Economist: The dollar in Iraq will not be affected by any international changes.
Al-Anzi told Al-Furat News Agency that "the current exchange rate situation reflects that black market traders have stopped manipulating currency prices, relying heavily on sales from the Central Bank of Iraq."
He explained that "supply and demand for the dollar have now reached a balance, stressing that the current decline is not a real decline but rather a result of relative stability in the market."
JPMorgan strengthens cooperation with Iraq by increasing correspondent accounts and project financing.
Al-Sudani's media office stated in a statement received by {Euphrates News} that "Prime Minister Mohammed Shia al-Sudani received a delegation from JPMorgan Chase, headed by the bank's Deputy Director, Daniel Zelikow, on the sidelines of the Iraqi Banking Sector Reform Conference held in Baghdad."
He added, "During the meeting, they discussed enhancing cooperation in the financial and banking fields, and the bank's participation in financing various investment projects. They also discussed mechanisms for securing credits and financial transfers and ensuring their delivery to those entitled to them in Europe and the United States. This will contribute to improving services provided to Iraqi traders and importers."
He stressed "the importance of expanding the scope of partnership between Iraqi banks and JP Morgan," noting "the government's readiness to provide all forms of support to strengthen this relationship."
For its part, the JP Morgan delegation expressed its willingness to increase cooperation with Iraq by expanding the number of correspondent accounts opened with Iraqi banks, and its willingness to finance a number of investment projects directly or through partner financial institutions.
During a meeting with Al-Sudani, an American bank expressed its willingness to finance investment projects in Iraq.
US bank JPMorgan Chase expressed its willingness to enhance financial cooperation with Iraq by expanding the number of accounts opened by Iraqi banks and financing investment projects in the country. This came during a meeting held by a delegation from the bank with the Iraqi government.
Prime Minister Mohammed Shia al-Sudani received a delegation from JP Morgan, headed by its Deputy Director Daniel Zeljko, on Tuesday, April 8, 2025, on the sidelines of the Iraqi Banking Sector Reform Conference held yesterday in the Iraqi capital.
According to a statement issued by Al-Sudani's office, "The meeting discussed enhancing cooperation in the financial and banking fields, the bank's participation in financing various investment projects, and mechanisms for securing credits and financial transfers and ensuring their delivery to those entitled to them in Europe and the United States, which will contribute to improving services provided to Iraqi traders and importers."
Al-Sudani stressed the importance of expanding partnerships between Iraqi banks and JP Morgan, noting the government's readiness to provide all forms of support to strengthen this relationship.
For its part, the JP Morgan delegation expressed its willingness to "increase cooperation with Iraq by expanding the number of correspondent accounts opened for Iraqi banks, and its willingness to finance a number of investment projects directly or through partner financial institutions," according to the statement.
Al-Mashhadani to the American delegation: The United States is one of Iraq's most important strategic partners.
Al-Mashhadani receives US Chargé d'Affaires Daniel Rubenstein and an economic delegation from the American Chamber of Commerce.
On Tuesday, April 8, 2025, at the Presidential Palace in Baghdad, Speaker of the Iraqi Parliament, Mahmoud al-Mashhadani, received the Chargé d'Affaires of the US Embassy in Iraq, Daniel Rubenstein. Rubenstein was accompanied by a large economic delegation from the US Chamber of Commerce, including representatives of 57 American companies, headed by Lotus Steve, and a number of company presidents and investors. The meeting was held as part of the US Chamber of Commerce's economic conference in Iraq.
Al-Mashhadani affirmed, according to a statement received by Al-Jabal, that "Iraq welcomes all initiatives that contribute to developing its economy and strengthening its international partnerships, particularly with the United States, which represents one of its most important strategic partners in various fields."
The Speaker of Parliament emphasized "the critical importance of investment in Iraq, particularly in vital and strategic sectors such as oil and electricity, which represent the backbone of the Iraqi economy. He also emphasized the need to stimulate investment in the agricultural and industrial sectors, as well as in service sectors that are vital to the lives of Iraqi citizens, such as the environment, education, and health."
Al-Mashhadani explained that "the Iraqi Parliament has enacted an investment law that provides a secure and stimulating legal environment for investment, protects investor rights, and encourages transparency and equal opportunities."
He pointed out that "Parliament, as the 'house of the people,' ensures a dignified and safe life for citizens and works closely with the government through effective coordination mechanisms to support development projects and facilitate investment." He stressed that "the Iraqi Parliament strongly supports the signing of bilateral agreements with friendly countries, which contribute to stimulating economic activity, attracting more foreign investment, and creating new job opportunities that contribute to reducing unemployment and enhancing economic stability."
According to the statement, Daniel Rubenstein, Chargé d'Affaires at the US Embassy in Baghdad, affirmed "his country's commitment to supporting Iraq on its path towards economic development and stability, and strengthening partnerships between the American and Iraqi private sectors."
Lutz Steve, head of the US trade delegation, emphasized that "Iraq represents a promising investment market, and that US companies are looking forward to cooperation opportunities in various sectors, with a focus on creating job opportunities for Iraqi youth and contributing to the development of infrastructure and vital services."
Al-Mashhadani stresses the importance of expanding investment horizons in Iraq.
Parliament Speaker Mahmoud al-Mashhadani held an expanded meeting today, Tuesday (April 8, 2025), with the head and members of the Independent High Electoral Commission, in the presence of a number of Sunni bloc leaders, to discuss ongoing preparations for the upcoming electoral process.
According to a statement from his media office, received by Baghdad Today, Al-Mashhadani stressed during the meeting the need for concerted national efforts to ensure the integrity and transparency of the elections, emphasizing the importance of creating a safe environment and strengthening confidence in democratic institutions.
The commission presented a detailed presentation on technical and administrative procedures, including updating the voter registry, distributing biometric cards, and securing polling stations. Commission officials noted particular challenges in liberated areas, calling for greater government support to facilitate their work.
For their part, Sunni bloc leaders expressed their full support for the commission, calling for effective guarantees to prevent any manipulation or interference that could affect the election results. They emphasized the need for effective participation by all components to ensure fair representation.
Tomorrow... Iraqi and American Chambers of Commerce Sign Contract to Regulate Private Sector Operations
The head of the Federation of Iraqi Chambers of Commerce, Abdul Razzaq al-Zuhairi, announced today, Tuesday, the signing of an agreement with the American Chambers of Commerce to regulate the private sector tomorrow, Wednesday. He explained that the government has included regulating the private sector in its program.
In a statement to Al-Iraqiya News Agency, followed by the Iraqi News Agency (INA), al-Zuhairi said, "Tomorrow will witness the signing of an agreement with the American Chambers of Commerce to regulate the private sector." He explained that "American companies are distinguished by greater flexibility and capabilities, and they have extensive experience working with countries around the world. In addition, Americans have everything they need to work in Iraq, especially in the field of industry."
He pointed out that "the banking base in Iraq has become large and global, and it is possible for us to work within it." He explained that "the agreement signed yesterday, in addition to the agreement to be signed tomorrow, includes regulating work in the Iraqi and American private sectors." He emphasized that "the government has included in its program the regulation of the private sector and supports many areas, especially loans and the purchase of machinery and equipment," noting that "despite the difficult circumstances we faced, the results were positive on the ground."
Al-Zuhairi also referred to "addressing taxes, customs, the companies law, and the agency law," indicating that "there is a package that the government sent to Parliament for a vote, which is the most important package."
He explained that "the work of the private sector requires continuous updating, as there are new systems, laws, and new programs that change from time to time. Land acquisition was previously under the agrarian reform law, as was the energy issue, and many other issues have been finalized."
He explained that "what the government has done over the past period has been exceptional," expressing his hope that "support for the private sector will continue in order to attract the largest number of international companies and employ the workforce."
Parliamentary Finance Committee stresses the need to reach an understanding with the US Treasury regarding the evaluation of banks.
The Parliamentary Finance Committee stressed the need to reach an understanding with the World Bank and the US Treasury regarding the evaluation of Iraqi banks' performance, to avoid any "sudden" decisions that could negatively impact the country's banking sector.
This came in a speech delivered by Finance Committee Chairman Atwan Al-Atwani on Monday during his participation in the Iraq Banking Sector Development Conference, attended by Prime Minister Mohammed Shia Al-Sudani and in cooperation with Oliver Wyman, in Baghdad.
Al-Atwani congratulated the Central Bank of Iraq's management on the launch of the "Banking Sector Development Project," noting that it "represents a starting point for a comprehensive reform of the financial and monetary systems, based on solid scientific foundations, and paves the way for achieving sustainable development and economic reform."
The Chairman of the Finance Committee noted the committee's commitment to supporting the Central Bank's efforts to promote sustainable financing concepts, encourage public and private banks to finance economic activities and development projects, and diversify sources of income, thus contributing to reducing the financial deficit in public budgets. He added that "the banking sector is the cornerstone for driving the national economy and combating corruption."
Al-Atwani emphasized that developing this sector "is a cornerstone of the economic reform project and a pivotal step in the transition to a diversified economy, away from excessive reliance on oil revenues." Discussing maximizing non-oil revenues, he explained that "the introduction of modern banking systems into the Tax and Customs Administration contributes to improving financial transaction tracking mechanisms, enhances revenue collection efficiency, and reduces tax evasion, in addition to closing informal outlets that drain the state's resources and weaken its ability to invest and provide services."
Al-Atwani also emphasized that rebuilding confidence in the banking system and expanding the scope of digital transactions, both domestically and internationally, requires developing the banking sector's infrastructure and enhancing its cybersecurity. Furthermore, the reform process requires establishing genuine partnerships with international banks and institutions and regulating foreign remittances to ensure compliance with international standards.
The head of the Finance Committee called for "the necessity of formulating a clear understanding with the World Bank and the US Treasury, establishing the principle that the Central Bank of Iraq is the body authorized to evaluate banks' performance, ensure their compliance, and punish violators, to avoid any sudden decisions that would negatively impact the banking sector."
Al-Atwani concluded his remarks by emphasizing the need for a comprehensive "reform revolution" beginning with the banking sector, emphasizing that "this requires genuine political will, institutional cooperation, and a strategic vision that goes beyond temporary solutions." He also called for collective responsibility for reforming the banking sector, "considering it a national priority that touches on national security and financial stability, directly impacts citizens' livelihoods, achieves social justice, and ensures the future of future generations."
The United States announced sanctions on a group of Iraqi banks, including Rafidain Bank, for allegedly smuggling US dollars to sanctioned countries, most notably Iran. The US called on the Iraqi government to implement reforms at these banks as soon as possible.
Iraqi Minister of Industry presents importance and investment opportunities at AIM Summit
He stressed that Iraq is a promising and attractive destination for international companies and capital.
Minister of Industry and Minerals Khaled Battal Al-Najm stressed that Iraq is a promising and attractive destination for global investments in light of the remarkable development it is witnessing in all fields and sectors, and the many success stories achieved through partnership contracts concluded with international companies during the current government’s tenure, with an investment volume of $10 billion, to enhance economic growth and sustainable development.
Al-Batal, while attending the ministerial roundtable meeting, pointed to the history of Iraqi industry, the capabilities and specializations of public industrial companies, and the most important investment opportunities and projects available in the minerals sector and various other industries, expressing his readiness to conclude strategic partnerships with parties wishing to establish new industrial projects and develop existing factories in accordance with the applicable Iraqi laws, and stressing the desire of the ministry and the government to cooperate with investors and serious and solid companies to conclude new partnerships and overcome the difficulties and problems they face in the investment process within Iraq.
During the meeting, His Excellency the Minister also touched upon the government's steps in the development road project and the giant industrial projects that will be established on it, as well as the free zones that are considered major investment attractions in the coming period. He also reviewed the steps achieved in establishing industrial cities and economic cities with neighboring countries.
On the sidelines of the summit, Al-Batal visited the pavilions of the participating countries, private companies, and participants in the summit, which included Iraqi companies that represent new ideas for young people in various technical fields. The Minister also visited the Kurdistan Region pavilion participating in the summit, and met with the region’s delegation and a number of industrialists and investors in the region, and discussed with them some topics and issues of interest to industrial activity in Iraq.
It is worth noting that the activities of the 14th edition of the AIM Investment Summit, hosted by the Emirate of Abu Dhabi, kicked off yesterday, Monday, under the theme “Mapping the Future of Global Investment: The New Direction of the Global Investment Landscape, Towards a Balanced Global System.” The summit witnessed the wide participation and attendance of a number of heads of state, ministers, and central bank governors, in addition to a large gathering of businessmen, investors, heads of financial exchanges, specialists, and those interested in the field of investment from various countries around the world. The summit aimed to shed light on the latest trends and developments in the global investment and economic landscape, how to confront current and future challenges, and draw a new roadmap for the future of investment and support investment opportunities.
Iraq faces oil market volatility with well-thought-out economic plans.
At a time when global oil markets are experiencing significant volatility, which has alarmed many countries with oil-dependent economies, Iraq is quietly moving toward adopting well-thought-out strategies to mitigate potential negative impacts while maintaining its economic and financial stability.
Despite the recent decline in prices, the Prime Minister's financial advisor, Dr. Mazhar Mohammed Saleh, described these declines as "temporary," expressing his confidence that the market will return to balance in the near term.
He stressed that Iraq possesses flexible tools and financial capacity that enable it to confront such challenges without causing major disruption to the local market.
The government is currently reviewing its economic policies as part of a broader plan aimed at diversifying revenues and enhancing the efficiency of public spending, a move that reflects a proactive approach to managing risks and building a more balanced and sustainable economy.
Crude oil prices rose 1% in trading on Tuesday, following heavy selling in previous sessions.
The Prime Minister's financial advisor revealed, in a statement to Al-Sabah, that the amended 2023 three-year general budget law was prepared with two main approaches in mind to address oil price fluctuations. The first approach is pre-financial hedging, with a threshold price of $70 per barrel adopted, with a hypothetical deficit estimated at 64 trillion dinars.
He pointed out that actual implementation indicators during 2024 showed that the government only resorted to borrowing approximately 12 trillion dinars, equivalent to financing a deficit of 18% of the hypothetical deficit ceiling, reflecting financial discipline and the ability to control spending. He explained that most of the loans resorted to came from the local banking market, specifically from government banks, without imposing additional external burdens on the economy.
Saleh added that the second trend in addressing the challenges of declining oil prices is embodied in the decline in actual spending compared to planned spending, as annual spending did not exceed 72% of the total planned in the budget, which amounted to 200 trillion dinars. He pointed out that this percentage is realistic, given that the approved allocations for spending purposes are only achieved at a slightly higher percentage in their best years.
Despite these challenges, Saleh noted that the country has succeeded in covering basic obligations such as salaries, wages, pensions, and social welfare, in addition to subsidies for agricultural crops and various other forms of support. He emphasized that the government has launched a number of service and investment projects characterized by consistent and thoughtful implementation, reflecting a high degree of coordination among the relevant authorities, a fact that has become evident to all in recent times.
Saleh indicated that the oil asset cycle may witness a decline at the present time, but this decline will not last long before the oil market returns to normal. He explained that there are two main reasons behind this forecast. The first relates to the economic challenges facing the global oil industry, which operates in many fields at costs reaching $60 per barrel. These challenges could lead to lost investments and production shutdowns, especially in the shale oil fields in the United States, which are characterized by high costs. The second reason is that China, as the world's largest oil importer, accounting for approximately 10% of global crude oil production, will benefit greatly if oil prices decline for extended periods. He pointed out that this decline will have unprecedented repercussions in the trade war, as China will strengthen its economic position in light of the decline in oil prices, which will ultimately benefit it.
For his part, economic expert Maitham Al-Bolani pointed out that imposing tariffs on Iraqi exports, especially crude oil, could negatively impact the economy, although the percentage is not significant. He also emphasized that the global economic recession will lead to a decline in demand for crude oil, which will in turn have repercussions for Iraq.
Economic expert Naji Al-Ghazi pointed out that the tariffs imposed by the Trump administration had an indirect, but profound, impact on the global oil market. He explained that Iraqi oil had a large share of these negative effects, as protectionist policies, particularly those imposed on China, sparked a trade war between the world's two largest economies. This trade war contributed to a slowdown in global economic growth, leading to a decline in demand for energy, particularly oil. He explained that China is one of the largest importers of Iraqi oil, and therefore the decline in its economy as a result of US tariffs led to a reduction in its oil imports, including Iraqi oil, which contributed to an increase in supply versus demand, pushing prices down.
Al-Ghazi emphasized that US tariffs are an indirect factor in exacerbating Iraq's fiscal deficit, through their impact on the Chinese economy and, consequently, global demand for oil. He added that these policies undermine foreign investor confidence in Iraq's oil investment environment due to market instability, which could delay the implementation of important development projects in the energy sector.
For his part, public finance specialist Dr. Ahmed Hithal explained that Iraq's financial indicators from 2004 to 2024 reveal a near-total dependence on oil revenues, which constitute more than 90% of total public revenues. This has made the national economy vulnerable to oil price fluctuations, as occurred during the crises of 2009, 2014, and 2020. Hithal pointed out that the contribution of non-oil sectors—such as industry, agriculture, and services—remains limited due to a weak economic structure, the absence of incentive policies, and bureaucracy that hinders investment. He also noted a flawed tax system, which suffers from a narrow tax base and poor collection mechanisms, leading to weak non-oil revenues. To achieve financial balance and enhance sustainable revenues, Hithal believes it is necessary to embark on comprehensive tax reform, including expanding the tax base and imposing progressive taxes on high incomes, in parallel with stimulating investment by reforming the legal environment and providing the required incentives and facilities.
He also called for diversifying the economy by supporting productive sectors and financing small and medium-sized enterprises, in addition to the need to redirect public expenditures from current spending to investment spending, ensuring sustainable returns that contribute to strengthening the national economy in the long term.
Oil markets breathed a sigh of relief as prices gained more than 1 percent during Asian trading on Tuesday, recovering from heavy selling in previous sessions due to fears that US tariffs would reduce demand and lead to a global recession.
By 0051 GMT, Brent crude futures rose 81 cents, or 1.26 percent, to $65.02 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 92 cents, or 1.52 percent, to $61.61 a barrel, according to Reuters data.
Oil prices fell 2 percent on Monday, approaching their lowest level in four years, due to concerns that the latest tariffs imposed by US President Donald Trump could push global economies into recession and reduce energy demand. However, markets anticipate a potential limit to the decline in oil prices.
Trump insists that the tariffs will facilitate the revival of the American industrial base, which he says has been declining due to decades of trade liberalization. The tariffs are a minimum of 10 percent on all imports into the United States, with additional rates targeting specific countries reaching up to 50 percent.
While many countries are seeking exemptions, or at least reductions, from tariffs, some, such as China, the world's second-largest economy after the United States, have announced plans to impose counter-tariffs.
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The Council of Ministers holds two sessions today
Al-Sudani's media office said in a statement received by {Euphrates News}, "The Council of Ministers will hold two regular sessions today, Tuesday, the thirteenth and fourteenth of the current year, to make up for last week's session that was postponed due to the Eid al-Fitr holiday."
Billions are sleeping behind walls. Why do Iraqis resort to hoarding their money at home instead of in banks?
$80 billion in Iraqi homes
In a corner of a house, hidden within its walls, money is hidden not in bank accounts or investment portfolios, but under sofas, inside secret safes, and in plastic bags buried among old clothes. Millions, even billions, of dinars are being hidden in Iraqi homes.
Iraqis no longer find banks a safe haven for their money. Instead, they are a burden of procedures and a constant source of anxiety due to delayed transfers, a lack of trust, and the erosion of the currency's value. This phenomenon is growing amid a liquidity crisis that is stifling the country's economy and raising serious questions about the future of Iraq's financial system.
The Iraqi government faces significant challenges in managing its dinar liquidity. It suffers from a chronic shortage of the currency, which impacts its ability to meet its financial obligations to pay employee salaries, repay debts, and finance projects.
Citizens complain about the banking sector in Iraq
A number of citizens in Baghdad and other provinces expressed growing concerns about dealing with the banking sector, due to what they described as a lack of trust in public and private banks, delayed procedures, and poor services, as well as concerns about losing money or difficulty retrieving it in emergencies.
"I've been keeping my money at home for years," Abu Mustafa, 55, told the Al-Jabal platform. "I don't trust banks. We've heard a lot of stories about people losing their money or transactions being delayed for months, and that scares us."
Umm Fatima, a retired employee, confirmed that she "prefers to keep her savings in a safe at home rather than in a bank account," adding, "I don't feel safe, especially with the news about banks going bankrupt or experiencing administrative problems. We want real guarantees from the state."
In Shorja Market, Abu Ammar, a grocery trader, said, "All my work is done in cash, because there's no trust in electronic transfers through banks, and there are deadly routine procedures, so the risks are numerous."
For her part, Umm Hussein, an employee from the Shaab district north of Baghdad, said, "All her money is at home. She buys gold or keeps it in dollars. The banks there are afraid of her because they are not clear, especially private banks."
According to economists, these concerns contribute to the exacerbation of the phenomenon of "hoarding" outside the formal banking system, weakening the economy and reducing investment and lending opportunities.
On February 16, 2025, Reuters revealed that the Central Bank of Iraq intended to take strict measures against five private banks by banning them from conducting transactions in US dollars, as part of joint efforts with the US Treasury Department to combat money laundering, dollar smuggling, and financial violations.
These developments follow a series of previous US measures against the Iraqi banking sector. On July 19, 2023, the US Treasury Department imposed sanctions on 14 Iraqi banks on suspicion of facilitating transactions linked to Iran using US dollars. This move was described at the time as part of a broader campaign to combat regional financial abuses.
In January 2023, the US Treasury Department, in cooperation with the Central Bank of Iraq, banned four other Iraqi banks from dealing in dollars and imposed strict controls on financial transfers in Iraq. This negatively impacted the performance of the local banking sector and increased restrictions on the movement of dollars in Iraqi markets.
95 trillion dinars outside the banking system
Mazhar Mohammed Saleh, advisor to the Prime Minister for Financial Affairs, warns against the continued phenomenon of hoarding money in homes, while also considering it a major economic challenge that hinders the development of the country's financial and banking system.
In an interview with the "Al-Jabal" platform, Saleh said, "About 87% of Iraq's monetary mass, equivalent to 95 trillion dinars out of a total of 109 trillion, is still held outside the banking system."
According to Saleh, these hoarded funds represent a major obstacle to the development of the financial sector and the promotion of financial inclusion. He explained that the government and the Central Bank are working to integrate these funds into the banking system by activating e-commerce and digital transformation projects.
Saleh points out that "the increased use of electronic payment systems will reduce cash leakage outside banks and increase banks' ability to lend at lower costs and with greater efficiency, benefiting from the lower interest rates they can offer to citizens."
Concluding his remarks, Saleh continued, "Combating the phenomenon of hoarding requires a change in society's financial culture and expanding the scope of financial inclusion through comprehensive government measures to encourage citizens to engage with banks and invest their money safely and effectively."
In 2020, the Central Bank of Iraq urged citizens to "avoid hoarding money at home" and to engage only with banks and financial brokerage firms during large cash transactions. At the time, it warned of the role of banknotes in transmitting viruses and bacteria, including COVID-19.
"Hoarding" is a behavior that sticks with Iraqis.
In contrast, economic expert Nabil Al-Tamimi told Al-Jabal platform, "The phenomenon of hoarding money in homes is not merely a new phenomenon in Iraqi society. Rather, it represents an integral part of the local financial culture, which has not yet kept pace with the developments in the contemporary world in the use of banks and modern payment tools as a means of financial transactions."
Al-Tamimi explains that "this phenomenon is linked to a broad segment of citizens' lack of trust in banks, whether state-owned or privately owned. This is due to the absence of the attractive role that financial and banking institutions are supposed to play, including banking offerings such as current and fixed accounts, credit facilities, banking security guarantees, and access to benefits and services associated with modern banking transactions."
According to Al-Tamimi, the current legal environment is not conducive to attracting funds to the banking system, noting that some laws, particularly those related to combating money laundering and terrorist financing, have become an obstacle for depositors.
The implementation of Know Your Customer (KYC) procedures, which require every depositor to fully disclose the sources and legitimacy of their funds, conflicts with a different financial and social reality, according to Al-Tamimi, who continued, "Despite the presumption that their funds are legitimate, many financial owners find it difficult to provide clear documentation, especially if the funds were collected through simple business activities or over long periods without official records."
Al-Tamimi points out that "these factors combined keep money out of the banking system, depriving the Iraqi economy of the opportunity to invest billions of dinars hoarded in households, and weakening the effectiveness of the financial system and its ability to grow and develop."
According to the latest report issued by Transparency International, Iraq ranked 154th out of 180 countries globally in terms of corruption, a three-place improvement over last year.
$80 billion hoarded inside homes
Mohammed Al-Najjar, CEO of the Iraq Development Fund and Special Advisor to the Prime Minister for Investment Affairs, spoke about the presence of approximately $80 billion hoarded in Iraqi households, outside the economic cycle. This reflects a deepening crisis of confidence in banks and financial institutions, threatening to disrupt development and investment efforts in the country.
Al-Najjar says this figure is "astronomical," representing idle wealth that doesn't contribute to the economy. He adds, "The Iraqi people prefer to keep their money close because they don't know when they'll have to take it and flee," referring to the unrest that has continued for more than four decades.
During his press interview, Al-Najjar noted that "the problem is not only related to a lack of trust, but also to the lack of viable investment opportunities," adding, "There is no effective stock exchange, and no real secondary markets, which means that anyone with $5,000 or $10,000 cannot find a way to invest it."
Al-Najjar also called for rebuilding trust between citizens and financial institutions and launching new, flexible, and secure investment tools capable of attracting hoarded funds and integrating them into the economic cycle, thus contributing to economic stability and job creation.
Economic expert Nabil Al-Marsoumi previously revealed that Iraq ranks first in the Middle East in terms of the number of private banks, noting that the proportion of these banks to the total number of banks in the country reached 91%, the highest in the region.
According to a previous post by Al-Marsoumi, the total number of banks in Iraq is 81, of which only 7 are government-owned, while the number of private banks is 74, representing 91% of the total banking sector.
He explained that this percentage is the highest compared to other Middle Eastern countries, as the number of banks in Turkey is 43, Egypt 41, Saudi Arabia 31, Iran 30, Jordan 26, and Algeria 20. He noted that even a major country like Britain has only 54 banks.
Causes and solutions to eliminate the "hoarding phenomenon"
Meanwhile, financial affairs specialist Jalil Al-Lami warns of the growing phenomenon of hoarding money at home instead of depositing it in banks. He considers it one of the most significant economic and social problems facing some countries, particularly those experiencing economic crises or suffering from a lack of trust in financial institutions.
In an interview with the "Al-Jibal" platform, Al-Lami said, "This phenomenon has become clearly tangible in Iraq, where estimates indicate that the money supply circulating outside the banking system has exceeded 100 trillion Iraqi dinars, equivalent to approximately 65% of the total money supply, which poses a major challenge to development plans and the implementation of monetary policy tools."
Al-Lami points out that "one of the most prominent reasons why citizens resort to hoarding money at home is a loss of confidence in banks. This is due to previous experiences of bank collapses or bankruptcies, delays in disbursing funds to depositors during crises, and citizens' feelings that their money is not adequately protected."
The poor economic and political situation also played a major role, according to Al-Lami. High inflation rates, the lack of political and security stability, and the fear of bank accounts being frozen or confiscated are all factors that have pushed citizens to keep their money in cash at home. He explained that the lack of banking culture, especially in rural and remote areas, where people rely on cash transactions and are unaware of the benefits of saving and the workings of banks, has contributed to the spread of the phenomenon. He also noted the weakness of financial inclusion due to the scarcity of bank branches and the difficulty of accessing appropriate banking services.
Al-Lami did not neglect to address the impact of corruption and tax evasion, as some merchants and citizens resort to concealing their assets from regulatory authorities by keeping them outside the formal banking system.
According to Al-Lami, this phenomenon deprives the economy of the liquidity needed to finance small and medium-sized enterprises. It also complicates lending and investment processes and increases the circulation of cash outside the formal sector, making it difficult to control the financial cycle and increasing the size of the informal economy.
The Iraqi expert adds that hoarding money at home increases the risk of loss due to theft, fire, or damage. It also weakens monetary policy tools, making it difficult for the central bank to control the money supply and steer the economy toward growth and stability.
Al-Lami proposes a series of solutions to address this phenomenon, beginning with enhancing confidence in the banking sector by ensuring the protection of deposits and providing transparency in banking transactions, as well as improving citizens' financial literacy through ongoing awareness programs.
It also stresses the need to provide incentives such as attractive interest rates on deposits and launch programs to encourage depositors to deposit money in banks. It also emphasizes the need to monitor the parallel economy by regulating large cash transactions, promoting electronic payments, and restricting cash payments.
Al-Lami concludes his remarks by emphasizing that addressing this phenomenon requires integration between government agencies, banks, and media and educational institutions to achieve a true transformation in the economic culture of Iraqi society.
The latest statistics from the Private Banks Association, released today, Saturday, on the number of bank accounts in Iraq and developments in the country's banking system during the past year, 2024.
According to the association's chairman, Wadih Al-Handhal, the number of bank cards reached 20 million in 2023, noting that the number of bank accounts reached 6 million in 2020 and 13 million in 2023.
Government advisor: The highest levels of spending implemented did not exceed 85% of the allocations.
Saleh explained to Al Furat News Agency that "the direction of public finances over the past few years, particularly in light of the implementation of the government program, indicates that the highest levels of spending implemented did not exceed 85% or less."
He pointed to two fundamental considerations: the first is the strength of financial discipline over expenditures handled by spending units under the supervision of senior management, internal financial controls, and the Financial Control Bureau. The second relates to the existence of a margin of allocations in the operational and investment areas within the annual budgets of ministries and government agencies, which are requested for hedging purposes but remain unused.
He pointed out that "this reflects the real spending capacity, which requires adjusting allocation plans in subsequent years."
Ban on cryptocurrency and forex trading in the Kurdistan Region
The Kurdistan Region's Public Security Directorate (Asayish) announced a ban on all cryptocurrency transactions, threatening legal action against violators.
Following a series of complaints from citizens and affected individuals, the Asayish Directorate confirmed a ban on all cryptocurrencies and metals through Forex and USDT, in accordance with the instructions and procedures followed by the Central Bank of Iraq and the Kurdistan Region's Ministry of Finance.
The Directorate of Economic Security, affiliated with the General Directorate of Security, announced in a statement on Tuesday that “the Economic Security Directorate, affiliated with the General Directorate of Security, informs the citizens of the Kurdistan Region that dealing in all types of digital and metal currencies, Forex, and USDT is prohibited. Forex and electronic currency companies are prohibited and do not have an official license in the Kurdistan Region - Iraq. According to the decisions and directives of the Central Bank of Iraq and the Ministries of Finance in the Kurdistan Region and Iraq, these currencies and platforms are prohibited and there are no laws or procedures regulating such activities.”
He added, "As for companies operating in the Forex field under various names and organizing courses to teach how to trade and buy digital currencies, they are illegal and unauthorized."
The security statement indicated that, "After receiving numerous complaints from citizens who suffer from these companies and brokers, this statement was issued. We call on citizens to avoid such dealings to avoid financial losses and waste their money. We also urge citizens not to be deceived by the advertisements and promotions of companies and brokers and to stay away from them."
The Directorate warned all companies and brokers against promoting these transactions on social media platforms, otherwise they will be subject to legal action.
US Energy Secretary: I will visit the Middle East this week to promote investment in the United States.
Chris Wright
US Energy Secretary Chris Wright will begin a two-week tour of three Middle Eastern countries, including Saudi Arabia, on Wednesday, a source familiar with the matter told Reuters.
This trip, which will also include Qatar and the United Arab Emirates, is expected to pave the way for President Donald Trump's visit to those countries, likely in mid-May.
"I will be visiting the Middle East this week to promote investment in America," Wright wrote on his personal X account on Tuesday.
Looking forward to visiting the Middle East this week and promoting investment in America! https://t.co/
— Secretary Chris Wright (@SecretaryWright) April 8, 2025
A source at the Ministry of Energy said that Wright will begin his trip in the United Arab Emirates, followed by Saudi Arabia over the weekend, and then Qatar, and will also meet with leaders of several countries. The source added that Wright will likely hold talks on ensuring abundant global oil supplies outside of countries whose oil exports are subject to US sanctions, including Iran, Venezuela, and Russia.
Discussions will also focus on the three countries' investments in the United States, after the UAE last month committed to a $1.4 trillion, 10-year investment framework in artificial intelligence, semiconductor, energy, and manufacturing infrastructure.
The source said that Wright will visit oil and gas production sites in the Middle East, looking for ways to reduce costs. He added that he will also visit a nuclear power plant in the UAE.
Government advisor: The highest levels of spending implemented did not exceed 85% of the allocations.
Economic: Al Furat News} The Prime Minister's financial advisor, Mazhar Muhammad Salih, confirmed that actual spending indicators do not necessarily match those planned according to the annual general budget ceiling, for two main considerations.Saleh explained to Al Furat News Agency that "the direction of public finances over the past few years, particularly in light of the implementation of the government program, indicates that the highest levels of spending implemented did not exceed 85% or less."
He pointed to two fundamental considerations: the first is the strength of financial discipline over expenditures handled by spending units under the supervision of senior management, internal financial controls, and the Financial Control Bureau. The second relates to the existence of a margin of allocations in the operational and investment areas within the annual budgets of ministries and government agencies, which are requested for hedging purposes but remain unused.
He pointed out that "this reflects the real spending capacity, which requires adjusting allocation plans in subsequent years."
Saleh explained to Al Furat News Agency that "the direction of public finances over the past few years, particularly in light of the implementation of the government program, indicates that the highest levels of spending implemented did not exceed 85% or less."
He pointed to two fundamental considerations: the first is the strength of financial discipline over expenditures handled by spending units under the supervision of senior management, internal financial controls, and the Financial Control Bureau. The second relates to the existence of a margin of allocations in the operational and investment areas within the annual budgets of ministries and government agencies, which are requested for hedging purposes but remain unused.
He pointed out that "this reflects the real spending capacity, which requires adjusting allocation plans in subsequent years."
Iranian analyst: Negotiations with Washington will be more complicated due to the Trump administration and his team.
Iranian political analyst Saeed Al Shawardi believes that the upcoming negotiations between Iran and the United States will witness further complications as a result of the policies of US President Donald Trump's administration and his team.During his appearance on the "Free Talk" program on Al-Furat satellite channel this evening, Al-Shawardi said, "The United States claims that Iran's nuclear program may be directed toward military purposes, while Tehran insists that its goals are peaceful and demands the lifting of sanctions that have burdened the Iranian people."
He pointed out that "Iran is serious about reaching a fair agreement that guarantees the rights of all parties; however, doubts remain about American intentions and the possibility of a repeat of the 2018 scenario when Washington withdrew from the nuclear agreement."
Al-Shawardi explained that "reaching an agreement will not be quick, and negotiations may extend for months, given the loopholes in the previous agreement that Iran seeks to address, and Trump seeks to impose direct negotiations, at a time when America has not yet adhered to the terms of the previous agreement."
He pointed out that "Washington is trying to focus on side issues and ignore the essence of the disagreements," indicating that "America talks about building friendly relations, but the reality and long history of hostility towards the Iranian people contradict this rhetoric, especially with the continued targeting of Iranian citizens and their deprivation of even medicine."
Al-Shawardi added, "The fundamental disagreement between Tehran and Washington revolves around Iran's firm stance on the Zionist entity and its rejection of normalization, which cannot be changed." He pointed out that "Iran exports weapons to more than 40 countries around the world, and there could be broad industrial cooperation with American companies if there was political will."
Al-Shawardi concluded by saying that "the recent message of the Iranian foreign minister carried clear signals to the Americans, most notably that there is no evidence that Iran has moved towards manufacturing a nuclear bomb after Washington's withdrawal from the agreement." He stressed that "Iran's nuclear policy is clear, while blame should be directed at America, which threatens to exterminate half of the Iranian people using nuclear bombs."
During his appearance on the "Free Talk" program on Al-Furat satellite channel this evening, Al-Shawardi said, "The United States claims that Iran's nuclear program may be directed toward military purposes, while Tehran insists that its goals are peaceful and demands the lifting of sanctions that have burdened the Iranian people."
He pointed out that "Iran is serious about reaching a fair agreement that guarantees the rights of all parties; however, doubts remain about American intentions and the possibility of a repeat of the 2018 scenario when Washington withdrew from the nuclear agreement."
Al-Shawardi explained that "reaching an agreement will not be quick, and negotiations may extend for months, given the loopholes in the previous agreement that Iran seeks to address, and Trump seeks to impose direct negotiations, at a time when America has not yet adhered to the terms of the previous agreement."
He pointed out that "Washington is trying to focus on side issues and ignore the essence of the disagreements," indicating that "America talks about building friendly relations, but the reality and long history of hostility towards the Iranian people contradict this rhetoric, especially with the continued targeting of Iranian citizens and their deprivation of even medicine."
Al-Shawardi added, "The fundamental disagreement between Tehran and Washington revolves around Iran's firm stance on the Zionist entity and its rejection of normalization, which cannot be changed." He pointed out that "Iran exports weapons to more than 40 countries around the world, and there could be broad industrial cooperation with American companies if there was political will."
Al-Shawardi concluded by saying that "the recent message of the Iranian foreign minister carried clear signals to the Americans, most notably that there is no evidence that Iran has moved towards manufacturing a nuclear bomb after Washington's withdrawal from the agreement." He stressed that "Iran's nuclear policy is clear, while blame should be directed at America, which threatens to exterminate half of the Iranian people using nuclear bombs."
A conciliatory US tone toward Iran: We seek understanding and common ground.
Deputy Special Envoy for the Middle East, Morgan Ortagus, struck a calm tone toward Iran on Tuesday, days before the Iranian-US negotiations in the Omani capital, Muscat.
This came in an interview with the English-language newspaper The National in the UAE capital, Abu Dhabi, where she said that the United States will seek to establish common ground and mutual understanding with Tehran.
After the newspaper noted in a report translated by Shafaq News Agency that Iranian Foreign Minister Abbas Araqchi had announced "indirect" talks with the United States to be held in the Sultanate of Oman next Saturday, and that President Donald Trump had spoken of holding "direct" discussions, Ortagus stated, according to what was reported by "The National", that "President Trump said these are direct talks, and so I will follow his lead. In terms of expectations, there have been no formal negotiations at all with the Trump administration, and so I think this will be very important."
"I don't want to put the cart before the horse," Ortagus was quoted as saying in what appeared to be a shift in her tone toward Tehran. "I think there are many ways to come together and try to find common ground, some understanding. There's a lot of mistrust between the two sides, and I'm very clear about that."
"Let's hold some initial meetings and see if there's a way to find common ground to achieve what the president (Trump) wants, which is to find a peaceful and negotiated solution to these thorny and difficult issues," the US official continued, according to the newspaper.
“The last year and a half has been devastating for the Islamic Republic of Iran. They’ve really been exposed. You’ve seen the militias fall one by one,” she added, but she continued, saying that the US administration “definitely” feels the urgency this time around. “Our administration is very focused on results and achievements. We have a lot of business people in our administration, and we like to make deals. We know how to get them done,” she added. “I think we’re in a hurry, so to speak, this time around.”
After the report pointed out that the Trump team inherited crises from the Joe Biden administration, it quoted Ortagus as saying: “Over the past four years, we have witnessed war, chaos, and unrest all over the world, especially in the Middle East. So, yes, when we entered the Trump administration, we were in a hurry, and we must be in a hurry. We have witnessed nothing but war, destruction, and weakness over the past four years. We have a lot to correct.”
Abraham Accords
According to Ortagus, reaching more peace agreements with Israel is a goal of the Trump administration, explaining, "My hope is that by the end of these four years of working with President Trump, throughout the region, and throughout the Muslim world, we will have more people and countries willing to join the Abraham Accords, willing to take a stand for peace, and not take a stand for war and hatred again."
The US official considered that the era of excluding Israel from regional issues and of all Arabs meeting without Israel at the table is over, saying, "Whether it concerns Gaza, Lebanon, Syria, or whatever the situation, Israel must be included in those discussions and in those decisions."
Deputy Special Envoy for the Middle East, Morgan Ortagus, struck a calm tone toward Iran on Tuesday, days before the Iranian-US negotiations in the Omani capital, Muscat.
This came in an interview with the English-language newspaper The National in the UAE capital, Abu Dhabi, where she said that the United States will seek to establish common ground and mutual understanding with Tehran.
After the newspaper noted in a report translated by Shafaq News Agency that Iranian Foreign Minister Abbas Araqchi had announced "indirect" talks with the United States to be held in the Sultanate of Oman next Saturday, and that President Donald Trump had spoken of holding "direct" discussions, Ortagus stated, according to what was reported by "The National", that "President Trump said these are direct talks, and so I will follow his lead. In terms of expectations, there have been no formal negotiations at all with the Trump administration, and so I think this will be very important."
"I don't want to put the cart before the horse," Ortagus was quoted as saying in what appeared to be a shift in her tone toward Tehran. "I think there are many ways to come together and try to find common ground, some understanding. There's a lot of mistrust between the two sides, and I'm very clear about that."
"Let's hold some initial meetings and see if there's a way to find common ground to achieve what the president (Trump) wants, which is to find a peaceful and negotiated solution to these thorny and difficult issues," the US official continued, according to the newspaper.
“The last year and a half has been devastating for the Islamic Republic of Iran. They’ve really been exposed. You’ve seen the militias fall one by one,” she added, but she continued, saying that the US administration “definitely” feels the urgency this time around. “Our administration is very focused on results and achievements. We have a lot of business people in our administration, and we like to make deals. We know how to get them done,” she added. “I think we’re in a hurry, so to speak, this time around.”
After the report pointed out that the Trump team inherited crises from the Joe Biden administration, it quoted Ortagus as saying: “Over the past four years, we have witnessed war, chaos, and unrest all over the world, especially in the Middle East. So, yes, when we entered the Trump administration, we were in a hurry, and we must be in a hurry. We have witnessed nothing but war, destruction, and weakness over the past four years. We have a lot to correct.”
Abraham Accords
According to Ortagus, reaching more peace agreements with Israel is a goal of the Trump administration, explaining, "My hope is that by the end of these four years of working with President Trump, throughout the region, and throughout the Muslim world, we will have more people and countries willing to join the Abraham Accords, willing to take a stand for peace, and not take a stand for war and hatred again."
The US official considered that the era of excluding Israel from regional issues and of all Arabs meeting without Israel at the table is over, saying, "Whether it concerns Gaza, Lebanon, Syria, or whatever the situation, Israel must be included in those discussions and in those decisions."
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