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Two weeks ahead of Iraq's "money"... the Central Bank is "very embarrassed" behind the scenes in Baghdad
Quick follow-up from Ziad Al-Hashemi
Private banks have less than two weeks left to implement the reform plan drawn up by the American company Oliver Wyman, before the Iraqi banking system is forced to liquidate violators. This leaves the Central Bank with only two options: either increasing the banks’ capital and merging those unable to increase the size of their financial portfolios, or liquidation, which would lead to the direct intervention of the US Federal Reserve to implement international banking standards. This would be a scenario resembling US “guardianship” over Iraqi banks, something Baghdad wants to avoid in order to preserve its reputation and independence. However, economic expert Ziad al-Hashemi hints at the presence of “beneficiary parties” who are opposing the proposed reform plan and obstructing its implementation behind the scenes, without taking into account the major repercussions of the return of direct US intervention!
The Central Bank of Iraq (CBI) has a "last chance" to reform its banking system by implementing the reform plan and imposing its will on those obstructing it. Otherwise, the Treasury and the Federal Reserve will be on the lookout!
Over the past years, the Federal Reserve and the US Treasury have pursued a strict, direct policy with the CBI, which has forced nearly 50% of banks out of operation or dealing in dollars as a result of sanctions and deprivation!
During that period, the Federal Reserve imposed numerous conditions and requirements on the CBI to increase compliance, the most important of which were expanding the scope of direct transfers and electronic payments, streamlining the number of banks by liquidating some and merging others, and changing the ownership structure and capitalization of banks!
This situation has placed the CBI in a very embarrassing situation between the hammer of the Federal Reserve and the anvil of the powerful parties in Iraq that own and operate dozens of banks and live off the movement of the dollar and the revenues of these banks!
As a compromise to spare the CBI the embarrassment and pressure it is facing, an American company (OW), which has joint work relationships with the Federal Reserve and the US Treasury, was commissioned to evaluate the Iraqi banking system and present a reform action plan for this system!
The firm presented a banking reform plan, which included requirements based on and consistent with those demanded by the Federal Reserve and the Treasury over the past year.
In other words, the Central Bank of Iraq (CBI) received the same US federal requirements, but indirectly through an American company, in what appears to be a tactic to cover up direct federal intervention in reforming the Iraqi banking system.
The plan is now ready for implementation after the CBI announced it, but it appears that there is some opposition behind the scenes to obstruct implementation by certain parties who benefit from maintaining the status quo without reform.
The CBI now has no choice but to adhere to the banking reform plan presented by the consulting firm. Otherwise, the Federal Reserve and Treasury will return to direct intervention and force reforms on the CBI or impose further restrictions and even sanctions.
The return of direct intervention and pressure by the Treasury and the Federal Reserve is a sensitive issue that the Central Bank of Iraq is striving to avoid, both to protect its reputation and to affirm its independence and ability to implement reforms. This requires a firm and decisive stance from the Central Bank's management to implement this reform plan without yielding to any internal dictates or pressures.
The opening of a branch of the Trade Bank of Iraq in Halabja reaches the parliament dome in response to the demands of the people.
Halabja residents' demands for banking services have morphed into an official call in the Iraqi parliament, with a member of parliament calling for the opening of a branch of the Trade Bank of Iraq (TBI) in the province.
Member of the Iraqi Parliament, Shero Hama Sharif, said in a press statement, “As part of our ongoing efforts to serve Halabja Governorate, we have submitted an official letter to the Central Bank of Iraq to open a branch of TBI Bank in the governorates of the Kurdistan Region, specifically in Halabja Governorate, as is the case with the rest of Iraq’s governorates.”
She added, "The purpose of this step is to enable the people of Halabja to benefit from the diverse banking facilities and services offered by the bank, which cover a wide range of financial transactions and activities." She emphasized that this will contribute to boosting economic activity and facilitating daily transactions for citizens.
Al-Ahly first, Baghdad second... Bank profits reveal foreign dominance
Al-Mustaqilla/- A document obtained by the Independent Press Agency revealed the profit rates of Iraqi banks during the first half of this year, shedding light on the reality of the banking sector and the dominance of some foreign banks within it.
According to the document, the National Bank of Iraq topped the list of profits, occupying first place, while the Bank of Baghdad came in second, and Mansour Bank came in third.
Data indicates that profits generated by foreign banks operating in Iraq remain substantial, amounting to hundreds of millions of dollars, even as the local banking sector faces widespread criticism for its poor performance and declining public confidence.
This arrangement comes amid an ongoing crisis of confidence between the public and Iraqi banks, particularly after a number of banks were placed on US sanctions lists, and others were subjected to liquidation or audit procedures by the Central Bank.
Observers believe that the continued dominance of foreign banks in the Iraqi market reflects the fragility of the financial structure of local banks and their weak ability to compete. This requires radical reforms to banking policies and a comprehensive restructuring of the sector to bolster depositor confidence.
The dollar faces global pressure and a potential decline of up to 35% - newspaper analysis
Economist Zaki Al-Saadi asserted that the US dollar is going through a critical phase globally, even domestically. He pointed out that US President Donald Trump's recent policies, including the imposition of new taxes on China and the introduction of value-added tax (VAT), have negatively impacted the US currency.
Al-Saadi explained in an interview with Jarida Platform that “talk about the expansion of the BRICS bloc and the accession of new countries, in addition to the complex geopolitical situation, especially the US-Israeli war on Iran, are all factors that put pressure on the dollar and weaken its global standing, with economists predicting a decline in its value of between 8% and 35%.”
He pointed out that "the Iraqi market is also experiencing a state of confusion due to these repercussions, as any return to military escalation could lead to the targeting of some banks or the imposition of sanctions, which would limit dollar transactions and push investors to consider alternatives such as real estate or commercial assets."
Al-Saadi explained that "the Central Bank's suspension of dollar sales via platforms at the official rate has contributed to a decline in demand for the currency locally, coupled with citizens' fears of a change in its value or the emergence of an alternative currency."
He added, "Any temporary rise in the value of the dollar could occur if war breaks out again, but its impact will be temporary. Iraq's link to the dollar remains strong, as imports and state salaries are settled in this currency, meaning any fluctuation in its price will have a direct and clear impact on citizens."
Iraq faces US banking guardianship... two crucial weeks for private banks
Al-Mustaqilla/- Less than two weeks remain for private banks in Iraq to comply with the financial reform roadmap developed by the American firm Oliver Wyman, a move described by economic circles as the "last chance" to save the banking system from the specter of liquidation and bankruptcy.
According to informed banking sources, the Central Bank of Iraq has two options:
- Forcing banks to increase their capital and merge those unable to expand their financial portfolios.
- Liquidating violating banks, which opens the door wide to direct intervention by the US Federal Reserve to implement international standards in the Iraqi banking sector.
The risk of liquidation and “financial guardianship”
The second scenario is viewed with great concern within Baghdad, as it effectively imposes a form of American tutelage over the Iraqi banking sector, a precedent that could threaten Baghdad's financial independence and undermine public confidence in the banking system as a whole.
Experts believe that the US Federal Reserve's involvement could completely redraw the banking landscape in Iraq, from foreign exchange mechanisms to banks' ability to finance local projects.
Reform roadmap or political pressure?
Oliver Wyman's reform roadmap came in response to mounting US pressure, following increasing reports of financial transaction irregularities and accusations that some banks were involved in money laundering or illicit financing.
At the same time, the Iraqi government is seeking to strike a balance between meeting international demands and maintaining economic sovereignty, particularly since any direct foreign intervention would place Iraq in a position of weakness vis-à-vis its international partners.
The countdown has begun
The coming weeks will be crucial. Either the Central Bank of Iraq succeeds in imposing radical reforms that preserve the independence of financial decision-making, or it will find itself forced to accept American intervention, which could be read internally as a "declaration of failure" for the local banking system.
Economist: Billions of dollars lost due to US control over Iraq's resources
Economic analyst Faleh al-Zubaidi confirmed on Saturday that the United States is exerting stabilizing economic pressure on Iraq by controlling its financial resources. He warned that this policy has cost the country billions of dollars annually.
Al-Zubaidi told Al-Maalouma News Agency that "Washington's financial policy toward Iraq is based on two dangerous aspects: the first is the imposition of successful sanctions on Iraqi banks, and the second is the control of Iraqi funds deposited in the US Federal Reserve." He explained that "these measures weaken the Iraqi economy and deprive it of full use of its resources."
He added, “Iraq is suffering greatly as a result of these pressures, which often turn into a political blackmail card,” noting that “the continuation of this American approach will deepen the economic and financial crises facing the country.”
Al-Zubaidi explained that “the losses resulting from this policy are estimated at billions of dollars annually, at a time when Iraq needs every financial resource to support the budget projects and implement service and development.”
It's worth noting that the United States continues to impose restrictions on the movement of Iraqi funds at the Federal Reserve under the pretext of monitoring money laundering and terrorist financing, which economic experts see as a direct targeting of Iraq's economic autonomy.
Launching an electronic payment service for inmates at Nasiriyah Prison
In a move aimed at simplifying procedures and enhancing transparency in financial transactions, the Agricultural Cooperative Bank has launched an electronic payment service within Nasiriyah Central Prison, in cooperation with the Ministry of Justice. The service will be issued electronic payment cards for inmates' families.
The bank's director in Nasiriyah, Adnan Nasser Mohammed, told Al-Sabah: "The new service relies on equipping correctional centers with modern devices, along with distributing electronic bands (bracelets) among inmates, so that amounts are transferred from the inmate's family to the electronic bracelet he wears on his wrist, through which he can shop and pay electronically inside the correctional center."
He added that this step contributes to reducing reliance on direct cash within prisons and provides a more transparent and organized financial environment.
In another context, Mohammed explained that the bank has launched financial advances targeting widows and divorcees, disbursing approximately 200 million dinars, distributed among 35 eligible recipients. He noted that no new loans have been granted to this category this year, pending further instructions from the relevant authorities to determine the next mechanism for benefiting from them
3 Factors to Overcome "Challenges": The Parliamentary Regions Committee Discusses the Repercussions of the Baghdad-Erbil Agreement on the Budget
On Saturday, August 16, 2025, the Parliamentary Committee on Regions and Governorates discussed the repercussions of the financial and oil agreement between Baghdad and Erbil on the Iraqi budget, identifying three factors to overcome the economic and financial "challenges" facing Iraq.
"There is great importance in continuing and strengthening coordination between the federal government in Baghdad and the Kurdistan Regional Government, particularly on the financial and oil issues, to ensure the rights of all citizens are preserved and the foundations of economic stability are consolidated in the country," the committee's deputy chairman, Jawad al-Yasari, told the Al-Jabal platform.
Al-Yasiri explained that "understanding and serious dialogue between the two parties is the best way to overcome obstacles and address outstanding issues in a spirit of shared national responsibility, far from any political disputes or narrow calculations."
He added, "The financial and economic challenges facing Iraq require, more than ever, a unified stance and a focus on partnership and cooperation over conflict. The success of any financial or oil agreement between Baghdad and Erbil will have a positive impact on the stability of the general budget, improved services, guaranteed salaries for employees and retirees, and enhanced citizen confidence in state institutions."
The Deputy Chairman of the Parliamentary Committee on Regions and Governorates concluded his remarks by saying, "Iraq's supreme interest requires ongoing and permanent coordination, and everyone must realize that a unified national stance is the foundation for protecting the people's wealth and serving its people."
On August 13, the Kurdistan Regional Government's Ministry of Natural Resources announced an agreement with the Iraqi Ministry of Oil regarding a mechanism for exporting crude oil.
The ministry said in a statement: “An important agreement was signed by 23 members of the delegations of the Ministry of Natural Resources in the Kurdistan Region and the Federal Ministry of Oil, including 17 members of the Iraqi Ministry of Oil delegation, as the culmination of a series of meetings that began on July 17. These meetings included field visits to all oil fields in the region to assess technical aspects. After extensive discussions, a mechanism was reached on August 11th to export oil from the fields.”
The statement added, "The agreed-upon mechanism stipulates that the export process will be based on the daily production of oil fields in the Kurdistan Region. Under this agreement, 50,000 barrels of oil per day will be allocated for redelivery to the Kurdistan Region to meet its domestic needs, while the remaining quantity of the product will be delivered to the State Oil Marketing Organization (SOMO), a federal government entity, for export purposes."
The Kurdistan Regional Government's Ministry of Resources stressed in a statement that "the actual resumption of exports requires the completion of negotiations between the Iraqi government and the Turkish side."
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Opening of a new branch of TBI Bank in Basra
Watch yesterday's update video it is good too:
Iraq’s Dinar Challenge: The Fight Against the Parallel Market
The Baghdad International Energy Forum: A platform to strengthen Iraq's position in global energy markets
The Baghdad International Energy Forum will kick off in the capital, Baghdad, on September 6 and 7, 2025. Organized by the Ghadan Risk Management Foundation, the forum will be inaugurated by Prime Minister Mohammed Shia al-Sudani, with the broad participation of senior executives from global energy companies, energy ministers, the OPEC President, and international experts. The event reflects the international community's confidence in Iraq's capabilities and its pivotal role in this vital sector.
The forum aims to highlight Iraq's significant potential in the oil, gas, and renewable energy sectors, as a key partner in meeting global market needs and a supporter of international efforts to achieve sustainability.
The forum will be attended by energy ministers from the region and around the world, as well as global energy companies including TotalEnergies, Oman's OQ, BP, Chevron, Eni, and Shell. Its sessions will address energy security, market stability, and the transition to clean energy sources.
The forum is organized under the auspices of the State Oil Marketing Organization (SOMO) and in partnership with the Iraqi Ministry of Oil. It serves as an international platform for dialogue and exchange of views on the future of energy in Iraq and the region, and for exploring promising investment opportunities in this strategic sector.
Baghdad International Airport Customs Center seizes foreign currency in the possession of passengers in violation of the Central Bank of Iraq's regulations.
Iraq presents to the United States details of the security memorandum of understanding signed with Iran.
National Security Advisor Qasim al-Araji briefed US Chargé d'Affaires in Iraq Stephen Fagin on Saturday on the details of the memorandum of understanding signed with Iran.
The National Security Advisory said in a statement received by ( IQ ), "National Security Advisor Qasim Al-Araji received, in his office today, Saturday, the US Chargé d'Affaires in Iraq, Ambassador Stephen Fagin. During the meeting, ways to strengthen bilateral relations between the two friendly countries were discussed, as well as the importance of continuing joint cooperation in the field of combating terrorism and exchanging information and expertise."
He added, "Al-Araji reviewed the details of the security memorandum of understanding signed between Iraq and the Islamic Republic of Iran regarding border control, which contributes to supporting the security and stability of the region and preventing smuggling and infiltration."
Al-Araji affirmed, according to the statement, that "Iraq's policies are based on its supreme national interests and act as an independent, sovereign state," emphasizing that "the Iraqi government pursues balanced relations with countries in the region and the world and continues to pursue a policy of diplomatic openness to friendly and sisterly countries."
For his part, Ambassador Fagin reiterated "the United States' support for the Iraqi government's balanced policies in its domestic and foreign relations," appreciating "the efforts made in the return of displaced persons and their rehabilitation plans."
Fagin revealed that "an international conference will soon be held in New York to urge countries to withdraw their nationals from the Syrian al-Hawl camp and fully resolve this issue."
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