Government advisor: Great stability in the Iraqi market and inflation falling to less than 3%
Saleh told Al Furat News Agency, "This remarkable decline in annual inflation rates indicates that expectations related to the exchange rate are moving toward calm and stability."
He added, "The parallel currency exchange market has begun to clearly follow the official market, and this trend is expected to continue until the end of this year, based on current economic data."
This development, according to Saleh, reflects "an improvement in overall economic performance and the success of monetary and government policies aimed at regulating markets and achieving the desired economic stability."
Al-Sudani directs a review of the provisions of the banking reform document after receiving comments from the Iraqi Private Banks Association.
Prime Minister Mohammed Shia al-Sudani reviewed the latest developments related to the banking reform paper, particularly the provisions affecting private banks, in light of the comments and responses he received from various stakeholders.
Al-Sudani commended the efforts made by the Central Bank of Iraq in preparing the banking reform document, which aims to enhance financial stability, achieve transparency, and raise the efficiency of the banking sector. He affirmed the government's full support for all reform initiatives aimed at developing the country's financial and monetary infrastructure, in line with international best practices.
In the same context, the Prime Minister paid close attention to the comments of the Iraqi Private Banks Association, contained in its letter dated August 3, 2025, which addressed the objective challenges facing local banks in implementing some reform provisions, particularly those related to capital increase requirements, the adoption of strategic partners, the costs of contracting with foreign companies, and the timelines required for implementing reforms.
Driven by his commitment to achieving a realistic balance between reform requirements and the capabilities of local banks, the Prime Minister directed the adoption of a participatory and consultative approach between the Central Bank and Iraqi banks, through the formation of joint technical committees to review reform requirements and ensure their compatibility with the national financial and economic reality, while protecting the interests of local and international investors and those working in the sector.
In this context, Al-Sudani emphasized that the goal of reform is not exclusion but empowerment, calling for an expanded dialogue to clarify the technical aspects of the document and discuss implementation mechanisms in a gradual and thoughtful manner.
He also stressed the importance of taking into account the specificities of Iraq's reality when applying international standards, while emphasizing the need to formulate procedures in a way that enhances confidence in the banking sector and contributes to its development.
The Prime Minister concluded his remarks by emphasizing that the doors to discussion are open, and that the government continues to support all sincere efforts, both national and international, aimed at reforming the financial and banking system to serve the public good and the national economy.
Larijani reveals a security agreement between Iraq and Iran is in the works.
Ali Larijani, Secretary of Iran's Supreme National Security Council, announced on Monday that a security agreement between Iraq and Iran is being prepared and will be signed during his current visit to Iraq.
Larijani confirmed in statements reported by the Iranian News Agency (IRNA), and followed by Mawazine News, that "his first stop on the tour will be Iraq," indicating that "Iraq is a friendly and neighboring country with which we have close trade relations."
He continued, "Cooperation between the two peoples is at a very good level, a prominent example of which is the Arbaeen ceremonies," extending his thanks to "the Iraqi government for its great cooperation in facilitating the affairs of pilgrims during the Arbaeen occasion."
He added, "We have prepared a security agreement with Iraq, and this is very important, as Iran's vision and approach to dealing with neighbors is based on the principle that the security of Iranians is paramount, while also paying attention to the security of neighbors, unlike some countries that limit security to themselves and ignore or harm the peoples of other regions."
He continued, "During this visit, the agreement will be signed, and we will meet many friends in Iraq, from officials and various factions, and we will listen to their opinions and exchange discussions on areas of bilateral cooperation."
To release salaries for the Kurdistan Region, Iraq is waiting for oil, and oil is waiting for an agreement.
An economist reveals the reasons for not sending salaries to the
An economist has revealed the reasons why the federal government has not sent the sixth month salary to the Kurdistan Regional Government (KRG). "It will send 120 billion dinars for this month alone, whenever Baghdad sends the salaries of the Kurdistan Regional Government employees."
Dr. Nabil Marsoumi, an economist at Ma'aqal University in Basra province, told PUKMEDIA that the cabinet has not sent the sixth month salaries to the Kurdistan Regional Government (KRG). He did not mention the issue of salaries of Kurdistan employees and linked the issue of salaries to the implementation of the recent agreement between the central government and the Kurdistan Region, which the region to deliver 230,000 barrels of oil per day "Then the amount was reduced to 80,000 barrels per day and 120 billion dinars, which is equivalent to 50% of non-oil revenues."
"The Kurdistan Region has proposed to send 120 billion dinars for this month alone, but they will not pay this amount until Baghdad sends the salaries of the Kurdistan Regional Government employees, while Baghdad insists on it," he said The Kurdistan Regional Government (KRG) has said that it cannot send the June salaries until the Kurdistan Regional Government (KRG) hands over the local revenues "The KRG wants to pay all the taxes and customs duties and leave the issue of fees to the ministries to cover the internal expenditures of the Kurdistan Regional Government and the daily needs of the citizens."
In his speech, Dr. Nabil Marsoumi referred to the article of revenues and said: "Article 29 of the Financial Management Law in Iraq states: "The following revenues go to the account of the provinces or regions: 50% of the federal duties and taxes collected from centrally funded offices, the amounts collected from customs duties and taxes shall be excluded from this. Second, the province's share of the gateway revenues Border and petrodollars, third: local revenues, which are obtained according to local laws issued by the provincial council, fourth: revenues related to municipal offices.
The Prime Minister inaugurates the Bismayah Gas Investment Plant.
Prime Minister Mohammed Shia al-Sudani inaugurated this morning, Monday, August 11, 2025, the additional expansion unit of the Bismayah Gas Investment Plant.
The Prime Minister's Media Office noted that the expansion unit will add 300 megawatts to the station's output, bringing its total capacity to 5,000 megawatts.
Bismayah Power Plant is located east of the capital, Baghdad, and operates on a combined cycle system. The plant consists of three stages, each stage consisting of six generating units, four of which are gas-fired and two steam-fired, which brings the total number of production units to 18 units (12 gas-fired units and 6 steam-fired units) with a total capacity of 4,500 megawatts
Al-Alaq: 80% of the currency is outside banks.
The Governor of the Central Bank, Dr. Ali Al-Alaq, stressed that the Banking Reform Document (2025) represents a strategic step to enhance confidence in the Iraqi banking system and address shortcomings. He pointed out that approximately (80%) of the Iraqi currency is stored outside banks in homes due to weak confidence in the banking system. In a statement to "Al-Sabah", Al-Alaq explained that the reform document aims to modernize banks according to international standards and attract global partnerships. He also revealed that only (10%) of banks expressed reservations about the plan, while there are (10) banks under liquidation due to their inability to return customer deposits.
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Iraqis are sleeping in their cars tonight.. Hear the testimonies of the people of Basra.
Long queues at gas stations
Basra residents have once again resorted to sleeping in their personal cars to escape the soaring temperatures, which coincided with the sudden collapse of the national electricity system, while others have taken refuge in the city's hotels until supplies return to normal. Fuel stations are witnessing a huge rush, with queues of cars extending hundreds of meters outside, despite the fact that thousands of the city's residents have left to perform the Arbaeen pilgrimage. Meanwhile, technical and engineering teams are struggling to gradually restore electricity, amid a high alert since noon today at control and distribution centers in the center and south of the country.
Ali Imad, a gas station employee:
The congestion at gas stations is due to power outages, forcing citizens to sleep in their cars and use the air conditioning.
Jamal Sami - Citizen:
It's the peak season and the streets are almost empty, but I was surprised by the crowding at gas stations, as people were forced to sleep in their cars due to the power outage and the high temperatures.
Wathiq Hamid - Citizen:
It's very hot and we're living without electricity now, so we have no choice but to resort to the car's air conditioning. My family and I are here now to fill up on gas and we will go for a tour of the city for an hour or two and then I will go to the hotel to sleep there, until the electricity is restored.
Ali Al-Tamimi - Citizen:
There is no gasoline shortage, but there is heavy congestion at gas stations as many citizens have taken refuge in their cars to escape the heat and power outages.
Sadiqun: Washington is using the oil sector as a political tool to blackmail Iraq
On Monday, Rafiq al-Salihi, a member of parliament for the Sadiqoun bloc, accused the United States of transforming its influence in the Iraqi oil sector from an economic tool to a means of political pressure on the government.
Al-Salihi told Al-Maalouma, “American influence in the oil sector is no longer limited to the economic aspect, but is now being exploited to impose dictates and advance agendas that serve Washington’s interests at the expense of Iraq’s national autonomy.”
He added, "This policy represents direct interference in internal affairs and requires an official stance that limits this influence and protects national decision-making."
Foreign influence in Iraq's oil sector remains a persistent challenge to national autonomy and efficient state administration.
Karmal partners with ZagTrader for Electronic Trading in Iraq
Karmal Brokerage has secured approval from the Iraq Stock Exchange (ISX) to launch a comprehensive digital transformation project in preparation for operations on the "Tabadul" electronic trading platform.
According to a press release, the initiative, the first of its kind in Iraq's financial market, supports the government's vision to enhance transparency and modernise trading infrastructure in line with international best practices.
Karmal will deploy the global ZagTrader platform to manage its front, middle, and back-office operations, integrate AI technologies, and implement anti-money-laundering (AML) and E-KYC procedures. The system will provide a secure, efficient, and fully integrated trading environment.
CEO Waseem Al-Jazrawi said the project will boost investor confidence and strengthen Iraq's financial market both regionally and internationally, praising the support from the Iraq Stock Exchange Board of Governors and the Iraqi Securities Commission (ISC).
Iraq's Central Bank to Streamline Cash Withdrawal and Deposit
The Central Bank of Iraq (CBI) has launched the second edition of its Security Permits Platform, aimed at enhancing the management and organisation of security clearances for authorised bank personnel and their vehicles during cash withdrawal and deposit operations.
The CBI's Security Permits Office held an interactive workshop outlining the platform's features, account registration procedures for institutions and individuals, and measures to ensure technical security and alignment with the operational needs of Iraq's financial institutions.
The platform provides over 80 data points for each user, supporting improved security procedures and strengthening the digital infrastructure of Iraq's banking sector.
Iraq and its economic role
Iraq possesses significant economic potential that qualifies it to play a pivotal role in the region's economy. However, this role has been fluctuating and declining over the past decades due to wars, corruption, and mismanagement. Today, with regional and international transformations, attention is turning to Iraq as a potential economic player, capable of exerting influence not only through its geographic influence, but also through its wealth, human capital, and unique strategic location linking the Arabian Gulf, the Levant, Turkey, and Iran.
Natural resources are the foundation of this economic role, as Iraq ranks fifth in the world in terms of proven oil reserves. Its oil exports are the primary source of national income, and Iraqi oil constitutes a fundamental element of regional energy security. Several neighboring countries, such as Jordan and Turkey, rely on Iraqi oil, whether through pipelines or direct exports. However, the Iraqi economy suffers from "rentierism," as it relies almost entirely on oil revenues, making it vulnerable to fluctuations in global market prices and limiting its ability to exert economic influence beyond this framework. Despite Iraq's vast mineral, agricultural, water, and population resources, weak investment and rampant corruption have prevented these resources from being transformed into economic strengths.
Iraq's geographical location represents a major gateway for trade and transit, and 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 hub 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 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 weakens Iraq's ability to impose its economic priorities or create a sustainable cooperative environment.
For Iraq to become a leader and an effective regional economic player, fundamental transformations are necessary in the country's economic and administrative structure, beginning 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 strategic location. However, activating these elements and transforming them into tools of regional economic influence requires a comprehensive renaissance in thinking, policies, and management. A stable, open Iraq with an economy free from corruption can be a major economic player in the region, not merely an arena for conflict or a marketplace for others.
The reform document is a strategic step to enhance confidence in the banking system.
The Governor of the Central Bank, Dr. Ali Al-Alaq, emphasized that the 2025 Banking Reform Document represents a strategic and fundamental step toward reforming the Iraqi banking system, addressing its shortcomings, and preparing it to operate in accordance with internationally recognized standards. This will enhance the confidence of correspondent banks and global financial institutions and protect it from the risks of international sanctions.
This came in a statement to Al-Sabah during a session attended by the Baghdad Council for Digital Transformation and Electronic Payments and a number of relevant figures. Al-Alaq explained that the document can be described as a "mirror" of the banking system's reality, clearly revealing its strengths and weaknesses and laying out a practical path to address them, particularly for banks currently moving towards adopting international standards. This, he explained, sends a positive message to the global banking system.
Al-Alaq pointed out that the Central Bank is currently developing a larger technology plan extending through 2028. This plan will contribute to advancing the banking sector and enhancing its capabilities, enabling it to offer banking products and services that meet international standards.
International partnerships
The Central Bank Governor explained that building a robust national banking system requires genuine partnerships with major international banks, whose assets amount to between $300 and $400 billion. These institutions only deal with banks that adhere to strict international standards and do not expose themselves to the risk of dealing with banks that do not meet approved conditions. He explained that the 2025 Banking Reform Document addresses a major flaw facing the banking system and aims to build an integrated banking system that strictly implements laws and regulations, ensuring the safety and stability of banking operations and protecting the national economy from any negative repercussions of sanctions or disruptions to international transactions.
Global partners
Al-Alaq pointed out that the Central Bank selected the prestigious international company Oliver & Aiman to implement the reform project, citing its successful experience in several countries, including the United Arab Emirates. He explained that the company began operating in Iraq over a year ago, collecting detailed data and information on the operations of banks with the aim of charting a reform path consistent with local laws and the Iraqi banking environment, and one that is practically applicable.
He added that Oliver Wyman will work to return the sanctioned banks to normal operations after correcting their course and complying with the document's requirements, thus restoring the confidence of their international partners.
Limited reservations
The Central Bank Governor revealed that the percentage of banks that expressed reservations about the document did not exceed 10 percent of the total number of operating banks, stressing that any comprehensive reform plan will inevitably face some objections, especially from banks experiencing structural or operational problems. He emphasized the importance of banks having specialized banking media that reflects their activities and stages of development, and highlights the advanced systems and services they adopt, which will contribute to improving their image in the eyes of the public and international investors.
Strategic Partner
Regarding the strategic partner, Al-Alaq explained that the Central Bank had discussed with Oliver Wyman since the first meeting the mechanisms for foreign investor entry, noting that this issue was one of the most difficult and took a long time to discuss.
He revealed an alternative option, which is to establish an Iraqi fund to attract local capital, through which shares can be purchased and banks supported, which could reduce the need for a foreign partner in some cases.
Flexibility and strict procedures
Al-Alaq emphasized that the reform plan is flexible, as some criteria can be eased if the bank demonstrates serious commitment. He cited the case of one bank that was able to bring in a partner with a 40 percent stake, which gave it greater flexibility in adhering to some other provisions. However, he warned that the presence of 10 banks currently under liquidation is a dangerous indicator, especially when some banks are unable to return customer deposits, considering that this phenomenon sends negative messages to the national economy.
Lost trust
The Central Bank Governor pointed out that approximately 80 percent of the issued currency remains outside the banking system, stored in homes, due to weak confidence in banks. This was one of the main motivations for adopting a comprehensive reform plan. He stressed that banks are obligated to raise their capital to 400 billion dinars within the specified periods. He explained that the Central Bank will conduct periodic assessments of each bank's compliance with the document, and that operating within a local framework does not exempt them from adhering to global capital standards.
Project Finance and Financial Transfer
Al-Alaq explained that the Central Bank has financed housing projects worth 12.3 trillion dinars to serve the community, noting that international institutions have commended Iraq's unique dollar transfer mechanisms, which have contributed to enhancing transparency and stability in financial transactions.
He added that the bank held individual meetings with each bank to present the details of the document and discuss future directions, with the aim of ensuring the entire banking sector is aligned with the reform plan.
Expected international support
Al-Alaq concluded his statement by emphasizing that the 2025 Banking Reform Document represents a path to enhancing confidence in the Iraqi banking system. He noted that several international correspondent banks have expressed their support for this plan, and that the next phase will witness the launch of productive technical development projects that will enhance the capabilities of Iraqi banks and qualify them to compete internationally.
Iran and Iraq discuss holding a mini-international meeting next month.
A statement by the Ministry of Foreign Affairs, a copy of which was received by {Euphrates News}, stated that “during the meeting, bilateral relations between the two countries were discussed, as well as the railway project linking Shalamcheh to Basra, and the challenges facing its completion, including the removal of mines and other obstacles, with an agreement to follow up on the issue by the concerned parties on both sides to find the necessary solutions.”
The two sides discussed "the idea of extending the strategic line from the Khosravi region on the Iranian side to Khanaqin and Baghdad, and the importance of beginning to study the project given its impact on strengthening economic relations and stimulating religious tourism, in addition to the possibility of linking this line to the development road project in the future."
He continued, "The meeting also addressed regional and security developments, including the situation in Gaza and the danger of the Israeli occupation of the Strip and its attempts to deport its residents to Egyptian territory. The meeting also discussed the occupation's threats to annex the West Bank and their repercussions for the Arab region, the threats directed at the Islamic Republic of Iran and the seriousness of the situation, as well as the ongoing changes in Syria and their impact on regional stability."
The statement added, "The importance of building joint mechanisms for security work at the regional level was also emphasized, and the UN Secretary-General's initiative on regional security was discussed, in addition to proposing the idea of holding a meeting in the (6+2) format, which includes the six Gulf Cooperation Council countries, in addition to Iraq and the Islamic Republic of Iran, on the sidelines of the UN General Assembly meetings {next month}, while addressing the latest developments on the international scene."
At the conclusion of the meeting, Larijani expressed his gratitude to the foreign minister for his efforts and stances during the Israeli entity's war on Iran, appreciating Iraq's policy of balance in its international relations.
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