Counterfeit Iraqi Dinars: Central Bank Hosts Workshop
The Central Bank of Iraq (CBI) has held a three-day training workshop in Erbil on the "Core Standards for Detecting Counterfeit Currency," in collaboration with its branch office in the Kurdistan Region.
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Organised by the CBI's Banking Studies Center, the workshop runs from 1st to 3rd July 2025 and includes participation from both public and private banks.
Key topics include procedures for handling and replacing banknotes, as well as counting and sorting mechanisms, in accordance with the amended Central Bank Law No. 56 of 2004.
Source: Iraqi banks rebel against the Central Bank and pay salaries despite sanctions!
In a dangerous development that could herald a domestic financial crisis, an informed source revealed to Al-Mustaqillah on Thursday that the Central Bank of Iraq has issued strict directives to a number of Iraqi banks, including halting the payment of salaries to some government institutions in the coming period. This is due to US sanctions imposed on some Iraqi financial institutions and the expiration of the deadline Washington had granted Iraqi banks to rectify their situation.
According to the source, the Central Bank warned of the repercussions of ignoring these sanctions, especially after the end of the grace period granted by the US Treasury Department to Iraqi banks to settle their transactions and avoid potential sanctions. However, the source noted that some banks—both private and government—did not comply with the Central Bank's directives and insisted on disbursing salaries to specific government institutions, a move described as a "direct and stubborn challenge" to the directives of the country's supreme monetary authority.
This escalation between the Central Bank and some banks raises serious questions about Iraq's compliance with international sanctions and the ability of its financial institutions to maintain monetary stability amid mounting political and economic pressures. This situation also raises employees' concerns about delayed salaries and the potential for the crisis to expand in the event of escalating sanctions or new US measures that could affect other accounts and banks.
While the Central Bank remains silent on these leaks, observers believe that Iraq is entering a critical phase in its engagement with the international financial system, particularly with the increasing reports of money being smuggled to banned entities and the involvement of some banks in suspicious financial transactions.
Will we soon witness an open confrontation between the Central Bank and the "rebellious" banks? Will salaries be paid? Or will US sanctions turn the tables on everyone?
America is tightening Iraq's financial grip with the SWIFT system.
Economic expert, Faleh Al-Zubaidi, confirmed today, Thursday, that the United States of America is using the global financial transfer system “SWIFT” as a tool for political and economic blackmail, exploiting its dominance over the international financial system to impose pressure on countries that do not align with its interests, most notably Iraq.
Al-Zubaidi said in a statement to /Al-Maalouma/ Agency, that “the SWIFT system is used for global bank transfers, but it is actually subject to American control, which makes it an effective tool for punishing countries that deviate from the American line.”
He pointed out that "Iraq is now on the list of countries targeted by the policy of hidden financial sanctions, in order to impose American dictates on its government."
He added that "the severe restrictions Baghdad is suffering from in international financial transactions fall within the policy of economic pressure, and it is a repetition of what happened with Russia, Iran and China.
" Al-Zubaidi warned that "the continued American control over SWIFT poses a direct threat to Iraq's financial security and economic autonomy." End
The financial inclusion rate in Iraq exceeded 46%.
The Iraqi Private Banks Association noted the success of the basic requirements for implementing advanced standards in combating money laundering, based on the principle of knowing the customer and the sources of their funds.
In a press interview, Wadih Al-Handhal, head of the association, said, "The Central Bank of Iraq is moving forward in implementing compliance standards and enhancing financial inclusion in the banking sector. The Association of Banks also supports ongoing awareness-raising efforts on financial inclusion."
He added, "The Middle East and North Africa Financial Action Task Force (MENAFATF) has transformed Iraq from a grey zone to a monitoring zone, which is true evidence that Iraq has made significant progress in enhancing financial inclusion and combating money laundering and terrorist financing."
He explained, "The need for legal legislation still exists, and we must move forward in the field of human cadres training to keep pace with the rapid digital and technological transformation in the world."
Regarding the financial inclusion rates achieved by Iraq, Al-Handhal pointed out that, “according to international standards, the current financial inclusion rate in Iraq has exceeded 46% compared to previous years, which is a very significant progress with which we seek to achieve a rate of 90-95% in cooperation with the Central Bank in the near future. The Arab Monetary Fund is also very satisfied with this rate and is monitoring the growth of the banking sector. It considers that Iraq is implementing financial inclusion through a sound mechanism that has contributed to Iraq’s progress in ranking ahead of other countries.”
The Central Bank of Iraq announces a decrease in domestic debt.
The Central Bank of Iraq announced today, Thursday, a slight decrease in domestic public debt by the end of April 2025.
The bank stated in an official statistic that "Iraq's domestic public debt fell at the end of April of this year to 85 trillion and 503 billion Iraqi dinars, down from 85 trillion and 536 billion dinars in March."
The bank added that "the decline was a result of repayments of loans to financial institutions, which reached $19 trillion and 119 billion, down from $19 trillion and 152 billion."
He pointed out that "the remaining debts are owed by the Ministry of Finance, amounting to 756 billion dinars, and treasury transfer debts at the Central Bank and commercial banks, amounting to 51 trillion and 30 billion dinars, in addition to treasury transfers on behalf of the Ministry of Finance amounting to 2 trillion and 30 billion dinars, and national term debts due to farmers amounting to 12 trillion and 568 billion dollars."
Iran provides 200,000 Iraqi dinars to each pilgrim during the Arbaeen pilgrimage.
The Central Bank of Iran announced on Thursday that it will provide 200,000 Iraqi dinars to every Iranian pilgrim traveling to Iraq for the Arbaeen pilgrimage.
The bank's public relations director, Mustafa Qamariova, said in a statement reported by Tasnim News Agency that "the bank will soon begin distributing the Arbaeen currency, in accordance with the policies followed in recent years."
Qamariova explained, "This year, the Central Bank will also, in accordance with its policy over the past years, provide local Iraqi currency to Arbaeen pilgrims."
He confirmed that "the necessary preparations have been completed, and details and mechanisms for the exchange and sale of the currency (200,000 Iraqi dinars for each visitor) will be announced soon through the electronic systems of the designated banks."
Every year, thousands of Iranians travel to Iraq to participate in the Arbaeen pilgrimage of Imam Hussein (peace be upon him), through land and air border crossings.
The Parliamentary Finance Committee does not know the reasons for the "government ambiguity" regarding the budget schedules file.
Last Sunday, June 29, 2025, Parliamentary Finance Committee Chairman Atwan al-Atwani called on Prime Minister Mohammed Shia al-Sudani to "expedite" the submission of the 2025 budget schedules.
A document issued by Al-Atwani to the Prime Minister stated: "We reiterate our commitment to expediting the submission of the 2025 budget tables to the Iraqi Parliament for approval, signaling the start of legal government spending and disbursements, and enabling state institutions to fulfill their obligations, particularly with regard to releasing employee entitlements (bonuses, promotions, and transfers), and addressing the demands of segments awaiting inclusion of their rights in this budget."
Parliamentary Finance Committee member Mustafa Al-Karawi previously told Al-Jabal that "the government, from the outset, was not serious about sending the 2025 budget tables to Parliament for a vote. This was due to a lack of funds to finance this budget through projects and other means, especially since it has not yet disbursed the 2023 and 2024 budget funds due to this shortfall."
Prior to this, Iraqi parliament member Hadi Al-Salami announced filing a formal legal complaint against the government for delaying the submission of the 2025 state budget schedules.
In a video clip during a visit to a nursing home in Baghdad, he pointed to the poor living conditions of the elderly, their low income, and the budget's cessation for 10 months due to the delay in submitting the budget. He explained that "there is negligence and neglect that the Council of Ministers and the Ministry of Finance are responsible for. We are proceeding with our oversight measures, and we have full hope in the Iraqi judiciary."
An official letter addressed by the Public Prosecution Office of the Iraqi Supreme Judicial Council to the office of Finance Minister Taif Sami, dated June 3, 2025, and published on Monday, June 23, 2025, revealed a previous official complaint filed by MPs Hadi Al-Salami and Mohammed Jassim Al-Khafaji against the Ministry of Finance in this regard.
At the end of last May, Moeen Al-Kadhimi, a member of the Iraqi Parliament's Finance Committee, revealed government efforts to submit the 2025 budget tables to Parliament. He expected the tables to be submitted to Parliament in mid-June.
Al-Kadhimi told the Al-Jabal platform, "We have received information that the Ministry of Finance, along with the Ministry of Planning, is preparing budget tables for 2025 based on recent financial and economic changes with the decline in oil prices. We expect these tables to be sent in mid-June," which has not happened.
Prior to that, during a meeting with the head of the Parliamentary Finance Committee, Atwan Al-Atwani, Al-Sudani emphasized "the government's commitment to ensuring that the budget includes its priorities in implementing its schedules, in order to complete the government program's components, particularly those related to providing services and completing projects, to fulfill the aspirations of citizens in all Iraqi governorates."
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Source: Al-Maliki met with a delegation from the Sadrist movement last night, Wednesday.
Despite the deep disagreement between Iraq's two most prominent leaders—Nouri al-Maliki, head of the State of Law Coalition, and Muqtada al-Sadr, leader of the Shiite National Movement—the ice between them has begun to break, according to a source close to both sides.
The source told the "Eshan" platform, "Al-Maliki met last night, Wednesday, with a delegation from the Sadrist movement to discuss the political process and the requirements of the upcoming parliamentary elections."
This meeting is the first in years of estrangement between Maliki and the Sadrists. The disagreements between them have been prolonged and are perhaps the most significant reason for Sadr and his followers' withdrawal from politics and participation in forming the government.
The Coordination Framework Alliance, which includes the majority of Shiite forces participating in the Iraqi government, is holding indirect negotiations with the leader of the Shiite National Movement, Muqtada al-Sadr, to explore the possibility of the movement's return to political life and participation in the upcoming parliamentary elections, scheduled for November 2025.
Muqtada al-Sadr announced his movement's withdrawal from the political process and its parliamentary bloc, which won 73 seats in the October 2021 elections, due to disagreements with the Coordination Framework forces.
Iraq, Bulgaria sign MoU to Boost Agricultural Cooperation
Iraq's Minister of Agriculture, Dr. Abbas Jabr Al-Maliki, has signed a Memorandum of Understanding (MoU) with his Bulgarian counterpart, Dr. Georgi Tahov, to strengthen cooperation in the agricultural sector.
The official meeting, held in Sofia and attended by Iraq's Ambassador to Bulgaria H.E. Lina Omar, focused on deepening collaboration in livestock development, scientific and technical exchange, and investment promotion.
The agreement lays the groundwork for long-term joint projects aimed at driving economic growth and sustainable development in both countries.
The Bulgarian delegation included Deputy Ministers Ivan Kapitanov and Yanislav Yanchev, alongside senior officials from the Ministry of Agriculture and Food.
In Oslo, Witkoff plans to meet Araghchi to resume nuclear negotiations.
Axios reported that White House envoy Steve Witkoff plans to meet with Iranian Foreign Minister Abbas Araghchi in Oslo next week to resume nuclear talks.
Sources told the website, in a report published and translated by Shafaq News Agency, that no final date has yet been set, and neither country has publicly confirmed the meeting. However, if it takes place, it would be the first direct talks since US President Donald Trump ordered an unprecedented military strike on Iranian nuclear facilities last month .
A White House official told Axios, "We have no travel announcements at this time." The Iranian mission to the United Nations declined to comment.
It is noteworthy that Witkoff and Araghchi were in direct contact during and after the 12-day war between Israel and Iran, which ended with a US-brokered ceasefire, according to the sources .
According to the website's report, "The main issue in any future talks will be Iran's stockpile of highly enriched uranium, which includes 400 kilograms of 60% enriched uranium."
Israeli and US officials say the materials are "currently sealed off from the outside world" inside the three nuclear sites attacked during the joint strikes, and that Iran is currently unable to access the stockpile due to damage from the strikes, but that it could be recovered once the rubble is cleared .
Iran announced earlier this week that it had begun implementing a new law passed by parliament suspending all cooperation with the International Atomic Energy Agency .
Araghchi wrote on Thursday that Iran remains committed to the Nuclear Non-Proliferation Treaty and its safeguards agreement .
US sanctions Iraqi businessman for Iranian oil exports
On Thursday, the US Treasury Department imposed sanctions on a business network allegedly smuggling Iranian oil under the guise of legitimate Iraqi trade.
In a statement, the department said the companies led by Iraqi businessman Salim Saeed had been purchasing and shipping Iranian oil—either disguised or blended with Iraqi crude—since at least 2020, in transactions worth billions of dollars.
The sanctions also target several vessels accused of covertly transporting Iranian oil, as part of what US officials described as a crackdown on Iran’s “shadow fleet.”
In remarks to Fox News on June 29, Trump indicated that sanctions could be lifted if Iran takes constructive steps
The treasury also imposed sanctions on several senior officials and one entity tied to Al-Qard al-Hassan, a financial institution controlled by the Lebanese Hezbollah. According to the department, these individuals facilitated multi-million-dollar transactions that ultimately benefited the group while obscuring its involvement.
Earlier this year, Iraq’s Oil Minister stated in a televised interview that Iran had falsified documents for oil shipments using Iraq’s name to mask the exports, affirming that the government had notified Washington of its non-involvement.
US reviews Iraq radar deal and PM’s warning over strained ties
The US Department of State is reviewing recent statements by Iraqi Prime Minister Mohammed Shia al-Sudani and reports that Baghdad plans to accelerate a radar system agreement with South Korea, a spokesperson confirmed to Shafaq News on Wednesday.
Tammy Bruce, spokesperson for the State Department, said the Prime Minister’s remarks and the radar procurement reports are under assessment. “The Department will review the Prime Minister’s comments and the reported acceleration of the radar agreement with Seoul,” she stated.
Bruce added that Washington would share its official position with Shafaq News within hours.
The comments follow recent developments in Baghdad’s defense policy, with Iraqi lawmakers confirming that negotiations are underway with several countries— including the United States, France, and South Korea— to acquire advanced air defense and radar systems.
According to parliamentary sources, the discussions aim to enhance Iraq’s airspace protection amid rising regional tensions.
In a recent interview with the BBC, Prime Minister al-Sudani reiterated Iraq’s commitment to balanced foreign relations, emphasizing that both Iran and the United States recognize the importance of Iraq’s stability. However, he acknowledged persistent disagreements with Washington, warning that tensions “could reach the point of undermining the relationship.”
Soldiers Bring Electronic Banking to Iraq
Courtesy Photo | Iraqi workers finish the last steps of construction of the Al Warka Bank at... read more
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Iraq may not be ready for PayPal, but with the help of the U.S. Army, the southern Iraqi provinces of Dhi Qar, Maysan and Al Muthanna are moving closer to a cashless system in order to deal with the mounting costs of dealing with cash.
Task Force Pathfinder is increasing its use of electronic funds transfer as a better way to pay local contractors and vendors instead of in stacks of Iraqi dinar. The transactions are part of the unit's role aiding the State Department's Provincial Reconstruction Teams as they build up the Iraqi civilian infrastructure.
Officials are pursuing the change to electronic transfers as a way to save money and reduce the security risks associated with transporting funds. Also, they say, electronic transfers increase public confidence in the Iraqi banking system, which gets a boost with every deposit.
Today, the U.S. Army brings an estimated $42 million in currency into Iraq and Afghanistan monthly, down from $192 million per month this time last year and as much as $400 million a month in 2003. With the development of new banks, including one nearing completion on base here, transferring funds electronically is becoming the preferred method of payment.
When paying for reconstruction projects with hard currency, the cost to the Army is about $32 per payment – nearly all of which goes to security costs -- compared to $2.50 per electronic transaction. Changing to an all-electronic transfer system of payments is expected to save the Army about $20 million annually.
Task Force Pathfinder's paying agents have handled more than $14 million in both dinar and electronic disbursements with local contractors and vendors in Maysan, Al Muthanna and Dhi Qar provinces in the past eight months. Another $21 million is approved and pending future payments for local humanitarian assistance projects. Most of this is to be paid via electronic transfer.
The Army would like to move to electronic money transfers for reconstruction contracts, but it isn't easy convincing Iraqi businessmen that an electronic receipt is going to pay them when they always have received bundles of cash. Contractors need reassurance that the process works. That means both soldiers and program managers must be well versed in the process and understand everyone's responsibility to ensure efficiency.
1st Lt. Andrew King, a disbursing agent with the 33rd Finance Management Company, explained the electronic process.
"We process the [payment] request and send it up within the first 24 to 48 hours,” he said. “Then, Baghdad releases a voucher number. At this point, it takes five to seven days for the payment to reach the contractor's account."
Not only is the finance company a resource, but there also is an EFT Assistance Center, created and funded by the task force to serve as a help desk to stakeholders in Iraq's newly introduced payments system.
Since October 2008, the assistance center has resolved more than 150 payment problems totaling more than $15 million. The center also, provides monthly statistical analysis of the most common electronic payment problems within Iraq, and communicates the causes to Joint Contracting Command-Iraq, Defense Finance and Accounting Service, and other agencies.
The Army is working toward going cashless within the year for contracts with local vendors, Brig. Gen. Phillip E. McGhee, director of resource management for U.S. Army Central Command, said.
As Task Force Pathfinder soldiers continue their efforts to build civil capacity in southern Iraq, "the transition to electronic funds transfers is a welcomed sign of progress that has the added benefit of saving the U.S. government money," added Lt. Col. Mike Eastman, task force commander.
(Army Capt. Randy J. Michael serves with 4th Brigade Combat Team, 1st Armored Division public affairs.)
Story by Army Capt. Randy J. Michael, Special to American Forces Press Service
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Iraq’s Oil Talks: Will This End the Standoff? Long but Goooood
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