In conjunction with the Central Bank of Iraq's efforts to enhance financial inclusion and modernize the banking system, a strategic initiative was launched. This initiative includes developing an instant payments project and issuing local cards, in addition to issuing regulations for licensing digital banks in Iraq.
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This step comes as part of a comprehensive plan aimed at integrating modern technological concepts into the financial sector, taking into account the technical requirements of the information infrastructure and the cybersecurity risks that accompany this transformation. The issued report highlights the mechanisms for establishing digital banks in Iraq and explains how to implement this initiative in accordance with the regulations of the Central Bank of Iraq, in integration with local payment systems and global fintech standards, while adhering to environmental and social governance practices that have become essential in the world of modern finance.
The proposed digital bank model focuses on providing financial services electronically, without the need for traditional branches. This includes payment services via apps, digital wallets, transfers, loans, and more, targeting segments of society that are underserved by banking services, including individuals, small and medium-sized enterprises, and rural communities. In terms of objectives,
The initiative seeks to expand financial inclusion, reduce reliance on cash, which accounts for more than 90 percent of transactions, and enhance the resilience of the local economy by supporting small and emerging businesses. It also aims to strengthen adherence to security standards and combat financial crime. The Central Bank's strategic plan for the period 2014-2026 also focuses on modernizing the financial sector, expanding the bank account base, which does not exceed 30 percent of the population, and developing electronic payment systems. This will contribute to achieving financial stability and attracting foreign investment by aligning regulations with international standards.
Partnerships with international institutions such as the World Bank, the United Nations Development Programme, and the International Finance Corporation are pivotal to the success of this vision. At the same time, regulations adopted in 2024 require strict adherence to cybersecurity and data protection standards, along with building a robust technical infrastructure and implementing effective anti-money laundering systems.
Challenges facing the sector include weak trust in digital transactions, regulatory complexity, financial exclusion affecting more than half of the population, and the risks of cyberattacks due to weak digital infrastructure. Despite these challenges, there are significant opportunities for growth. The Iraqi market is home to more than 45 million people, and there is widespread smartphone and internet penetration. Furthermore, the government is keen to support technology projects in cooperation with global financial institutions, which paves the way for the growth of small and medium-sized enterprises and the transition to a modern financial culture.
Digital payments market analysis reveals advanced demographic indicators, with the number of internet users reaching 35 million, mobile phones reaching 47 million, and the number of digital payment users expected to reach 25 million by 2027, although the adoption rate of these methods remains low compared to the region.
The digital bank's initial capital has been set at 100 billion Iraqi dinars, to be distributed over five years. Foreign investment may not exceed 49 percent, subject to the approval of the Central Bank. Furthermore, foreign ownership in digital banking projects may not exceed 56 percent per investor, with the possibility of a slight increase if approved by regulatory authorities. This is intended to ensure financial stability and strengthen the operational structure.
Al-Rasheed launches a loan service via "Ki Card" with a limit of 15 million dinars.
The bank's media office clarified in a statement received by {Euphrates News} a copy of it, that: "The service includes employees of government departments and members of the Ministries of Interior and Defense, whose salaries have been domiciled with the bank, noting that the advance amount is equivalent to five salaries and a maximum of 15 million Iraqi dinars."
The bank stated that "applications are made electronically only, via the Rashid Bank app, subject to specific conditions, including that the applicant be no older than 57 years of age."
He continued, "This measure comes as part of the bank's drive towards digital transformation and enhancing access to modern banking services in a safe and fast manner, meeting citizens' needs and keeping pace with developments in the banking sector."
Parliamentary Finance Committee discusses with Taif Sami the evaluation of the three-year budget
The head of the Parliamentary Finance Committee, Atwan Al-Atwani, announced today, Sunday, that the committee will discuss with the Minister of Finance, Taif Sami, the evaluation of the three-year budget.
In a speech during his hosting of the Minister of Finance, Taif Sami, Al-Atwani said, "Today's meeting aims to discuss several topics, as it will witness a review and evaluation of the successes in implementing the budget, which is a new experience." He indicated that "the House of Representatives was very positive in dealing with and interacting with the budget with the aim of creating positive integration."
Al-Atwani confirmed, "During this meeting, the progress of the three-year budget will be quickly followed up and evaluated, and we will shed extensive light on what is related to the budget and the schedules for the year 2025."
Finance Minister: Oil price fluctuations and disputes with the region are behind the delay in submitting budget schedules.
Finance Minister Taif Sami attributed the delay in submitting the budget schedules to fluctuating oil prices and the failure to resolve disputes with the region, considering that this situation hinders the financing of the federal budget.
The Finance Committee said in a statement: "The Minister of Finance reviewed developments in the country's financial situation during her visit to the Finance Committee of the House of Representatives, and presented a detailed presentation that included government revenues, spending, and financing schedules for the years 2023–2025, in addition to plans to reform the banking system, update tax and customs policies, and the domestic and foreign borrowing files."
Sami said, according to the statement, that "the delay in sending the schedules is due to two factors: fluctuations in oil prices and the failure to resolve the disputes with the region," considering that "this situation hinders the financing of the federal budget."
another version
Finance Minister Taif Sami attributed the delay in sending the budget tables to fluctuations in oil prices and the failure to resolve disputes with the region, considering that this situation hinders the financing of the federal budget.
The Finance Committee said in a statement received by Al-Maalouma Agency, “The Minister of Finance reviewed developments in the financial situation in the country during her hosting of the Finance Committee in the House of Representatives and presented a detailed presentation that government included revenues and spending and financing tables for the years 2023-2025, in addition to plans to reform the banking system, update tax and customs policies, and the files of internal and external borrowing.”
Sami said, according to the statement, that “the delay in sending the tables is due to two things: fluctuations in oil prices and the failure to resolve disputes with the region,” considering that “this situation hinders the financing of the federal budget.”
She added, "There is no point in preparing the tables in light of the region's continued failure to pay its financial obligations, in addition to the impact of fluctuating oil prices and accumulated debts on the federal government's financing capacity."
She added, "There is no point in preparing schedules while the region continues to fail to meet its financial obligations, in addition to the impact of oil price fluctuations and accumulated debts on the federal government's financing capacity."
Iraq is among the "richest Arab countries," but its wealth is far removed from the "realities of the people" - Urgent
Despite recently being ranked among the richest Arab countries in terms of resources and revenues, the Iraqi economy remains stuck between the duality of "wealth" and "mismanagement." This gap exists between GDP figures and the reality of citizens, who live under the burden of faltering services and unequal distribution of wealth.
In this regard, economic expert Rashid Al-Saadi confirmed today, Sunday (July 20, 2025), that Iraq's inclusion on the list of the richest Arab nations is an indicator of an improvement in some general economic indicators, but it does not necessarily mean that this wealth is reflected in the lives of citizens or their level of well-being.
Al-Saadi told Baghdad Today, "Iraq's position among the richest Arab nations indicates an improvement in the general economic indicators commonly used to determine the wealth of countries or peoples, such as per capita GDP, an indicator used to measure average income. Iraq also possesses one of the largest oil reserves in the world, which enhances its economic potential."
For decades, Iraq has been ranked among the most capable oil-producing countries in terms of natural reserves and wealth. However, this ranking often clashes with the realities of administrative and financial corruption and weak economic diversification. These factors have thus far prevented these resources from being translated into a standard of living commensurate with the country's capabilities.
He added, "Iraq's ranking among the richest nations does not necessarily mean that all citizens live in luxury. Rather, the country possesses significant resources and capabilities that enable it to achieve significant economic growth. However, these riches do not always directly reflect on people's lives unless genuine reforms are adopted that ensure transparency and integrity in the management of public funds and combat administrative and financial corruption, which is one of the greatest obstacles to development."
Al-Saadi explained that "the Iraqi economy is in dire need of diversifying its sources of income. Over-reliance on oil makes the economy vulnerable to global market fluctuations. This requires supporting other sectors, such as agriculture, industry, tourism, and information technology, to ensure sustainable growth and achieve balanced development."
Al-Saadi concluded his remarks by saying, "Iraq's ranking among the richest nations represents an opportunity and a positive sign for the future of the national economy, but it alone is not enough. The real challenge lies in translating this wealth into a tangible reality that reflects the well-being of citizens through sound governance, clear development plans, and a long-term strategic vision that achieves stability and sustainable growth."
Economic visions agree that international rankings do not necessarily reflect the well-being of people. Rather, they are sometimes linked to raw figures, such as gross domestic product and energy reserves, without considering how these resources are managed or their actual impact on citizens' lives.
Parliamentary Finance: Deficit behind delay in 2025 budget schedules
Parliamentary Finance Committee Chairman Atwan al-Atwani confirmed on Sunday that hosting Finance Minister Taif Sami aimed to assess the implementation of the three-year budget, noting that the financial deficit is behind the delay in submitting budget schedules.
Al-Atwani said in a statement following the hosting of Finance Minister Taif Sami, "The minister explained during the meeting that the government has numerous obligations in the operating budget, as well as in the investment budget. We in the Finance Committee look forward to the 2025 budget schedules being submitted to Parliament this year."
He added, "The meeting aims to conduct a rapid assessment of the implementation of the three-year budget and identify the shortcomings," noting that "the increasing deficit is the real reason behind the delay in sending the budget schedules."
He added, "The Minister of Finance indicated that the ministry and other ministries are still studying the issue of addressing the financial deficit resulting from increased investment spending."
He continued, "To date, there has been no comprehensive study of the size of spending and revenues to determine and define the deficit ceiling. The Ministry of Finance is still studying how to address the deficit resulting from spending and what new commitments have been included in the budget."
He pointed out that "the government is working on analyzing the ministries' data to ensure that there are real figures in the budget tables."
After hosting the Minister of Finance
Al-Atwani reveals a condition for sending the region's salaries and the date for the budget's arrival to the House of Representatives.
The head of the Parliamentary Finance Committee, Atwan Al-Atwani, revealed today, Sunday, July 20, 2025, important details regarding the salaries of the Kurdistan Region, the date for sending the 2025 budget tables to the House of Representatives, and some of its details.
Al-Atwani said in a press statement to various media outlets following the committee's hosting of Finance Minister Taif Sami today at the committee's headquarters in the House of Representatives, that: "The meeting that brought together the committee and the Minister of Finance focused on the 2025 budget items, in terms of expenditures, revenues, and financing, in addition to "the existing shortcomings in the governorates' payment of obligations."
Following the meeting, he added, "The reason for the delay in the 2025 budget schedules was discussed. Many employees have complained about not receiving their dues, including bonuses, promotions, and transfers, and the focus was on this particular detail."
He explained, "We hope that the budget schedules will be released this year, after a delay of months, given that Article 77/Second obligated the government to submit the budget schedules before the end of 2024, and we are now in the seventh month."
Al-Atwani continued, "The Ministry of Finance, along with other ministries, is still studying the issue of addressing the potential deficit resulting from increased investment and government spending. We can expect these schedules to arrive in the coming months so that they can address many of the problems, especially those related to governorate funding."
Regarding the Finance Minister's assurances regarding the submission of budgets this year, he noted that the committee "looks forward to the Ministry of Finance receiving the budget in the eighth month or within the coming months."
Regarding the deficit ratio, Al-Atwan explained that, "In reality, expenditures and revenues have not yet been thoroughly studied to determine the deficit," noting that "the deficit that could accompany the 2025 budget is perhaps what has delayed the schedules so far." He emphasized that "the Ministry of Finance is studying and analyzing data from ministries and governorates to ensure that there are real and accurate figures for the 2025 budget and schedules."
Regarding the salaries of Kurdistan Region employees, he confirmed that "the Ministry of Finance will finance the salaries of the Kurdistan Region as soon as there is a commitment to the agreement between the two parties, the Kurdistan Regional Government and the federal government," noting that "the region must commit to paying and implementing these items, as well as what relates to non-oil revenues, as well as delivering oil to the State Oil Marketing Organization (SOMO)."
He added, "After this agreement is implemented, the Ministry of Finance will begin funding the region's salaries."
Regarding cash flow and the crisis associated with its availability, the head of the parliamentary finance committee said, "Today's oil sales are sufficient to cover employee salaries. However, the irregular flow of this cash flow may create some delays. However, the existing revenues are sufficient to cover employee salaries, whether in the region or in the federal government."
Parliamentary Finance Committee: The government has not prepared budget schedules, and the agreement with Kurdistan is subject to challenge.
Member confirmedFinance CommitteeParliamentaryMohammed Nouri, thatFederal GovernmentIt has not shown any serious intention yet to send the budget tables toHouse of RepresentativesMeanwhile, the recent agreement to deliver 230,000 barrels of oil from the region to the federal government was deemed to lack legal basis.
Regarding the agreement Federal GovernmentwithKurdistan RegionNouri revealed the formation of a joint committee between the two parties to discuss the mechanism for delivering oil and non-oil revenues from the region to...BaghdadIn exchange for releasing employees' salaries, he pointed out that the basic condition is for the region to hand over 120 billion dinars as a first installment, out of amounts exceeding half a trillion dinars to secure the disbursement of monthly salaries amounting to more than 190 billion dinars.
Nouri stressed that "the recent agreement regarding the delivery of 230,000 barrels of oil per day from the region to the federal government is a political agreement that lacks legal cover, and is not based on what was voted on in the budget tables, stressing that the Finance Committee will appeal it beforeFederal Court.
Economist: The preparation of the 2026 budget may be delayed until the middle of next year due to the elections.
Economic expert Nabil Al-Marsoumi predicted on Sunday that the preparation of the 2026 budget will be delayed until the middle of next year due to the elections.
Al-Marsoumi said in a Facebook post followed by (IQ): "Fluctuations in oil prices and the dispute with the region prevent the budget tables from being sent to parliament," stressing that "oil prices have never been stable and the dispute with the region is old and has been going on for 15 years."
He added: "Lazy excuses reveal the unwillingness to send the tables," noting that "this is one of the bitter fruits of the three-year budget: no bonuses, no promotions, no contract confirmations, and no change in job titles without approving the tables."
He noted that "the biggest problem is that the preparation of the 2026 budget may be delayed until the middle of next year due to the elections and the long period of time required to form the next government."
He concluded his post by saying: "Bring Layl and take his rebuke."
Parliamentary Oil Committee: Oil and Gas Law Suspended for Political Reasons Related to Kurdish Terminology
Member of the Parliamentary Oil and Energy Committee, MP Ali Mashkoor, confirmed on Sunday that the oil and gas law is suspended for purely political reasons related to Kurdish terms that are to be included in its provisions.
Mashkoor said in a televised interview followed by (IQ): "Even the oil and gas law is suspended, not for technical reasons, but for purely political reasons related to Kurdish terms that are to be included in the law."
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Iraqi top court rejects lawsuits against major US-KRG energy deals
Iraq’s Federal Supreme Court on Sunday dismissed two lawsuits seeking to overturn major multibillion-dollar oil and gas contracts signed in May between the Kurdistan Regional Government (KRG) and two American companies, Western Zagros and HKN Energy.
The deals, aimed at developing the Miran and Topkhana gas fields, have drawn criticism from Baghdad. The court rejected both cases, with one being “annulled” and the other “dismissed,” meaning the contracts remain valid and enforceable, it said in a statement.
The lawsuits were filed separately by Iraqi lawmakers Raed al-Maliki and Bassem al-Gharibawi, who argued the agreements violated the Iraqi constitution and posed a threat to “public funds and property.” The court, however, found the claims legally unsubstantiated and did not rule in favor of nullifying the deals.
American firms HKN Energy and WesternZagros signed two major oil and gas deals in May worth $110 billion over their lifespans in the Kurdistan Region. The deals were signed during Prime Minister Masrour Barzani’s visit to the US.
The deals - while welcomed by Erbil and Washington - prompted a lawsuit from the federal oil ministry, which claimed the contracts violated federal court rulings and the Iraqi constitution. The KRG defended the agreements as extensions of existing contracts that benefit all of Iraq.
The complainants further demanded that the Kurdistan Region be prohibited from signing any oil and gas contracts without the consent of the federal government, according to the top court.
The deals align with the KRG’s Runaki initiative - meaning “light” in Kurdish - which aims to provide 24-hour electricity across the Region by the end of 2026. The program has already been launched in several cities and neighborhoods.
The Chairman of the Securities Commission stresses the importance of economic diplomacy in revitalizing bilateral relations.
The Chairman of the Iraqi Securities Commission, Faisal Al-Haimus, stressed on Sunday the importance of economic diplomacy in revitalizing bilateral relations.
The Commission stated in a statement received by the Iraqi News Agency (INA), that "the head of the diplomatic mission, Mohammed Redha Al-Husseini, received Faisal Al-Haimus, Chairman of the Iraqi Securities Commission, at the Iraqi Embassy in the Lebanese capital, Beirut, as part of an official visit aimed at enhancing joint cooperation in the fields of investment and financial markets."
The Commission added that "during the meeting, ways of cooperation between Iraqi financial institutions and their Lebanese counterparts were discussed, and new horizons for joint coordination were opened regarding the exchange of experiences and the development of investment tools, in addition to highlighting the reforms implemented by the Iraqi Securities Commission to enhance transparency and investor confidence in the Iraqi financial market.
" The Chargé d'Affaires praised "the effective role played by the Commission in developing the investment environment in Iraq," expressing "the embassy's readiness to provide the necessary support to facilitate bilateral cooperation with relevant Lebanese authorities."
For his part, the Chairman of the Commission appreciated "the warm welcome, stressing the importance of economic diplomacy in supporting development goals and revitalizing bilateral relations in the financial and investment fields, in a way that serves the common interests of the two brotherly countries."
The World Gold Council expects the precious metal to rise by 5% this year.
The World Gold Council forecast on Saturday that gold prices will rise by 5% in the second half of 2025.
The council stated in a report reviewed by Shafaq News Agency that gold continued its record rise, rising 26% in US dollars in the first half of 2025, achieving double-digit returns across various currencies.
He added that the weak US dollar, limited interest rates, and a highly uncertain geoeconomic environment led to strong investment demand.
The council expects gold prices to rise by an additional 0% to 5% in the second half of 2025. However, economic performance rarely matches expectations. What if economic and financial conditions deteriorate, exacerbating inflationary pressures and geoeconomic tensions?
He pointed out that demand for safe havens increases significantly in times of geoeconomic uncertainty, pushing gold prices up by 10% to 15%.
On the other hand, a widespread and sustainable resolution of conflicts—something that seems unlikely under current circumstances—could cause gold to lose between 12% and 17% of its gains this year.
Next Friday, Tehran agrees to a new round of negotiations with the European Troika in Istanbul.
Iranian television reported that Tehran has agreed to hold a new round of negotiations with Britain, Germany, and France in response to a European request.
Iranian television indicated that "according to indications, the new round of negotiations with the three European countries will be held next Friday in Istanbul."
It explained that "the negotiations with the Europeans will be held at the level of deputy foreign ministers and will address the nuclear program."
Iraq is the second largest importer from Iran.
Iranian Customs announced statistics on its non-oil trade, confirming that it generated billions of dollars in profits during the first quarter of this year. Iraq ranked second among the world's largest importers of Iranian goods.
Statistics released by Iranian Customs show that the total final non-oil exports in the first quarter of this year, according to the Iranian calendar (beginning March 20, 2025), reached $11 billion and 655 million.
Iran's official news agency, IRNA, reported, citing official statistics from the Customs Administration, that "the country's non-oil exports in the first three months of this year amounted to 34 million 347 thousand tons, worth $11 billion 655 million, while the volume of imports amounted to 9 million 13 thousand tons, worth $13 billion 29 million."
The report indicated that China topped the list of countries importing from Iran, with a volume exceeding $3.511 billion, representing 30.12% of the total value of exports. Iraq followed with $1.905 billion, representing 14.32% of the total value of exports.
The UAE came in third place with $1.592 billion, representing 13.44% of the value of exports. Turkey came in fourth place with $937 million, representing 8.02%, followed by Afghanistan with $510 million, representing 4.38% of the total value of Iranian exports.
Security Expert Predicts U.S. Strikes on Iraq's Militias After Drone Attacks on KRG Oil Infrastructure
An Iraqi security expert predicts imminent U.S. strikes on militias behind drone attacks on Kurdistan's energy sector and U.S. interests. He states the groups miscalculated, threatening global security, while the KRG has previously accused Baghdad of evading responsibility for the attacks.
An Iraqi security and military expert has issued a stark prediction that retaliatory attacks will be carried out against armed groups in Iraq in the "coming days," asserting that their persistent drone assaults on the Kurdistan Region's energy sector and American interests are a grave miscalculation that threatens global security and is likely to provoke a forceful response. The expert’s analysis comes amid long-standing criticism from the Kurdistan Regional Government (KRG) directed at the Iraqi federal government for what it describes as an "evasion of responsibility" in securing the Region from such threats.
In an exclusive interview with Kurdistan24, Ahmed Sharif, an Iraqi security and military expert, stated unequivocally that the origin of the sophisticated weapons used in these repeated attacks is no mystery to security officials.
“The source of these drones is clear—where they are made and from where they are directed at the energy sources of the Kurdistan Region and at American interests,” Sharif said, adding that “it is clear who manufactures the drones and who has supplied them to the armed groups that target American interests.”
Sharif contextualized these attacks within the framework of the Iraqi federal government's international commitments. He pointed to promises made by the administration of Prime Minister Mohammed Shia al-Sudani to Washington and the international community, suggesting the ongoing assaults represent a significant breach of those undertakings.
“One of the promises the Sudani government made to America and the United Nations is to protect Iraq's neutrality in regional conflicts, while also safeguarding shared strategic interests with America,” the expert explained. He stressed that the implications of the attacks extend far beyond their immediate targets. “The drone attacks don't just target America; we are talking about energy sources, and this is an integral part of the conflicts that threatens the stability of the people.”
According to Sharif, the armed factions responsible for launching these drones are operating under a dangerous illusion if they believe their actions will compel a U.S. withdrawal from Iraq. He argued that the strategic nature of the targets—critical energy infrastructure—elevates the issue to one of international importance, making a kinetic response from the United States more, not less, likely.
“Attacking energy sources is a threat to global security,” Sharif stated. “Therefore, in my view, it is a mistake for the armed groups to believe that attacking America will force it to leave Iraq. Instead, it is likely that America will attack the armed groups; we predict this for the coming days.”
This expert prediction lands on fertile ground of frustration previously expressed by officials in the Kurdistan Region. The KRG’s Ministry of Interior has publicly criticized the federal authorities in Baghdad for their perceived inaction and failure to prevent the recurring security breaches against the Region.
In a prior clarification statement, the ministry outlined its expectations for a sovereign federal government, noting that when threats emerge, action should be swift and decisive.
“When threats arise against the Kurdistan Region or any other part of Iraq, the expectation from the relevant federal authorities is for them to take necessary measures, prevent the recurrence of threats, and punish the perpetrators,” the ministry’s statement read.
However, the KRG conveyed a deep sense of abandonment and suspicion regarding Baghdad’s handling of the security file, accusing the federal government of failing to fulfill its constitutional duties to protect all parts of the country.
“However, unfortunately, we sense a kind of cover-up and evasion of responsibility regarding the security violations being committed against the Kurdistan Region,” the statement concluded.
The convergence of this ongoing political friction between Erbil and Baghdad with the expert forecast of imminent military retaliation highlights a volatile and precarious security dynamic. As armed groups continue to leverage drone technology to strike at the heart of the Kurdistan Region's economy and at U.S. assets, the potential for a significant escalation that could draw in international forces appears to be growing, placing further strain on Iraq’s fragile stability.
Drone Attacks a 'Fatal Mistake,' Washington Will Respond: Former Top U.S. Army Official
link until I fix it here is the link to Joe Reeder https://www.youtube.com/watch?v=IojsJVqMX9c
Former US Army official Joe Reeder warns of "severe consequences" for drone attacks on Kurdistan by Iranian-backed militias, calling it a 'fatal mistake.' He says a US military and sanctions response is coming and urges Baghdad to honor the oil-for-salary deal and be realistic about delays.
A former top Pentagon official has issued a stark warning that the United States will respond to the recent drone attacks in the Kurdistan Region, calling the actions by Iranian-backed militias a "lethal, fatal mistake" and forecasting "very, very severe" consequences that will include both military action and sanctions.
In an exclusive interview with Kurdistan24 on Sunday, Joe R. Reeder, a former U.S. Under Secretary of the Army from 1993 to 1997 and who has represented Kurdish interests in Washington, stated unequivocally that the perpetrators should expect a forceful and deliberate American response.
“The terrorists, and they they are terrorists, who have grown attacked, need to understand, that, we will respond,” Reeder said. “I think the terrorists made a lethal, fatal mistake, but we will respond at a time of our choosing. And I think the response they can count on it will be military, and it will be sanctions as well.”
Reeder identified the culprits as “Kataib Hizballah and and other terrorist US designated terrorist groups,” noting that two U.S. companies were victimized in the recent assaults. He highlighted the devastating nature of the attacks, which utilized "Iranian created drones" with warheads of about 17 pounds.
The former official directly linked the timing of the attacks to the sensitive oil-for-salary negotiations between Erbil and Baghdad. He observed that once an agreement was reached, "the drone stopped." However, he stressed the real-world impact of the damage on the KRG's ability to fulfill its end of the bargain.
“The devastation of those drone attacks is inexcusable. Obviously, now that oil needs to be produced, but the damage done is gonna slow that up a little bit,” he explained. “It's going to take a few days to get the oil companies back producing the barrels of oil that were impeded by the drone attacks.”
Reeder insisted that Baghdad must be realistic about this delay. “The most important thing, I believe, is to ensure that the agreement on the table is honored and also to ensure that those in Baghdad understand that the damage done to the oil fields is such that being able to go back to the 450,000 barrels before, it's gonna take a a little bit of time,” he said.
The warning of repercussions was not limited to the militias alone. Reeder suggested that sanctions could extend to government officials in Baghdad who fail to control these groups.
“There should be, and I believe there will be serious sanctions. And those sanctions, can go all the way to the, those people in, responsible in government, who don't take the appropriate action,” he stated. He added that those in Baghdad with "uncomfortable relationships, close relationships" with the militias need to understand "that they are going to pay consequence also, if these militias are allowed to run wild."
Reeder expressed his confidence that the Biden administration would act decisively. “Based on the past, I am quite confident there will be consequences, serious consequences,” he said, suggesting the response would be even stronger than previous retaliatory actions.
The economic stakes of the attacks are high, not only for the Kurdistan Region but also for the United States. Reeder noted the significant American business interests in the region, which he quantified at approximately 110 billion dollars. "So we have a a common interest," he said. "And, the United States Department of Commerce encouraged those agreements. And, so it's going to be very important that these oil companies are able to operate safely and efficiently."
Addressing the Kurdistan Region’s defense vulnerabilities, Reeder acknowledged the need for better air defense systems to counter the drone threat. While stating he was “not at liberty to get into specifics about deployment of equipment,” he affirmed the importance of the issue. “I'm quite confident that, we're working so closely together that, that this will get remedied,” he said, acknowledging that air defense mechanisms are an "important piece of that."
For any investigation into the attacks to be credible, Reeder stressed the necessity of Kurdish participation. “The investigative body, needs to include, Kurds. It doesn't have to be dominated or led by Kurds, but it needs to include, Kurds to have any credibility,” he said.
Ultimately, he argued that the stability of Iraq hinges on Baghdad’s respect for the Kurdistan Region’s rights and safety. “Those in in in Baghdad, they don't have to love the Kurds the way I love the Kurds. Okay? But they have to respect them, and they have to hold sacred, safety and and, and their livelihoods,” he asserted. “And, otherwise, Iraq is not functioning. That's very important.”
We Will Not Give Up Our Constitutional Rights,' Says PM Barzani
PM Masrour Barzani blamed Baghdad and some political parties for the salary crisis, revealing he agreed to a new oil-revenue deal that was derailed by drone attacks and shifting demands. He urged Baghdad to stop the "collective punishment" and respect the Kurdistan Region's constitutional rights.
Prime Minister Masrour Barzani on Sunday delivered a frank and detailed account of the ongoing salary crisis, revealing he had personally agreed to a new oil-and-revenue-for-salaries deal with Baghdad, only for the federal government to create new "excuses" and conditions complicated by recent drone attacks on the Region’s oil fields.
In a direct address to the citizens of the Kurdistan Region during the inauguration of the Erbil Emergency Rapid Water Project, the Prime Minister laid bare the KRG's position, placing blame on both internal political parties for initiating the crisis and on the federal government for perpetuating it through a cycle of broken promises and what he termed "collective punishment."
"I know the people of Kurdistan are waiting to know when their salaries will be sent from Iraq. Here, I want to speak frankly with the people of Kurdistan," the Prime Minister began, setting the stage for an unvarnished explanation of the protracted dispute.
He asserted the Kurdistan Region's constitutional right to manage its own budget as a federal entity. However, he stated that this right was undermined from within. "Unfortunately, it was internal parties here who filed complaints and demanded that Baghdad directly interfere in the affairs of distributing the budget and salaries of the Region," he said.
Prime Minister Barzani challenged those parties directly, recalling their previous assurances to the public. "They said that if salaries were returned to Baghdad, we would no longer have a problem with non-payment... At that time, they blamed the KRG and said the Iraqi government was the solution and the savior," he recounted. "I don't know where those voices are now. Why are they silent? And if they speak now, they make excuses for why the Iraqi government is not currently sending salaries, and why it is punishing the people."
He described a frustrating pattern of negotiations, where repeated KRG delegations to Baghdad would secure promises of a resolution, only for new delays to emerge. "It wouldn't last a month or two before a new excuse would delay the salaries again," he said, noting that justifications would shift from "technical problems" to accusations that the KRG was not handing over oil or revenue.
The Prime Minister firmly stated the KRG's adherence to the constitution regarding revenues. "Our understanding of handing over internal revenue is according to the constitution. The constitution says 50% of federal revenues [collected in the region] should be handed over to the federal government," he explained, adding that the KRG has always fulfilled this duty except when Baghdad's failure to send salaries forced them to use internal funds to supplement payroll.
He characterized Baghdad’s demands as an attempt to strip the Region of its autonomy. "They say you shouldn't have any kind of revenue at all... 'Hand over everything you have to us,' so that we cannot implement these kinds of projects," he stated. "But we have a constitution, and we have constitutional rights... we are not prepared to relinquish our constitutional rights."
The Prime Minister then revealed the specifics of the most recent high-stakes negotiation, which involved a joint delegation from the Kurdistan Democratic Party (KDP) and the Patriotic Union of Kurdistan (PUK). He recounted a direct phone call with PUK President Bafel Talabani and Iraqi Foreign Minister Fuad Hussein, who presented him with a final proposal from Baghdad.
"They said, 'We have had intensive discussions with all parties on this proposal... we would like you to agree to this deal so that no one has any more excuses, and these people can be relieved of this pressure,'" the Prime Minister recalled. "I said, 'Okay, on my honor, I agree to hand over 230,000 barrels of oil to the federal government to be sold through SOMO, and to hand over 120 billion dinars of non-oil or internal revenue to the federal government.'"
However, this agreement was immediately complicated by external events and a new condition from Baghdad. "We accepted the duties that were upon us, but that was also concurrent with the attacks on the oil fields via drones," he said. He explained that he raised the issue that the drone attacks would reduce the available oil for export, expressing his hope this would not become another excuse.
"After we agreed to the deal and signed the proposals based on that understanding, they added another point... The point that salaries will not be paid until the 230,000 barrels are received," he revealed, highlighting the impossible situation. "On the other hand, those terrorists come and blow up our fields and stop oil production. Well, how can it be done?"
He confirmed that a federal delegation visited the fields to assess the damage and submitted its report to Baghdad on Saturday, confirming that only a limited amount of oil is currently available.
Concluding his detailed explanation, Prime Minister Barzani put the onus squarely back on the federal government. "We are now waiting for Baghdad, and we hope they will finally send the salaries of these people, and that this collective punishment will end, and this unconstitutional and illegal decision to cut the salaries of the people of Kurdistan will end."
The dollar...a new decline against the dinar in Iraq - Urgent
The dollar exchange rate recorded a new decline against the dinar, on Sunday evening (July 20, 2025), across the country.
According to local exchange rates, the exchange rate for one hundred dollars this evening was:
Baghdad: 139,900 dinars (sale), 139,750 dinars (purchase).
Erbil: 139,725 dinars (sale), 139,550 dinars (purchase).
Basra: 139,900 dinars (sale).
Nineveh: 139,850 dinars (sale).
Sulaymaniyah: 139,700 dinars (sale).
The exchange rate of the US dollar against the Iraqi dinar fell in local markets on Sunday morning, reaching 141,250 dinars for sale and 139,250 dinars for purchase at Baghdad's exchange offices.
Exchange rates were recorded atBaghdadWhat is the following:
Selling price: 141,000 Iraqi dinars for $100
Buying price: 139,000 Iraqi dinars for $10
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