Banking Deposits Drop, Forex Trading Grows in Iraq

The Iraqi financial market is facing a sharp contraction amid investor withdrawals and declining deposits.

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Economic expert, Manar Al-Obaidi, said on Sunday that the Iraqi financial market is experiencing a sharp contraction due to investor withdrawals and a decline in banking sector deposits, according to data for the first half of 2025. 

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Al-Obaidi explained in a Facebook post monitored by (IQ) that "the year 2025 witnessed a 7% decline in private sector deposits in banks, while the Iraq Stock Exchange recorded a significant decline in trading value from 53 billion dinars per month in the first half of 2024 to 32 billion dinars per month in 2025, peaking in June at only 22 billion dinars." 

He added: "Trading is concentrated in the hands of only five companies out of 104, and the decline in foreign investors increases the challenges, which calls for a comprehensive regulatory review to enhance transparency and attract new companies." 
He pointed out that "this contraction reflects a loss of confidence in the market, despite the strong financial results of many companies, while we are witnessing a significant growth in unregulated forex platforms, which increases risks for investors." 

Al-Abidi concluded by saying, "Reforming the market requires aligning it with global markets, introducing modern technologies such as artificial intelligence, and encouraging the listing of strategic companies to enhance the market's attractiveness and build the confidence of local and foreign investors."

Minister of Finance: Continuing partnership with the World Bank to support the government's financial reform priorities

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Minister of Finance, Taif Sami, affirmed today, Sunday, the continuation of the partnership with the World Bank to support the government's priorities in financial reform.

A statement by the ministry said, "Minister of Finance Taif Sami affirmed the continuation of the partnership with the World Bank to support the government's priorities in reform and improving financial management."

The statement indicated that "this came during her reception of the Director of the World Bank Office in Iraq, the Middle East and North Africa, Emmanuel Salinas, where existing areas of cooperation were discussed and programs and projects supported by the World Bank were discussed, especially those related to economic reform plans and the development of public spending systems."

The Director of the World Bank Office expressed "the mission's commitment to continue providing technical and advisory support to enhance the Iraqi government's efforts to achieve economic stability and sustainable development."

Al-Sudani: 5G service represents a "qualitative step" to enhance the telecommunications sector in Iraq.

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Prime Minister Mohammed Shia Al-Sudani affirmed, today, Sunday (August 31, 2025), that the advanced (5G) service represents a "qualitative step" to enhance the communications sector in Iraq, during his sponsorship of the signing of the founding contract for the National Company for Mobile Communications Services.

The Prime Minister's media office stated in a statement received by Baghdad Today that "Al-Sudani sponsored today, Sunday, the signing of the founding contract for the National Mobile Telecommunications Services Company, as a public joint-stock company, which was previously approved in the government program, with contributions from three entities: the State Employees' Retirement Fund, the Trade Bank of Iraq, and the Al-Salam Public Company affiliated with the Ministry of Communications."

He added that "the Prime Minister appreciated the efforts made by the Ministry of Communications in this regard," noting the need to complete the procedures to provide the service, especially since it will be coupled with the advanced (5G) service, which will be available to all citizens."

Al-Sudani stressed, according to the statement, that "the establishment of the National Company for Telephone and Transmission Services, which was approved in the government program, represents a qualitative step in the field of enhancing telecommunications services, given the significant development they are witnessing, which requires the company to compete with other companies in order to provide the best telecommunications services that now cover all areas of life, especially the economy, education, and the development witnessed by the country."

The Prime Minister explained that "this step represents the first of three government entities to establish a mobile phone company, which will be open to subscription by citizens to contribute to the company's capital. This represents one of the paths adopted by the government to strengthen the non-oil economy." He noted that "the establishment of the company does not mean restricting the private sector, but rather creating an atmosphere of competition with the aim of providing the best services to citizens."

 

Japanese Ambassador: The Memorandum of Understanding with Iraq paves the way for economic integration between the two countries.

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Japanese Ambassador to Iraq Akira Endo affirmed on Sunday that the memorandum of understanding with Iraq will contribute to strengthening relations between the private sectors of both countries, Japan and Iraq.

 

In a speech he delivered following the signing of the Memorandum of Understanding between Iraq and Japan on (developing educational programs and pursuing projects in the fields of technology, engineering, mathematics, and arts), which was attended by the correspondent of the Iraqi News Agency (INA), Ando expressed his "happiness to celebrate this valuable moment in the journey of Japanese-Iraqi friendship and the signing of the Memorandum of Understanding between Gakken Holding Company and the Iraq Development Fund ( IDF )."

He added, "We have noticed an improvement in the political, economic, and security situation, as Iraq enjoys stability under the wise leadership of Prime Minister Mohammed Shia al-Sudani. The Iraqi government is pursuing a balanced diplomacy aimed at building good relations with neighboring and regional countries, and a diplomacy of economic partnerships aimed at strengthening economic relations." He expressed Japan's appreciation for these efforts by the Iraqi government.

He added, "Since 2003, the Japanese government has implemented an aid program with grants worth approximately $2.8 billion to rebuild living infrastructure, such as schools, in addition to $11.5 billion in yen loans to rehabilitate and develop infrastructure, such as electricity, water, sanitation, and oil."

He continued, "Japan has become one of the leading donors of official development assistance to Iraq in recent years," noting that "Japan has consistently provided support to the Iraqi people to help them continue their journey toward a brighter future, by supporting their efforts in nation-building, economic reconstruction, and development alongside the Iraqi people."

The Japanese ambassador stated that the Iraq Development Fund highlighted the areas of education, agriculture, housing, digital transformation, manufacturing, food security, and the environment, noting that the Iraqi government has prioritized these areas under the leadership of the Sudanese Prime Minister.

He explained that " Gakken has been one of the leading Japanese companies since its founding in 1946. Over the course of nearly 80 years, it has contributed to the overall reconstruction of the country by enhancing the academic capabilities and social skills of all Japanese citizens, especially in the field of science." He expressed his hope that " Gakken's expertise in Iraqi educational fields will be employed to enhance the development of human resources that will lead Iraq's future industries, which will contribute to the country's reconstruction and economic development after the war."

He added, "The signing of the Memorandum of Understanding between Gakken and the Iraq Development Fund ( IDF ) is a very important and timely event that will contribute to strengthening relations between the private sectors in Japan and Iraq in terms of information exchange, support, promotion, and coordination of businesses."

Kurdistan announces that its negotiating delegation has submitted the necessary data regarding its employees' salaries to Baghdad.

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The Kurdistan Regional Government (KRG) confirmed on Sunday that its negotiating delegation had submitted the necessary data and information regarding its employees' salaries to Baghdad.
The KRG said in a statement that its Prime Minister, Masrour Barzani, "chaired a meeting today with the government delegation tasked with negotiating with the federal government. During the meeting, he listened to a detailed report from the negotiating delegation on the latest developments in the technical and legal discussions with the federal government."
The delegation was quoted as saying that it "provided the federal government with all the necessary data and information, supported by the required clarifications on various issues and files."
The KRG stressed the "need to continue dialogue and intensify efforts to accelerate the pace of negotiations, with the aim of reaching an agreement that guarantees the region's constitutional rights, financial dues, and salaries."

The Prime Minister met with the Kurdistan Regional Government (KRG) negotiating delegation with Baghdad

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On the outcome of the negotiations

 

Prime Minister of the Kurdistan Region of Iraq The Kurdistan Regional Government delegation has provided detailed data and information to the federal government. "We emphasize the need to accelerate the process of negotiations and reach an agreement," he said.

Prime Minister Masrour Barzani has chaired a meeting with the Kurdistan Regional Government (KRG) negotiating delegation with the federal government.

“At the meeting, the delegation presented the latest results of their discussions on technical and legal issues with the federal government and indicated that they have provided complete data and information and provided necessary explanations on all issues and issues.

“We stressed the importance of continuing the negotiations and accelerating the negotiation process towards reaching an agreement and providing constitutional and legal rights, salaries and financial entitlements of the Kurdistan Region,” Masrour Barzani said.

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The salary has not come

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Employees are waiting for their salaries

10:30 am cali time

Those who receive their salaries through my account are standing in front of ATMs waiting for their salaries to arrive, but no salaries have arrived yet and they are likely to return today with empty pockets.

The Kurdistan Regional Government (KRG) has announced that the salaries of the Kurdistan Regional Government (KRG) employees will be distributed at 6:00 pm today. The salaries will be distributed at 6:00 pm today.

 

 

More than 465,000 employees receive their salaries through my account

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The sixth month salary will be distributed today. Those whose account cards are active can withdraw their money through ATMs.

 

Main story My account teams are working intensively to register employees in the banks in my account, compared to last month, more than 65,000 employees receive their salaries.

 

 The Iraqi Ministry of Finance has deposited 690 billion dinars into the account of the Kurdistan Regional Government (KRG) for the sixth month salaries .

 

"For the sixth month salary, 465,600 employees will be able to withdraw their money through ATMs at 6 pm today," my account team told Ava .

 

The 465,600 salaried employees are divided into employees, pensioners, Peshmerga and security forces .

- Civil servants: 254 thousand 230 salaried employees.
Peshmerga and security forces: 191,000 salaried employees.
- Pensioners: 20 thousand 500 salaried employees.

An explanation from my account for those salaried employees whose credit cards have not been activated

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Some of the participants of the My Account project have received their account cards for more than a year, but they have not been activated yet. 

What you need to know: 465,600 employees will receive their salaries through ATMs this week, so far out of about 1 million employees, 900,000 have been registered.

More information: About 75,000 salaried employees have been given back their bank cards, but can not withdraw their salaries, some of these salaried employees have received their cards for more than a year.

Official statement: The team of "My Account" told Ava that the reason for not activating these cards is due to the installation of ATMs by banks, because for 1,000 salaried employees, one device is installed, according to the number of salaried employees.

"We will fix the problem completely in the next few weeks and the cards will be valid," the My Account team said.

Oliver Wyman...and the guillotine of laws

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Iraq witnessed a radical transformation after 2003, requiring a comprehensive restructuring of its legislative and economic systems in line with the principles of a market economy and a modern state.

With the beginning of the change phase, specifically since 2006, a committee was formed to review the laws, which was metaphorically called the “Guillotine of Laws,” with foreign support and guidance. It included seasoned experts in legal reform, politics, and economics. Its mission was to review and refine the existing laws and legislation dating back to the previous era, and to abolish and amend anything that conflicted with the regime’s philosophy.

Although the committee was able to cancel hundreds of laws and legislation, it failed in some laws.

As I watch and follow, within my interest and specialization in economic and banking affairs, what the international company Oliver Wyman is doing today to correct the declining performance of banks and laws came to my mind, just to compare the mission of the previous Laws Guillotine Committee and the Oliver Wyman Company, not to compare, but to discover the connection between the different missions in two different times.

Now let us examine the tasks that Oliver Wyman carries out through a reform document to advance the Iraqi banking reality, as it is considered a banking guillotine that works to correct and refine errors in banking operations and rectify their paths in accordance with what is practiced in developed countries.

As usual, this reform document was met with objections from the banks, as it conflicted with their capabilities and potential to implement its provisions.

The Association of Banks has made exceptional efforts, in cooperation with the Central Bank of Iraq, to meet the banks' requirements and overcome the difficulties they face. The desired results were achieved by reconsidering the contested paragraphs and extending the implementation periods, particularly regarding the issue of increasing capital.

So far, the results seem good and give hope for facilitating the implementation process by banks.

As someone interested in banking as an important sector of the economy, and out of ethical and professional responsibility, I must pursue the results to the end.

In this context, I had a conversation with a seasoned, knowledgeable expert who was close to the event, so I took the initiative to ask him:

How do you view this document? And what is your assessment of its future results?

He replied, "We agree on the importance of the Central Bank, the Association, and the government working to achieve economic reform. Hence, the importance of the document in promoting our banks to keep pace with changes."

As for my assessment of the results, I record my reservations about the fact that what was achieved was limited to reducing its concerns to the challenge of the paragraph on raising capital and time periods only. However, it did not delve into the rest of the paragraphs of the document, which include difficulties that are no less important than raising capital and time periods, and may even be more serious.

This requires re-reading the remaining paragraphs of the document with the help of legal, economic, and financial experts to determine whether the banks are capable of implementing the agreement.

Therefore, I advise you to be careful when signing the contract to know the banks’ capabilities and potential to provide the other requirements and implement them easily and smoothly so that the losses are not doubled.

This expert opinion or warning is important because the decision to implement the document and its amendments is binding and final. 

 I feel a sense of professional and ethical commitment and concern for my country and its economy, which requires me to be vigilant and evaluate reform paths whenever necessary.

 

Prime Minister: The government is keen to support laws that provide the best environment for attracting investment.

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Prime Minister Mohammed Shia al-Sudani affirmed on Sunday that the government is keen to support laws and decisions that provide the best environment for attracting investment, given the remarkable stability.

The Prime Minister's Media Office said in a statement followed by Al-Masry, "Prime Minister Mohammed Shia'a today received a group of businessmen and heads and representatives of 17 Turkish companies operating in various fields and sectors, in the presence of the Chairman of the National Investment Commission, the Executive Director of the Iraq Development Fund, a number of advisors and the Ambassador of the Republic of Turkey to Iraq, indicating that "during the meeting, ways to develop understanding and cooperation in the water sector were discussed, within the framework agreement for cooperation in the water file that entered into force in September 2024, after it was signed by the Prime Minister and Turkish President Recep Tayyip Erdogan."

Al-Sudani emphasized "the government's commitment to continuous communication with Turkish companies, in light of the distinguished relationship between the two countries, which has witnessed growing development over the past two years, based on the vision and will of the leadership of both countries regarding the importance of developing bilateral relations and partnerships." He emphasized that "the gateway to the economy, investment, and business is one of the most important pillars of partnership, developing relations, and strengthening commercial and economic ties."

The Prime Minister stated that "the government is keen to support laws and decisions that provide the best environment for attracting investment, given the remarkable stability, and seeks to strengthen the presence of Turkish companies to implement their projects, given their significant presence in Iraq, with the volume of trade between the two countries exceeding $20 billion." He also pointed to Iraq's progress with the development road project and the opportunities it will provide to strengthen the partnership between Iraq, Turkey, and the rest of the countries in the region.

For his part, the Turkish ambassador expressed his appreciation for the Prime Minister's efforts to strengthen and develop relations and partnerships between the two countries, stressing that the relationship is not limited to the political aspect alone, but also encompasses economic and investment cooperation to complete projects in Iraq.

Iraqi Deputy Speaker Shakhawan Abdullah: Iraq Still Needs U.S. and Coalition Support

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In an interview with Kurdistan24, Abdullah strongly opposed the proposed Popular Mobilization Forces (PMF) bill, stressing that it “will not be passed in parliament because it is harmful to all Iraqis.”

Shakhawan Abdullah, Deputy Speaker of the Iraqi Parliament, on Sunday underscored Iraq’s continued need for U.S. and international coalition forces, citing the ongoing threat of ISIS to the country’s security and stability.

In an interview with Kurdistan24, Abdullah strongly opposed the proposed Popular Mobilization Forces (PMF) bill, stressing that it “will not be passed in parliament because it is harmful to all Iraqis.”

Turning to the situation in Kirkuk, he said, “Unfortunately, the conspiracies in Kirkuk are not over yet. Any shortcomings in the administration of the province should be addressed by the governor, as this is in the best interest of the residents.” He added that all political actors must focus on serving the people of Kirkuk, recalling that previous commitments to the city had been fulfilled.

On the financial crisis affecting the Kurdistan Region, Abdullah criticized Baghdad for failing to send public employees’ salaries on time. “The June salary should have been sent a month ago, and not postponed until today. We should be discussing the July salary now, but unfortunately, the Baghdad authorities are content with starving the people of the Kurdistan Region,” he remarked.

He stressed that the Kurdistan Regional Government (KRG) has fully met its obligations under agreements with the federal government, leaving “no excuse” for Baghdad to delay the salaries.

Meanwhile, Kurdistan Region Prime Minister Masrour Barzani met on Sunday with the KRG negotiating delegation to review the latest round of discussions with the Iraqi federal government, the KRG Department of Media and Information announced.

The delegation presented an update on their talks in Baghdad, which focused on technical and legal matters between the two sides.

The meeting highlighted the importance of continuing the negotiation process and accelerating efforts to secure a comprehensive agreement that guarantees the Kurdistan Region’s constitutional and legal rights, including the salaries and financial entitlements of its citizens.

The salary dispute has been one of the most contentious issues in relations between Baghdad and Erbil. For years, delays and disagreements over budget transfers and oil revenues have led to recurring crises, leaving hundreds of thousands of public employees in the Kurdistan Region without regular salaries.

Oil exports through the Iraq-Turkey Pipeline have been suspended since March 2023 following a ruling by the International Chamber of Commerce (ICC) that halted independent Kurdish oil sales. Oil exports have long been a contentious issue between the KRG and the federal government, impacting the region's economic stability and development.

The suspension has significantly affected the KRG's revenue, which heavily depends on oil exports. This has led to financial challenges for the region. Efforts to resolve the issue through negotiations between the KRG and the federal government are ongoing.

 

 

 

The Deputy Speaker of Parliament accuses the federal government of deliberately delaying the salaries of regional employees.

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Deputy Speaker of the Iraqi Parliament, Shakhwan Abdullah, criticized on Sunday what he described as the federal government's deliberate delay in funding the salaries of public sector employees in the Kurdistan Region. Abdullah told reporters from Kirkuk Governorate that "the federal government could have made the decision to pay the June salaries 20 days or a month ago, because nothing has changed," adding that "the government delights in the suffering of our employees and enjoys delaying the disbursement of their salaries."
Regarding the salaries for July and the following months, Abdullah indicated that "the disbursement mechanism has not changed and will remain as it was in June, but the decision regarding revenues and other issues will be in the hands of the federal Council of Ministers." On Thursday, August 28, the Ministry of Finance and Economy in the Kurdistan Region announced the deposit of non-oil revenues for last June into the bank account of the federal Ministry of Finance at the Central Bank of Iraq branch in Erbil, amounting to 120 billion dinars in cash.
On August 26, the Federal Council of Ministers approved the payment of salaries to Kurdistan Region employees for June 2025, in exchange for the regional government paying 120 billion dinars as a non-oil revenue payment.
A source revealed early last month the details of the agreement between Baghdad and Erbil regarding the resumption of the region's oil exports. The agreement stipulated that the Kurdistan Region government would receive 240 billion dinars in revenues for May and June, at 120 billion dinars per month, in addition to the delivery of 230,000 barrels of oil per day to Baghdad, in exchange for Baghdad sending the salaries of the region's employees.
The roots of the crisis between Baghdad and Erbil go back to chronic disagreements over oil export mechanisms and the unification of public revenues. However, it has escalated since May 2025 when the federal government refused to send salaries, deepening the financial dispute between the two sides.

 

Mazhar Saleh: The rise in gold prices in Iraq and the world reflects international economic transformations.

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The Prime Minister's financial advisor, Mazhar Mohammed Salih, confirmed today, Saturday, that gold is a safe haven for those with financial surpluses to preserve wealth, noting that the current rise in gold prices during the current year has reached approximately 37% per gram in Iraq compared to last year.

Saleh told Al Furat News Agency, "This rise reflects the market's reaction to the uncertain future of foreign currencies, particularly the decline of the dollar against rising local and global gold prices."

He explained that "globally, with geopolitical tensions and trade wars escalating, investors are turning to gold as a safe haven amid rising international economic risks. He pointed to massive investment flows into gold exchange-traded funds (ETFs), which are witnessing unprecedented levels, in addition to an unprecedented increase in central banks' demand for gold, with annual purchases approaching 1,000 tons, in an attempt to bolster their reserves and reduce reliance on the dollar, which has contributed to raising global prices." 

Saleh predicted, based on reports from Goldman Sachs, a global financial services company, that the price of gold will reach $3,700 per ounce by the end of 2025, and may exceed $3,880 if the global economic situation deteriorates.

On the local level, Saleh noted that the establishment of the "Gold City" has contributed to stimulating the local market and surprising increases in demand for wholesale gold, which has had a significant impact on local retail prices, especially since Iraq is a net importer of gold.

He added that "the historic rise in gold prices is supported today by a number of global speculative and investment factors, most notably the weak dollar, anticipation of interest rate cuts, geopolitical tensions, and increased central bank gold purchases. Saleh explained that despite the volatility in gold prices, there does not appear to be an imminent bubble burst towards a downside, with prices expected to remain at high levels or gradually rise in the coming months, which could impact prices locally." 

Did you 

Digital Dinars? Iraq’s Electronic Payment Revolution Begins

Central Bank Governor: Electronic payments require infrastructure, legislation, and community awareness.

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The Governor of the Central Bank, Ali Al-Alaq, announced today, Saturday, the issuance of instructions and controls to regulate the electronic payment process in three aspects. While revealing the mechanism for developing the electronic payment process, he stressed the obligation of all state institutions to deal with electronic payments rather than cash.

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Al-Alaq said in a statement to the official agency: "Electronic payment is witnessing significant development, and it is a gateway to the digital transformation towards a digital economy for a larger issue related to the economic structure and global interaction, to achieve greater financial inclusion, and all these aspects have become fixed and developed strategies."

He pointed out that "the Central Bank, along with the government, the private sector, electronic payment companies, and technology companies, are all engaged in this great and continuous effort, and we have regulatory and legislative technical movements and directions being worked on in coordination between the Central Bank of Iraq and the Iraqi government."

He added: "There is cooperation and coordination with the government through the decision issued by the Council of Ministers obligating all state institutions to deal with electronic payments rather than cash, as well as the localization of salaries, which amounts to millions, in addition to the public awareness taking place through electronic payment companies and civil society organizations, and there is advancing community awareness."

He explained that "the issue of progress in electronic payment requires infrastructure, a legislative structure, and community awareness. These are three aspects that are being worked on diligently, and much of the infrastructure at the level of the Central Bank has been completed in an advanced manner, fully in line with international practices, as well as with legislative frameworks. We have issued many instructions and controls that regulate the process, but we need more in the third aspect, which is community and cultural awareness.

The Central Bank of Iraq: Infrastructure, legislation, and community awareness to promote electronic payments.

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Central Bank Governor Ali Al-Alaq announced on Saturday the issuance of instructions and regulations to regulate electronic payments across three aspects. While revealing a mechanism for developing the electronic payment process, he also affirmed that all state institutions are required to use electronic payments, not cash.

Al-Alaq said in a statement to the official agency, followed by ( IQ ): “Electronic payment is witnessing significant development, and it is a gateway to the digital transformation towards a digital economy for a larger issue related to the economic structure and global interaction, to achieve greater financial inclusion, and all of these aspects have become fixed and advanced strategies.”

He pointed out that "the Central Bank, along with the government, the private sector, electronic payment companies, and technology companies, are all engaged in this massive and ongoing effort. We have regulatory and legislative technical initiatives and directions being worked on in coordination between the Central Bank of Iraq and the Iraqi government."
He added, "There is cooperation and coordination with the government through the decision issued by the Council of Ministers requiring all state institutions to use electronic payments instead of cash. There is also the localization of salaries, which amounts to millions, in addition to public awareness being conducted through electronic payment companies and civil society organizations. There is growing community awareness."

He explained that "progress in electronic payments requires infrastructure, a legislative framework, and community awareness. These are three aspects that are being worked on diligently. Much of the infrastructure at the Central Bank level has been completed in an advanced manner, fully in line with international practices and legislative frameworks. We have issued numerous instructions and regulations that regulate the process, but we need more in the third aspect, which is community and cultural awareness."

The digital economy in Iraq: 10 million bank cards and 15 trillion dinars in payments

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The Eco Iraq Observatory, which specializes in economic affairs, announced on Saturday that the number of active bank cards in the country has exceeded 10 million, indicating the rapid expansion towards a digital economy.

The observatory quoted the Baghdad Council for Digital Transformation and Electronic Payments, in a statement received by Shafaq News Agency, as saying, "The qualitative transformation in the electronic payment sector is due to the policies of the Central Bank of Iraq and the government's support for this process."

According to the council, the volume of digital payments exceeded 15 trillion Iraqi dinars, including 1.7 trillion dinars for customs, while the remaining transactions were distributed across various other sectors.

The Council emphasized that "electronic payment companies are non-banking financial institutions whose mission is limited to executing transfers without storing funds or opening accounts," noting that "these companies have directly contributed to building the infrastructure for this transformation."

He pointed out that "the ongoing reforms in the banking system aim to consolidate governance and strengthen the foundations of the country's digital economy."

***Monetary stability and exchange rate liberalization.

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Mohammed Sharif Abu Maysam

In economic feasibility studies, the financial, marketing, and technical studies cannot be prepared in an investment environment unless that environment enjoys monetary stability, paving the way for stable exchange rates for the local currency against foreign currencies. This allows the economic feasibility researcher—particularly the foreign investor—to calculate costs, returns, and profits over the time periods within the project's lifetime.

This means that monetary instability can be a factor that repels investment capital, even if the investment environment is promising. Therefore, monetary authorities, through their available tools, seek to achieve the goal of monetary stability and reassure investors and those preparing economic feasibility studies, with stability that makes the margin of error in forecasts very small. This leaves it to the executive, legislative, and judicial authorities to establish attractive security, legal, and social environments through security stability and social acceptance, along with the presence of a legal system and judicial institutions that regulate and protect market relations on the one hand, and the relations of business owners with institutional and social formations on the other, in a manner that ensures integrity and integration with societal customs and traditions. 

Based on this and other factors related to the inflationary situation and its extension to the areas of growth rates and development, the local currency exchange rate and monetary stability have been among the priorities of the monetary authority in our country over the years of economic adaptation to the phase of the macroeconomic transition to a market economy in light of structural imbalances, the inability of productive sectors to finance domestic demand due to the disruptions of the transition phase and the internal influences related to financing foreign trade, and the growth of the black market for currency exchange.

After the country witnessed security stability, an increase in the level of services and sectoral growth rates, with a clear reduction in the circles of administrative slackness due to the introduction of technologies and electronic payment systems, in conjunction with measures to tighten control over border crossings, and transfer the mechanisms of foreign currency flow to finance foreign trade through the banking system, the rates of the dollar mass flow outward to the local market decreased, which was reflected positively in favor of the Iraqi dinar, and which bodes well for the black market exchange rate approaching the official exchange rate.

However, achieving monetary stability under the conditions of economic reform, which include the liberalization of the exchange rate, does not mean a decline in the black market exchange rate in favor of the official exchange rate. Rather, it means price stability in a market capable of financing aggregate demand at a point close to or identical to the official rate, with the possibility of maintaining this stability in the face of the many variables and transformations witnessed by the country and the region. In other words, achieving stability is conditional upon the liberalization of the exchange rate, which favors the adoption of a managed float method, through a free market in which minor fluctuations in the exchange rate are permitted, while the monetary authorities intervene when necessary to support price stability in cooperation with the executive and legal authorities.

The Coordination Framework is apprehensive and unopen. Washington intends to impose Iraq's next prime minister, separate from Iran.

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A representative of the Coordination Framework acknowledged the possibility that the Trump administration could impose its will on the selection of the next Iraqi prime minister in the same way it thwarted the passage of the Popular Mobilization Forces (PMF) law. While he emphasized that the selection of the Iraqi prime minister cannot be made without Iranian and American approval, he noted that this is nothing new.

According to a report by the Qatari website Arab Twenty One, the United States will choose the next prime minister, and imposing its will on the framework by not passing the Popular Mobilization Law was a preparation for what will come after. The report noted that Mohammed Shia al-Sudani is no longer Washington's choice for the next phase, especially since the complexity of the regional situation has placed him between the fires of loyalty and America, which prompted Washington not to promote him to the rank of supported ally.

The Iranian rial hits its lowest level amid European threats to activate the "trigger mechanism."

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The Iranian rial fell to near-all-time lows on Saturday amid Western threats to activate the trigger mechanism, which would begin the process of reimposing sanctions on Iran over its nuclear program, further squeezing the struggling economy.

This step, which diplomats who negotiated its inclusion in Iran’s 2015 nuclear deal with world powers called a “trigger mechanism,” is likely to take effect after 30 days. If implemented, these measures will:

• Iranian assets abroad frozen again.
• Stop arms deals with Tehran.
• Sanction any development of Iran's ballistic missile program.

The Iranian rial reached more than one million against the dollar in trading in Tehran on Thursday, close to its lowest level since last April, when it reached 1.043 million against the dollar.

It's worth noting that when the nuclear agreement was reached in 2015, the rial was trading at 32,000 to the dollar, a figure that reflects the currency's sharp decline since then.

 

France, Germany, and Britain warned on August 8 that Iran could force them to reimpose sanctions, when Tehran suspended IAEA inspections following Israeli attacks at the start of the 12-day war in June.

The pursuit of a “rapid return mechanism” is likely to heighten tensions between Iran and the West in the Middle East, which are still simmering due to Israel’s aggression on the Gaza Strip.

The New York-based Soufan Center for Research stated on Thursday that "the United States and its European partners view resorting to the 'rapid return mechanism' as a means of keeping Iran strategically weak and unable to rebuild its nuclear program, which was damaged by US and Israeli airstrikes."

Iran appears to have surrendered

Iran initially downplayed the threat of renewed sanctions and made little diplomatic effort for weeks after Europe's warning, but it has engaged in a brief diplomatic push in recent days.

Iranian Foreign Minister Abbas Araqchi, speaking last week, pointed to Iran's pessimistic outlook on its diplomacy with the West, particularly since the Israelis launched the war just as the sixth round of negotiations with the United States was scheduled to take place.

"Weren't we involved in the talks when the war broke out? So, negotiation alone cannot prevent war. Sometimes war is inevitable, and diplomacy alone cannot prevent it," Araghchi was quoted as saying by the Iranian state news agency.

The issue at hand is Iranian uranium enrichment. Before the June war, Iran was enriching uranium to 60% purity, a short technical step away from the 90% level needed for weapons-grade material. It has also built a stockpile containing enough highly enriched uranium to make multiple atomic bombs, if it so chooses, according to the Associated Press.

Iran insists that its nuclear program is peaceful, although Western countries and the International Atomic Energy Agency assess that Tehran had an active nuclear weapons program until 2003.

It remains unclear what impact the Israeli and American strikes had on nuclear sites during the 12-day war last June.

Deadline

In their letter dated August 8, the three European countries, known as the “troika,” warned Iran that they would proceed with “snapping back sanctions” by the end of August if Tehran did not reach a “satisfactory solution” to the nuclear issues. This leaves Iran little time to reach an agreement with the Europeans, who have grown increasingly skeptical of Iran over years of negotiations.

Iraqi Embassy in Washington: Iraq is not affiliated with any country.

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The Iraqi Embassy in Washington affirmed that Iraq enjoys full sovereignty and has the right to conclude agreements and memoranda of understanding in accordance with the provisions of its constitution and national laws, and in a manner consistent with its supreme interests.

The embassy explained, in a statement issued in response to the remarks of the US State Department spokesperson, that Baghdad maintains friendly and cooperative relations with many countries around the world, including the United States and neighboring countries, and is keen to build these relations on the basis of mutual respect and shared interests.

She stressed that Iraq "is not subservient to the policies of any country," and that its decisions stem from its independent national will.

In this context, the embassy noted that the security agreement recently signed with Iran is part of bilateral cooperation to maintain security and control the shared border, contributing to the stability of both countries and the security of the region.

Iraq is not suffering from a liquidity shortage, but rather from its misuse. Government banks are merely "treasuries" with no production.

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Al-Abidi's expert interpretations of deposits

 

Economist Munar Al-Obaidi said that government banks are directly responsible for holding most of the deposits, but he noted that they have been unable to transform them into a driving force for the economy, and have instead been content with the role of “reservoir.” Al-Obaidi pointed out that Iraq is not suffering from a liquidity shortage, but rather from its misuse. Unless the banking system transforms from stagnant treasuries into effective institutions that channel funds toward production, the economy will remain captive to a vicious cycle of consumption and sterile financing, and massive deposits will have little impact on growth and job opportunities.

 

In June 2025, deposits in the Iraqi banking system exceeded 115 trillion dinars, more than 95 trillion of which were current, non-interest-bearing deposits, while savings and fixed deposits amounted to only 20 trillion. This means that nearly 80% of the funds are deposited in short-term accounts that do not contribute to the creation of real economic value. More alarmingly, more than 85% of these deposits are held in government banks, which continue to play a traditional role in preserving funds, without being able to convert them into productive loans or investment instruments that serve the economy.

Despite this significant amount of liquidity, total loans granted to the private sector and public institutions did not exceed 46 trillion dinars, or less than 40% of total deposits. This is a very modest percentage compared to Jordan, where it reaches more than 75%, Egypt, approximately 85%, and Turkey, where it exceeds 100%. Even more concerning than the size of the loans is their nature. Data indicates that more than 66% of them went to personal consumer loans or loans for construction and real estate purchases, while the remainder was distributed among productive sectors. It should be noted, for example, that financing for the industrial sector did not exceed 4% of total loans, while financing for the agricultural sector did not exceed 3% of total loans. This figure clearly reveals the absence of a developmental compass in the banks' operations.

This reality places government banks under direct responsibility. They hold the majority of deposits but have been unable to transform them into a driving force for the economy, and have instead served as "reservoirs" rather than development institutions. The persistence of this gap between massive liquidity and limited funding raises questions about the viability of current banking policies and calls for a radical change in the banking system's operating model.

For banks to regain their developmental role, there are a number of possible solutions: First, redirecting the loan structure toward productive sectors such as agriculture, industry, and renewable energy, rather than relying solely on consumer and real estate loans. Second, developing new financial instruments such as financing small and medium-sized enterprises with partial state guarantees. Third, improving incentives for long-term savings by raising interest rates on savings and fixed deposits to attract additional liquidity to the banking system. Fourth, expanding partnerships with the private sector through joint financing funds that finance infrastructure and industrial projects. Fifth, enhancing transparency and governance within government banks to reduce waste and enhance public confidence.

Iraq is not suffering from a liquidity shortage, but rather from its misuse. Unless the banking system transforms from stagnant treasuries into effective institutions that channel funds toward production, the economy will remain trapped in a vicious cycle of consumption and sterile financing, and massive deposits will have little impact on growth and employment opportunities.

 

Economist: More than 85% of bank deposits in Iraq are held in government banks that are "misusing them."

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An economic expert revealed that 85 percent of bank deposits in Iraq are held in government banks, stressing that Iraq is not suffering from a liquidity shortage, but rather from its misuse.

 

Economist Manar Al-Obaidi stated in a post on his social media account on Saturday, August 30, 2025, that “deposits in the banking system exceeded 115 trillion dinars in June 2025, more than 95 trillion of which are current, non-interest-bearing deposits. Savings and fixed deposits did not exceed 20 trillion dinars, meaning that nearly 80% of the funds are deposited in short-term accounts that do not contribute to creating real economic value.” He added that “the most dangerous thing is that more than 85% of these deposits are held in government banks, which continue to play a traditional role in preserving funds without being able to convert them into productive loans or investment tools that serve the economy.”

 

He explained that, "Despite this large amount of liquidity, the total loans granted to the private sector and public institutions did not exceed 46 trillion dinars, or (less than 40% of total deposits), which is a very modest percentage compared to Jordan, where the percentage reaches more than 75%, and in Egypt, it reaches about 85%, while in Turkey it exceeds 100%."

 

He continued: "More serious than the size of the loans is their nature. Data indicates that more than 66% of them went to personal consumer loans or loans for construction and real estate purchase, while the remainder was distributed among the productive sectors. It should be noted that financing for the industrial sector did not exceed 4% of the total loans, while financing for the agricultural sector did not exceed the 3% barrier of the total loans," noting that this "number clearly reveals the absence of a developmental compass in the work of banks."

 

According to the economic expert, "This reality places government banks under direct responsibility. They hold the majority of deposits, but they have been unable to transform them into a driving force for the economy. They have been content with the role of 'reservoir' rather than development institutions. The persistence of this gap between enormous liquidity and limited funding raises questions about the viability of current banking policies and calls for a radical change in the banking system's operating model."

 

Al-Obaidi put forward a series of proposals for Iraqi banks to restore their developmental role. “The first is to redirect the loan structure towards productive sectors such as agriculture, industry, and renewable energy, instead of being limited to consumer and real estate loans. The second is to develop new financial tools such as financing small and medium-sized enterprises with partial state guarantees. The third is to improve incentives for long-term savings by raising interest rates on savings and fixed deposits to attract additional liquidity to the banking system. The fourth is to expand partnerships with the private sector through joint financing funds that finance infrastructure and industrial projects. The fifth is to enhance transparency and governance within government banks to reduce waste and enhance public confidence.”

 

Al-Obaid emphasized in his speech that "Iraq is not suffering from a liquidity shortage, but rather from its misuse. Unless the banking system transforms from mere stagnant vaults into effective institutions that channel funds toward production, the economy will remain captive to a vicious cycle of consumption and sterile financing, and massive deposits will continue to have little impact on growth and job opportunities."

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Iraq ranks last among Arab countries in terms of financial inclusion in 2025.

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Iraq ranked last in the Arab world in terms of financial inclusion in 2025, according to the United Nations Economic and Social Commission for Western Asia (ESCWA).

The committee stated in its report on sustainable development for financial inclusion in the Arab region for the current year, which Shafak News Agency reviewed, that the use of financial services in Arab countries remains far below the potential for access to them, and traditional outlets are still used more widely than digital platforms. Arab countries also record the lowest level of financial inclusion for women in the world, with the percentage of women who own a bank account not exceeding 29%.

He noted that only 14% of small and medium-sized financial institutions in Arab countries have a loan or line of credit, a percentage lower than the global average of 29%. This is attributed to high borrowing costs, difficulty accessing branches, particularly in rural areas, and a lack of familiarity with financial and digital affairs.

According to the report, Iraq ranked second to last in the Arab world in terms of financial inclusion, with its citizens achieving financial inclusion in terms of access to digital services and digital financial transactions and enabling services at a rate of 22%. The report indicated that Iraq is one of the countries exposed to instability or affected by conflict.

According to the committee, Bahrain ranked first in the Arab world in terms of financial inclusion for its citizens, with a score of 59%. Saudi Arabia came second with 57%, followed by the UAE with 52%, Kuwait with 52%, Oman with 41%, Qatar with 41%, Jordan with 39%, Morocco with 38%, and Tunisia with 38%.

She pointed out that Algeria had a financial inclusion rate of 35%, Egypt 35%, Palestine 33%, Lebanon 31%, Libya 26%, followed by Iraq, and finally Mauritania came in last place with a rate of 22%.

The report also noted that Syria, Sudan, Djibouti, Somalia, Comoros, and Yemen were not classified due to the lack of data for them.

Dangerous and does not create economic value... Expert warns against bank deposits

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Economic expert, Manar Al-Obaidi, warned on Saturday of the size of deposits in the Iraqi banking system, stressing that they are dangerous and do not contribute to creating real economic value.
Al-Obaidi said in a post on his Facebook account, followed by Mawazine News, that "deposits in the Iraqi banking system exceeded 115 trillion dinars in June 2025," noting that "more than 95 trillion of them are current with no return, while savings and fixed deposits did not exceed 20 trillion only, meaning that nearly 80% of the funds are deposited in short-term accounts that do not contribute to creating real economic value."

Al-Obaidi added, "What is more dangerous is that more than 85% of these deposits are held in government banks, which still play a traditional role in preserving funds without being able to convert them into productive loans or investment tools that serve the economy."

He continued, "Despite this large volume of liquidity, the total loans granted to the private sector and public institutions did not exceed 46 trillion dinars, or less than 40% of total deposits. This is a very modest percentage compared to Jordan, where it reaches more than 75%, and in Egypt, it is about 85%, while in Turkey it exceeds 100%. What is more dangerous than the size of the loans is their nature, as data indicates that more than 66% of them went to personal consumer loans or loans for construction and real estate purchase, while the rest was distributed among the productive sectors." He indicated that "we note that financing for the industrial sector did not exceed only 4% of the total loans, while financing for the agricultural sector did not exceed the barrier of 3% of the total loans, a number that clearly reveals the absence of a development compass in the work of banks."

Al-Obaidi pointed out that "this reality places government banks under direct responsibility, as they hold the majority of deposits but have been unable to transform them into a driving force for the economy, and have been content with the role of 'treasury officers' rather than being development institutions." He noted that "the persistence of this gap between enormous liquidity and limited funding raises questions about the feasibility of current banking policies and calls for a radical change in the banking system's operating style."

He noted that "for banks to regain their developmental role, there is a package of possible solutions: the first is redirecting the loan structure toward productive sectors such as agriculture, industry, and renewable energy, rather than relying solely on consumer and real estate loans. The second is developing new financial instruments such as financing small and medium-sized enterprises with partial state guarantees. The third is improving incentives for long-term savings by raising interest rates on savings and fixed deposits to attract additional liquidity to the banking system. The fourth is expanding partnerships with the private sector through joint financing funds that finance infrastructure and industrial projects. The fifth is enhancing transparency and governance within government banks to reduce waste and enhance public confidence."

He concluded, "Iraq is not suffering from a liquidity shortage, but rather from its misuse. Unless the banking system transforms from mere stagnant treasuries into effective institutions that channel funds toward production, the economy will remain captive to a vicious cycle of consumption and sterile financing, and massive deposits will continue to have little impact on growth and job opportunities."

Al-Sudani affirms to Macron Iraq's focus on economic development, given its constructive role in the region.

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Prime Minister Mohammed Shia al-Sudani received a phone call on Saturday from French President Emmanuel Macron, during which they discussed bilateral relations between the two friendly countries and ways to enhance partnership and cooperation in various fields, in addition to discussing regional and international issues of common interest.

According to a statement from his office received by Al-Eqtisad News, Al-Sudani referred to "the efforts being made by the government to call for a regional conference in Baghdad to discuss regional issues, stressing the importance of Macron's upcoming visit to Baghdad. He also reiterated Iraq's appreciation for France's principled position on the Palestinian issue, stressing that the violations committed in the Palestinian territories set a dangerous precedent that further complicates the international situation and presents the global order with real challenges."

The Prime Minister affirmed that "Iraq is focusing on economic development, given its constructive role in the region. He warned of the risks of a new war on the security and stability of the region, stressing his readiness to work with France and other partners, including the Islamic Republic of Iran and the United States of America, to avoid slipping into a new confrontation. Iraq will take all necessary steps in its national interest and serve the goal of preventing war, through dialogue based on the foundations of international law."

For his part, Macron praised "the level of security and stability witnessed by Iraq, and the government's efforts to maintain the country's stability, stressing France's pride in the deep strategic relations between the two countries, and its desire to continue supporting Iraq. Discussions also took place regarding his scheduled visit to Baghdad, expressing his hope that the visit will achieve its practical objectives."

The UN representative in Iraq warns of widespread corruption and a lack of accountability.

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The United Nations Special Representative for Iraq, Mohammed al-Hassan, held a press conference in Karbala province, warning of the growing dangers of corruption in Iraqi state institutions. He stressed that the absence of accountability poses a direct threat to the country's future and stability.

"My greatest fear for any dear country, like Iraq, is the spread and rampant corruption. I do not limit it to political corruption, as dangerous and criminal as it is, but I mean corruption in its broadest sense, whether moral, financial, administrative, judicial, or even scientific and institutional,"

he said. "I love this country, and I look forward to seeing it honored, safe, and free of corruption. Therefore, I warn against the spread of a culture of corruption, and I emphasize that Iraq is a country of goodness and righteousness, a country of established laws and systems, and I have great confidence in the Iraqi people and their institutions, especially Iraq's youth, scholars, and leaders."
In his speech, Al-Hassan emphasized that corruption is not limited to one aspect, but rather pervades multiple levels, including ethical, administrative, financial, and judicial aspects, which presents Iraq with serious challenges that require strong political will and practical measures to confront them.

He added, "I call on everyone to stand firmly and steadfastly against corruption, to strengthen standards of integrity, judicial independence, and transparency, and to hold the corrupt and corruptors accountable without selectivity. From a heart that cares for this country, I urge everyone to adhere to honesty and exercise a sense of responsibility, in order to preserve Iraq's progress, far from demagoguery, sectarianism, and factionalism."

The UN representative emphasized that enhancing integrity and transparency, activating the role of an independent judiciary, and holding those involved in corruption cases accountable are essential steps to protect the democratic process and maintain stability. He also called on political and community leaders to work together to build a value system based on integrity, ensuring the future of Iraq's coming generations.
He added, "Iraq is a country rich in resources and young talent, but the persistence of corruption without a radical solution undermines trust in institutions, weakens the state's prestige, and prevents the real development that the Iraqi people deserve."

Al-Hassan concluded his conference by emphasizing that the United Nations will continue to support Iraq in its reform and anti-corruption efforts, expressing his hope that these efforts will translate into tangible steps that will strengthen citizens' confidence in state institutions.

Al-Sudani: ‘Iraq First’ guides policy

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On Saturday, Prime Minister Mohammed Shia al-Sudani emphasized that “Iraq First” is the guiding principle of his government, shaping decisions at home and abroad.

Speaking at a tribal conference in Baghdad, al-Sudani said the approach drives Iraq’s move to reshape its ties with the Global Coalition but does not mean breaking with the international community. “Today’s conditions differ from 2014 (when the Coalition was created to fight ISIS),” he explained.

The Prime Minister, leader of the newly formed Reconstruction and Development bloc, cited reforms and new service projects, including major investment in Baghdad after years of neglect. He said foreign investment has exceeded $100B, with the Development Road Project intended to place Iraq “at the center of regional trade.”

However, “Development depends on rule of law, disarmament, respect for state institutions and the fight against corruption,” he added, as guidance from the Supreme Religious Authority — Iraq’s highest Shiite clerical leadership, led by Grand Ayatollah Ali al-Sistani in Najaf — “continues to shape national policy.”

 

Iraqi Prime Minister Media Office

4 hours ago

 

Prime Minister Mohammed S. Al-Sudani Attends a Tribal Conference in Baghdad
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Prime Minister Mohammed S. Al-Sudani attended this evening, Saturday, a tribal conference of sheikhs and dignitaries from the Karkh side of Baghdad, hosted at the guesthouse of

Sheikh Saad Abdulwahid Majid Al-Khalifa.

...See more

Al-Sudani talks about the US withdrawal and the recommendations of the religious authority: "Iraq First" is not a slogan.

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Iraqi Prime Minister Mohammed Shia al-Sudani clarified on Saturday evening that restructuring the relationship with the international coalition does not mean a rupture with the international community. While he noted that the recommendations of the supreme religious authority represent the course of action for society and the state, he emphasized that "Iraq First" is not a slogan, but rather a behavior and practical application towards Iraqis.

This came during his attendance at a tribal conference for tribal sheikhs and dignitaries from the Karkh district of Baghdad, held at the guest house of Sheikh Saad Abdul Wahid Majeed Al-Khalifa.

Al-Sudani stated in a statement from his office, received by Shafaq News Agency, that "restructuring the relationship with the international coalition does not mean a rupture with the international community, and the circumstances in Iraq today are different from those in 2014."

He stressed that "the government's position on the events in the region is clear and announced at the political, media, and relief levels, and Iraq was part of the movement with regional countries to halt Israeli attacks and prevent the expansion of the conflict."

Al-Sudani pointed out that "Iraq First" is not a slogan, but rather a behavior and practical application, and a legal, national, and moral commitment to Iraqis, with all their components and sects.

He added, "The supreme religious authority is keen to protect and safeguard the country's interests, and its recommendations and directives represent the course of action for society and the state."

He continued, "Iraq, with its abundant resources and wealth, needs a sustainable economy and development, and real reform that does not rely solely on oil."

The Prime Minister added, "Iraq today has the best relations with its regional environment and the international community. The presence of major international companies in Iraq is evidence of the extent of trust, and total Arab and foreign investments have reached more than $100 billion across various sectors."

Al-Sudani concluded by saying, "Development can only be achieved by maintaining security and stability, through the rule of law, the control of weapons, respect for state institutions, the preservation of national decision-making, and the fight against corruption."

An economist explains the reasons for American companies returning to Iraq.

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Economist Nabil Al-Marsoumi revealed on Friday the reasons that prompted American companies to return to Iraq, pointing to the factors and elements Baghdad has provided to ensure a suitable operating environment within the security and procedures in place.

Al-Marsoumi said in a Facebook post, followed by the Al-Sa'a network, that "after years of American giant companies withdrawing as part of a wave of major foreign companies withdrawing from the country, Chevron is returning to Iraq through the Nasiriyah field in Dhi Qar Governorate."

He explained that "the withdrawal of American companies from Iraq was linked to several reasons, including: the exacerbation of corruption risks due to a lack of experience in public administration, the weak ability to absorb the flow of aid funds, sectarian issues, the lack of political will to combat corruption, massive embezzlement, fraudulent procurement, money laundering, oil smuggling, and widespread bureaucratic bribery."

Al-Marsoumi added, "These factors have led to the country's ranking at the bottom of international corruption rankings, fueled political violence, hindered effective state-building and service delivery, and led to political interference in anti-corruption bodies, the politicization of corruption cases, a weak civil society, insecurity, and a lack of resources."

Al-Marsoumi pointed out that "the politicization of corruption issues, weak civil society, insecurity, lack of resources, and incomplete legal provisions severely limit the government's ability to effectively curb rising corruption."

He added that "the return of American companies is linked to several factors, including the desire to counterbalance China's significant influence in Iraq's oil and gas sector, and the guarantees Baghdad has provided regarding transparency, contract stability, and security after years of corruption and governance risks that previously drove major companies to withdraw."

He stressed that "Baghdad agreed to the three elements requested by American companies: cohesion, security, and facilitation of procedures."

He explained that "cohesion is about ensuring that the construction of project-related facilities is completed in a complete and orderly manner. Security is not limited to protecting employees on the ground, but also includes the soundness of the basic commercial and legal practices included in the agreement. Facilitating procedures means that any deal must proceed as planned in the agreement, regardless of any future changes in the Iraqi government."

He concluded, "Iraq offered Chevron a share of the project's revenues in the new contract, but only when production begins."

Parliamentary Committee: The government committed serious violations by not implementing the three-year budget.

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Member of the Parliamentary Strategic Planning Committee, Suad Al-Maliki, considered the three-year federal budget incorrect on Saturday, indicating that Parliament made a mistake by passing it, pointing out that the government did not commit to implementing it.
Al-Maliki said in a statement to Al-Maalouma Agency, “The government did not implement the three-year budget as expected, as most government projects are being spent according to the 2023 budget only.”

Al-Maliki added that "most ministers suffer from the lack of sufficient financial allocations for their projects, while the government disburses ministries' dues based on the 2023 budget."

She explained that "her committee has indicated clear government violations in not implementing the three-year budget, especially in light of the government's violation of the Financial Management Law by not sending detailed tables regarding the three-year federal budget."

"A direct threat to the state's financial and administrative stability." A representative addresses the government regarding the budget and warns.

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On Saturday, August 30, 2025, Member of Parliament Haitham Al-Zarkani warned of what he described as the "danger" of the continued suspension of the 2025 budget as the year draws to a close. He noted that the continued suspension of the budget will negatively impact the performance of state institutions and the private sector and threaten financial and administrative stability.

 

 

Al-Zarkani told the Al-Jabal platform, "We must be cautious of the danger of continuing to delay the approval of the 2025 budget as the fiscal year draws to a close. This delay poses a direct threat to the state's financial and administrative stability."

 

The MP explained that "the general budget represents the primary tool for managing state affairs and providing the necessary allocations for service projects, salaries, and financial obligations. Continued suspension of the budget to this point will lead to the disruption of development plans and deprive citizens of their most basic rights."

 

Al-Zarkani called on the Iraqi government to "assume its national responsibilities and expedite the submission of budget schedules before it's too late, because any further delay will compound the economic burden and negatively impact the performance of state institutions and the private sector."

 

In early August, economic affairs expert Haider Al-Sheikh spoke about the repercussions of the delayed approval of the 2025 budget, noting that economic growth had been recorded during the first half of the year, which he predicted would decline in the coming months. 

 

In a statement to the Al-Jabal platform, Al-Sheikh said, "The first half of this year witnessed economic growth, with a slight increase over last year, and it may decline in the coming months." He indicated that "the Iraqi state's non-oil revenues in the first half amounted to more than 5 trillion dinars."

 

The sheikh stated that "the Iraqi government has worked to boost non-oil revenues by increasing direct and indirect taxes. It is expected that fiscal revenues will decline this year compared to last year, and may not reach 14 trillion dinars." He noted that "the failure to approve budget schedules is one of the reasons for the decline in non-oil revenues."

 

He added, "Non-oil revenues last year reached 14 trillion dinars as a result of economic activity and a recovery in the real estate market, which declined this year due to delays in approving the budget schedules."

 

At the end of last July, Finance Minister Taif Sami reviewed the country's financial situation during her meeting with the Parliamentary Finance Committee. She presented a detailed presentation that included government revenues, spending, and financing schedules for the years 2023–2025, in addition to plans to reform the banking system, update tax and customs policies, and domestic and foreign borrowing, according to the statement.

 

Sami explained that "the delay in submitting the budget schedules is due to two factors: fluctuations in oil prices and the failure to resolve the disputes with the region," considering that "this situation hinders the financing of the federal budget."

 

The minister said, "There is no point in preparing schedules while the region continues to fail to pay its financial obligations, in addition to the impact of oil price fluctuations and accumulated debts on the federal government's financing capacity."

Latest salary information; Baghdad to send money tomorrow?

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The Kurdistan Regional Government (KRG) is expected to receive the sixth month salary from Baghdad on Sunday.

Main story:  The Secretariat General of the Iraqi Council of Ministers on Wednesday officially sent a letter to the Iraqi Finance Minister Taif Sami and the relevant ministries,  the letter contains five decisions on salaries and the agreement between Erbil and Baghdad . Iraqi Finance Minister Taif Sami has signed the disbursement

of the money, only the accounting director remains, which means that most of the procedures have been completed and most likely tomorrow Sunday the necessary money, which is more than 950 billion dinars.

Official statement: The Ministry of Finance and Economy of the Kurdistan Region of Iraq (KRG) told Ava that the money will be sent tomorrow. Two delegations from Erbil are scheduled to leave for Baghdad this week to hold talks with their counterparts to reach a final agreement on domestic revenues and oil exports