Stabilizing the Dinar: Game Over for the Parallel Market?

Government advisor: Three factors have stripped the parallel exchange market of its price influence and diversified our financial reserves.

link

The video for this My FX Buddies Blog post is below here:

The Prime Minister's economic advisor, Mazhar Mohammed Salih, confirmed that the stability of the price structure and the decline in annual inflation rates in Iraq are the result of the success of three integrated economic policies that worked in a coordinated manner within the framework of the state's general economic policy.

Saleh told Al Furat News that "the fiscal policy has contributed significantly to supporting prices through the general budget, whose expenditures constitute more than 13% of the gross domestic product," noting that "this support has been reflected in expanding social safety nets through food baskets, fuel price subsidies, and support for farmers, in addition to providing wide-ranging government services."

He added, "Monetary policy, in turn, has achieved tangible success in maintaining the external value of the dinar by controlling domestic liquidity levels through the introduction of electronic payment systems and increasing demand for foreign currency at local banks via their correspondents abroad. This has contributed to reducing financial transfer times and implementing compliance rules related to money movement risks."

Saleh pointed out that "the third of these policies was price defense through the establishment of a hybrid market network, which provided a wide supply of goods at stable prices and directly impacted the local market by creating price competition that reduced opportunities for speculation. As a result of these three factors, the effects of the parallel exchange market (the black market) were neutralized, especially with regard to generating inflationary expectations, the effects of which gradually faded," he said.

He explained that "there are commodity stocks available to the state and the private sector, some of which have a shelf life of three to five years, particularly with regard to spare parts and durable goods, which enhances market stability in the medium term."

Regarding the increase in gold reserves, Saleh explained that "this is a successful monetary policy tool for diversifying Iraq's foreign reserves portfolio," noting that "gold represents a safe haven against fluctuations in global exchange rates and interest rates." He added that "this diversification, which includes various foreign currencies and monetary gold, is based on precise international standards to protect the country's assets from value fluctuations between currencies."

Regarding the impact of OPEC+ decisions, Saleh emphasized that "Iraq is part of the international consensus within the organization regarding oil production levels, and that the national oil policy enjoys significant flexibility that enables it to maintain export levels within Iraq's quota, thus mitigating the impact of lower oil prices on public revenues."

In this context, he noted that "Triennial Budget Law No. 13 of 2023 includes flexible financial tools to address any emergency gaps through the possibility of resorting to bridge borrowing from the local financial market, supported by a monetary policy that provides sustainable liquidity through open market instruments, in accordance with the provisions of the Central Bank of Iraq Law No. 56 of 2004."

The advisor concluded his remarks by emphasizing that "the economic stability Iraq is witnessing today is the result of the integration of fiscal, monetary, and pricing policies into a unified framework that promotes sustainable development and supports the implementation of the government's program and comprehensive economic reforms."

The era of cash is over. Iraq accelerates its steps towards electronic payments amid fears of hacking.

link

 

The Iraqi government is accelerating its efforts to end cash transactions within official institutions, as part of a national plan to establish an electronic payment system. This comes amid technical and economic challenges, and fears of potential disruption resulting from weak infrastructure and a lack of adequate preparation.
The government announced a package of measures requiring the use of electronic cards in all official institutions, whether for paying fees or receiving dues, as part of a plan to restructure the national economy and reduce reliance on cash.

Restructuring the Banking Sector
Last week, Prime Minister's advisor, Saleh Salman, said that the government had contracted with Ernst & Young to restructure six to seven state-owned banks, including Rafidain, Rashid, Industrial, and Real Estate.
He indicated that Rafidain Bank will be transformed into Rafidain First Bank, with the state's share reduced to less than 24%, while the remaining shares will be offered to investors and private banks.

He explained that the number of point-of-sale (POS) devices in the country ranges between 60,000 and 70,000, while the number of registered bank accounts amounts to approximately 22 to 23 million. However, these figures do not necessarily mean that all account holders have functional bank cards. Unofficial estimates indicate that approximately 65% of the population remains outside the electronic payment system, due to the unavailability of cards, lack of confidence in the technical infrastructure, or frequent internet outages.
For his part, Moeen Al-Kadhimi, a member of the Finance Committee in the House of Representatives, emphasized the importance of switching to an electronic payment system as a strategic step to eliminate excessive reliance on cash, noting that this culture has become prevalent globally, and Iraq must catch up.
Al-Kadhimi added in a statement to Al-Mada that approximately seven million employees and retirees, in addition to three million social welfare recipients, receive their benefits via electronic payment cards, which reinforces the need to expand and develop this service in a thoughtful manner.
He pointed out that the technical infrastructure in Iraq is still incomplete, calling for its rapid development, especially with the notable progress made by Rashid Bank and the importance of supporting Rafidain Bank with young cadres specialized in programming and information technology.

Cyberattacks and Community Concerns
. On the other hand, observers have warned that imposing electronic payments could increase citizens' suffering, especially in areas lacking technical infrastructure or among individuals who do not have bank accounts. Experts have recommended adopting a gradual approach that takes vulnerable groups into account.

This shift coincided with increasing complaints on social media about some users' accounts being hacked or debited without their knowledge, amid accusations of weak cybersecurity in some banking applications.

Experts warn that rushing to generalize electronic payments without addressing security vulnerabilities could undermine public confidence in the banking system, given the lack of adequate awareness of safe usage mechanisms.
Indications of a Real Transformation.

In the same context, economic expert Mustafa Hantoush stated that Iraq has made significant strides in the transition to electronic payments, noting that the period between June 1, 2023, and July 1, 2025, represents a pivotal point in integrating this system into the state.
Hantoush told Al-Mada that the value of electronic purchases amounted to more than 298 billion Iraqi dinars, reflecting a real shift in consumer culture.

He explained that the technical infrastructure is now well-prepared, but it still needs to develop electronic payment companies and expand the acceptance of international cards, which would enhance Iraq's ability to enter an integrated digital economy.
He concluded by saying, "We aspire to reach an electronic purchasing power exceeding 300 trillion dinars, and if we succeed in reaching 100 trillion as a first stage, it will be an achievement that establishes a modern financial culture in the country."

 

Parliamentary warning: Failure to approve budget schedules will exacerbate financial crises.

link

Member of Parliament, Taama Al-Lahibi, warned on Monday against delaying the approval of the budget schedules.
Member of Parliament, Taama Al-Lahibi, confirmed in a statement to the official newspaper, followed by ( IQ ), that "the budget schedules represent a top priority at the present time, and cannot be postponed to the next legislative session, as they form the backbone of the work of ministries and institutions." He warned that "delaying them will lead to the disruption of service projects and the exacerbation of financial crises in the governorates."
Al-Lahibi added that "there are other important laws that can be discussed or postponed later, but the failure to approve the financial schedules at this time means a continued stagnation in project implementation and a delay in the disbursement of dues and allocations, which will negatively impact citizens' lives."
The MP called on the Speaker of Parliament and political blocs to "assume their responsibilities and not be lenient in passing the schedules, as they directly affect the daily lives of citizens and impact the performance of state institutions across various sectors."
Al-Lahibi pointed out that "the current legislative session is nearing its end, which requires all parties to intensify efforts to approve priorities and close outstanding files before the new session begins."

 30 Iraqi banks no longer deal in dollars

link

 

Al-Mustaqilla publishes the full list: Banks banned from receiving dollars by order of the Central Bank.

Al-Mustaqilla today obtained an updated list of licensed private banks in Iraq that have been banned from dealing in dollars by the Central Bank of Iraq.

This decision comes amidst uncertainty and the lack of official confirmation of the precise reasons that prompted the bank to ban these banks from dollar trading. It is speculated that these banks are linked to US sanctions and other financial oversight concerns.

 

Banks prohibited from dealing in dollars

According to the official website of the Central Bank of Iraq, the list included the following banks:

• Middle East Iraqi Investment Bank
• Iraqi investment
• Dar Al Salam Investment
• Bank of Babylon
• Sumer Commercial
• Mosul Development and Investment
• Iraqi Federation
• Ashur International Investment
• Across Iraq for Investment
• Guidance
• Erbil Investment and Finance
• Hammurabi's Commercial Code
• Elaph Islamic
• Kurdistan International Islamic Investment and Development
• Islamic Cooperation for Investment (under liquidation, prohibited from dealing in dollars)
• Islamic Giving for Investment and Finance
• Islamic Investment and Finance Advisor
• Islamic World Investment and Finance
• South Islamic Investment and Finance
• Islamic Arabic
• Noor Al Iraq Islamic Investment and Finance
• Zain Iraq Islamic Investment and Finance
• International Islamic
• Islamic Finance Holding Company
• Al Ansari Islamic Investment and Finance
• International Islamic Trust
• Al Rajhi Islamic
• Islamic Paper for Investment and Finance
• Asia Iraq Islamic Investment and Finance
• Islamic Spectrum for Investment and Finance
• Islamic money for investment

Possible reasons for ban

To date, the Central Bank of Iraq has not issued an official statement detailing the reasons for banning these banks from dealing in dollars. However, financial sources and banking sector observers point to the possibility of a link between this decision and US or international sanctions on some of these institutions, in addition to potential violations related to:

• money laundering
• smuggling hard currency
• illegal transfers
• Failure to comply with financial compliance and banking oversight standards

The repercussions of the decision on the Iraqi economy

This ban comes at a time when the Iraqi economy is suffering from several pressures, including the decline in the value of the Iraqi dinar and fluctuating dollar prices in the local market, which could lead to:

• The complexity of transactions for companies and individuals dealing with these banks.
• Increased demand on the black market for dollar exchange, with the accompanying financial risks.
• Undermining confidence in the local banking system, especially among private banks facing the threat of sanctions.

Calls for more transparency

Economists believe the Central Bank of Iraq should issue a transparent statement explaining the true reasons behind these decisions, along with a clear plan to address the financial issues related to the banks in question. Some MPs have also called for the formation of a parliamentary investigation committee to monitor the violating banks and ensure the protection of citizens' funds.

in conclusion

All eyes are on the Central Bank of Iraq's next steps regarding banks banned from dealing in dollars . Will additional sanctions be imposed, or are these merely temporary measures to regulate the market and improve financial oversight? What impact will this have on the stability of the banking system and the Iraqi economy in general?

 

A delegation from the Kurdistan Region arrives in Baghdad to discuss a draft oil export agreement. 

link

An informed source reported that a delegation from the Kurdistan Region has arrived in Baghdad to complete discussions on the draft oil export agreement between the two governments.

 

According to the source, "A delegation from the Kurdistan Regional Government arrived in Baghdad on Monday to discuss a draft agreement on oil exports with Iraqi officials."

 

The delegation includes Kamal Mohamed, Acting Minister of Natural Resources; Amanj Rahim, Secretary of the Cabinet; and Abdul Hakim Khosro, Head of the Coordination and Follow-up Office.

 

This visit comes as Baghdad prepares a draft of the aforementioned agreement, awaiting Erbil's response. Erbil is expected to submit its official response to Baghdad today.

The government is accelerating digital transformation. Historic growth in electronic payments and financial inclusion in Iraq.

link

 

A government source revealed, on Monday (July 7, 2025), the steps taken by the Iraqi government in the field of developing and promoting electronic payments, noting that since the Iraqi government assumed its duties more than two and a half years ago, the importance of a strong and effective banking system has become clear to it, as developing electronic payments and increasing financial inclusion in the country are considered among its most prominent features.

The source added, speaking to Baghdad Today, that "the government and the prime minister considered this goal a top priority, as it is a key objective in the strategies of countries around the world, given its close connection to economic stability and growth." 

He continued, "The Iraqi government has taken a series of decisions and measures through the Council of Ministers and the Ministerial Council for the Economy, in addition to the committees emanating from them, which include representatives from the government, the Central Bank, and the private sector, to monitor this aspect." He noted that "these committees include: the Electronic Payment Performance Monitoring Committee, the Electronic Payment and Financial Inclusion Stimulation Committee, the Digital Transformation Committee, and the Digital Transformation and Electronic Payment Process Evaluation Committee in Iraqi Ministries and Government Institutions." 

The source explained that "Prime Minister Mohammed Shia al-Sudani had previously issued a set of decisions and directives based on reports from these committees, which led to significant progress on several indicators in this area during 2025. The digital transformation rate of Iraqi ministries and institutions rose to approximately 32%, up from less than 18% in 2022, representing a growth rate of 78%." 

He added, "The number of bank accounts reached approximately 20 million, compared to 8 million accounts in 2022, a growth exceeding 150%. The number of bank cards also increased to 21-22 million cards of all types, including credit, debit, and prepaid, up from 16 million cards in 2022, representing a growth rate of 38%." 

He pointed out that "the number of point-of-sale (POS) devices reached approximately 62,000, up from less than 10,000 in 2022, a growth rate of 520%. The number of ATMs also reached approximately 7,531, up from approximately 2,223 in 2022, a growth rate of 239%." 

He pointed out that "total electronic payments reached approximately 1.37 trillion dinars in May 2025, compared to less than 90 billion at the end of 2022, with a growth rate of up to 1,400%. Data indicates that the financial inclusion rate in Iraq has reached approximately 40%, after being less than 10% in 2019." 

The source confirmed that "the Prime Minister recently issued a number of future decisions related to a number of important projects in the field of electronic payments, stressing the need to complete them as soon as possible."

He explained that "these projects include: activating the local card, expected to be completed by the end of 2025, activating the rapid payment project, activating the unified electronic collection application, localizing private sector salaries in line with the government sector, and establishing a unified center for complaints related to electronic payment transactions, headquartered at the National Data Center." 

The source expected that "these projects will be completed in less than a year, stressing that their implementation will contribute to moving Iraq to a new level among the advanced countries in this field."

Iraq is not among the best Arab countries in information technology: We live in an era of "paper transactions."

link

 

At a time when Arab countries are racing towards digital transformation and enhancing their communications infrastructure, Iraq has officially dropped out of the top ten Arab countries in the 2025 Information and Communications Technology Index, according to recent regional rankings. Iraq's absence from the rankings did not come out of nowhere; rather, it reflects a complex reality of technological neglect, chronic reliance on paper-based systems, and the failure to adopt effective strategic plans to keep pace with the digital world.

"An expected and natural decline."
Speaking to Baghdad Today, digital technology expert Ali Al-Omran described this decline as "natural and expected," noting that "Iraq still relies heavily on paper for most essential and fundamental transactions within the state, and even coordination between state institutions is still conducted using primitive methods that have no connection to digital transformation."

Al-Omran explained that "the failure to modernize work mechanisms and the insistence on traditional systems places Iraq among the countries that are severely behind in the field of information and communications technology," emphasizing that "the problem is no longer just a delay in implementation, but has become a broad gateway to corruption, extortion, and the disruption of citizens' interests."

Infrastructure is "absent or eroding."
Despite more than two decades of political change, Iraq has yet to succeed in building a modern technological infrastructure. Most departments still rely on paper archiving, and there is no unified national government communications network or effective digital platform for public services. This is compounded by growing complaints about weak internet connectivity, a lack of cybersecurity, and the absence of legislation regulating digital transformation.

Experts believe the problem lies not only in a lack of funding, but also in the absence of political will and decisive decisions to change the paradigm of public administration, in addition to poor planning and corrupt contracts related to automation programs, which are often merely formal or have limited impact.

The solution begins with partnerships with the world.
Al-Omran emphasizes that "Iraq urgently needs to develop its information and communications technology infrastructure and rely on specialized international companies and systems, not just temporary local solutions." He points out that "true digital transformation requires government will, a legislative environment, and the involvement of the private sector in building a sustainable model that ensures efficient performance and reduces the chances of corruption."

Iraq's decline from regional and international IT rankings does not merely represent a technological setback, but rather reveals a profound institutional flaw that is hindering the development of the modern state. With the growing need for advanced digital services across all sectors, Iraq's continued digital isolation will mean further slowdown, disruption, and corruption at a time when other countries are steadily moving forward.

Central Bank: Inflation fell by 21% and gold reserves rose by 19% in the first quarter of 2025.

link

A report by the Central Bank of Iraq revealed that inflation in Iraq fell by 21% in the first quarter of this year, and that remittances abroad declined by 0.6%, while the value of gold reserves increased from 17.8 trillion dinars to 21.2 trillion dinars.

The Central Bank's report stated that these statistics covered the first quarter of this year, specifically the months of January, February, and March.

The report indicated that the overall inflation rate in Iraq fell by 21% in the first quarter of 2025, reaching 2.2%, compared to the last quarter of 2024, when the inflation rate was 2.8%. The

Central Bank's report stated that this decline indicates a decline in the general price level and an improvement in the purchasing power of individuals and institutions in Iraq.

The report stated that the volume of Iraqi currency transfers abroad by the Central Bank decreased by 0.6% in the first quarter of this year, reaching 99.9 trillion dinars.

This comparison is with the fourth quarter of 2024, when the volume of foreign currency transferred abroad at that time was 100.5 trillion dinars.

Money transfers abroad in Iraq are linked to the conversion of Iraqi oil revenues into dollars, which the bank provides to importers at the official exchange rate.

The Central Bank of Iraq indicated in its report that this decline played a role in reducing inflation and maintaining the stability of the general price level in Iraq.


The report stated that the total money supply granted by banks to the private sector in the first quarter of this year grew by 1.1%.

Localization of private sector salaries, rapid payment, and collection... Al-Sudani issues banking decisions.

link

 

An Iraqi government source revealed on Monday that the number of bank accounts has reached approximately 20 million, compared to 8 million in 2022, a growth of more than 150%.

The source confirmed, in a press statement received by Shafaq News Agency, that "the digital transformation rate of Iraqi ministries and institutions has increased to approximately 32%, after it was less than 18% in 2022, with a growth rate of 78%."

He pointed out that "the number of bank cards increased to 21-22 million cards (of all types, including credit, debit, and prepaid), up from 16 million cards in 2022, representing a growth rate of 38%." He also noted that the number of point-of-sale devices reached approximately 62,000 devices, up from less than 10,000 devices in 2022, representing a growth rate of up to 520%.

According to a government source, data indicates that the financial inclusion rate in Iraq has reached approximately 40%, up from less than 10% in 2019.

The source noted that the Prime Minister had recently issued a number of future decisions related to a number of important projects in the field of electronic payment, and stressed the need to complete them as soon as possible. These projects include:

- Activation of the local card, which is expected to be completed by the end of 2025.

- Activate the fast payment project.

 - Activating the unified electronic collection application.

- Localizing private sector salaries in line with the government sector.

 - Establishing a unified center for complaints related to electronic payment transactions, headquartered at the National Data Center.

The source expected these projects to be completed in less than a year, stressing that their implementation would contribute to Iraq's advancement to a new level among advanced countries in this field.

Iranian oil sold as Iraqi oil." Washington's sanctions against Tehran affect Baghdad.

link

 

A report by the American Oil Price website revealed that the Trump administration has escalated its pressure on the Iranian regime after the strikes on its nuclear facilities, announcing new designations for more than 30 tankers, entities, and individuals, including the Iraqi Salim Ahmed Saeed, owner of the VS Oil Terminal oil terminal in the Khor al-Zubair port. The report indicates that the goal of these pressures is to push Iran back to the negotiating table, but it also notes that Iraq will be directly affected by these sanctions, as they include companies and operators operating within it and may hinder international investment in oil, gas, and ports. It also indicated that Trump's strategy in Iraq takes two paths: the first is to pressure Tehran to negotiate, while the second is to pull Baghdad further west to counter Chinese and Russian influence in the region.

The Trump administration has ratcheted up its pressure on the Iranian regime, just weeks after striking Tehran's nuclear facilities. Washington has intensified its so-called "maximum pressure" sanctions, announcing new designations targeting more than 30 tankers, entities, and individuals. Once again, Iran's nuclear fleet faces mounting pressure from US sanctions, with no sign of relief in sight for the regime in Tehran. As Trump and his advisors have indicated, Iran must return to the negotiating table to discuss its future; otherwise, as Trump and Steve Witkoff have stated, sanctions relief is out of the question.

“As President Trump has made clear, Iran’s behavior has completely destroyed it,” said U.S. Treasury Secretary Scott Besant.

He added, "The Treasury Department will continue to target Tehran's sources of revenue and intensify economic pressure on it to hinder the regime's access to the financial resources that fuel its destabilizing activities."

The US Office of Foreign Assets Control (OFAC) stated on Thursday that the targeted networks transported “billions of dollars’ worth of Iranian oil.” The OFAC designations include a list of companies linked to Iraqi-British national Salim Ahmed Saeed, who is accused of “selling Iranian oil falsely labeled as Iraqi oil since at least 2020.”

The designations address operations in Iraq to blend Iranian oil with Iraqi oil and sell it as Iraqi or Emirati oil. Among the targets is the VS Oil Terminal in the Iraqi port of Khor al-Zubair, owned by Saeed, which houses six oil tanks. OFAC also observed ship-to-ship transfers occurring near this terminal. Lloyd's List has previously reported that forged documents and falsified data are routinely used to disguise Iranian oil.

Other designations include the UAE-based VS Tankers FZE, the Marshall Islands-flagged VLCC Dijilah, and 11 other tankers used for Iranian crude and liquefied natural gas (LNG) shipments. Some of the vessels were involved in sales to the IRGC-QF. Also designated are the Indian ship management firm Sai Sabori Consultancy Services (linked to the sanctioned Pakistani trading company Alliance Energy) and the Singapore-based Trans Arctic Global Marine Services.

These sanctions are based on Executive Order 13902, which targets Iran's energy sector, and Executive Order 13224 (as amended), which addresses support for terrorism.

For Iraq, the implications are significant. While Baghdad seeks deeper investment and cooperation with the West, US sanctions targeting Iraqi-linked operators could deter international investment in oil, gas, and ports. Baghdad also needs more natural gas. The broader US-Israeli conflict with Iran, and Washington's efforts to limit Iranian influence in Iraq, are increasing political and economic instability.

Iran's grip on Iraq has weakened, but pro-Iranian Shiite militias remain active. Internally, Baghdad is also embroiled in a dispute with the Kurdistan Regional Government over oil contracts and revenue sharing. Kurdish media outlets report growing instability, with drone strikes targeting Kurdish cities and airports in Kermanyan, Dohuk, Erbil, and Kirkuk, many of them following US and Israeli strikes on Iran. Kurdish forces have confirmed drone attacks since early June.

Washington's involvement in the dynamics of Iranian-Iraqi relations is growing. Trump's strategy appears to be two-pronged: pressuring Tehran to negotiate, drawing Iraq into the Western orbit, and countering the growing regional roles of China and Russia.

However, the effectiveness of these sanctions remains unclear. Iran has increased its crude oil and gas production, and its oil exports to Asia continue. Trump's mixed approach—imposing sanctions while allowing Chinese and Indian imports of Iranian crude oil—undermines the message. Tougher measures targeting buyers, rather than just Tehran's networks, would likely be more effective in halting Iranian oil trade. For now, the shadow fleet continues its activity.

 

 BuyMeACoffee                              CashApp:$tishwash

Iraq gold surges, inflation dips as deficit grows: Central Bank

link

 Iraq's economy showed signs of stabilization in the first quarter of 2025, with inflation dropping by 21 percent and gold reserves seeing a significant increase, according to a report from the Central Bank of Iraq (CBI). This comes as the country grapples with a persistent budget deficit despite rising overall revenues.

The CBI report seen by Rudaw, covering January to March 2025, revealed that the average inflation rate fell to 2.2 percent from 2.8 percent in the last quarter of 2024. “This reduction indicates a decrease in the general price level and an improvement in the purchasing power of individuals and institutions in Iraq,” the report said.

The latter is seen as a good sign for the economy as it means that the cost of goods and services is rising at a slower pace, or even decreasing for some items, thus increasing the purchasing power.

The CBI report also noted a slight decrease in the circulation of Iraqi dinars, down 0.6 percent in the same period, reaching 99.9 trillion dinars (about $76.3 billion) from 100.5 trillion dinars (roughly $76.7 billion) in the final quarter of 2024. This decline, linked to better management of USD oil revenues, is seen as a factor in curbing inflation and stabilizing prices.

Further bolstering economic indicators, lending to the private sector rose by 1.1 percent in the first quarter of 2025, with total credit reaching 44.1 trillion dinars (about $33.7 billion). This increase suggests growing support for private sector projects and a potential diversification of the oil-dependent economy.

Significantly, Iraq’s gold reserves Iraq's gold reserves surged by 19 percent in value, reaching 21.2 trillion dinars (approximately $16.2 billion). This dramatic rise is a positive sign for the country's financial stability and its resilience against economic shocks.

However, the positive economic news is tempered by fiscal challenges.

Iraq’s finance ministry on Wednesday reported revenues of 28 trillion dinars (about $21.3 billion) in the first four months of 2025, a 34 percent increase compared to last year. Yet, expenditures also rose, contributing to a deficit of nearly 900 billion dinars (about $690 million) in the first three months of the year, a 12 percent increase compared to the same period last year.

Oil revenues continued to dominate, accounting for 88.9 percent of total state income. The ongoing deficit, despite higher revenues, highlights Iraq's heavy reliance on oil prices and the substantial spending outlined in its $152 billion federal budget for 2023-2025. The budget, passed in June 2023, had raised concerns about financial stability should oil prices fall below the $70 per barrel threshold set in the legislation.

Iraqi Prime Minister Mohammed Shia’ al-Sudani had previously stated that the record-high budget aimed to address social needs, enhance infrastructure, and foster economic progress.

The government has decided to reduce the fee for issuing electronic payment cards by 50%.

link

 

The Ministerial Council for Economy issued a series of decisions in the electronic payment, industry, and agriculture sectors. It decided to reduce the cost of issuing electronic cards by 50%, to no more than 5,000 dinars, while obligating the Oil Products Distribution Company to increase its electronic transactions by 50% within six months. The Council also recommended equipping brick factories with liquefied gas at a price of 250,000 dinars per ton. The Council also discussed a number of plans to stimulate agricultural investment in promising desert areas and combat water scarcity and desertification.

 

ress release issued by the Media Office of the Ministerial Council for the Economy,
Baghdad, July 7, 2025

Deputy Prime Minister, Minister of Foreign Affairs, and Chairman of the Ministerial Council for the Economy, Dr. Fuad Hussein, chairs the twenty-first session of 2025 of the Ministerial Council for the Economy.

Deputy Prime Minister and Minister of Foreign Affairs Dr. Fuad Hussein chaired the 21st session of the Ministerial Economic Council on Monday, July 7, 2025, which was held at the Council building in the presence of the Deputy Prime Minister and Minister of Planning, the Ministers of Finance, Trade, Agriculture, Labor and Social Affairs, the Governor of the Central Bank of Iraq, the Chairman of the Securities Commission, and the Vice Chairman of the National Investment Commission.
The Council hosted the Directors General of the Oil Products Distribution Company and Information Technology at the Central Bank, the Execution Department at the Ministry of Justice, a representative of the Ministry of Interior, and electronic payment companies to discuss and evaluate the electronic payment experience, collection movements, and identify the obstacles and problems hindering the expansion of this experience.
The Council decided to reduce the amount of issuing electronic payment cards by 50%, provided that the issuance amount does not exceed 5,000 dinars. The Council also decided to reduce the amount of electronic payment commissions deducted to five per thousand, while continuing to work with the currently approved upper limits for use regarding the purchase of petroleum products by citizens from fuel stations. The Ministry of Oil / Oil Products Distribution Company shall increase the percentage of use of electronic payment operations to no less than 50% of all its transactions, including obligating the private sector (constructed fuel stations) with the above percentage within a period of six months from the date of issuance of this decision.
Electronic payment companies shall abide by this decision as of 1/1/2026.

In
order to support brick factories and ensure the employment of workers and the safe working environment, especially in factories adjacent to residential areas, the Council decided to recommend to the Council of Ministers that the price of liquefied gas supplied to brick factories be set at 250,000 dinars per ton.

The Council also decided to approve the Ministry of Oil's request to grant the required exception in implementing the provisions of the project's standard documents related to the rehabilitation and installation of gas compressors at the North Rumaila site.

The Council also decided to approve the Ministry of Electricity's request to cancel the decision to withdraw work for the second time from the company implementing the project to construct two buildings for the Amerli and Al-Farhatiya power stations.

The Council reviewed the agricultural report on the status of dam water, plant and animal production, prepared by the Ministry of Agriculture. Among the most important recommendations included in the report are:
- Prioritizing agricultural investment in general and in promising areas in the desert in particular.
- Continuing to support agricultural inputs and outputs and protecting them from imported products.
- Adopting a policy to rationalize water use, enhance water resources management, combat desertification, develop irrigation strategies, and use modern irrigation technologies.
- Supporting the private agricultural sector in all its fields.

Media Office
of the Ministerial Council for the Economy

Talabani: We await fruitful results from the Erbil-Baghdad dialogues.

link

Deputy Prime Minister of the Kurdistan Region, Qubad Talabani, confirmed on Monday that the regional government's negotiating delegation is continuing its discussions in the capital, Baghdad, to resolve the salary crisis, indicating that "we await fruitful results from the meetings."

He added, "A federal delegation recently visited the Kurdistan Region and held constructive meetings in Erbil, but unfortunately, things did not go well in the capital, Baghdad."

He explained that "the regional delegation held a meeting today with the same Iraqi delegation, and we hope that the meeting will yield fruitful results."

Tuesday salaries: Kurds await a decision, while Sulaymaniyah protesters raise their voices: No solution without settlement.

link

 

A stifling financial crisis is casting a shadow over daily life in the Kurdistan Region, and Kurdish citizens are anxiously awaiting Tuesday's session, which citizens hope will be a decisive moment in a long-awaited issue: the salaries of the region's employees.

Amid the corridors of political negotiations and the complexities of the relationship between Baghdad and Erbil, a protest voice is emerging from Sulaymaniyah, warning against "temporary solutions" and demanding "permanent settlement" of salaries as the only guarantee against a recurrence of the crisis.

Kurdish citizens are treating Tuesday's session as a pivotal moment. Hardly any council or meeting in Kurdistan's cities is silent on the issue of salaries, which have become more than just a financial entitlement; they are also a symptom of a prolonged crisis of confidence between the people and their government.
Speaking to Baghdad Today, citizens expressed their hope that "the salaries issue will be resolved in tomorrow's session, Tuesday, and that the salary crisis that has plagued Kurdish citizens and affected all sectors will end." They emphasized that the delay has gone beyond technical and administrative matters to become a purely political decision.

In a significant development, the Protest Committee in Sulaymaniyah Governorate sent a direct message to Prime Minister Mohammed Shia al-Sudani, demanding "insistence on the settlement of salaries exclusively in federal banks."
Committee member Dana Saleh told Baghdad Today that "any agreement on the disbursement of salaries will be temporary and will not last unless they are settled in Rafidain and Rashid banks."
He warned that "the Kurdish street no longer trusts the regional government's projects, including the 'My Account' project, which is being used as a tool to postpone the problem, not to solve it." He emphasized that "the citizen realizes that the solutions being proposed now are only aimed at relieving the embarrassment of the Kurdish government as the elections approach, while the crisis will return in two or three months."

The concerns expressed by the Kurdish street extend beyond the financial crisis itself, extending to the structure of the relationship between the region and the federal government, specifically the absence of permanent mechanisms to ensure the regular disbursement of salaries without entering into a cycle of periodic negotiations.
According to observers, the KRG's lack of a firm commitment to handing over oil and non-oil revenues, and its absolute refusal to deposit salaries within federal banks, creates an unstable political environment that makes any agreement fragile and easily collapsed at the first disagreement.

Hopes are pinned on the upcoming parliamentary session, amid public pressure and clear messages of protest. However, the fundamental dilemma remains the absence of complete political consensus among the parties, especially in light of deep disagreements over the nature of spending, oversight, and guarantee mechanisms.
Experts believe that "a permanent solution begins with localizing salaries under the umbrella of the federal government and linking them directly to the central treasury." The regional government rejects this, considering it an undermining of its central authority, while the Kurdish street views it as a guarantee of justice and stability.

Between Sulaymaniyah, which is seething under the pressure of protests, Erbil, which is monitoring the scene with apprehension, and Baghdad, which is balancing between popular pressure and political calculations, the salary issue hangs in the balance on Tuesday.
But unless the agreement is transformed into a binding and sustainable practical measure, the crisis is likely to return, perhaps in a more violent form. The problem is not the amount or the timing, but rather the absence of "institutional trust," which alone can make the salary a permanent entitlement, not a fragile promise that can be extracted under pressure every time.

Iranian President Reveals Fate of Negotiations with US

link

 

Iranian President Masoud Pezeshkian said on Monday that his country is ready to resume negotiations with the United States, but there is a crisis of trust with Washington. He also revealed that he had been the victim of an assassination attempt, without specifying the date.

In an interview with American journalist Tucker Carlson, Pezeshkian explained that his country sees "no problem" in resuming negotiations with the United States regarding its nuclear program if trust is restored between the two countries.

The Iranian president revealed a crisis of confidence with Washington, asking, "How can Iran be sure that Washington will not give Israel permission to attack Iran again?"

Bazishkian accused Israel of attempting to assassinate him, without specifying the date of the attempt.

"They tried, yes. They moved in this way, but they failed," the Iranian president said during the interview. "It wasn't the United States that tried to kill me. It was Israel. I was in a meeting... They tried to bomb the area where we were holding the meeting," he added, according to a translation of his remarks from Persian. "It was Israel," he added.

Pezeshkian did not clarify whether the assassination attempt occurred during the war between Iran and Israel last June, according to Agence France-Presse.

On June 13, Israel launched a war against Iran to prevent it from acquiring nuclear weapons, a claim Tehran has repeatedly denied. US President Donald Trump declared a ceasefire between the two sides on June 24, following 12 days of military escalation.

Al-Fayez: The upcoming elections will delay the approval of important laws

link

Head of the Design Bloc, MP Amer Al-Fayez, confirmed on Monday that the House of Representatives will begin its sessions for the final legislative term mid-next week. He predicted that parliament would be unable to pass any major laws, with the exception of the Popular Mobilization Forces law. The remaining laws will be presented for first and second readings without being passed, and will be postponed to the new parliamentary session.

Al-Fayez told Al-Maalouma News Agency that “members of the House of Representatives will resume their work next Saturday after the end of the legislative recess,” noting that “the House Speaker and heads of political blocs will hold a meeting to agree on the agenda for the first session of the final legislative term.”

He added that "the first session will be held in the middle of next week," noting that "this legislative term will not be able to pass important laws due to the political forces' preoccupation with the elections scheduled for four months later."

Al-Fayez explained that "indications confirm Parliament's inability to legislate important laws, with the exception of the Popular Mobilization Forces law. Meanwhile, the remaining laws will be presented for first and second readings without being passed, and will be postponed to the next session."

MP Kazem Al-Shammari had previously confirmed to the Al-Maalouma Agency that the next legislative session will be like its predecessors in terms of the lack of seriousness in passing laws, except in rare cases. 

MP threatens open-ended sit-in inside Parliament

link

Iraqi parliament member Raed al-Maliki threatened on Monday to "call for an open-ended sit-in" inside parliament if parliamentary sessions are suspended after the end of its legislative recess and the budget tables are not submitted.

Al-Maliki said in a tweet followed by Al-Mada that "the House of Representatives' legislative recess ends on July 9, and the House will resume its work for the second semester of the final fourth year on Wednesday . "

He added, "We demand that the parliament presidency quickly set a date for resuming sessions, include important laws, oblige the government to submit budget schedules, and set dates for interpellations of ministers." 

He continued, "We may be forced to call for an open sit-in inside Parliament and for the people to demonstrate if the House of Representatives sessions continue to be disrupted, and if the government fails to submit budget schedules, enact important pending laws, or conduct interpellations."

Al-Sudani and the President of the Republic discuss Kurdistan employees' salaries and electoral preparations.

link

 

Prime Minister Mohammed Shia al-Sudani received President Abdul Latif Jamal Rashid for a meeting that addressed the country's general situation and regional challenges, while emphasizing the importance of unifying national positions.

During the meeting, the issue of Kurdistan Region employees' salaries was discussed, and the need to address it within legal and constitutional frameworks. The meeting also touched on preparations for holding elections on schedule to ensure fair and genuine representation of all components of the Iraqi people.

A leader in the Victory Coalition: Any agreement between Baghdad and Erbil outside the constitution will be temporary.

link

Member of the Victory Coalition, Aqeel al-Rudaini, confirms that the dialogues between the federal government and the Kurdistan Region are still ongoing without reaching a final decision on the outstanding issues, stressing that any solution not based on the constitution and the law will be a "patchwork" solution and unsustainable.
Al-Rudaini said in a press statement followed by (Al-Mada) that technical delegations continue to discuss the details, but no final agreement has yet been reached. He explained that "any settlement outside the framework of the constitution will lead to new problems in the near future."
Al-Rudaini pointed out that the problems between Baghdad and Erbil date back more than a decade and include the issues of oil and gas, salaries, the budget, and Article 140. He stated that the latest agreement stipulated the delivery of 400,000 barrels per day to the "SOMO" company in exchange for paying the salaries and budget of the region, but he expressed his regret for what he described as a "lack of transparency" on the part of the regional government.
He added that one of the most prominent obstacles facing the implementation of the agreement is "the lack of accurate data on the region's employees," noting that salaries have not yet been domesticated as stipulated in the Federal Court's ruling.
Al-Rudaini emphasized that the constitution stipulates that oil and gas belong to the Iraqi people, and that the region's special status should not exceed constitutional provisions. He warned that any exception granted to the region could prompt other governorates to demand similar privileges.

He revealed a new proposal that would see the region hand over 280,000 barrels of oil to the SOMO company, and 120,000 barrels allocated to pay the dues of operating companies. This would be in exchange for the federal government waiving half of local revenues and deferring the salary localization issue, describing this proposal as "temporary and patchwork."

Al-Rudaini emphasized that any agreement outside the constitution and the law would be null and void, adding that the Coordination Framework does not have the authority to sign unconstitutional settlements.

Concluding his remarks, Al-Rudaini indicated the possibility of reaching a temporary agreement for a period ranging from six months to a year, pending the convening of the new parliament and the commencement of legislative discussions on the oil and gas law and wealth distribution mechanisms. He considered that the ongoing financial crisis and the decline in oil prices would make it difficult for the federal government to fulfill its obligations towards the region if the oil delivery is not committed.

An unprecedented digital leap: The Iraqi government achieves a breakthrough in electronic payments.

link

A senior government source revealed significant progress achieved by the Iraqi government in the field of electronic payments and financial inclusion, stressing that this issue is a priority for Prime Minister Mohammed Shia al-Sudani, given its direct connection to achieving economic stability and promoting sustainable growth.

The source pointed out that since assuming office more than two and a half years ago, the government has devoted significant attention to building an integrated digital banking system. This has been achieved through a series of decisions and measures taken by the Council of Ministers and the Ministerial Economic Council, as well as the formation of specialized committees comprising representatives from the government, the Central Bank, and the private sector to monitor this transformation.

Active committees include the Electronic Payment Performance Monitoring Committee, the Financial Inclusion Stimulation Committee, the Digital Transformation Committee, and the Electronic Payment Operations Evaluation Committee in State Institutions. These committees regularly submit reports to the Prime Minister, resulting in a series of directives that contributed to achieving tangible results in 2025.

Key indicators of digital transformation and electronic payment:

The digital transformation rate in ministries and institutions rose to 32%, compared to 18% in 2022, representing a growth rate of 78%.

The number of bank accounts reached approximately 20 million, compared to 8 million in 2022, an increase of more than 150%.

Bank cards (of all types) rose to 21-22 million cards, up from 16 million cards in 2022, a growth of 38%.

Point-of-sale (POS) devices reached 62,000, compared to less than 10,000 in 2022, a massive growth rate of 520%.

Automated teller machines (ATMs) increased to 7,531 machines, up from only 2,223 in 2022, a growth of more than 239%.

Total electronic payments reached approximately 1.37 trillion dinars in May 2025, up from less than 90 billion dinars at the end of 2022, representing a staggering growth rate of 1,400%.

The financial inclusion rate rose to 40%, up from less than 10% in 2019.

Future decisions and projects under implementation:

The source explained that the Prime Minister issued instructions to implement specific projects in the field of electronic payments, including:

Activate the local card before the end of 2025.

Launch of the fast payment project.

Launching the unified electronic tax collection application.

Localization of private sector salaries similar to the government sector.

Establishing a unified center to receive electronic payment complaints, affiliated with the National Data Center.

The source concluded by stressing that these projects will be completed in less than a year and will contribute to moving Iraq to a new level of digital progress

Government advisor: Three factors have stripped the parallel exchange market of its price influence and diversified our financial reserves.

link

 

The Prime Minister's economic advisor, Mazhar Mohammed Salih, confirmed that the stability of the price structure and the decline in annual inflation rates in Iraq are the result of the success of three integrated economic policies that worked in a coordinated manner within the framework of the state's general economic policy.

Saleh told Al Furat News that "the fiscal policy has contributed significantly to supporting prices through the general budget, whose expenditures constitute more than 13% of the gross domestic product," noting that "this support has been reflected in expanding social safety nets through food baskets, fuel price subsidies, and support for farmers, in addition to providing wide-ranging government services."

He added, "Monetary policy, in turn, has achieved tangible success in maintaining the external value of the dinar by controlling domestic liquidity levels through the introduction of electronic payment systems and increasing demand for foreign currency at local banks via their correspondents abroad. This has contributed to reducing financial transfer times and implementing compliance rules related to money movement risks."

Saleh pointed out that "the third of these policies was price defense through the establishment of a hybrid market network, which provided a wide supply of goods at stable prices and directly impacted the local market by creating price competition that reduced opportunities for speculation. As a result of these three factors, the effects of the parallel exchange market (the black market) were neutralized, especially with regard to generating inflationary expectations, the effects of which gradually faded," he said.

He explained that "there are commodity stocks available to the state and the private sector, some of which have a shelf life of three to five years, particularly with regard to spare parts and durable goods, which enhances market stability in the medium term."

Regarding the increase in gold reserves, Saleh explained that "this is a successful monetary policy tool for diversifying Iraq's foreign reserves portfolio," noting that "gold represents a safe haven against fluctuations in global exchange rates and interest rates." He added that "this diversification, which includes various foreign currencies and monetary gold, is based on precise international standards to protect the country's assets from value fluctuations between currencies."

Regarding the impact of OPEC+ decisions, Saleh emphasized that "Iraq is part of the international consensus within the organization regarding oil production levels, and that the national oil policy enjoys significant flexibility that enables it to maintain export levels within Iraq's quota, thus mitigating the impact of lower oil prices on public revenues."

In this context, he noted that "Triennial Budget Law No. 13 of 2023 includes flexible financial tools to address any emergency gaps through the possibility of resorting to bridge borrowing from the local financial market, supported by a monetary policy that provides sustainable liquidity through open market instruments, in accordance with the provisions of the Central Bank of Iraq Law No. 56 of 2004."

The advisor concluded his remarks by emphasizing that "the economic stability Iraq is witnessing today is the result of the integration of fiscal, monetary, and pricing policies into a unified framework that promotes sustainable development and supports the implementation of the government's program and comprehensive economic reforms."

Upcoming e-projects redefine the financial landscape in Iraq.

link

government source revealed on Monday the steps taken by the Iraqi government to develop and promote electronic payments, noting that: "Since the Iraqi government assumed its duties more than two and a half years ago, the importance of a strong and effective banking system has become clear to it. The development of electronic payments and increased financial inclusion in the country are among its most prominent features." The source added in a statement monitored by Al-Mutalaa, "The government and the Prime Minister have considered this goal a top priority, as it is a key objective in the strategies of countries around the world, given its close connection to economic stability and growth." He continued, "The Iraqi government has taken a series of decisions and measures through the Council of Ministers and the Ministerial Council for the Economy, in addition to the committees emanating from them, which include representatives from the government, the Central Bank, and the private sector, to monitor this aspect." He noted that these committees include: the Electronic Payment Performance Monitoring Committee, the Electronic Payment and Financial Inclusion Stimulation Committee, the Digital Transformation Committee, and the Digital Transformation and Electronic Payment Process Evaluation Committee in Iraqi Ministries and Government Institutions. The source explained that: "Prime Minister Mohammed Shia al-Sudani had previously issued a set of decisions and directives based on reports from these committees, which led to significant progress on several indicators in this area during 2025. The digital transformation rate of Iraqi ministries and institutions rose to approximately 32%, up from less than 18% in 2022, representing a growth rate of 78%." He added that the number of bank accounts reached approximately 20 million, compared to 8 million accounts in 2022, a growth rate exceeding 150%. The number of bank cards also rose to 21-22 million cards of all types, including credit, debit, and prepaid cards, up from 16 million cards in 2022, representing a growth rate of 38%. He pointed out that: "The number of point-of-sale (POS) devices reached approximately 62,000, up from less than 10,000 in 2022, a growth rate of 520%. The number of ATMs also reached approximately 7,531, up from approximately 2,223 in 2022, a growth rate of 239%." He pointed out that: "Total electronic payments reached approximately 1.37 trillion dinars in May 2025, compared to less than 90 billion at the end of 2022, with a growth rate of up to 1,400%. Data indicates that the financial inclusion rate in Iraq has reached approximately 40%, after being less than 10% in 2019." The source confirmed that the Prime Minister had recently issued a number of future decisions related to several important projects in the field of electronic payments, stressing the need to complete them as soon as possible. He explained that: "These projects include: activating the local card, expected to be completed by the end of 2025, activating the rapid payment project, activating the unified electronic collection application, localizing private sector salaries in line with the government sector, and establishing a unified center for complaints related to electronic payment transactions, headquartered at the National Data Center." The source expected that "these projects will be completed in less than a year," stressing that their implementation will contribute to moving Iraq to a new level among the advanced countries in this field.

 Miss the last episode of My FX Buddies? Catch it below:

Iraq’s "Golden Move" to Strengthen the Dinar!

Thanks for Stopping By