, followed by the 10,000 dinar denomination at 13.5%, and the 250 dinar denomination at 13.44%.
Saleh: The 2025 fiscal policy operates flexibly to ensure sustainability.
Saleh explained in a statement to Al Furat News Agency that "this flexibility is achieved by establishing a 'fiscal space' that aims to maintain basic spending and manage public revenues with a renewed philosophy."
The financial advisor explained that the foundation of this philosophy is based on operating within two spending limits: a higher limit when oil prices stabilize and the oil asset cycle reaches high levels, and a lower, more efficient limit when prices contract.
He pointed out that the federal general budget, since the approval of its amended Law No. 13 of 2023 (the three-year budget), has hedged against a hypothetical precautionary deficit of 64 trillion dinars.
Al-Sudani reveals his government's economic reform steps.
Prime Minister Mohammed Shia al-Sudani affirmed that "there is a sense of satisfaction with the government's work, which has prioritized citizens' needs to address the mistakes and policies that led to delays, by working across various service and economic sectors."
Al-Sudani, during his attendance at the general conference of the Bani Hajim tribes in Baghdad and Muthanna Governorate, pointed out the steps achieved in the field of economic
reform, including stopping waste in electricity production and gas flaring, as all stations will operate by the end of (2027) on Iraqi gas.” According to his expression
He stated that “Iraq was spending (6) trillion dinars annually on importing petroleum derivatives, and today it has achieved self-sufficiency.”
Excellent" talks between Fuad Hussein and US officials in Washington
They discussed Trump's upcoming visit to the Gulf.
Foreign Minister Fuad Hussein received on Saturday the Senior Official for Near Eastern Affairs, Tim Lenderking, and the Deputy Assistant Secretary of State for Iraq and Iran, Victoria Taylor. Both sides described the talks as excellent, stressing the importance of continued cooperation to address regional challenges. Hussein also received the President of the Arab Gulf Research Institute and former US Ambassador Douglas Silliman. Silliman explained in detail the developments in Washington's policy on a number of regional and international issues. The two sides also discussed US President Donald Trump's visit to the Gulf states.
Fuad Hussein receives US officials in Washington, according to a Foreign Ministry:
Deputy Prime Minister and Minister of Foreign Affairs Fuad Hussein received at his residence in Washington, DC, the Senior Official in the Bureau of Near Eastern Affairs, Tim Lenderking, and Deputy Assistant Secretary of State for Iraq and Iran, Victoria Taylor.
During the meeting, they discussed bilateral relations between Iraq and the United States and ways to strengthen the strategic partnership between the two countries. The talks also addressed Iraq's active role in promoting regional stability and its efforts to support dialogue and understanding among the countries of the region.
Both sides described the talks as "excellent," stressing the importance of continuing joint cooperation to address regional challenges and advance mutual interests between Iraq and the United States.
Fuad Hussein receives the President of the Arab Gulf Research Institute in Washington:
On Saturday, April 26, 2025, Deputy Prime Minister and Minister of Foreign Affairs, Mr. Fuad Hussein, received at his residence in Washington, DC, the President of the Arab Gulf Research Institute and former US Ambassador, Mr. Douglas Silliman.
During the meeting, the situation in Iraq and the region was reviewed, with Mr. Silliman expressing his happiness with the stability Iraq is witnessing and praising its active regional role. The importance of US President Donald Trump's upcoming visit to the Gulf states and its potential implications for regional developments were also discussed.
During the meeting, Mr. Douglas provided a detailed explanation of the latest developments related to Washington's policy on a number of regional and international issues.
Parliamentary Finance: No budget this year
The Iraqi Parliament's Finance Committee ruled out on Sunday the Iraqi government's sending of the 2025 budget tables to parliament for approval, citing three main reasons.
Committee member Jamal Kocher said in a press interview that "the House of Representatives has the ability to pass the 2025 budget tables if they are received by the Iraqi government, but we believe there is no seriousness in sending those tables."
He added, "There are three reasons preventing the Iraqi government from sending the tables. The first is the lack of cash liquidity to implement new projects and others. The second is the government's failure to fully disburse financial allocations for 2023 and 2024, also due to a lack of cash. The final reason is the approaching parliamentary elections. The government does not want to pass the budget so as not to exploit the funds for electoral propaganda. Therefore, we do not expect the tables to be sent. The government will only pay salaries in the coming months."
Last Thursday, a member of the Parliamentary Finance Committee, Adi Awad, confirmed the reasons for the delay in sending the federal budget to the House of Representatives for approval. He explained that the political situation, the impending elections, and the lack of political will to approve the budget law's schedules contributed to the delay.
The MP predicted, "There may not be a budget for 2025 due to the government's lack of genuine will to send it to parliament."
Parliament intends to pass the budget and crowd control law.
The Iraqi Parliament intends to hold a regular session this week to discuss and approve several stalled laws.
State of Law Coalition MP Aqeel al-Fatlawi said in a press interview, "Parliament will hold its regular sessions this week to discuss and vote on a number of laws, including the Popular Mobilization Forces and Education Law."
Al-Fatlawi added that the parliament will discuss the budget law schedules and the reasons for the delay in sending them to parliament, given that the budget is a critical issue in the country.
Earlier today, the Iraqi parliament's Finance Committee ruled out the Iraqi government sending the 2025 budget schedules to parliament for approval, citing three main reasons for this.
Al-Sudani's advisor identifies three factors behind the decline in the dollar's exchange rate against the Iraqi dinar.
On Sunday, April 27, 2025, Mazhar Mohammed Saleh, the financial and economic advisor to the Prime Minister, revealed the reasons for the decline in the exchange rate of the US dollar against the Iraqi dinar in the local market over the past few days.
Saleh said in a statement to Al-Jabal platform, "There are three important factors that I believe have led to the decline in the dollar's price against the dinar and its strength in the parallel market, due to the decline in demand for the cash dollar itself. The first is the new foreign exchange policy that the Central Bank of Iraq has successfully implemented since the beginning of 2025, which consists of abolishing the compliance platform and its restrictions on financing foreign trade for the private sector in our country, and resorting to a policy of strengthening foreign currency for correspondents of national banks abroad in dollars and other forms instead. This is a matter that represents a return to successful and flexible methods of financing trade and foreign exchange through the rapid application of discipline and compliance with global trade and banking rules with great precision through correspondent banks. This has attracted traders of all classes to finance at the official exchange rate of 1,320 dinars per dollar, instead of resorting to illegal parallel financing through the secondary exchange market and its legal and costly risks at the same time."
He added, "The second factor that led to the decline in the dollar exchange rate against the Iraqi dinar is the fears surrounding the holding of the cash dollar itself, which have been accelerating here and there, and the resort to gold as a safe haven for preserving wealth and hoarding behavior far removed from the United States' ambiguous monetary policy regarding the future of the cash dollar, and the holding of generations of cash dollars whose fate is unknown amid the global trade war, and the threat of deleting unknown generations of US dollars, which has led to a contraction in demand for it."
The advisor explained that "the third issue is that national travelers have become accustomed to carrying electronic payment cards for their expenses abroad when traveling extensively and comfortably, after the culture of digital payment became widespread in our country two years ago and intensified. Financial inclusion has risen to 40% of adults who engage in financial inclusion, particularly digital financial inclusion as a safety valve for payments, settling transactions via cards, and opening bank accounts, which is a leap forward in digital banking culture."
He emphasized that "external environments are now more receptive to electronic payment cards, which has placed Iraqi travelers and merchants in a higher degree of security by using payment cards instead of resorting to cash dollars and the risks involved."
The Prime Minister's financial and economic advisor concluded his remarks by saying, "These three factors, as I see them, have effectively and gradually influenced the decline in demand for the cash dollar, whether as a store of value or as a means of payment in various forms. This was accompanied by the government program's adoption, from the outset, of the philosophy of e-governance, including the adoption of digital payment systems in their various forms, both domestically and internationally. This has formed the basis for this successful policy that has gradually supported the Iraqi dinar."
General Electric: We have implemented strategic agreements on the ground in Iraq.
Rashid Al-Janabi, General Electric's Country Manager in Iraq, confirmed on Sunday that the unprecedented government support has strengthened the partnership with the Ministry of Electricity, while pointing to strategic agreements implemented on the ground that have contributed to raising the efficiency of the electricity grid.
Al-Janabi said, "The unprecedented government support the company has received is a key factor in strengthening the partnership between GE Vernova, the Ministry of Electricity, and the Iraqi government in general."
He added, "This partnership, which has spanned several decades, has witnessed significant deepening in the recent period, which has positively reflected on the development of the energy sector, both in terms of adding new production capacities and improving the efficiency of the transmission and production systems."
He pointed out that "these efforts have resulted in strategic agreements that have been implemented on the ground through major projects over the past two years, which have contributed to raising the efficiency of the electricity grid and meeting a significant portion of Iraq's energy needs, supporting future development plans and contributing to improving the environmental situation."
He continued, "We aspire to expand this partnership in the future, in a way that meets national ambitions and meets the growing need for energy in Iraq."
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