The dollar approaches the official rate: a real reform or a temporary trick?
In a move that suggests a "shift" in the government's policy toward the dollar crisis, Mazhar Mohammed Saleh, the financial advisor to Prime Minister Mohammed Shia al-Sudani, revealed five factors that he said would lead to narrowing the gap between the official and parallel rates, paving the way for what he described as a "matching" phase between the two rates. But the most important question is: Is what is happening real reform? Or is it merely "economic makeup" that masks a fragile reality?
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The official exchange rate, set by the Central Bank at 132,000 dinars per $100, is now approaching the parallel market rate of 139,000 dinars. This decline is viewed by some as a positive sign, while others view it as a "politicized" and temporary move to calm the street ahead of upcoming political and economic events.
Five factors or five pressure cards?
- The government's primary consideration is preventing dollarization, particularly in the real estate sector. While this may sound like a good move in theory, it raises questions about its implementation in a market teeming with informal transactions.
- The second factor relates to transfers via global correspondent banks after the central bank window closed. However, observers question: Are these transfers truly available to everyone, or are they restricted to specific names and companies?
- The third factor is the entry of small traders into the official transfer window, a step whose effectiveness on the ground is questioned by many due to the red tape and bureaucracy.
- The fourth factor revolves around the expanding use of electronic cards, a move that is hampered by technical infrastructure and a deeply ingrained cash culture.
- The fifth factor relates to what the government calls "price defense" through cooperatives, a policy that could return Iraq to the era of "ration cards," amid doubts about its sustainability.
Is the difference really less than 4%?
Advisor Saleh's statements that the difference between the two rates has become "merely a transaction cost" open the door to a broad economic debate: Can we speak of "convergence" while the parallel market persists? Have the dollar mafias truly been eliminated? Or have their positions merely shifted?
In conclusion: appeasement or radical treatment?
Achieving a unified exchange rate is a legitimate popular and economic demand. However, without a comprehensive reform of the financial system, increased transparency in transfers, and ensuring fairness in cash distribution, any decline in the parallel market may prove to be nothing more than a "warrior's rest" before another explosion.
The dinar is recovering and the exchange rate is declining towards the official rate.
For several months in 2025, the US dollar exchange rate has continued to decline against the Iraqi dinar, recovering by around 13 points. It is expected to gradually decline to approach the official exchange rate during the coming period of this year, in accordance with the Central Bank's strategy and ongoing measures for comprehensive banking reform, regulating foreign trade financing, and transitioning to direct dealings between our banks and correspondent banks, in addition to complying with international banking standards.
Restricting the sale and distribution of cash dollars to a strict mechanism has been praised by the International Monetary Fund and the US Treasury as a successful and advanced method and application for controlling the stability of the US dollar exchange rate and keeping cash dollar sales to a minimum, thus preventing the circulation of the currency from being available for speculation in the parallel market.
To support the dinar's recovery, "we must look at the rate at which the Central Bank covers all external transactions, including imports and personal transfers. This explains price stability, given the current inflation rate, which is less than 2.5%, lower than the inflation rates in neighboring countries. This means that the Central Bank has achieved two basic monetary policy objectives: controlling exchange rates and curbing inflation."
This confirms that the wise monetary policy adopted by the Central Bank has contributed significantly to the stability of the exchange rate and the decline of the parallel market to the lowest possible level.
The Central Bank's insistence and cooperation with the government during the second half of the current year will lead to a gradual decline in the exchange rate of the US dollar, which has been stable for two days at the thirties and is moving towards the official exchange rate.
5 Reasons Behind the Decline in the US Dollar Exchange Rate Against the Iraqi Dinar
On Tuesday, July 22, 2025, financial and economic expert Haider Al-Sheikh identified five reasons for the decline in the US dollar exchange rate against the Iraqi dinar.
In an interview with Al-Jabal, Sheikh said, "The increase in demand and decrease in foreign currency affects exchange rate fluctuations, especially since traders and investors have lost confidence in the dollar as a savings instrument, prompting many to exchange dollars and purchase gold as a safe haven."
According to the expert, "There are several other factors, including the public's preoccupation with the Ashura atmosphere, the approaching Arbaeen pilgrimage, increased taxes on imported cars, and a decline in the level of foreign currency smuggling (dollars) abroad."
These factors, according to Sheikh, have significantly contributed to the decline in the dollar's exchange rate against the Iraqi dinar, with the exchange rate for $100 now falling to less than 140,000 Iraqi dinars.
The expert emphasized that "the drop in exchange rates is temporary and not permanent, and the exchange rate of $100 will stabilize at 140,000 dinars. However, any political or economic crisis in Iraq will directly impact the parallel market, causing the dollar to rise again."
Last month, economic expert Manar Al-Obaidi explained the reasons for the decline in the Central Bank of Iraq's dollar sales during the first five months of 2025, speaking of what he described as "signs of the Iraqi market entering a state of economic recession."
Al-Obaidi said, "The Central Bank of Iraq's sales of US dollars during the first five months of 2025 recorded a 4% decline compared to the same period in 2024. Total sales reached $31.5 billion, a decrease of approximately $1.3 billion compared to the same period last year, which amounted to $32.9 billion."
Al-Abidi added, "The decline was clearly concentrated in cash dollar sales, which fell by 17%, reaching $1.3 billion compared to $1.55 billion during the same period in 2024."
Al-Obaidi pointed out that, "In contrast, dollar sales through the dollar-denominated currency balance-boosting mechanism witnessed a significant increase of 38%, reaching $30.2 billion, compared to $21.9 billion during the same period in 2024. As for the direct foreign transfer mechanism, which was used in previous years, or what was mistakenly known as the auction, it completely stopped in 2025, after it had recorded $9.4 billion during the first five months of 2024."
According to Al-Obaidi, Central Bank data also showed "a sharp decline in dollar sales used to settle international payments via electronic cards, falling from $1 billion in January 2025 to just $261 million in May. This decline is attributed to restrictions imposed by the Central Bank on the use of cards outside Iraq, in addition to the inability of some banks to carry out international settlements."
Al-Obaidi pointed out that, "Despite this significant decline in total dollar sales from the Central Bank, the exchange rate in the parallel market witnessed a significant decline during the same period. This decline in the price, despite the limited supply of dollars, may indicate the beginnings of the Iraqi market entering a state of economic recession, due to a group of complex factors that have affected the volume of demand and commercial activity. What reinforces the possibility of this recession is the decline in inflation rates in recent months to their lowest levels, reaching 1.1% in April 2025."
Government advisor: Four reasons behind the decline of the parallel dollar against the strength of the dinar
Saleh explained to Al Furat News Agency today that "annual government spending, as a demand force, constitutes approximately 50% of the gross domestic product, which means that the activity of the general budget is one of the strongest indicators of aggregate demand in promoting growth and stability in the national economy."
The financial advisor pointed out that the decline in the value of the parallel dollar in favor of the strength of the Iraqi dinar, and the parallel exchange rate's creep towards the official rate, are due to four main reasons: the complete legal prohibition on the dollarization of domestic transactions, specifically in the real estate market, which is one of the strongest transactions; the transition to a policy of strengthening with foreign currency from strong international banks that correspond to national banks for the purposes of external transfers; and the end of the Central Bank's window since the beginning of this year. This matter reduced the risks of compliance with large trade and other resorts to opaque financing with high costs and risks.
He noted the entry of small importers into the official financing network and dealing with fixed and official exchange rates for the dinar upon direct transfer, as their foreign trade constitutes approximately 60% of the components of that trade. He also noted the development of the behavior of using electronic payment cards in foreign currency for travelers, as a culture that has expanded significantly over the past two years, instead of the pressure of demand for cash dollars alone. This comes with the ease with which travelers obtain a share of cash dollars through the country's airports, with highly compliant and easy-to-access controls.
Saleh continued, "The price defense policy is implemented through the spread of cooperatives for consumer goods and the construction basket, which finance their imports At the fixed official exchange rate of 1,320 dinars per dollar, it represents a comprehensive success for Iraqi economic policy, with its monetary, financial, and trade pillars, as part of the government's program.
International certification in the reform notebook: The International Monetary Fund commends Iraq's efforts to curb inflation.
In a move that may reflect a tangible shift in Iraq's economic policy, the country received official praise from the International Monetary Fund for its efforts to curb inflation. Economists consider this a positive indicator of the effectiveness of the policies adopted by the government and the Central Bank over the past period.
Economic expert Nasser Al-Tamimi told Baghdad Today on Tuesday (July 22, 2025) that “the IMF’s praise represents a reassuring message to the international community and investors, and reflects the seriousness of the economic policies that Baghdad has recently adopted.” He added that “Iraq has faced major inflationary challenges in recent years as a result of internal and external factors, including fluctuations in oil prices and disruptions in supply chains, in addition to political and financial pressures.”
Al-Tamimi pointed out that "the improvement in inflation indicators is the result of balanced monetary policies, including tightening monetary policy tools, enhancing market oversight, and maintaining the stability of the dinar exchange rate, which helped prevent price increases and protect citizens' purchasing power."
However, he stressed at the same time that this praise "is not the end of the road, but rather the beginning of a long reform journey," emphasizing "the need to continue addressing structural gaps in the economy, expanding the revenue base beyond oil, and monitoring global developments that may impact price levels in the country in the future."
Al-Tamimi concluded his statement by saying, "The IMF report provides a strong impetus to the economic reform process, while simultaneously placing an additional responsibility on decision-makers to continue the corrective approach and achieve comprehensive and sustainable development that serves citizens first and foremost."
Economists believe that the Iraqi economy has faced significant inflationary challenges in recent years, influenced by a number of factors, most notably fluctuations in global oil prices, which represent the state's primary source of revenue. In addition, internal political and security crises and disruptions to global supply chains, particularly following the COVID-19 pandemic and the war in Ukraine, have also contributed to this.
In 2021 and 2022, Iraq recorded relatively high inflation rates, which negatively impacted the prices of goods and services and affected the purchasing power of citizens, particularly those with limited income.
In response, the Central Bank of Iraq adopted a more restrictive monetary policy, raising interest rates, strengthening oversight of banking activity, and attempting to stabilize the dinar's exchange rate against the dollar despite market volatility.
May Salaries Imminent After New Erbil-Baghdad Oil Deal: Kurdistan24's Baghdad Correspondent
May salaries for KRG employees are imminent following a new deal. Erbil will hand over its reduced oil output (80k bpd) to Baghdad and has already deposited its 120bn dinar non-oil revenue share.
The Iraqi Ministry of Finance is expected to disburse the long-overdue May salaries for Kurdistan Region employees within the next few hours, following a breakthrough agreement where Erbil will hand over its current daily oil production in exchange for the funds.
According to information obtained by Kurdistan24's correspondent in Baghdad, Dilan Barzan, from several informed sources, Iraqi Prime Minister Mohammed Shia' Al Sudani and federal Minister of Finance Taif Sami decided late Monday night to release the funds after extensive discussions with officials from Erbil.
The payment is anticipated to be processed before the Iraqi Council of Ministers holds its regular meeting at 1:00 PM today, Tuesday. A source told Kurdistan24's correspondent, "It is expected that before the meeting begins, the federal Ministry of Finance will deposit the May salaries for employees into the bank account of the Kurdistan Regional Government's Ministry of Finance and Economy at the Erbil branch of the Central Bank of Iraq, and it will not be necessary to include the salary issue on the agenda for today's Council of Ministers meeting."
The Kurdistan Regional Government (KRG) is prepared to act immediately. "The Kurdistan Regional Government's Ministry of Finance and Economy has prepared the distribution list for the May salaries," the correspondent added. "It is expected that after the Iraqi Ministry of Finance sends the funds, the list will be published within the next few hours, and salary distribution will begin as early as tomorrow."
This development follows a new understanding that adapts to current realities on the ground. The original memorandum of understanding, approved by the Iraqi Council of Ministers on July 17, required the KRG to hand over 120 billion dinars in monthly non-oil revenue and 230,000 barrels of oil per day (bpd).
However, drone attacks have since caused oil production in the Kurdistan Region to drop to approximately 80,000 bpd.
According to information from the Kurdistan24 correspondent, the new agreement stipulates that until production recovers, "the Kurdistan Regional Government will hand over all of its daily produced oil, approximately 80,000 barrels, to the SOMO company. In return, the Iraqi government will disburse the May salaries and salaries for other months for the Kurdistan Region's employees."
In a key move demonstrating its commitment, the KRG fulfilled its part of the non-oil revenue agreement. In a statement today, the KRG's Ministry of Finance and Economy confirmed that its non-oil revenue for May, amounting to 120 billion dinars, "was deposited in cash into the bank account of the federal government's Ministry of Finance at the Erbil branch of the Central Bank of Iraq."
The last salary payment from Baghdad was over 80 days ago. On May 13, the federal ministry deposited 959 billion and 514 million dinars for the previous pay period.
After the May salaries were released, the June salaries for Kurdistan Region employees are expected to be paid.
An informed source revealed, today, Tuesday (July 22, 2025), the date for the Federal Ministry of Finance to send the salaries of Kurdistan Region employees for the month of June, after funding the salaries of last May.
The source told Baghdad Today, "The federal Ministry of Finance is waiting for the Kurdistan Regional Government to send 120 billion dinars, in addition to SOMO beginning to receive the agreed-upon oil quantities, which amount to 31,000 barrels per day, according to the report of the joint technical committee."
He added that "SOMO will work in coordination with oil companies to determine a date for resuming work in the oil fields and returning exports to their previous levels," noting that "the federal Ministry of Finance will begin disbursing June salaries in the middle of next week, after completing the audit of the payroll lists."
Recent months have witnessed an escalating crisis between Baghdad and Erbil over the region's failure to deliver oil and non-oil revenues as stipulated in the federal budget law. This prompted the Ministry of Finance to halt salary payments since last May.
After continuous mediation and meetings, the Federal Council of Ministers voted on (July 17, 2025) on Resolution No. (550), which stipulates the release of salaries of the region’s employees in exchange for the Erbil government’s commitment to hand over 120 billion dinars of its local revenues, in addition to handing over its oil exports through the “SOMO” company.
Based on this agreement, the regional government deposited the required amount in the central bank, and the federal Ministry of Finance announced today, Tuesday, the commencement of disbursement of May salaries, a first step toward settling the issue.
The June salary disbursement process is scheduled to be completed by the middle of next week, following the region's commitment to transferring oil and non-oil revenues in accordance with the recent agreement.
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Foreign Minister: I convinced the relevant parties to pay the salaries of Kurdistan employees today.
Foreign Minister Fuad Hussein announced that the salaries of Kurdistan Region employees for May will be paid today, Tuesday.
The minister said in a statement to Kurdish websites: "An agreement has been reached stipulating that Baghdad will pay May salaries to Kurdistan Region employees today."
He confirmed that he "was able to convince the relevant parties to pay the region's salaries today, following a series of intensive phone calls."
Oil: Initial agreement with Kurdistan to deliver 230,000 barrels to SOMO
The Undersecretary of the Ministry of Oil, Bassem Mohammed Khadir, revealed today, Tuesday (July 22, 2025), that a preliminary agreement had been reached with the Kurdistan Regional Government stipulating the delivery of 230,000 barrels of oil per day to the SOMO company, while indicating that the ministry hopes to announce a final agreement soon.
Khadir said in a statement, "Technical delegations from the Ministry of Oil and the Kurdistan Regional Government reached a preliminary agreement during recent meetings to deliver 230,000 barrels of oil per day to the National Marketing Organization (SOMO), in accordance with the provisions of the federal budget law."
He added, "The talks are proceeding positively, and there is an understanding from both sides of the importance of reaching a comprehensive and sustainable agreement that serves Iraq's interests and enhances public oil revenues.
The Parliamentary Finance Committee announces good news for employees and important information about the agreement with the region.
Committee member Moeen Al-Kadhimi said during his appearance on the "Free Talk" program on Al-Furat satellite channel: "It is likely that in the coming period, Prime Minister Mohammed Shia Al-Sudani will instruct the Ministry of Finance to release bonuses and promotions for employees and not link them to budget schedules."
He added, "After hosting Finance Minister Taif Sami, the discussion focused on the reasons for the delay in the budget schedules, the liquidity shortage, and employee salaries, bonuses, and promotions," noting that "she emphasized covering basic needs through oil and non-oil revenues."
Al-Kadhimi noted that "the current oil price of $65 a barrel is sufficient to cover monthly salaries, given continued exports and budget allocations." He added that "each of the three-year budgets, estimated at 150 trillion dinars annually, can cover salaries and stalled projects without the need to create new ones."
Regarding non-oil revenues, he explained that "their percentage does not exceed 12% currently," calling for "a gradual plan to raise the percentage to 50% by strengthening collection, taxes, and border crossings with support from political blocs and the government."
Regarding the region's affairs, Al-Kadhimi asserted that "oil and non-oil revenues in Kurdistan amount to 9 trillion dinars annually, but the federal government is not receiving the actual figures and the region is refusing to pay." He added that "the government, out of appreciation for the employees' circumstances, has released a one-month salary allowance despite the region's shortcomings."
He pointed out that "Baghdad paid 700 billion dinars in salaries to the region for the month of June, compared to only 120 trillion dinars paid by the region as an initial attempt to resolve the crisis," adding that "the crisis of trust and credibility was the main reason for the previous funding obstruction."
Regarding the Ceyhan oil pipeline, Al-Kadhimi stated that "Turkey has presented new conditions related to compensation, doubling transit costs, and participation in gas projects and Kurdistan fields." He emphasized "the need for the Iraqi government to move to negotiate during the current year, especially since Iraq possesses strong leverage."
He called for "opening alternative export routes via the Red Sea, Syria, Jordan, and Saudi Arabia as emergency options," stressing his "rejection of a Turkish incursion into Iraqi territory, given that the Kurdistan Workers' Party (PKK) no longer exists." He also warned against "continued violations of sovereignty and the arrival of Turkish forces on the outskirts of Mosul."
Al-Kadhimi concluded by stressing "the importance of leveraging the economic card, particularly the water issue, to pressure Ankara and put an end to its security interventions within Iraqi territory."
Erbil transfers 120 billion dinars of non-oil revenues to Baghdad.
The Ministry of Finance and Economy of the Kurdistan Regional Government announced on Tuesday the transfer of 120 billion Iraqi dinars to the bank account of the federal Ministry of Finance, as part of non-oil revenues for the month of May.
The ministry stated in its statement that the transfer was made in cash, and that the amount was deposited at the Erbil branch of the Central Bank of Iraq, to be added to the federal treasury as part of the region's share of oil revenues.
Al-Sudani decides to fund the salaries of employees in the region for the month of May.
Ali Hama Saleh, the rapporteur of the "National Position" movement in Kurdistan, stated on Tuesday that federal Prime Minister Mohammed Shia al-Sudani decided to fund the salaries of employees in the region for the month of May. He explained that salaries and financial dues for the following month are contingent on the delivery of the agreed-upon portion of Kurdistan's oil production to the State Oil Marketing Organization (SOMO) as agreed upon between Erbil and Baghdad.
Hama Saleh said in a video statement posted on Facebook that Al-Sudani decided to pay the salaries of the Kurdistan Region for May after depositing the region's non-oil revenues, amounting to 120 billion dinars, into the Iraqi Ministry of Finance's account.
He explained that funding for June salaries is contingent on the delivery of crude oil produced from the region's fields to SOMO.
He added that the federal government believes that the oil fields in the Kurdistan Region have not suffered significant damage, enough to reduce production to 80,000 barrels per day, and that oil production could increase within about two weeks.
He added, "A committee from Baghdad will arrive in the Kurdistan Region to assess the damage caused by the drone attacks that targeted the region's oil fields over the past two weeks."
The Kurdistan Regional Government's Ministry of Finance and Economy announced earlier Tuesday morning that the Iraqi treasury's share of non-oil revenues had been deposited into the federal Ministry of Finance's bank account.
The Kurdistan Ministry of Finance stated in a statement that the Kurdistan Region's non-oil revenues for May 2025, amounting to 120 billion dinars, were deposited in cash into the federal Ministry of Finance's bank account at the Erbil branch of the Central Bank of Iraq.
Meanwhile, press reports indicate that the Iraqi Council of Ministers will begin today funding the salaries of the region's employees for May, after depositing non-oil revenues into the state's account.
Reports indicate that the Coordination Framework, which comprises Iraq's ruling Shiite political blocs and forces, requested, during a meeting held yesterday, Monday, that Prime Minister Mohammed Shia al-Sudani begin disbursing salaries to the region immediately and without delay, before the matter is brought up in the regular cabinet session scheduled for today.
Kurdistan Regional Government Prime Minister Masrour Barzani recently announced that his government had reached an agreement with the federal government to deliver 230,000 barrels of oil per day to SOMO, and 120 billion dinars per month from internal revenues to Baghdad, in exchange for monthly salaries for public sector employees and workers in the region.
Employees, retirees, and those included in the social security network in the Kurdistan Region have not received their salaries for nearly three months after the Iraqi Ministry of Finance suspended them due to the region exceeding its budget share.
The federal Ministry of Finance transferred April salaries on May 13, while the regional Ministry of Finance distributed them within just four days. Since then, May salaries have not been funded or disbursed, despite the advent of Eid al-Adha and the increasing financial pressures on citizens.
Yesterday, the Ministry of Finance issued a letter ordering the suspension of funding for the salaries of Kurdistan Region employees, citing the Kurdistan Region's budget allocations being exceeded, as stated in the letter.
For years, the Kurdistan Region's salary issue has remained unresolved, stuck in a tug-of-war with the federal government. This debate is renewed every year with the approval of the federal budget, which imposes conditions on the region in exchange for receiving its share of the budget, most notably the delivery of oil revenues. However, two years ago, after the region halted oil exports via the Turkish port of Ceyhan, the federal government converted employee salaries into "advances" to be given to the region.
Last February, the Federal Supreme Court ordered the Baghdad government to pay the salaries of Kurdistan Region employees directly, without sending them to the regional government. This followed months of delays in delivering these salaries.
Erbil hands over oil to Baghdad, receives budget share
The Iraqi finance ministry announced on Tuesday that it had disbursed May salaries for the Kurdistan Region’s civil servants, nearly three months after the payments were suspended. The ministry stated that the decision followed the Kurdish government's move to hand over its oil production to federal authorities.
The federal ministry said in a statement that it had resumed the payment of the Kurdistan Regional Government’s (KRG) public employees after Erbil’s commitment to the latest financial and oil agreement with Baghdad.
The ministry stated that the KRG has begun transferring its current oil production to Iraq’s State Oil Marketing Organization (SOMO) and will continue to do so until it reaches the 230,000 barrels per day (bpd) stipulated in the agreement. It also confirmed receiving 120 billion dinars from the KRG’s non-oil revenues, as earlier announced by the Kurdish government.
On Thursday, the KRG and the federal government finalized an agreement aimed at resolving their disputes over finances and Kurdish oil exports. However, officials from both sides have continued to accuse each other of creating obstacles to its implementation.
Under the agreement, the KRG must export its entire oil output through SOMO, keeping 50,000 barrels daily for local use. In return, Baghdad is expected to make budget transfers and provide refined fuel if needed. The KRG is also obligated to hand over 120 billion Iraqi dinars (nearly $92 million) in non-oil revenues monthly for May.
Fuad Hussein, Iraq’s Deputy Prime Minister and Foreign Minister, told Rudaw on Tuesday that Baghdad will continue paying the KRG civil servants for the months of June and July as well.
He added that Kurdish leaders and politicians have been in contact with him and worked tirelessly to make sure that the Region’s public employees are paid.
Kurdistan Region Prime Minister Masour Barzani said on Thursday that it is not possible for the KRG to hand over the required amount of oil to Baghdad due to damage caused to the oil field by recent drone attacks. Since the deal was announced, drone attacks on the Kurdistan Region appear to have ceased. Nearly 20 drone attacks were recorded in July, most targeting oil fields operated by international companies.
KRG has blamed Iraq’s Popular Mobilization Forces (PMF, or Hashd al-Shaabi) for the drone attacks, a charge Baghdad has denied.
Oil exports from the Kurdistan Region through the pipeline have been halted since March 2023 when a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated the 1973 pipeline agreement by allowing Erbil to begin exporting oil independently in 2014.
The KRG’s handover of its oil to SOMO is expected to effectively resume its exports to international markets.
However, the KRG, the Iraqi government, and international oil companies operating in the Kurdistan Region have yet to reach a final agreement on the future of Kurdish oil exports.
The 2025 budget bill may not reach parliament.
MP Bassem Al-Gharabi confirmed that "the government is still funding projects for 2023, and there is an agreement with the Kurdistan Region to sell approximately 250,000 barrels of oil through SOMO, with the revenues allocated to the salaries of the region's employees."
Al-Gharabi explained in a press statement seen by Al-Masry Al-Youm, Tuesday, July 22, 2025, that “the draft budget law for 2025 may not reach Parliament at the present time,” noting that there are financial problems facing ministries, especially in the area of investment financing.”
He noted that "the current financial situation does not allow for the submission of budget schedules for 2025, and Finance Minister Taif Sami confirmed that there are problems with funding ministries, and that the projects added in 2024-2025 have not yet been covered."
He pointed out that "the process of selling oil and transferring the revenues to salaries could take two months, according to what the Minister of Finance stated."
Parliamentary Finance Committee rules out approving 2025 budget
Member of the Parliamentary Finance Committee, Hussein Mounes, ruled out on Tuesday the possibility of the draft state budget and its detailed schedules reaching Parliament at the present time, pointing to the existence of major obstacles to its approval.
Mounes explained in a statement to the Al-Maalouma Agency that “there are several reasons behind this delay, most notably the large deficit resulting from the differences between revenues and expenditures,” pointing to “the lack of a clear vision regarding the financing of investment projects included in the budget.”
He addressed the issue of the region, stressing that it constitutes an additional obstacle and said: “We do not yet know the size of the expected revenues, nor the value of the expenses resulting from them,” expressing his “expectation that the budget schedules will not reach Parliament under the current circumstances.”
It is noteworthy that Parliament had previously hosted the Minister of Finance to discuss the budget schedules and the reasons for the delay in sending them
A new government measure links foreign transfers to advance customs declarations starting in December.
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Move to control imports
The Cabinet approved the adoption of the advance customs declaration as a condition for the external transfer of imported goods, starting December 1, 2025. Importers are required to submit the declaration to banks via the ASYCUDA system and the OUR platform, and are prohibited from modifying its data after the transfer. Banks are also obligated not to conduct transfers without the declaration. Customs centers are to verify that goods comply with the advance declaration and that fees are collected, as part of the effort to regulate import procedures and enhance non-oil revenues.
Regarding the regulation, simplification and organization of import procedures and the development of collection of non-oil revenues, the Council of Ministers approved that the advance customs declaration be one of the requirements for external transfers for the import of goods, merchandise and related service fees exclusively, and that importers are obligated to submit the advance customs declaration to banks, issued by the ASYCUDA system, and containing the quick access code (QR) within the issuance validity system through the OUR platform.
Banks also refrain from making external transfers to the importing company unless they are provided with the advance customs declaration, and banks include the advance customs declaration number in the transfer system (SWIFT) instead of all other data.
The General Authority of Customs shall notify banks of transfers that exceed 6 months and the goods previously declared have not yet arrived at the customs office, in order to take the necessary auditing measures regarding importers and prevent the modification of the bank number and name after issuing the advance customs declaration. It is not permitted to modify the contents of the advance declaration after the external transfer has been made. Customs centers and offices shall complete the customs procedures for imported goods and those arriving at them, verify their compliance with the advance customs declaration, collect customs duties, and protect the product. This decision shall be implemented starting from December 1, 2025.
Iraq signs major deal with US Schlumberger to develop Akkas field
Iraq signed a new agreement on Tuesday with US energy giant Schlumberger to ramp up production at the Akkas gas field in al-Anbar—the Middle East’s second-largest—aiming to boost domestic supply and relieve the country’s worsening energy crisis.
According to the Oil Ministry, Minister Hayan Abdul Ghani, who is also Deputy Prime Minister for Energy Affairs, described the deal as central to Iraq’s gas strategy, with Schlumberger set to drill new wells alongside the Midland Oil Company to initially produce 100 million standard cubic feet per day (mmscfd), targeting 400 mmscfd long-term.
The contract, which replaces a previous deal with a Ukrainian firm, also covers surface infrastructure and pipeline construction to connect Akkas to central processing units and power the al-Anbar Power Station now under development.
Abdul Ghani urged Schlumberger to meet all deadlines, underscoring Iraq’s urgent need to expand gas production.
For over $11 million, an American company wins a contract to support Iraqi military aircraft.
Northrop Grumman has been awarded an $11.7 million contract to provide logistical support for Iraq's fleet of C-172 and C-208 aircraft.
According to the Investing website, citing the US Department of Defense (the Pentagon), "The contract was awarded on June 30, and its total value will increase from $58.9 million to $70.6 million following the new contract."
He explained that "the contract comes within the framework of the Foreign Military Sales program for Iraq, with an allocation of $11,737,827," noting that "the project is being supervised by the Training Aircraft Division of the U.S. Air Force Life Cycle Management Center, within the Rapid Acquisition and Support Branch at Wright-Patterson Air Force Base in Ohio."
The website added that "the Fort Worth, Texas-based company will carry out work at Shahid Ali Fleih Air Base, formerly known as Balad Air Base, in Iraq, and the project is expected to be completed by June 30, 2026."
The Prime Minister receives a delegation from the American oil company Morgan Hughes.
Prime Minister Mohammed Shia al-Sudani received today, Tuesday, Gregory Bloom, Vice President of the American oil company Morgan Hughes, in the presence of the Chargé d'Affaires of the United States Embassy in Iraq, Stephen Fagin.
The meeting reviewed possible avenues of cooperation and opportunities for the company's participation in developing oil fields and investing in associated gas. The Prime Minister affirmed Iraq's commitment to investing in all gas produced in oil fields by 2028.
Al-Sudani reiterated that the government aims, in all its oil contracts, to enhance job creation, and that subcontracts should be a key focus of local Iraqi private sector projects. He also emphasized the need to provide training opportunities for national engineers and technicians on the latest technologies used in oil projects.
For his part, Bloom expressed his company's desire to reach an agreement with the Iraqi side on gas investment, field development, and supporting Iraq's ongoing development renaissance through cooperation in the oil sector and the provision of the latest technological means in this field
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