For the first time in over a year, the dollar exchange closed at 138,800 in Iraq.
The exchange rate of the dollar against the dinar recorded a significant decline in Iraq on Monday evening (July 21, 2025).
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The exchange rate closed at 138,800 dinars per 100 dollars this evening.
This price has not been recorded by the local stock exchange for more than a year.
The selling price on the two main Baghdad stock exchanges this afternoon was 139,500 dinars for every 100 US dollars.
Parliamentary Finance Committee: The financial transformation must be carefully considered to protect sovereignty and the national currency.
The head of the Parliamentary Finance Committee, Atwan Al-Atwani, stressed on Monday (July 21, 2025) that the financial transformation in Iraq must be carefully considered and precise, to ensure the protection of national sovereignty and the preservation of the national currency.
The committee's media stated in a statement received by Baghdad Today that "this came during its hosting of the Director General of Rafidain Bank, Ali Karim Hussein, to discuss the government's steps aimed at restructuring banks, review the details of the draft contract for establishing the first Rafidain Bank, and study the feasibility of the project."
Al-Atwani said, "The Financial Committee is the body responsible for monitoring the country's financial system, so we are keen to maintain direct knowledge and active participation in the process of restructuring the banking and financial system." He emphasized that "the national currency is the foundation of sovereignty, and the planned financial transformation must be carefully considered to avoid attempts at foreign domination of the banking sector."
He added, "The committee emphasizes the importance of fully automating banking transactions and implementing a comprehensive banking system to provide citizens with the best services, free from red tape and disruption."
The meeting featured several interventions from committee members, focusing on the need to support and develop the work of government banks, and monitoring restructuring steps, contracts, and international entities contributing to newly established banks.
For his part, the Director General of Rafidain Bank reviewed the bank's progress, stating that it currently manages approximately 80% of the country's economic activity and continues to work on automating all its services. He pledged to fully transition to an electronic banking system and eliminate paper transactions within the next two years.
He denied the existence of any "sanctions on Rafidain Bank," noting that "the rumors in this regard are baseless."
?The US has stopped sending cash dollars to Iraq. Is this the beginning of a blockade
Private sources confirmed that the United States has decided to completely halt cash dollar shipments to Iraq, a move described as potentially the beginning of a "financial blockade" on some Iraqi banks involved in currency smuggling and money laundering.
According to a source who spoke to Al-Mustaqilla on condition of anonymity, Washington's
Sudden drop in exchange rate after the decision
Remarkably, the US decision coincided with a significant decline in the dollar exchange rate in the Iraqi market. Experts interpreted this as a natural consequence of the restrictions on the circulation of cash and the prevention of its smuggling abroad. This led to an increase in supply in the local market and a temporary decline in its price.
Government shift towards “legal dollarization”
Separately, a banking source revealed that the Iraqi government has been relying on new mechanisms for disbursing salaries and conducting financial transactions for months. These mechanisms involve legal invoices processed through official banks and digital platforms linked to the global financial system. This is an alternative to the paper dollar shipments previously transported into the country by air.
The source indicated that this step represents a major shift in cash liquidity management in Iraq , making it difficult for suspicious entities to continue smuggling or manipulating the currency market.
Is this the beginning of the storm?
The US decision raises many questions about the future of dollar transactions in Iraq, especially in light of escalating regional tensions and Washington's tightening of financial sanctions. Are we witnessing the beginning of a new phase of international restrictions on the Iraqi economy? Or is this merely a technical measure against some violating banks?
Al-Sudani: The importance of imposing stability and avoiding the causes of expanding conflicts.
Prime Minister Mohammed Shia al-Sudani stressed on Monday to Commander of the US Central Command, Michael Kurilla, the importance of imposing stability and avoiding the causes of the expansion of conflicts.
A statement from his office said, "Prime Minister and Commander-in-Chief of the Armed Forces, Mohammed Shia al-Sudani, received today, Monday, Commander of the US Central Command, General Michael Kurilla, and his accompanying delegation, in the presence of Chargé d'Affaires at the US Embassy, Steve Fagin."
At the beginning of the meeting, al-Sudani welcomed the delegation, which included the new commander of the international coalition forces to fight terrorism in Iraq and Syria, Brigadier General Kevin Lambert, and the former commander of the coalition, General Kevin Leahy. They reviewed cooperation relations between Iraq and the international coalition, the stages of its development, and preparations for the transition to bilateral security relations with coalition countries. They also discussed the work of the Joint High Committee between Iraq and the United States, security cooperation and coordination, and developments in Syria and their repercussions for regional security.
" The Prime Minister stressed "the importance of imposing stability, avoiding the causes of the expansion of conflicts, respecting the sovereignty of states, based on UN charters, international resolutions, dialogues and understandings, and activating diplomatic activities and cooperation to establish security and stability in the region."
A plan to connect the East and West of the world via Baghdad
The Ministry of Planning clarified, on Monday, that the Belt and Road Initiative launched by China is consistent and complementary to the development road project that Iraq has begun implementing, while pointing to a plan to link the Iran-Iraq railway to the Gulf, Eastern countries and Europe.
Ministry spokesman Abdul Zahra Al-Hindawi told the official agency, followed by Al-Eqtisad News: “The Belt and Road Initiative launched by China in 2013 is based on a network of roads and railways that connect the East to the West via main corridors and axes. Iraq is perhaps one of the main axes, taking into account that there is a railway linking China to Uzbekistan, then Pakistan and then Iran within this initiative.”
He added, "There is an idea to link the Iran-Iraq, Turkey, and Syria railway line with the Gulf, Eastern countries, and Europe," noting that "this idea is consistent with and complements the development road project that Iraq has begun implementing."
He explained that, "Under this vision, Iraq is considered an important global transportation hub, both on railways and by road, in addition to the services provided by the railway network, as well as those related to transporting passengers in record times, transporting goods and merchandise, and commercial shipping. This is important for Asian countries, the Levant, and trade with the West, as it saves a lot of time and costs, given that the roads are shortened by passing through Iraqi territory."
An upcoming meeting between Erbil and Baghdad to discuss the mechanism for implementing the salary agreement is scheduled for tomorrow.
Technical delegations representing the Kurdistan Regional Government and the federal government are scheduled to hold their first meeting in Baghdad tomorrow, Tuesday, to agree on a mechanism for implementing the agreement signed between them regarding oil exports, salaries, and local revenues. The aim is to reach an understanding and disburse salaries and financial dues to the region.
On Monday, Al-Jabal platform learned from a government source details of a report prepared by the joint committee between the Iraqi Ministry of Oil and the State Oil Marketing Organization (SOMO), which will be submitted to the Ministry of Oil and Prime Minister Mohammed Shia al-Sudani. The report stated that "the Kurdistan Region currently has an estimated production capacity of less than 81,000 barrels of oil per day."
Last Thursday, a joint technical committee from the Iraqi Ministry of Oil and the State Oil Marketing Organization (SOMO) visited Erbil for four days, visiting the fields that were attacked by drones. The committee also prepared its own report on procedures for resuming oil exports.
The committee stated in its report: "Since the 16th of this month, oil production capacity in the Kurdistan Region has decreased to 81,000 barrels per day due to drone attacks."
One of the points of agreement between Erbil and Baghdad was the allocation of 50,000 barrels of oil per day to meet the region's domestic needs. The Kurdistan Region's production capacity was 280,000 barrels per day before the drone attacks.
Operations at five oil fields have now been halted following drone attacks targeting Kurdistan's energy infrastructure in recent weeks, while operations at other fields have been restricted for security reasons.
Kurdistan asks Baghdad for a deadline to resume oil exports.
Karim told Furat News, "The regional government informed the federal government that the recent drone attacks directly impacted the productivity of the oil fields, causing technical damage that will require time to repair before oil exports can resume."
Karim pointed out that "the federal government remains determined to implement the oil agreement as a condition for the disbursement of salaries, while the regional government believes that additional time is required to repair the pipelines and resume regular exports."
The Council of Ministers, in an emergency session, approved a comprehensive agreement with the region to deliver oil, localize salaries, and audit revenues.
Based on the presentations of the ministerial committee formed under the direction of the Prime Minister during the 27th regular cabinet meeting on July 8, 2025, and its recommendations related to Kurdistan Regional Government Council of Ministers Resolution No. 285 issued on July 16, 2025, appropriate measures were taken and the Council of Ministers decided the following:
First: Oil Delivery File:
- The regional government is committed to delivering all oil produced to SOMO, with a minimum of 230,000 barrels per day, in exchange for a federal advance of $16 per barrel, paid in kind or cash. Any excess production will be added through the Measurement Committee. In the event that exports are halted, the entire quantity will be delivered to the Ministry of Oil.
- 50,000 barrels per day will be allocated for local consumption by the region, with the region committed to paying production and transportation costs. Revenues from the sale of derivatives will be transferred to the federal treasury after deducting costs. If necessary, the Ministry of Oil will supply the region with products not exceeding a refining output of 15,000 barrels per day. The need will be assessed by a joint committee that will submit its report within two weeks to the Council of Ministers.
Second: Non-oil revenues:
- The regional government will deliver 120 billion dinars as an initial payment for non-oil revenues for the month of May, to be settled later after audit. A joint working group will be formed from the Ministries of Finance and the Baghdad and regional audit offices to classify and audit these revenues and determine the federal government's share. Its report will be submitted to the Council of Ministers within two weeks.
- A joint committee between the federal government and the region will be formed to complete the domiciliation of salaries in accordance with the Federal Court's decision. It will complete its mission within three months, and the disbursement of domiciled salaries will be exclusively funded at the end of this period.
- A team will be formed from the Ministries of Finance and the federal and regional audit offices to determine the region's overspending and how to address it according to the 2023-2025 budget law. The team will submit its report to the Council of Ministers within two weeks.
- The Ministry of Finance will begin disbursing salaries to the region's employees for the month of May after the Ministry of Oil and SOMO confirm the receipt of 230,000 barrels of oil per day at the Ceyhan port, in accordance with the law.
- The periods mentioned in this decision will begin from the date of its approval by the Council of Ministers.
A decisive meeting between Baghdad and Erbil next Tuesday to resolve the oil export and salaries issues.
Joint committees between the federal government and the Kurdistan Regional Government are preparing to hold a crucial meeting in Baghdad tomorrow, Tuesday, to agree on a mechanism for resuming the region's oil exports and settling the issue of employee salaries, according to what was announced by MP Ikhlas al-Dulaimi, deputy head of the parliamentary finance committee.
Al-Dulaimi said in a press statement that the meeting, which will be held between the committees of the federal Ministry of Oil and the Ministry of Natural Resources in the region, will discuss a mechanism for exporting approximately 220,000 barrels of oil per day and delivering the revenues to the federal government. This will pave the way for the release of the salaries of the region's employees for last May, estimated at approximately 960 billion dinars per month.
She stressed that the oil agreement between the two parties is still in place, noting that the upcoming meeting will resolve the technical and administrative aspects related to exports, revenues, and salaries.
In simultaneous statements, Kurdistan Regional Government Prime Minister Masrour Barzani stressed his government's readiness to hand over produced oil to the federal government, provided that salaries and the region's share of the general budget are guaranteed.
During the inauguration of the rapid water supply project to Erbil on Sunday, Barzani said, "We have done what was required of us and more, and we are ready to fulfill our constitutional duties, but we refuse to give up our constitutional rights." He added that the federal government informed the last Kurdish delegation that it would not pay salaries unless 230,000 barrels of oil per day were delivered.
Barzani criticized what he described as "discriminatory policies" towards the region, saying that Baghdad had allocated the construction of 150 hospitals across the country, "none of which are in the Kurdistan Region." He considered the local projects in Erbil to be a "practical response" to questions about the fate of local revenues.
In a related development, Barzani announced the end of the need for groundwater in Erbil after the rapid water supply project was launched, stressing that the project was implemented by local personnel, and that the government plans to use treated water to irrigate agricultural lands.
He
also revealed the progress of the Ronaki project to provide permanent electricity, explaining that more than two million citizens currently receive electricity 24 hours a day, and that 80% of them pay lower bills than before.
Al-Sudani: By the end of 2027, there will be self-sufficiency in securing gas for all stations.
Prime Minister Mohammed Shia Al-Sudani launched, this Monday morning, the implementation work on the project to rehabilitate two existing thermal units with a capacity of 320 megawatts (2*160), and install two new units with a capacity of 320 megawatts (2*160) at the Dora Thermal Power Plant in the capital, Baghdad.
Al-Sudani emphasized the importance of the thermal power plant, saying it is located in central Baghdad and utilizes the output of the Dora refinery, which will be in accordance with environmental specifications and requirements. He pointed out that the Ministry of Electricity, through the project to resolve bottlenecks in the transmission and distribution sectors, has maintained the continuity and acceptable rate of electricity supply to citizens.
The Prime Minister stated that "the ultimate solution identified by the government since day one of assuming office is to secure fuel and achieve energy independence. It continues to work to provide fuel to all power plants, and by the end of 2027, there will be self-sufficiency in securing gas for all operating and new plants."
Al-Sudani pointed out that "the government has embarked on promising renewable energy (solar energy) projects, and that some projects will be operational within less than a year." He praised the efforts of the Ministry of Electricity and national companies for their exceptional performance and effort in working under these difficult climatic conditions.
The two projects will contribute to strengthening the electrical system on the Baghdad-Karkh side by connecting them to the 132 kV internal grid, supporting the stability of electrical distribution and covering a portion of the increasing local loads. The two existing units will be rehabilitated according to a timetable that ensures the station's continuous operation and uninterrupted production, relying on fuel available from the Dora refinery.
An unprecedented decline in oil production in Kurdistan... What's the story?
The EcoIraq Economic Observatory reported on Monday a sharp decline in oil production in the Kurdistan Region, falling from approximately 280,000 barrels per day to just 81,000 barrels, due to a series of drone attacks targeting oil facilities in recent days.
The observatory explained in a statement received by Al-Sa'a Network that "the attacks that targeted a number of vital fields caused significant losses, and the extent of this damage was examined by a federal government delegation that recently visited the region."
He added that "at least 58 booby-trapped drones targeted oil sites between July 14 and 17, 2025, causing significant damage to a number of fields, most notably the Shaikan field, which produced nearly 40,000 barrels per day, and the Tawke field, which had a production capacity of 29,000 barrels per day, in addition to the Bashkabir field (54,000 barrels), Khormala (100,000 barrels), and Sarsink, which has a capacity of 30,000 barrels per day."
The attacks occurred in areas across Erbil and Dohuk governorates, resulting in a temporary halt in production without any human casualties. No group has yet claimed responsibility for the attacks, though Iranian-backed armed factions are suspected.
For its part, the Iraqi government announced an official investigation into the incidents and called on the Kurdistan Regional Government to take urgent measures to protect vital facilities and secure the energy infrastructure.
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Türkiye on ending the Iraqi oil transfer agreement: We want a new phase that benefits both parties and the region.
Turkey has revealed some of the reasons that prompted it to terminate the nearly 52-year-old agreement to transport Iraqi oil through the port of Ceyhan .
A senior Turkish official said that Ankara wants "a new and vital phase that benefits both parties and the region ."
The official described the poor exploitation of the Iraq-Turkey oil pipeline as unfortunate, stressing that the pipeline has the potential to become "a very effective and strategic pipeline in the region ."
According to Reuters, the official explained that Turkey has invested heavily in its maintenance, stressing the importance of the line for regional projects such as the Development Road, a planned trade route linking Turkey and Iraq .
Turkey's decision to terminate the Iraqi oil transport agreement, published in Turkey's Official Gazette on Monday, July 21, 2025, stipulates that the crude oil pipeline agreement between Ankara and Baghdad, concluded in 1975, will expire in July 2026 .
Türkiye, after ending the oil agreement with Iraq: We want a new phase that benefits everyone.
"The underutilization of pipelines is unfortunate."
In Turkey's first comment after President Recep Tayyip Erdogan's decision to terminate the "historic" oil agreement with Iraq, Reuters quoted a senior Turkish official as saying that Ankara wants a new and vital phase that benefits both parties and the region. He said that his country has invested heavily in the maintenance of the Kirkuk-Ceyhan pipeline, stressing the importance of the pipeline for regional projects such as the development road. The official described the poor exploitation of the oil pipeline between Iraq and Turkey as unfortunate, noting that the Ceyhan pipeline has the potential to become "a very effective and strategic pipeline in the region."
Turkish media reported that Turkish President Recep Tayyip Erdogan signed the termination of a "historic" oil agreement between Iraq and Turkey on Monday, 52 years after its conclusion. The agreement is considered one of the most significant economic agreements between the two countries.
Cancellation of the Iraq-Turkey pipeline agreement: legal and economic dimensions, and anticipated moves to renegotiate
The Turkish government's decision to terminate the 1973 oil agreement with Iraq raises widespread questions in economic and legal circles about the strategic dimensions of this move and its implications for the future of economic relations between the two countries, as well as for the export of Iraqi oil to global markets via Turkish territory.
Legal expert Rebin Ahmed explained that Iraq has the legal right to file a new lawsuit against Turkey before international courts, due to this unilateral decision. Speaking to Baghdad Today, Ahmed said, "Under international law, Iraq can file a lawsuit against Turkey for unilaterally canceling the agreement, especially with a full year remaining before the agreement expires."
Although the agreement, last renewed in 2010, remains in effect until July 2026, Ankara's announcement of its unilateral termination carries clear political implications, intersecting with Turkey's economic interests and its efforts to renegotiate new, more favorable terms, both with regard to wages and previous legal obligations to Baghdad.
In this context, oil advisor Govind Sherwani believes that the Turkish move represents a prelude to an attempt to impose a new agreement on Iraq, one that guarantees Turkey greater financial gains than those provided by the current agreement, particularly with regard to pipeline oil transit fees.
Sherwani explained that "the Turks are seeking, through this move, to pressure Baghdad to renegotiate, especially after the losses they incurred in the arbitration case before the Paris Court, which ordered Ankara to pay fines for its dealings with the Kurdistan Regional Government outside the will of the federal government."
He pointed out that "Turkey and the companies benefiting from the passage of Iraqi oil through its territory are well aware of the economic importance of this pipeline, but through these measures they aspire to amend the agreement to ensure higher and more beneficial transit tariffs and fees for them in the future."
He added, "For its part, the Iraqi side, especially the Kurdistan Regional Government, is facing a real dilemma, as a new agreement was recently signed to export the region's oil via Turkey. Ankara's sudden decision to cancel the agreement threatens these understandings and exposes export operations once again to the risk of disruption."
The origins of the pipeline agreement between Iraq and Turkey date back to 1973, when it was signed to secure the export of Iraqi oil to the Turkish port of Ceyhan. The agreement has undergone several amendments over the past decades, the most recent of which was in 2010, when it was extended for an additional 15 years, officially expiring in July 2026.
Despite repeated disputes between Baghdad and Ankara, particularly over the export of Kurdistan Region oil without federal government approval, this agreement remained a vital economic pillar between the two sides. A Paris court previously fined Turkey for breaching this agreement.
Oil expert Bahjat Ahmed told Baghdad Today that Turkey's cancellation of the agreement reshuffles the legal issues surrounding Ankara's handling of Iraqi oil, especially since the agreement explicitly stipulated exclusive dealings with the federal government in Baghdad.
Ahmed explained that "the Iraqi Ministry of Oil had previously adopted this agreement when it filed a complaint before the Paris Court and won the case. However, its cancellation now gives Turkey greater legal scope to deal directly with the Kurdistan Regional Government without referring to Baghdad, which represents a shift in the balance of negotiating power between the parties."
He added, "The cancellation decision does not necessarily mean halting oil exports through the Ceyhan port, as exports can resume at any time. However, the issue now relates to restructuring relations and contracts within a new political and economic equation."
Observers believe that the cancellation of the agreement at this time is linked to Turkey's attempt to reshape its oil relationship with Iraq on new foundations, eliminating any prior legal obligations and guaranteeing Turkey greater economic gains in exchange for Iraqi oil transiting through its territory.
Regional experts point out that Ankara is seeking to turn this issue into a leverage point that will enable it to secure additional concessions in negotiations with Baghdad, especially given the current lack of effective alternatives for Iraq to export its oil through other routes.
An expert reveals the reasons behind Türkiye's termination of the oil agreement: a legal dispute and new alternative plans.
Economic expert Nabil Al-Marsoumi said that Turkey's decision to terminate the crude oil pipeline agreement with Iraq stems from intertwined legal and strategic reasons, most notably the legal dispute between the two parties, along with Ankara's desire to redraw the region's energy map.
Al-Marsoumi explained that Turkey relied on Article 11 of the agreement amended on September 19, 2010, which allows either party to terminate the 15-year agreement by giving written notice one year before its expiration. He noted that Iraq could have, based on the same article, extended or amended the agreement two years before its expiration, but did not take that step.
He added that one of the direct reasons for the termination of the agreement was Ankara's dissatisfaction with the ruling issued by the International Chamber of Commerce Court in Paris, which required it to pay $1.5 billion in compensation to Iraq for allowing the export of Kurdistan Region oil in violation of the agreement.
Al-Marsoumi continued that the most likely reason for this decision is Türkiye's pursuit of a new strategic project to transport oil and gas from Basra to the port of Ceyhan, via Haditha, Baiji, and Fishkhabur, all the way to Silopi in Turkey, with an export capacity of 2.2 million barrels per day.
He explained that the project enjoys the support of the Iraqi government because it provides a safe alternative route for exporting crude oil from southern Iraq to the Mediterranean Sea, in addition to being part of the development road project aimed at linking Asia to Europe via Iraq.
Al-Marsoumi concluded that the suspension of the Ceyhan pipeline represents a severe blow to the Kurdistan Region, as it was the only outlet for its oil exports. This will weaken its economy and increase its dependence on Baghdad. Meanwhile, the new project reinforces Turkey's ambitions to become a regional energy hub and temporarily supply Iraq with natural gas until local fields are developed.
Announcement of the public tender numbered (2025/1) repeated for the second time, regarding the supply, installation and operation of machines for counting and sorting Iraqi and foreign currency (dollar and euro) for the branches of the Central Bank of Iraq in (Basra and Mosul)
he Central Bank of Iraq announces the re-announcement of the public tender numbered (2025/1) which has been repeated for the second time and is related to the supply, installation and operation of machines for counting and sorting Iraqi and foreign currency (dollar and euro) with a number of (68) machines, with (35) machines for the bank’s branch in Basra and (33) machines for the bank’s branch in Mosul, according to the technical specifications and legal conditions contained in the standard document for supplying goods prepared by this bank and at a total estimated cost of (1,186,600,000) Iraqi dinars (one billion one hundred and eighty-six million six hundred thousand Iraqi dinars) and from the planning budget of the Central Bank of Iraq for the year 2025 and from the allocations of the bank’s branches (Basra and Mosul) . Those wishing to participate in the tender from companies (legally accredited agents of specialized companies in Iraq) with experience and expertise should purchase the tender documents in paper form by visiting [the Central Bank of Iraq / located in Baghdad - Rashid Street - Building No. (2) Floor (3) Legal Department / Contracts Department] After paying the price of the tender documents amounting to (250,000) Iraqi dinars (two hundred and fifty thousand Iraqi dinars) non-refundable, and they are also entitled to purchase the tender documents electronically via the electronic platform. Purchasing the tender documents via the electronic platform is optional for those wishing to purchase from companies, with the payment of the amount of purchasing the documents and the fees for the electronic purchasing service via the platform by those wishing to purchase electronically. The electronic or paper purchase receipt, bearing the name of the company or its authorized manager, issued by the management of the electronic platform system, is approved when purchasing the documents electronically for the purposes of submitting and analyzing the bid. The tender closing date will be before the end of the official working day on (Sunday) corresponding to 8/24/2025. Bids are delivered to the address [Central Bank of Iraq / Legal Department / Contracts Department / Building No. (2) Floor (3) / located in Baghdad - Rashid Street]. The bidder to whom the tender is awarded shall bear all taxes and fees imposed under the Iraqi laws in force on the full amount of the contract, in addition to bearing the fees for publication, advertising and re-advertising in National newspapers, the electronic platform, and fees for archiving the contract electronically.
For their 80th day, Kurdistan employees are waiting for their legitimate rights.
The tension between the federal government and the Kurdistan Regional Government continues after a joint agreement was reached. Meanwhile, employees in the region have not received their salaries for more than 80 days, and the fate of their May and June salaries remains uncertain.
Taif Sami: Sending salaries is related to exporting the region's oil via Somo.
The Parliamentary Finance Committee hosted the federal Minister of Finance yesterday, Sunday, to discuss several issues related to revenues and public expenditures. A member of the Finance Committee confirmed that: "The minister confirmed that the dispatch of May salaries to the region is linked to the transfer of non-oil revenues and the export of the region's oil through SOMO."
Dr. Narmin Marouf, a member of the Finance Committee for the Patriotic Union of Kurdistan (PUK) bloc in the House of Representatives, said in a statement to the PUK's official website: "Taif Sami, the Minister of Finance, confirmed during a session she hosted that the dispatch of May salaries to the Kurdistan Region is conditional upon the region sending non-oil revenues and resuming its oil exports through SOMO."
Dr. Narmin added, "The minister emphasized adherence to the agreements concluded between the regional and federal governments. If the region transfers non-oil revenues for May, amounting to 120 billion dinars, and begins exporting oil through SOMO, the Ministry of Finance will send salaries."
Commitment to the agreement
Atwan al-Atwani, head of the Finance Committee in the House of Representatives, said at a press conference: "The Minister of Finance made it clear that once the regional government implements the agreement, we will send salaries, and we are committed to the agreement between the two governments."
He pointed out the importance of the Kurdistan Regional Government's commitment to the agreement concluded with the federal government and the commencement of the delivery of the region's oil through SOMO. The minister confirmed that salaries will be sent as soon as the region begins delivering oil.
The House of Representatives must take a stand.
Patriotic Union of Kurdistan (PUK) MP Bryar Rashid told the same website: The House of Representatives must take a stand on the delay in disbursing salaries to employees in the Kurdistan Region.
He added: "Employees in the Kurdistan Region have not received their salaries for more than 80 days. We have requested a session of the Council of Representatives to take a position on this delay, as it violates a decision of the Federal Supreme Court."
The US has stopped sending cash dollars to Iraq. Is this the beginning of a blockade?
Private sources confirmed that the United States has decided to completely halt cash dollar shipments to Iraq, a move described as potentially the beginning of a "financial blockade" on some Iraqi banks involved in currency smuggling and money laundering.
According to a source who spoke to Al-Mustaqilla on condition of anonymity, Washington's
decision does not pertain to Iraq as a country, but rather targets specific banks suspected of involvement in suspicious dollar transfers to countries subject to international sanctions. This has angered the US Treasury, prompting it to tighten controls on dollar movement within the Iraqi market. Sudden drop in exchange rate after the decision
Remarkably, the US decision coincided with a significant decline in the dollar exchange rate in the Iraqi market. Experts interpreted this as a natural consequence of the restrictions on the circulation of cash and the prevention of its smuggling abroad. This led to an increase in supply in the local market and a temporary decline in its price.
Government shift towards “legal dollarization”
Separately, a banking source revealed that the Iraqi government has been relying on new mechanisms for disbursing salaries and conducting financial transactions for months. These mechanisms involve legal invoices processed through official banks and digital platforms linked to the global financial system. This is an alternative to the paper dollar shipments previously transported into the country by air.
The source indicated that this step represents a major shift in cash liquidity management in Iraq , making it difficult for suspicious entities to continue smuggling or manipulating the currency market.
Is this the beginning of the storm?
The US decision raises many questions about the future of dollar transactions in Iraq, especially in light of escalating regional tensions and Washington's tightening of financial sanctions. Are we witnessing the beginning of a new phase of international restrictions on the Iraqi economy? Or is this merely a technical measure against some violating banks?
Details of Al-Sudani's meeting with the commander of the US Central Command
Prime Minister and Commander-in-Chief of the Armed Forces, Mohammed Shia al-Sudani, received today, Monday, July 21, 2025, Commander of the US Central Command, General Michael Kurilla, and the accompanying delegation, in the presence of the Chargé d'Affaires at the US Embassy, Steve Fagin.
A statement from the Prime Minister's Office, received by Baghdad Today, stated that Al-Sudani "at the beginning of the meeting welcomed the delegation, which included the new commander of the international coalition forces to fight terrorism in Iraq and Syria, Brigadier General Kevin Lambert, and the former commander of the coalition, General Kevin Leahy."
During the meeting, according to the statement, "the cooperation relations between Iraq and the international coalition, the stages of its development, and preparations for the transition to bilateral security relations with coalition countries were reviewed. The meeting also discussed the work of the joint high committee between Iraq and the United States, security cooperation and coordination, and developments in Syria and their repercussions for regional security."
The Prime Minister stressed "the importance of imposing stability, avoiding the causes of conflict expansion, respecting the sovereignty of states, based on UN charters, international resolutions, dialogues, and understandings, and activating diplomatic activities and cooperation to consolidate security and stability in the region."
Iraq continues spending in 2024 in the 2025 budget, and salaries are safe.
Economic expert Abdul Rahman Al Mashhadani ruled out any real danger to this issue in 2025.Al-Mashhadani explained, in a statement to {Euphrates News}, that: "There are no more than four months left of 2025, and the government is still operating according to an actual budget dating back to 2024, while continuing with the same spending levels."
He pointed out that "data published on the Ministry of Finance's website last April shows that government spending is primarily directed towards salaries and wages, with 32 trillion dinars of the 37 trillion dinars spent on employee salaries, social security, pensioners, and contracts."
Al-Mashhadani explained that "the remaining government spending did not exceed 5 trillion dinars, reflecting the priority of securing salaries," stressing that "oil revenues are capable of covering this obligation until the end of the year without any significant problems."
Finance Committee Chairman Atwan Al-Atwani confirmed that Finance Minister Taif Sami confirmed that employees' salaries will be secured through 2025.
A major fire broke out at an Iranian oil facility.
Iranian media reported on Monday that a major fire broke out at a petroleum products factory on Ziar Road, east of Isfahan. The extent of the losses and the cause of the fire were not yet clear.
Meanwhile, verified accounts on X circulated a video clip, claiming to document the fire. The video shows flames rising with a large mass of black smoke, while firefighters work to extinguish the blaze.
This fire comes two days after a massive fire broke out at the Abadan refinery, the largest oil refinery in southern Iran, killing one employee and injuring several others.
Source: New digital bank in Iraq threatened with international sanctions over money laundering
An informed source said that a new digital bank in Iraq, linked to a prominent political figure, faces international scrutiny and potential sanctions in the coming period due to serious financial cases related to money laundering and smuggling funds abroad.
The source, who spoke on condition of anonymity, confirmed to Al-Mustaqilla's correspondent that investigations conducted by international and security agencies revealed the bank's involvement in suspicious financial transactions, most notably the issuance of fake bank cards used to transfer illegal funds outside Iraq. This has sparked widespread concern within the local and international banking community.
These developments come amid mounting criticism of the Iraqi financial system, which suffers from weak oversight and is being exploited by some political parties to pursue personal interests at the expense of the national economy.
The source confirmed that sanctions will be imposed on the bank in the coming period, which could open the door to broader investigations to uncover more suspicious financial networks inside and outside Iraq.
This news raises serious questions about the transparency of the Iraqi financial sector and the possibility of achieving real reforms that put an end to the exploitation of political money among modern digital banks.
"Iran, Iraq are in the same trench", PM Sudani says
TEHRAN, Jul. 21 (MNA) – Iraq’s Prime Minister, Mohammed Shia’ Al-Sudani has told a visiting Iranian parliamentary delegation that his country and Iran "are in the same trench," declaring firm support for Iran after Israeli aggression.
In a meeting with a visiting Iranian parliamentary delegation in Baghdad on Monday, Al-Sudani praised Iran’s command and military response to Israeli aggression, calling Israel’s actions criminal and unacceptable.
He emphasized that Iran and Iraq are united, adding that Iraq had objected to Israeli aircraft violating its airspace and raised the issue internationally.
Both sides highlighted their commitment to regional stability, cooperation on nuclear energy, and the fight against ISIL terrorist group.
They agreed that Israel’s attack wasn’t about uranium enrichment but an attempt to slow Iran’s overall progress.
The meeting ended with a warning against the danger of Israeli warmongering policy, calling for continued unity between Iran and Iraq to address regional challenges.
The Coordination Framework is on a hot plate: Al-Sudani faces popular anger and political division!
In a political scene reflecting escalating tensions within the Shiite house, the Coordination Framework, which brings together the Shiite political forces dominating power, is holding a meeting this evening, Monday, described as "decisive." Prime Minister Mohammed Shia al-Sudani will attend. The meeting is being held amid thorny issues ranging from the Kut fire tragedy to the election crisis and drone attacks.
Al-Mayahchi on the line... dismissal to absorb anger?
Informed sources told Al-Mustaqilla on Monday that the meeting will witness a heated discussion about the Kut fire incident, which sparked widespread public anger amid accusations of negligence and mismanagement. The framework's leaders are heading toward discussing the possibility of dismissing Wasit Governor Mohammed al-Mayah as a preemptive step to contain the angry street protests, a scenario reminiscent of the tactic of "sacrificing officials" to spare the government greater repercussions.
The upcoming elections: a struggle above and below the table
The parliamentary elections will be a major topic of discussion, as the framework seeks to set a date for them, amid growing concerns about attempts to influence the outcome, amid talk of plans to tailor an electoral law to serve certain forces. Al-Sudani, who seeks to maintain a balanced distance between the various factions, is facing enormous pressure from the conflicting forces within the framework itself.
Drone bombing and the agreement with Erbil: issues that threaten cohesion
Regional tensions and the drone attacks, which threaten security stability, are not absent from the meeting, amid accusations that "influential parties" are turning a blind eye to these attacks. The recent agreement between Baghdad and Erbil regarding the salaries of the region's employees is also witnessing controversy within the framework, as some parties believe that Al-Sudani made "unjustified" concessions to the regional government.
The most important question: Is the framework still unified?
The upcoming meeting may reveal the extent of the divisions within the Coordination Framework. Between those demanding radical changes to appease the street and those clinging to maintaining their grip on power, the differences appear deeper than they appear in public. Will al-Sudani be able to overcome this turning point, or is he headed toward a "bone-breaking" phase with some of his allies?
US oil companies discuss developing oil fields in Iraq.
Oil Price, an American energy news website, revealed that two major American oil and gas companies, Exxon Mobil and Chevron, are holding talks with the Iraqi government regarding development opportunities in Iraqi oil fields. Exxon Mobil, which withdrew from the West Qurna field last year and left the country, has expressed its willingness to return to Iraq.
Bassem Khudair, Iraq's undersecretary of the oil ministry, said in statements carried by Iraqi media that "Exxon Mobil has expressed its willingness to return to Iraq."
Exxon last year withdrew from the giant West Qurna 1 oil field, handing over operations to PetroChina, a Chinese state-owned company.
West Qurna 1 currently produces about 50,000 barrels per day of crude oil and is estimated to contain up to 20 billion barrels of recoverable oil reserves.
Regarding the ongoing talks between the federal government and Exxon, Khudair was quoted as saying: "The company is currently in negotiations with Iraq regarding a new opportunity in oil fields within the country." The
oil ministry official added: "These moves are a positive indication of the growing interest of American and other companies in the oil industry in Iraq."
Separately, the undersecretary said that US oil giant Chevron is also in talks to sign potential development contracts in the southern Nasiriyah oil field and the Balad oil field in Salah al-Din Governorate, north-central Iraq.
In recent years, Chinese and Russian companies have moved to acquire major oil field development assets previously owned by Western companies, including Exxon.
However, this year, British energy giant BP received final approval from the Iraqi government for its contract to invest in the redevelopment of several large oil fields in Kirkuk, northern Iraq. The contract, signed between the North Oil Company (NOC), the North Gas Company (NGC), and BP, includes the rehabilitation and development of fields, including oil, gas, electricity, and water, with the possibility of investing in exploration. The agreement is estimated to be worth more than $25 billion.
American companies have recently expressed interest in investing in Iraq's gas sector. Oil Price reported last week that the American company Excelerate Energy had won the bid to build a floating storage and offloading unit (FSRU). It is now considered the most likely supplier to supply gas to Iraq after the previous agreement with the Emirati company Breeze Investment fell through. Izzat Sabir, the Deputy Minister of Oil for Gas Affairs, said in press statements that the government has urgently re-tendered the contract and expects to sign it within ten days.
Baghdad is currently in active talks with Excelerate, the US-based company that participated in the tender with Breeze earlier this year and is now the only viable short-term supplier. Excelerate owns a global fleet of regasification vessels and has recorded successful operations in several other countries.
A report by the Washington Institute for Strategic Studies addressed the challenges Iraq continues to face in the energy and security sectors, including its continued reliance on unstable energy and gas sources and its weak exploitation of domestic gas. This comes at a time when Iraq is seeking to end the international coalition's mission, emphasizing the need to deepen the partnership with Washington in the security and energy sectors through a new bilateral agreement to ensure security stability and expand investment in the gas and electricity sectors to achieve self-sufficiency.
Iraq is OPEC's second-largest oil producer and aims to increase its production capacity to more than 6 million barrels per day by 2029, and possibly reach 7 million barrels per day within the next five years.
Iraq's current production stands at around 4 million barrels per day, as it attempts to compensate for previous periods of overproduction under OPEC+ agreements.
An economist identifies the cause of the liquidity crisis and the region's connection to it.
Economic expert Alaa Al Fahad revealed that the liquidity crisis facing Iraq stems from massive spending and weak non-oil revenues, stressing that the disputes within the Kurdistan Region and oil export issues further complicate the financial situation.
Al-Fahd said, during his appearance on the program "Free Talk" on Al-Furat satellite channel, that: "Iraq's heavy reliance on oil makes it vulnerable to price fluctuations and production fluctuations, especially after the recent problems with the Kurdistan Region and the Federal Court's decision, in addition to the Turkish government's decision to suspend oil export agreements via pipelines."
He added that "the three-year budget, instead of being a solution to the financial and economic problems, has become a reason for the stagnation of projects," stressing that "regional disputes play a major role in exacerbating the financial crisis." He pointed out that "the crisis also lies in the huge volume of spending, the weakness of non-oil revenues, the issue of weak cash flow, in addition to the existence of a defect in the monetary mass outside the banking system and the weak investment rate."
To address this imbalance, Al-Fahd explained, "The government has worked to bring in the private sector, reduce the imbalance, and stimulate the manufacturing industry. The Central Bank is also working to issue treasury bonds as domestic debt to finance the cash deficit, contract with international companies to restructure banks, facilitate small businesses, and launch initiatives in the housing and energy sectors to boost the economy and restore confidence in the banking system."
In a related context, he stated that "Iraq has reached 22 million electronic cards, public sector employee salaries have been localized, and private sector salaries have begun to be localized."
Al-Fahd did not rule out the possibility that targeting the region's oil fields was a "political game" and a continuation of the oil smuggling operation, concluding by pointing out that "since the 1960s, Iraq has continued to rely on budgeting items rather than budgeting programs and performance."
2025 budget: Government committee awaits oil price stability, deficit could reach 60 trillion dinars
Discussions on the 2025 budget are continuing in Baghdad amid challenges related to fluctuating oil prices, which have delayed finalizing the figures so far, according to a financial and economic expert.Economic expert Haider al-Sheikh told Baghdad Today, "Finance Minister Taif Sami informed the Parliamentary Finance Committee during a meeting today that a government committee was formed by order of the Prime Minister to prepare a report on the tables of the 2025 General Budget Law."
The sheikh explained that "this committee is working to calculate oil and non-oil revenues, which are currently estimated at more than 140 trillion dinars, while the deficit is calculated based on the planned spending volume. The deficit is expected to reach 60 trillion dinars if the total budget reaches 200 trillion dinars."
Economists believe that the projected deficit of 60 trillion dinars will place increasing pressure on the Iraqi market. The most significant potential impacts include:
- Increased likelihood of delayed salary and benefit disbursements in the event of a delay in budget approval or a disruption in revenues.
- Increased inflationary pressures on markets, especially given the persistent discrepancy between the official and parallel exchange rates.
- Declining levels of government investment and a reduction in new projects, negatively impacting job opportunities and local market growth.
- Resorting to domestic borrowing from government banks and the Central Bank, negatively impacting liquidity available to the private sector.
Experts also warn that continuing to cover the deficit through borrowing will lead to an accumulation of debt and exacerbate constraints on Iraq's fiscal policy in the coming years, making the economy more vulnerable to any external shocks, whether in terms of oil prices or international financial pressures.Speaking to Baghdad Today, the sheikh explained that "any amount exceeding the expected revenue ceiling will be considered a direct deficit within the budget schedules," noting that "the ongoing fluctuations in global oil prices are the main reason behind the delay in resolving these schedules, despite the committee having begun its work since last June."
He added, "The next step after the government committee completes its report will include holding an extraordinary cabinet session to approve the schedules and send them to Parliament to complete the legislative procedures."
According to financial experts, the delay in approving budget schedules represents a recurring crisis each year, linked this time to two main factors:
First: the continued volatility of oil prices in global markets, which constitute the primary source of more than 90% of Iraq's budgets.
Second: the absence of a comprehensive economic vision that ensures diversification of sources of income and reduces dependence on oil.
Observers indicate that the government committee is facing difficulty in establishing revenue figures due to the current fluctuations, while the government fears that establishing a large deficit could reopen domestic and foreign borrowing, increasing the burden of public debt.In summary
, the data indicates that the Iraqi government faces the daunting task of securing as balanced a budget as possible, given the fragile and volatile economic reality, and lacking effective tools to reduce dependence on oil or diversify resources.If the delay in approving the budget schedules continues, the government will face further challenges in terms of its financial obligations to employees, projects, and services, in addition to increasing economic and social pressures in the near term.
Cathc up on the last episode of My FX Buddies :below
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