Central Bank: Foreign transfers are proceeding smoothly and seamlessly.
Central Bank Governor Ali Al-Alaq confirmed on Wednesday that nearly all major currencies are covered, noting that the central bank is conducting foreign exchange transactions in all currencies smoothly and with high fluidity.
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Al-Alaq said in a statement to the official agency, followed by ( IQ ): “The foreign transfer process has witnessed significant development during the last two years, whether in terms of style, method, and organization, or through direct communication and direct transfer between Iraqi banks and approved correspondent banks.”
He added, "This expansion is not only in the number of correspondent or transfer banks, but also in the number of currencies," noting that "the Central Bank covers almost all the currencies used by Iraq for large-scale trade."
He stressed that "the Central Bank is currently conducting transfers in almost all major currencies, and they are proceeding smoothly and with high fluidity.
Al-Sudani directs the formation of a national team to enhance Iraq's credit rating and support investments.
Prime Minister Mohammed Shia al-Sudani directed on Wednesday the formation of a national team to strengthen Iraq's credit rating and support investments.
Al-Sudani's media office stated in a statement received by the Iraq Observer that, "In line with the government's efforts to strengthen Iraq's financial and economic standing internationally, Prime Minister Mohammed Shia al-Sudani has directed the formation of a joint national team, headed by the Governor of the Central Bank of Iraq, and including representatives from the Ministries of Finance, Oil, and Planning, as well as relevant economic and financial institutions, in addition to the Prime Minister's Office, the Securities Commission, and representatives from the Iraqi banking sector."
He explained, "This national team will work to develop an integrated strategy that includes clear and measurable objectives, submit periodic reports to the relevant authorities, and coordinate directly with major international credit rating agencies, particularly Fitch, S&P, and Moody's, with the aim of improving Iraq's sovereign credit rating. The team will also pay special attention to strengthening governance tools, managing financial risks, and developing the business environment in line with the government's economic reform plans."
This directive comes within the framework of the government's vision to adopt a comprehensive national strategy aimed at improving Iraq's sovereign credit rating, thus contributing to strengthening international confidence in the national economy and opening up broader horizons for direct and indirect foreign investment. The government affirms that this step represents a clear commitment to its reform approach and its commitment to achieving economic stability, supporting the stability of the financial system, and providing an attractive investment environment that contributes to diversifying sources of income and reducing dependence on oil as the sole primary resource.
The government is responsible for improving the classification of Iraq's sovereignty
Prime Minister Mohammed Shia Al-Sudani, on Wednesday (August 20, 2025), in the form of a joint national brigade, to improve the classification Iraq's sovereign trust, which plays a role in enhancing international confidence in the national economy, and opening up vast horizons for foreign investment
The Cabinet said in a statement that it “agrees with the objectives of the Ramiya government to enhance Iraq's financial and economic position on the international stage, the Sudanese side in the form of a national delegation Jointly, towards the Governor of the Central Bank of Iraq, and two branches of the Ministries (Finance, Oil, Planning) and Economic and Financial Institutions, to the President's Office
The ministry presented the financial documents, which resembled the Iraqi currency,” he added It combines clear and measurable goals, with raising distance plans to specialist areas, and direct coordination with major global trust classification agencies, including Fitch, S&P, Moody’s) Aims to improve Iraq’s sovereign credit rating, as the Seoul team pays special attention to strengthening government efforts, financial risk management, and environmental development Our actions are in line with the government's economic reform plan,” the statement said
The comprehensive national strategy aims to improve the classification of Iraq's sovereignty, which will contribute to enhancing international confidence in the national economy, and opening up vast opportunities Foreign investment, direct and indirect,” the government said in a statement, adding that this letter represents a clear commitment to the reform policy and its protection Achieving economic stability, supporting the stability of the financial system, and creating an attractive investment environment to participate in diversifying revenue sources and reducing reliance on oil Wahid”.
Kurdistan Regional Government delegation reaches understandings with the federal Minister of Finance in Baghdad.
A delegation from the Kurdistan Regional Government (KRG) held a meeting with Iraqi Federal Finance Minister Taif Sami on Wednesday, August 20, 2025, during which a series of understandings were reached on a number of issues. A new round of talks between the two sides will resume next week, Kurdistan 24's correspondent in Baghdad, Dilan Barzan, reported.
According to the correspondent, the two parties agreed to review the Kurdistan Region's non-oil revenues for the period extending from July to December of this year, in accordance with the federal revenue classification in the region.
Regarding border revenues, an agreement was reached to transfer half of the Kurdistan Region's imports to Baghdad. The agreement does not yet include taxes and customs duties.
Regarding the localization of salaries for Kurdistan Region employees, Barzan indicated that the two sides agreed to complete the process before the end of this year.
The meeting also addressed the resumption of Kurdistan Region oil exports. The correspondent reported, citing sources, that the Kurdistan Regional Government's Ministry of Natural Resources and the federal Ministry of Oil had reached an understanding on the matter. However, three oil companies operating in Kurdistan have so far refused to participate in the process, prompting the Finance Minister to request the regional delegation to pressure those companies to begin resuming exports.
The discussion also included the Kurdistan Region's share of the federal budget law for 2023, 2024, and 2025, with the Kurdistan delegation calling for a legal solution to address this issue within constitutional frameworks.
Regarding employee salaries, a Kurdistan 24 correspondent reported that the federal Ministry of Finance will likely begin disbursing June salaries early next week, after the Iraqi Council of Ministers approved the payment.
The meeting concluded at 2:00 PM on Wednesday in Baghdad.
"Our meeting was good," Faris Issa, the Kurdistan Regional Government's representative in the capital and a member of the participating delegation, told a Kurdistan 24 correspondent.
Kurdistan Regional Government: 120 billion dinars in non-oil revenues are ready to be delivered to Baghdad.
Kurdistan Regional Government (KRG) spokesperson Peshwa Hawrami confirmed on Wednesday that the agreed-upon amount for non-oil revenues is ready for delivery to the federal government in Baghdad.
"A crucial meeting is currently underway between a delegation from the Kurdistan Regional Government and the federal government in Baghdad, and there is a serious discussion about non-oil financial revenues," Hawrami said at a press conference during his visit to Halabja province following the fire.
He added, "We have 120 billion dinars ready for delivery."
Al-Sudani directs the formation of a national team to enhance Iraq's credit rating and support investments.
Prime Minister Mohammed Shia al-Sudani directed on Wednesday the formation of a national team to strengthen Iraq's credit rating and support investments.
Al-Sudani's media office stated in a statement received by the Iraq Observer that, "In line with the government's efforts to strengthen Iraq's financial and economic standing internationally, Prime Minister Mohammed Shia al-Sudani has directed the formation of a joint national team, headed by the Governor of the Central Bank of Iraq, and including representatives from the Ministries of Finance, Oil, and Planning, as well as relevant economic and financial institutions, in addition to the Prime Minister's Office, the Securities Commission, and representatives from the Iraqi banking sector."
He explained, "This national team will work to develop an integrated strategy that includes clear and measurable objectives, submit periodic reports to the relevant authorities, and coordinate directly with major international credit rating agencies, particularly Fitch, S&P, and Moody's, with the aim of improving Iraq's sovereign credit rating. The team will also pay special attention to strengthening governance tools, managing financial risks, and developing the business environment in line with the government's economic reform plans."
This directive comes within the framework of the government's vision to adopt a comprehensive national strategy aimed at improving Iraq's sovereign credit rating, thus contributing to strengthening international confidence in the national economy and opening up broader horizons for direct and indirect foreign investment. The government affirms that this step represents a clear commitment to its reform approach and its commitment to achieving economic stability, supporting the stability of the financial system, and providing an attractive investment environment that contributes to diversifying sources of income and reducing dependence on oil as the sole primary resource.
The government is responsible for improving the classification of Iraq's sovereignty
Prime Minister Mohammed Shia Al-Sudani, on Wednesday (August 20, 2025), in the form of a joint national brigade, to improve the classification Iraq's sovereign trust, which plays a role in enhancing international confidence in the national economy, and opening up vast horizons for foreign investment
The Cabinet said in a statement that it “agrees with the objectives of the Ramiya government to enhance Iraq's financial and economic position on the international stage, the Sudanese side in the form of a national delegation Jointly, towards the Governor of the Central Bank of Iraq, and two branches of the Ministries (Finance, Oil, Planning) and Economic and Financial Institutions, to the President's Office
The ministry presented the financial documents, which resembled the Iraqi currency,” he added It combines clear and measurable goals, with raising distance plans to specialist areas, and direct coordination with major global trust classification agencies, including Fitch, S&P, Moody’s) Aims to improve Iraq’s sovereign credit rating, as the Seoul team pays special attention to strengthening government efforts, financial risk management, and environmental development Our actions are in line with the government's economic reform plan,” the statement said
The comprehensive national strategy aims to improve the classification of Iraq's sovereignty, which will contribute to enhancing international confidence in the national economy, and opening up vast opportunities Foreign investment, direct and indirect,” the government said in a statement, adding that this letter represents a clear commitment to the reform policy and its protection Achieving economic stability, supporting the stability of the financial system, and creating an attractive investment environment to participate in diversifying revenue sources and reducing reliance on oil Wahid”.
The dollar is rising again. US pressure and a market gap threaten exchange rate stability.
After months of relative stability, the dollar exchange rate has resumed its rise in Iraqi markets, raising concerns among the public and traders alike. Observers believe this fluctuation reflects the fragility of monetary policy in the face of external and domestic pressures, and confirms that the previous stability was not based on structural solutions but rather a temporary respite in the course of an ongoing crisis.
Economic expert Nasser Al-Tamimi revealed in an interview with Baghdad Today that "the rise in the exchange rate is linked to several intertwined factors, most notably the continued pressure on foreign remittances and the tightening of US measures on dollar sales, which reduces the actual supply in the local market." He added that "the weak balance between supply and demand and the increased demand for hard currency by traders to cover imports contributed to the renewed price hike."
Economists assert that the external factor, represented by US oversight, is no longer circumstantial but has become part of the daily market equation. The more restrictions on remittances are tightened, the less supply there is, and with it the dollar rises again, making market stability dependent on factors beyond national control.
Al-Tamimi pointed out that "one of the most significant factors affecting the exchange rate is the widening gap between the official rate set by the Central Bank and the parallel rate in the market, due to the slow flow of dollars to traders through the official platform." He explained that this "pushes them to resort to the secondary market, which directly impacts the average citizen."
According to financial observers, this gap reflects a crisis of confidence in the banking system. When the central bank fails to smoothly deliver dollars to importers, the parallel market becomes the first resort. As the gap between the official and parallel markets widens, monetary policy's ability to regulate the market diminishes, leaving it hostage to daily speculation.
The current crisis is not the first. Since the beginning of 2023, Iraq has faced repeated disruptions in the foreign exchange market due to US measures related to financial transfers and the control of smuggling outlets. Restrictions were imposed on banks and companies on charges of financing illicit activities. Although the Central Bank succeeded in lowering the exchange rate during certain periods by injecting dollars and restricting the market, stability remained fragile, collapsing with every external political or economic pressure.
Economists explain that these precedents demonstrate that the crisis is not a sudden occurrence, but rather part of a long-term process that makes any immediate solution vulnerable to relapse. Without structural reform of the banking system and restructuring of transfer mechanisms, each wave of stability will remain a mere pause before a new surge.
Al-Tamimi stressed that "addressing this crisis requires more flexible measures in the dollar sales mechanism, genuine support for the banking sector to overcome bureaucracy in transfers, and strengthening confidence in monetary policy to reduce speculation."
According to monetary experts, the solution lies not only in injecting dollars, but also in reforming the domestic financial and banking environment and building public confidence in monetary policy. Until this is achieved, the exchange rate will remain a reflection of an unbalanced equation, with Iraq, exhausted by its internal crises, on the one hand, and US pressure, which holds the key to the dollar, on the other.
Caught between the grip of the law and the lure of quick profits, a Sudanese advisor explains the dollar's resurgence.
The Prime Minister's financial advisor, Mazhar Muhammad Salih, explained on Wednesday (August 20, 2025) that the return of the dollar's exchange rate to high levels in local markets is due to the activity of speculators and cross-border traders who balance the risks of compliance with laws and the cost of official procedures with the speed of parallel financing and the ease of generating profits.
In an interview with Baghdad Today, Saleh said, "Small commercial activity, which constitutes more than half of Iraq's foreign trade volume, tends toward the parallel market whenever the cost of banking and customs compliance increases, while the cost of informal financing decreases." He pointed out that this behavior directly impacts the exchange rate.
He added, "Despite the regular availability of dollars through the formal banking system, some traders prefer parallel financing due to the trade-off between rapid profitability and legal risks, particularly in small-scale cross-border trade." He noted that the solution lies in "strengthening regulatory oversight, tightening anti-money laundering enforcement, and activating customs tracking systems and digital monitoring of imported goods."
Saleh continued, "Strict and extensive control of border crossings over unofficial imports will contribute to stabilizing the parallel market and decreasing the value of the dollar against the dinar."
Last year, the Central Bank of Iraq launched a reform package that included an electronic platform for remittances and the implementation of advanced customs and banking audit systems. However, small traders and speculators are turning to the parallel market because of the ease and speed of financing compared to official procedures.
Economists believe that exchange rate stability requires implementing strict control systems at border crossings, curbing smuggling and parallel trade, and achieving a balance between supply and demand for foreign currency within the country.
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Iran condemns Washington's threat to use force against Venezuela
Erbil and Washington agree not to involve salaries in political disputes.
President Barzani received the US Chargé d'Affaires in Iraq.
Kurdish leader Masoud Barzani received the US Chargé d'Affaires in Iraq, Stephen Fagin, on Wednesday at the Salah al-Din resort near Erbil.
During the meeting, which was also attended by Wendy Green, US Consul General in Erbil, views were exchanged on the latest events and developments in the region, relations between Erbil and Baghdad, the resumption of oil exports, and support for US oil companies that have signed agreements with the Kurdistan Regional Government in accordance with the constitution and the law.
The need to address the issues of salaries and financial dues for the region was also emphasized, and opinions agreed that citizens' salaries should not be dragged into the throes of political disputes and conflicts.
In a related context, the meeting emphasized strengthening bilateral relations between the Kurdistan Region and the United States. Other topics discussed included the upcoming Iraqi parliamentary elections, the situation in Syria, progress in the reform process within the Peshmerga Ministry, and the continued positive steps toward forming the new government in the Kurdistan Region.
The reasons for the appreciation of the dollar
link from Kurdish news
The exchange rate of the US dollar against the Iraqi dinar has increased, a spokesman for the currency market in Sulaimani said.
Jabar Goran, spokesman of the Sulaimani currency market, told the official website of the Kurdistan National Union: It was the result of a series of corruption and improper trade between Iraqi banks and some businessmen, who sent more money abroad in various ways and then imported the money back into Iraq and sold it in the market The Iraqi dinar had depreciated in the market.
"Another reason for the appreciation of the dollar against the Iraqi dinar is that Iraq buys gas from Iran in dinars, and Iran exchanges the Iraqi dinar for dollars inside Iraq," he said The supply of the dinar will increase and the demand for the dollar will increase in the market.
Meanwhile, a spokesman for the dollar market said banks that have previously conducted such transactions may be punished and some of them have been taken legal action against them, which is another reason for the appreciation of the dollar and the depreciation of the dinar.
The exchange rate of the US dollar against the Iraqi Dinar was 140,500/100 US Dollars in the Kurdistan Region of Iraq on Wednesday, August 20, 2025. The exchange rate of the US dollar against the Iraqi Dinar was 142,100/100 US Dollars be.
Baghdad Governor: The government has not submitted the 2025 budget to parliament due to the deficit.
Al-Atwani explained that the objection to the previous governor's performance was not due to age, but rather to his performance.
He indicated that he would not leave his position as governor even if he won the upcoming parliamentary elections.
Regarding the budget, the governor revealed that the government has not yet submitted the 2025 budget to parliament, citing a financial deficit.
More than 120 laws face an unknown fate, and Parliament is considering deportation.
A source in the Speaker of Parliament's office revealed on Wednesday that the parliament's presidency intends to hold a meeting soon to decide which draft laws will be included on the agenda. If the sessions are not held, they will be postponed to the next session, as the current parliamentary term ends next September.
The source said, "The Speaker of Parliament and his two deputies will hold a meeting in the next few days to discuss the laws that will be included on the agenda of the upcoming sessions."
He added, "There are more than 120 laws, some of which are important and need to be voted on, including the Popular Mobilization Forces law." He indicated that "if Parliament is unable to hold its sessions next week, all laws will be postponed to the next parliamentary session."
He stressed that "the fifth parliamentary session of Parliament will officially end at the end of next September."
The Iraqi economy... wasted potential and promising opportunities
Iraq possesses significant economic potential that qualifies it to play a pivotal role in the region's economy. However, this role has remained volatile and declining over the past decades due to wars, corruption, mismanagement, and foreign interventions. Today, with regional and international transformations, attention is turning to Iraq as a potential economic player, possessing the ability to influence not only through its geographical influence, but also through its wealth, human potential, and unique strategic location linking the Arabian Gulf, the Levant, Turkey, and Iran.
Natural resources are the cornerstone of Iraq's economic role. Iraq ranks fifth in the world in proven oil reserves, and its oil exports are the primary source of national income. Iraqi oil constitutes a key component of regional energy security, as several neighboring countries, such as Jordan and Turkey, rely on Iraqi oil, whether via pipelines or direct exports. However, the Iraqi economy suffers from "rentierism," as it relies almost entirely on oil revenues. This makes it vulnerable to fluctuations in global market prices and limits its ability to exert economic influence outside of this framework. Despite Iraq's significant mineral, agricultural, water, and population resources, weak investment and widespread corruption have prevented these resources from being transformed into economic strengths.
Iraq's geographical location represents a major gateway for trade and transit. It is one of the most significant elements of its potential economic strength. It forms a natural corridor between the Gulf and the Levant, and possesses an important sea outlet to the Arabian Gulf via the port of Umm Qasr. It could also become a major node for regional land and rail trade routes, particularly in light of the "Development Road" project, which aims to connect the Grand Faw Port to Turkey and Europe via a modern transportation network.
If implemented, this project will provide a vital alternative to traditional trade routes and position Iraq strategically on the regional and international economic map. However, it still requires political stability, effective regional partnerships, and legal guarantees to attract investment and implement the required infrastructure.
On the economic front, Iraq seeks to strengthen cooperation with neighboring countries, particularly Saudi Arabia, Iran, Turkey, and Jordan, through electricity interconnection projects, trade exchange, and joint industrial zones. These initiatives are part of a drive to reduce reliance on the single market, diversify sources of income, and restore a balanced economic role. However, these relations are often affected by political conflicts and regional tensions, which weaken Iraq's ability to impose its economic priorities or create a sustainable cooperative environment. For example, some strategic projects are disrupted by the Iranian-American conflict in Iraq, or by internal disputes over the distribution of revenues and gains.
Iraq's expected role is to shift from dependency to leadership. In order to play an effective regional economic role, fundamental transformations are required in the country's economic and administrative structure, starting with institutional reform and combating corruption, moving on to modernizing infrastructure, and culminating in developing a clear strategic vision for the national economy, based on diversification and openness. Restoring regional and international confidence in Iraq as a safe investment environment requires political stability, an impartial judiciary, and flexible economic legislation, which can be achieved with serious political will.
Iraq is not a resource-poor or weakly influential country. Rather, it is rich in natural and human potential and a geographic location. However, leveraging these assets and transforming them into tools of regional economic influence requires a comprehensive renaissance in thinking, policies, and management. A stable, open, and economically prosperous Iraq, free from corruption, can become a major economic player in the region, not merely an arena for conflict or a marketplace for others.
Al-Sakini: Al-Sudani will not get a second term, even if he pleases America.
link
Ibrahim Al-Sakini, a member of the State of Law Coalition, ruled out on Wednesday that Al-Sudani would win a second term, even if he appeases the US and accepts the dictates that Washington is trying to impose.
Al-Sakini told Al-Maalouma, “The Iraqi people will have their say in the elections and will choose who will represent them in parliament and the new government, away from American pressure and dictates.”
He added, "The Iraqis will not allow the US and its other allies to interfere in the internal affairs or appoint rulers for the next term of the country, especially since the Iraqi people have not interfered in the affairs of other countries or imposed on them what must be done."
He explained that "the current Prime Minister, Mohammed Shia Al-Sudani, he appeases America or not, will never win a second term, as there is no satisfaction with Al-Sudani's performance, especially after he joined hands with Al-Julani, in addition to the corruption deals that emerged during his term, the wiretapping operations, and other issues that make him an undesirable person in power."
An economist predicts the next government will change the dollar exchange rate, and explains the reasons.
Economic expert Nabil Al-Marsoumi told Al Furat News Agency that "the salary bill accounts for the largest portion of oil revenues, leaving little for upgrading infrastructure or basic services."
Al-Marsoumi believes that devaluing the currency will provide greater financial revenues in dinars, which will help the government cover salary expenses.
He added that this option may be one of the necessary measures that the new government may take, especially in light of the current oil prices that threaten to close the country's economic development prospects.
Experts emphasize that sustainable solutions lie in diversifying sources of public revenue and not relying entirely on oil, in order to ensure the stability of the Iraqi economy in the long term.
An expert warns against adjusting the dollar exchange rate and outlines a solution to address the decline in oil prices.
Nouri stressed to Al Furat News Agency "the need to achieve harmony between the monetary policy managed by the Central Bank and the fiscal policy undertaken by the Ministry of Finance through the general budget."
The economic expert explained that raising the dollar exchange rate—i.e., devaluing the dinar—increases the amount of Iraqi dinars the Ministry of Finance receives from the Central Bank to cover budget expenditures. However, he warned that this measure leads to a decline in the purchasing power of citizens, especially those with limited income.
In contrast, Nouri explained that depreciating the dollar—i.e., increasing the purchasing power of the dinar—reduces the amount of dinars the Ministry of Finance receives, creating difficulties in implementing the general budget, particularly the operational portion. He pointed out that the decline in global oil prices further complicates this problem, as it impacts the state revenues needed to finance the budget.
The economic expert noted that many governments around the world are adopting austerity measures in public spending, particularly regarding unnecessary benefits, to ensure the sustainability of the general budget and meet only basic needs. Nouri concluded his statement by emphasizing that such measures are a necessary solution to support the budget in light of the current economic challenges.
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