A government advisor reveals the reason for the decline in the dollar price.
The Prime Minister's financial advisor, Mazhar Mohammed Salih, confirmed on Tuesday that the expansion of electronic transactions has contributed to reducing speculation and unreal demand for the dollar, which has lowered its price in the parallel market. He also indicated that reliance on digital payment tools has led to a decline in the volume of cash trading in dollars.
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Salih said, "The expansion in the use of bank cards and electronic transactions has contributed to reducing the margin of speculation and unreal demand for the dollar, especially after linking transfer and trade finance operations to digital data and prior verification of documents, such as the advance customs declaration." He indicated that "citizens' reliance on digital payment tools, both locally and during foreign travel, has led to a decline in the volume of cash trading in dollars outside the official system."
Saleh explained that "this has begun to have positive impacts at the international level, given Iraq's membership in the Middle East and North Africa Financial Action Task Force (MENAFATF), a regional organization established in 2004 that works to combat money laundering, terrorist financing, and the proliferation of weapons in the region, in line with the forty recommendations issued by the Financial Action Task Force (FATF) in Paris."
He pointed out that "Iraq, through its digital advancements, has made tangible progress, particularly with enhanced compliance with the requirements of the Financial Action Task Force and international compliance practices. This has positively impacted Iraq's current stable credit ratings and opened up broader horizons for better engagement with global correspondent banks, as we can see from the decline in the dollar exchange rate against the official rate in the parallel market in recent months."
He emphasized that "modern electronic technology can be leveraged in Iraq through three complementary paths, the most important of which, based on the government's program, is the digital transformation of public finances and economic governance, which includes several directions, including: automating taxes and customs to maximize non-oil revenues, digitizing government contracts, and distributing support to eligible groups, in addition to enhancing transparency and combating corruption through the presence of a digital fingerprint for every transaction."
Regarding innovation and small business technology, Saleh noted that "digital technology development paths are taking on more modern dimensions, most notably supporting digital entrepreneurship, such as e-commerce, delivery apps, distance learning, and others. This is in addition to funding startups in the fields of artificial intelligence, smart agriculture, and solar energy, in addition to building digital platforms for vocational training and market access."
He added, "There is a trend toward transitioning to a data and knowledge economy in close conjunction, through the establishment of national data centers, the use of artificial intelligence in planning, and the enhancement of internet infrastructure and the achievement of equitable access to it in accordance with global standards for digital justice. We also emphasize the importance of supporting the higher education sector in digital and technical specializations."
He pointed out that "these trends will undoubtedly contribute to creating sustainable jobs, reducing operating costs, and increasing the productivity of the national economy in a promising digital era for Iraq."
Iraqi dinar nears official rate as market stabilizes
Iraq’s national currency, the dinar, is showing strong signs of recovery, with the market rate steadily approaching the official exchange rate of 1,320 IQD to the US dollar. After a turbulent period of volatility and speculation, this shift signals something deeper than a temporary market correction - it’s the product of deliberate government action, changing trade behaviors, and a structural shift in how Iraqis interact with money.
From chaos to coordination
Until recently, the dinar’s value on the street was largely dictated by informal market players who thrived on gaps between official and parallel exchange rates. But over the past year, the Iraqi government has launched a wide-ranging campaign to take back control by tightening regulation, changing how dollars are accessed, and nudging both businesses and individuals toward official channels.
The government’s decision to ban US dollar transactions for local high-value purchases, especially in real estate and luxury goods, has played a major role in restoring demand for the dinar. Meanwhile, businesses that once relied on the Central Bank’s daily auctions are now required to process foreign payments through correspondent banks, reducing the space for dollar hoarding and speculative arbitrage.
“Speculation is being replaced by structure,” said Mazhar Mohammed Salih, financial advisor to the Iraqi prime minister. “The state has finally begun to set the rules, and the market is responding.”
A new flow of dollars
Beyond regulatory shifts, Iraq’s economy is also undergoing subtle but important changes in how foreign currency flows in and out. The government has started compensating some international contractors in crude oil rather than cash. These companies then sell the oil on global markets and bring the dollars back into Iraq through their own channels - providing the economy with a fresh, non-Central Bank supply of hard currency.
At the same time, Iraq’s role as a re-export hub - once a key driver of black-market demand for dollars - has sharply declined. Stricter oversight at borders and more formal trade practices have undercut the once-lucrative business of reselling goods to countries like Iran, Syria, and Turkey through backdoor channels.
As demand for cash dollars softens, the gap between the official and street rate is closing. And that gap, which for months symbolized inefficiency and mistrust, is now rapidly shrinking.
“There has been a clear shift in behavior,” said Manar al-Obaidi, head of investment firm FFC. “Dollar demand is down, and confidence in the system is creeping back.”
Structural overhaul meets economic cooldown
The current trend is also rooted in longer-term structural changes. Iraq’s economy is gradually becoming more formal. Small traders are getting easier access to official currency rates, electronic payments are on the rise, and retail imports are being managed through cooperatives that use the official rate.
At the same time, Iraq is seeing a slowdown in public spending on infrastructure and large projects - partly a result of fluctuating oil revenues. With fewer imports flooding in, the overall demand for dollars has naturally declined.
“The fundamentals are shifting,” said economist Ahmed Tabaqchali. “There’s a mix of reform and slowdown happening together, and both are cooling the pressure on the currency.”
The road ahead
Iraq's challenge has never been about a lack of resources. With healthy foreign reserves and oil exports still strong, the question has always been whether those resources could be managed transparently and strategically.
Now, for the first time in years, there’s momentum toward that goal. The dinar’s recovery is not just a technical market win - it’s a reflection of rising trust in the state’s ability to regulate and stabilize. Whether this trajectory holds will depend on consistent enforcement, sustained reforms, and the government's ability to shield its progress from political turbulence.
But for now, the message from the market is clear: the dinar is no longer drifting - it’s being steered.
Fake payment cards confuse the country... and the government responds by reducing fees by 50%!
The Iraqi Council of Ministers approved a decision on Tuesday to reduce fees for issuing electronic payment cards by 50%. This remarkable move raises many questions about the background to this measure and its timing, which comes amid escalating controversy over the use of these cards in fictitious transfers and the illegal export of funds outside the country.
Stimulating financial inclusion...or an attempt to contain chaos?
Officially, the decision appears to be part of the country's drive to promote financial inclusion and reduce reliance on cash, as part of a months-long campaign led by the Central Bank to expand electronic transactions and curb the unregulated money market.
But at the same time, there are growing indications that there are worrying security and economic motives behind this decision, the most important of which are:
- The phenomenon of fake cards is spreading. These cards are issued in fictitious names or to people who do not actually use them. Instead, they are used as a front to transfer money abroad without any real oversight.
- Banking networks and exchange companies are involved in suspicious transactions related to the illegal issuance of cards, exploiting weak identity verification mechanisms.
- Some cards are being exploited to smuggle hard currency under the guise of "personal use," which has contributed to the depletion of dollars from the local market and put pressure on exchange rates.
Does the decision represent a reform step or a way around the problem?
Although reducing card issuance fees may seem like an incentive for citizens to enter the banking system, observers believe the decision will be ineffective unless accompanied by strict measures to prosecute banking corruption, particularly fraudulent card issuance networks.
Informed sources in the financial sector have emphasized that some private banks continue to use "dubious" methods to issue payment cards, granting them to individuals without genuine bank accounts. This represents a major loophole in the Iraqi financial system and threatens the country's economic security.
Conclusion
The decision to reduce electronic payment card issuance fees by 50% may appear to be a superficial reform, but it conceals deep concerns about the spread of fake cards and their use as tools for money laundering. Unless serious steps are taken to monitor the issuance mechanism and verify the identity of the real beneficiaries, the decision could turn into a double-edged sword.
The liquidity crisis is "suffocating" the government, and the deficit is "exposing" the financial system ahead of the budget schedules.
As the country enters the final quarter of 2025, this year's budget schedules are still not ready, a precedent that reflects the extent of the financial confusion facing the government.
According to what economic and financial affairs expert Ahmed Al-Tamimi confirmed to Baghdad Today, Tuesday (July 29, 2025), Iraq is facing real difficulty in passing the 2025 budget schedules due to the "severe shortage of financial liquidity in the state." This shortage is the result, he said, of "declining non-oil revenues and the delay in implementing some financial and administrative reforms."
Al-Tamimi's statements open the door to a deepening crisis facing the Ministry of Finance. The problem is not limited to a temporary decline in resources, but rather relates to a structural deficit in the state's financial structure. According to Al-Tamimi, the government "faces a real challenge in covering basic operating expenses, not to mention investment commitments," which makes preparing an accurate and comprehensive budget a near-impossible task at the present time.
This reality raises sensitive questions about the state's ability to meet the salaries of employees and retirees and ensure the continuity of service projects, given an economy that is overly dependent on oil, suffers from the absence of an effective tax collection system, and suffers from a marked decline in industrial and agricultural activity.
Al-Tamimi stresses the "need to accelerate measures related to boosting local revenues, activating the tax collection system in an organized manner, and rationalizing public spending." These are traditional recommendations that have been put forward for years without actual implementation on the ground, due to reasons related to the political structure, populist pressures, and rampant corruption.
According to observers, the timing is even more critical now, as Iraq prepares for general elections next October, and the government does not have the luxury of austerity measures or spending cuts. This presents it with an impossible equation: How can it satisfy the street, cover salaries, and stimulate the economy amid a stifling liquidity crisis?
Al-Tamimi concludes with a clear warning: "A continued liquidity deficit could threaten the government's ability to prepare and submit the 2025 budget on time, potentially exposing the country to additional economic risks and disrupting financial planning for next year."
Iraq: Stagnant markets and declining trade push the dollar to stabilize.
According to experts, this stability is attributed to declining demand for the dollar on the parallel market, a result of the trade slowdown and weak domestic economic activity, as well as a decline in some sources of cross-border smuggling.
In this context, economic expert Abdul Rahman Al-Mashhadani attributed the stability of the dollar exchange rate in local markets to the significant recession currently being experienced by the commercial, real estate, and automobile sectors, which are among the most prominent drivers of demand for foreign currency.
Al-Mashhadani told Al-Furat News: “The ongoing recession has had a direct impact on the exchange rate, with market activity coming to a near standstill as a result of the measures taken by the Central Bank and other government agencies.” He noted that “the halt in the car market in particular has had a clear impact, as it is one of the sectors with the highest demand for dollars.”
He added that "the decline in smuggling operations, particularly after curbing illegal trade from Syria, which used to bring in up to $2 million a day and was withdrawn from the parallel market, also contributed to price stability," noting that "trade with Iran has also become restricted and limited, which has reduced pressure on the currency."
Despite the stability of the Central Bank's measures, Al-Mashhadani asserts that "current factors have contributed to stabilizing the exchange rate, without direct intervention in the market."
The selling price at exchange offices in Baghdad's local markets was 140,500 dinars for $100, while the buying price was 138,500 dinars for $100.
Erbil agrees to send 120 billion dinars to Baghdad and deliver July payrolls.
An informed source revealed, today, Tuesday (July 29, 2025), that the Kurdistan Regional Government has agreed to send 120 billion dinars to Baghdad, during the regional council of ministers session scheduled for tomorrow, Wednesday.
The source told Baghdad Today, "The Council of Ministers will approve sending the amount to the federal government early next week, along with providing a copy of the quantities of oil the region can currently export."
He added that "the regional government will also send its employees' payrolls for July to Baghdad," noting that "the federal government, for its part, will disburse June salaries at the end of next week, amounting to 974 billion dinars."
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Al-Sudani explodes: Iraq's security begins in Damascus!
Fiery statements from Al-Sudani: Iraq's stability passes through Damascus!
Iraqi Prime Minister Mohammed Shia al-Sudani's statement, during an interview with the Associated Press monitored by Al-Mustaqilla, regarding Syria as "an important country for Iraq's security" and Baghdad's keenness to "preserve a unified Syria," sparked widespread controversy in political and popular circles.
A statement with regional and international dimensions
Al-Sudani's statement places Iraq in a delicate position among regional and international powers vying for influence in Syria. Baghdad's declaration of its commitment to Syria's unity indicates a political orientation that could impact Iraq's relations with some regional states that support the partition or alteration of Syria's political map.
Some observers believe this stance reinforces Iraq's policy of rejecting foreign interference and aiming to maintain stability in the region. Others have criticized what they describe as "interference in the affairs of a sovereign state," arguing that it could drag Iraq into new crises amid the complexities of the Syrian crisis.
Implications for Iraqi regional relations
Al-Sudani's statements have raised concerns in some regional capitals, which view Syria as a venue for settling scores and exercising influence. The statement that Syria is "an important country for Iraq's security" suggests that any destabilization of Syria could negatively impact Iraqi security, making Baghdad a pivotal player in any future settlement.
On the other hand, some believe that Iraq is attempting to adopt a balanced stance that reflects a desire to maintain balanced relations with the major powers in the region, most notably Iran, Turkey, and Russia, which have differing interests in the Syrian conflict.
The Iraqi street is divided between supporters and opponents.
On the popular level, a clear division emerges between those who support Al-Sudani's statements, seeing them as protecting national interests, and critics who fear Iraq's involvement in regional conflicts that could lead to further unrest within the country.
In conclusion:
The Sudanese Prime Minister's statement did not close the door to debate, but rather opened it wide, placing Iraq at the heart of the regional and international conflicts related to Syria and re-highlighting the critical role Iraq can play in achieving stability or tension in the region.
What is the relationship between the electronic transformation and the decline in the exchange rate? An important government clarification.
The Prime Minister's financial advisor, Mazhar Mohammed Saleh, confirmed on Tuesday that the expansion of electronic transactions has contributed to reducing speculation and unreal demand for the dollar, which has lowered its price on the parallel market. He also noted that the reliance on digital payment tools has led to a decline in the volume of cash dollar trading.
Saleh said, "The expansion of the use of bank cards and electronic transactions has contributed to reducing speculation and unrealistic demand for the dollar, especially after linking transfers and trade finance operations to digital data and pre-verification of documents, such as the advance customs declaration." He explained that "citizens' reliance on digital payment tools, both domestically and during international travel, has led to a decline in the volume of dollar cash transactions outside the official system."
Saleh explained that "this has begun to have positive impacts at the international level, given Iraq's membership in the Middle East and North Africa Financial Action Task Force (MENAFATF), a regional organization established in 2004 that works to combat money laundering, terrorist financing, and the proliferation of weapons in the region, in line with the forty recommendations issued by the Financial Action Task Force (FATF) in Paris."
He pointed out that "Iraq, through its digital advancements, has made tangible progress, particularly with enhanced compliance with the requirements of the Financial Action Task Force and international compliance practices. This has positively impacted Iraq's current stable credit ratings and opened up broader horizons for better engagement with global correspondent banks, as we can see from the decline in the dollar exchange rate against the official rate in the parallel market in recent months."
He emphasized that "modern electronic technology can be leveraged in Iraq through three complementary paths, the most important of which, based on the government's program, is the digital transformation of public finances and economic governance, which includes several directions, including: automating taxes and customs to maximize non-oil revenues, digitizing government contracts, and distributing support to eligible groups, in addition to enhancing transparency and combating corruption through the presence of a digital fingerprint for every transaction."
Regarding innovation and small business technology, Saleh noted that "digital technology development paths are taking on more modern dimensions, most notably supporting digital entrepreneurship, such as e-commerce, delivery apps, distance learning, and others. This is in addition to funding startups in the fields of artificial intelligence, smart agriculture, and solar energy, in addition to building digital platforms for vocational training and market access."
He added, "There is a trend toward transitioning to a data and knowledge economy in close conjunction, through the establishment of national data centers, the use of artificial intelligence in planning, and the enhancement of internet infrastructure and the achievement of equitable access to it in accordance with global standards for digital justice. We also emphasize the importance of supporting the higher education sector in digital and technical specializations."
He pointed out that "these trends will undoubtedly contribute to creating sustainable jobs, reducing operating costs, and increasing the productivity of the national economy in a promising digital era for Iraq."
The Ministry of Commerce discusses with the ITC the latest developments regarding Iraq's accession to the World Trade Organization and enhancing technical support.
The Ministry of Trade announced today, Tuesday, that the Department of Foreign Economic Relations held a meeting with representatives of the International Trade Centre (ITC) to discuss the latest developments related to Iraq's accession to the World Trade Organization (WTO) and ways to enhance technical cooperation to support this process.
A statement issued by the ministry's media office, quoting the department's director general, Riyadh Fakher Al-Hashemi, stated that the meeting discussed prospects for joint cooperation in reviewing the technical files prepared by the accession team in coordination with the technical committees emanating from the relevant national committee.
The statement emphasized the importance of the technical and technological support provided by the International Trade Centre, particularly during this critical phase, given its significant role in enhancing the efficiency of national teams and strengthening institutional readiness for accession requirements.
The meeting also addressed efforts to update the Nationally Determined Contributions (NDC) document, in coordination with sectoral bodies, in line with government policies aimed at integrating environmental and sustainability concepts into economic and trade policies.
At the conclusion of the meeting, Al-Hashemi stressed that the meeting was part of the department's ongoing efforts to develop Iraq's trade policy and enhance institutional and technical capabilities, supporting Iraq's accession to the World Trade Organization and strengthening its presence in the multilateral trading system.
For their part, representatives of the International Trade Centre praised the progress made in the accession file and the level of coordination with the Department of Foreign Economic Relations, stressing their readiness to continue providing the necessary technical support to complete the accession requirements.
Al-Maliki undergoes medical tests at Ibn al-Bitar Hospital.
The office stated in a statement received by {Euphrates News} that "the head of the State of Law Coalition, Nouri al-Maliki, underwent medical tests this morning at Ibn al-Bitar Hospital. These tests come within the framework of regular follow-up."
The statement added: "We thank everyone who expressed their interest and concern, and we wish everyone continued health and wellness."
another version
A medical source reported that the head of the State of Law Coalition, Nouri al-Maliki, was transferred to the hospital after suffering a mild heart attack.
The source said, "Al-Maliki was transferred to Ibn al-Bitar Hospital in Baghdad, and is now in the hospital's private wing."
He added that Al-Maliki "will be admitted to the operating room for an urgent catheterization procedure to prevent his health from deteriorating."
Al-Maliki inserts an intravenous thrombolytic valve and receives the Minister of Agriculture.. Greetings to "Abu Israa"
First appearance after today's tests
The media office of the head of the State of Law Coalition published the first photo of coalition leader Nouri al-Maliki, following reports that he had undergone surgery. However, his office clarified on Tuesday morning that al-Maliki had undergone routine medical checkups and had not undergone any surgery. The head of the State of Law Coalition appeared in his new photo next to Agriculture Minister Abbas al-Aliawi, who visited him to check on his health. Al-Maliki appeared in good health, but he had an intravenous cannula in his hand.
Al-Maliki's media office said in a statement:
Head of the State of Law Coalition, Mr. Nouri al-Maliki, receives the Minister of Agriculture.
State of Law Coalition leader Nouri al-Maliki received Agriculture Minister Abbas al-Aliawi this evening, who visited him to check on his health after undergoing routine medical checkups on Tuesday morning.
The Minister expressed his wishes for continued health and wellness, while Mr. Al-Maliki thanked him for this fraternal initiative, affirming his appreciation for the feelings of concern and concern.
To follow up on the disbursement of two months' salaries, the Kurdistan Regional Government's Council of Ministers will hold a meeting tomorrow.
The Kurdistan Regional Government's Council of Ministers will hold a meeting tomorrow, Wednesday, to discuss June and July salaries and the resumption of oil exports.
Kurdish media reported that the Kurdistan Regional Government's Council of Ministers will hold a meeting tomorrow, Wednesday, to discuss three issues, including following up on the disbursement of salaries to the region's employees for the months of June and July.
The meeting will also discuss the resumption of oil exports from the Kurdistan Region, in addition to making several recommendations regarding Peshmerga salaries and affairs.
Ceyhan Agreement...and flexibility in oil exports
link
Management is "a science and an art," say specialists, referring to the flexibility required of decision-makers at all levels. Perhaps a strategic perspective is the secret behind achieving this flexibility. When a threat confronts a strategist, it can be transformed into an opportunity that achieves a qualitative shift in achieving gains by analyzing the internal and external environment to identify the factors that enable this shift.
We are on the verge of bringing down the curtain on the Ceyhan Agreement with the Turkish side, which was approved in the seventies of the last century, and the updates that have taken place to it, and what it represents as a clear challenge to the oil policy in Iraq, because this event will weaken the flexibility of exporting Iraqi oil, which depends largely on the Strait of Hormuz, which is turbulent in terms of security and politics, and it is unreasonable to remain dependent on this waterway, because the percentage
(90%) of our oil passes through it, which poses a great threat to the Iraqi economy due to the unrest.
Sustainable in this corridor.
Although the design capacity of the Turkish Ceyhan pipeline, which amounts to (1.6) million barrels per day, has not been exploited, and it has been stopped recently, and the actual source of it was between (350-450) thousand barrels per day before the stoppage, it is considered one of the oil export outlets that is supposed to be supported and developed to reduce, even relatively, the dependence on the Strait of Hormuz, and this is what the Ministry of Oil announced recently within the agreement to resume pumping oil, which was supposed to start with pumping (185) thousand barrels per day, reaching (400) thousand per day.
With only one year left in the agreement, the Iraqi administration is required to develop strategic solutions to enhance its oil export outlets. The question is: How can we transform all these challenges into opportunities that support Iraq's oil policy?
The observer of the event clearly senses the Turkish side’s rush towards the development road project, and here are the factors that are supposed to be exploited to compensate for the Ceyhan agreement with greater gains for the Iraqi side, and to find a gateway larger than that agreement, to find export outlets for Iraqi oil to European markets via the ports of the Mediterranean, and the focus should be on pipelines as they are relatively cheaper than other methods, and then the Turkish side must exchange the privileges that are supposed to be achieved for them through the development road by establishing a system of export pipelines for Iraqi oil through their lands, with greater export capacities than the Ceyhan pipeline, and this must be in parallel with other outlets such as Aqaba, to create greater flexibility in light of the promises of an increase in Iraqi production in the future.
Iraq-Turkey pipeline requires ‘costly’ renovation: KRG PM advisor
The Iraq-Turkey pipeline has surpassed its lifespan and will require “costly” renovation if the Kurdistan Region’s long-stalled oil exports are to resume, an energy advisor to the Region’s prime minister said on Tuesday.
“The suspension of the Iraq-Turkey Pipeline, which is a strategic Iraqi line, started in 1973 - meaning it is more than 50 years old,” said Kamal Atroshi, energy advisor to Prime Minister Masrour Barzani and the Kurdistan Region’s former minister of natural resources.
Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023 after a ruling by a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated a 1973 pipeline agreement by allowing Erbil to begin exporting oil independently in 2014.
“Normally and under international standards, the lifespan of oil pipelines is between 40 to 50 years. After that period, it becomes very old and needs special maintenance, which entails very high costs. Basically, the contract was for 50 years and has expired for that pipeline,” he explained.
Atroshi noted that the line is not beyond use, but any future operation would require extensive repair and favorable terms for both Iraq and Turkey.
“If an agreement is made to renovate that pipeline again, it has the capacity to work and its maintenance and repair costs and transit fees… are economically suitable for both sides, then it's possible. It's a very strong possibility,” he said. “Certainly, this also has great benefits for Turkey.”
The remarks come as Iraq and Turkey discuss the future of the pipeline and a possible new energy partnership. Last week, the Iraqi oil ministry said Ankara had officially expressed its willingness to renew and expand the 1973 oil export agreement with Baghdad. Turkey has confirmed sending a letter to Baghdad that included a draft of a broader energy cooperation deal covering oil, gas, petrochemicals, and electricity.
The current agreement, first signed in 1973 and most recently renewed in 2010, is set to expire in 2026 unless either side issues a termination notice one year prior. Iraq’s state gazette had earlier announced that Turkish President Recep Tayyip Erdogan would not renew the deal, prompting further clarification from Turkish officials that they do intend to move forward with a new version of the agreement.
In May, Turkish Energy Minister Alparslan Bayraktar said the pipeline has the capacity to carry 1.5 million barrels of oil per day and that Ankara is interested in expanding energy trade with Iraq, particularly involving the oil-rich southern province of Basra.
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