US warning: The Federal Reserve is considering cutting off the dollar to Iraq!
Exclusive sources revealed to Al-Mustaqilla on Monday that the US Federal Reserve is studying imposing economic sanctions on Iraq, which could include cutting off the dollar from the country, if what it described as "the smuggling of hard currency to Iran" continues.
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Sources confirmed that US warnings were communicated to the Iraqi government and central bank some time ago, demanding an end to dollar smuggling. However, according to the sources, "the government has not yet taken any practical steps to comply with US directives, and smuggling has continued unabated."
Economic analysts view these developments as a direct blow to the government and the Central Bank of Iraq, warning that continued smuggling could lead to a major economic crisis, weaken the country's ability to secure basic needs in hard currency, and increase pressure on the dollar price in the local market.
The question now arises: Will the Iraqi government take urgent action before US threats turn into actual sanctions that cut off Iraq's dollar lifeline, or will the smuggling issue continue to fuel the country's economic crisis?
Iraq Advances WTO Accession with Completion of Key Files
The Ministry of Trade announced that Iraq has completed seven major files required for its accession to the World Trade Organization (WTO) and provided answers to 175 related questions. Spokesman Mohammed Hanoun said the process is moving steadily in coordination with national and international bodies, following the resumption of talks in 2024 and the submission of updated trade documents.
He noted that Iraq has finalized all technical requirements after more than 20 years of negotiations, with the current government achieving progress that surpasses previous efforts. The national team updated critical files, including the trade regime memorandum, legislative plan, agricultural support schedules, import licensing, customs valuation, sanitary and phytosanitary measures (SPS), and technical barriers to trade (TBT).
Hanoun added that Iraq has modernized its customs system to meet international standards, with the completed files to be formally submitted to the WTO Secretariat. He emphasized that this progress reflects strong government backing, coordination across ministries, and capacity-building efforts for negotiators through workshops and training programs.
Accession to the WTO, Hanoun stressed, is a strategic step to integrate Iraq into the global trading system, attract investment, and strengthen the competitiveness of national exports, with the government committed to expediting the process while safeguarding economic sovereignty.
Middle East: Washington will not allow the Kurdistan employees' salary crisis and the halt of oil exports through Ceyhan to continue.
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Asharq Al-Awsat newspaper reported direct US intervention in the crisis between Baghdad and Erbil over salaries and oil exports.
The newspaper reported that the mediators, political leaders popular in Baghdad and Erbil, contributed to resolving the crisis. This paved the way for the resumption of salary payments, particularly for May and June, with the hope that the remaining salaries will be disbursed, pending the regional government's payment of its outstanding debts to the central treasury.
She explained that, in accordance with the agreement between the central government and the region, the Kurdistan Region is committed to delivering an estimated 120 billion dinars in non-oil domestic revenues for the past two months of May and June, in addition to sending 230,000 barrels of oil per day to the capital, so that the federal government in Baghdad can send employee salaries to Erbil.
Two Kurdish delegations to go to Baghdad; Preparations are underway for a tripartite agreement
The text says The fate of the salaries in the coming months depends on these 2 meetings
Two Kurdish delegations are scheduled to
visit Baghdad this week to reach an agreement on oil, domestic revenue and salaries in the coming months. Preparations are underway for a tripartite agreement. The Kurdistan Regional Government
(KRG) has repeatedly expressed its readiness to export oil and resolve domestic revenue issues, but the demands of oil producing companies operating in Kurdistan are seen as the main obstacle to oil exports. A Kurdistan delegation will visit Baghdad on Tuesday to discuss the oil issue and meet with the Oil Ministry, a source in the Iraqi Council of Ministers told Ava
. If there are no problems with the talks, preparations are underway for a tripartite agreement between the Kurdistan Ministry of Natural Resources, the Iraqi Ministry of Oil and oil producing companies in the Kurdistan Region.
The other delegation is scheduled to meet in Baghdad at 9:30 am on Thursday.
Although Thursday is a holiday in Iraq and the Kurdistan Region on the occasion of the birthday of the Prophet (pbuh), but the delegation will still meet with Baghdad.
Additional information: Thursday's meeting is about non-oil revenues. This is the biggest hurdle in recent months and should be resolved this week.
Next step: If Erbil and Baghdad do not reach an agreement, then questions will be asked to the State Council, which was previously called the Shura Council.
The question is, what is the purpose and legal explanation of this article related to non-oil revenues?
Once the State Council responds and gives its legal explanation, both sides, the Kurdistan Region and Baghdad, must comply with that legal explanation.
According to the source of the Iraqi Council of Ministers, who told Ava, there is some ease of understanding on this issue between the Kurdistan Region and Baghdad and may not fall into questioning the State Council.
What you need to know: The fate of the salaries for the seventh, eighth and subsequent months depends on these two meetings. To avoid problems with paychecks in the coming months, these two cases will have to fall aside this week.
Kurdistan announces the start of distributing June salaries tomorrow, Tuesday.
Depositing the June salary funding for the region's employees...and here's the distribution schedule.
The Ministry of Finance and Economy of the Kurdistan Regional Government announced on Monday, September 1, 2025, that the Federal Ministry of Finance had deposited an amount of one trillion, seven billion, three hundred and twenty-five million dinars to finance the salaries of Kurdistan Region employees into the bank account of the Ministry of Finance and Economy.
Yesterday, Sunday, the Federal Ministry of Finance deposited 690 billion dinars into the Kurdistan Region's bank account.
All measures are aimed at paying the sixth month's salaries. Regarding the issue of oil exports, two delegations from the region are scheduled to visit Baghdad this week, one to discuss oil exports and the problems they face, and the other to discuss non-oil revenues.
According to the three-year budget and administrative finance law, the Kurdistan Region is required to send 50% of non-oil revenues to Baghdad.
Legislative postponement is on the horizon...more than 130 laws are postponed, awaiting a session to restore confidence.
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As the current parliamentary session draws to a close, Member of Parliament Ahmed Al-Sharmani revealed today, Monday (September 1, 2025), that a large number of draft laws have been postponed to the next parliamentary session, in what he describes as a "legislative failure that must not be repeated."
Al-Sharmani told Baghdad Today, "More than 130 draft laws were not passed during the current session and were postponed to the next parliament due to the lack of political consensus, mismanagement of legislative time, and the ongoing preoccupation with urgent crises."
He stressed that "this number of postponed laws reflects a clear flaw in the legislative authority's performance and raises significant questions about Parliament's effectiveness in fulfilling its constitutional mandate," noting that "the accumulation of unresolved issues weakens citizens' confidence in the political process and its elected institutions."
Al-Sharmani added, "Members of the new parliament and political blocs must move away from partisan conflicts and narrow political squabbling, and work to re-prioritize legislative work to serve citizens first, not factional interests."
The MP demanded that the next session include "a clear legislative plan that addresses pending laws during the first year of the new parliament's term, under the direct supervision of the incoming parliament presidency, ensuring a productive, not postponed, parliamentary session."
The phenomenon of deferred legislation is one of the most serious problems facing the Iraqi legislative establishment. During each parliamentary session, a large number of draft laws are left unresolved and are then deferred to the next session. This leads to a legislative backlog that renders parliament ineffective and obstructs the passage of vital laws that directly impact the lives of citizens.
Observers attribute this crisis to several chronic causes, most notably the intense political polarization within parliament, the absence of annual legislative planning, and the dominance of partisan and sectarian conflicts over parliamentary priorities. Furthermore, parliament's recurring preoccupation with urgent security, political, and economic crises relegates legislation to the back burner.
$40 billion in Iraqi bank sales in six months
The Central Bank of Iraq revealed on Monday its foreign currency sales, which amounted to more than $40 billion during the first half of this year.
According to the bank's latest statistics, "hard currency sales during the first six months of 2025 amounted to $40 billion and 904 million."
The statistics showed that sales were divided between external transfers amounting to $39.517 billion and cash sales amounting to $1.387 billion.
She pointed out that these sales during the first six months of the current year, amounting to $40 billion and 904 million, increased by 17% compared to the same period last year, which amounted to $34 billion and 735 million.
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The President of the Republic stresses the importance of strengthening diplomatic relations with countries around the world.
President of the Republic Abdul Latif Jamal Rashid stressed the importance of strengthening diplomatic relations with countries of the world.
The presidency said in a statement, "President of the Republic Abdul Latif Jamal Rashid received today, Monday, in Baghdad, Deputy Prime Minister and Minister of Foreign Affairs Fuad Hussein.
The statement added, "During the meeting, the political and security situation in the country were reviewed.
The President stressed the importance of strengthening diplomatic relations with countries of the world in a way that serves the supreme interests of Iraq and supports paths of joint cooperation to enhance regional and global security and stability.
Rashid pointed out "the positive pivotal role that Iraq is undertaking in reducing tensions and consolidating the foundations of peace, understanding and dialogue towards international issues.
The statement explained that the meeting discussed the developments witnessed by the region and their repercussions on the Iraqi arena.
Iran: Ready to reduce uranium enrichment after reaching a comprehensive agreement
Iranian Foreign Ministry spokesman Esmail Baghaei said on Monday (September 1, 2025) that his country is prepared to reduce the level of uranium enrichment to 3.67%, provided a comprehensive agreement is reached that preserves Iran's right to domestic enrichment.
In a press interview translated by Baghdad Today, Baqaei stated that "the government cannot prevent parliament from voting on a draft law to withdraw from the Nuclear Non-Proliferation Treaty (NPT)," noting that "this draft law enjoys broad support within the Shura Council and is expected to be approved quickly."
Baghaei stressed that "withdrawing from the treaty practically means losing all UN rights to monitor Iran's nuclear program."
In a related context, Iranian President Masoud Pezeshkian, in his speech at the Shanghai Cooperation Organization summit, emphasized that the Islamic Republic has always been prepared to resolve issues related to its nuclear program through diplomatic means, describing the US and Israeli resort to the military option as a "disastrous failure."
Pezeshkian warned that activating the "trigger mechanism" would only escalate tensions in the region, stressing that Tehran would continue to uphold its legitimate rights under international agreements.
Netherlands Pledges Stronger Economic Ties with Kurdistan Region, Announces Upcoming Trade Delegation
PM Barzani and the Dutch Chargé d'affaires discussed strengthening ties, with the Netherlands announcing a trade delegation to boost economic relations. The meeting highlighted a successful decade-long partnership, particularly in agriculture.
In a meeting affirming the robust and expanding partnership between Erbil and Amsterdam, the government of the Netherlands has signaled its intent to further deepen economic and trade relations with the Kurdistan Region, announcing that a Dutch trade delegation is scheduled to visit in the near future. The commitment was made during a high-level discussion in Erbil on Monday, where Kurdistan Region Prime Minister Masrour Barzani met with Christoph Prommersberger, the Chargé d'affaires of the Embassy of the Kingdom of the Netherlands, to review bilateral ties and the latest regional developments.
The meeting on September 1, 2025, which was also attended by the Dutch Consul General in the Kurdistan Region, Adriaan IJsselstein, served as a platform to underscore the mutual benefits of the long-standing cooperation.
Prime Minister Barzani took the opportunity to formally thank the Netherlands for its crucial and ongoing support for the Kurdistan Regional Government's (KRG) reform agenda, particularly its contributions to the strategic goal of economic diversification.
The Prime Minister specifically highlighted Dutch support for Kurdistan's agricultural sector, an area that has become a flagship example of successful international collaboration.
In response, Chargé d'affaires Prommersberger praised the Kurdistan Region’s significant progress and development. He commended the region's well-established culture of peaceful coexistence among its diverse communities and lauded its role in providing sanctuary for a large number of displaced persons and refugees from across Iraq and neighboring countries.
Reaffirming his country's commitment, the Dutch diplomat expressed a readiness to further advance relations with the Kurdistan Region on multiple fronts. The forthcoming visit of a specialized trade delegation was presented as a concrete step in this direction, aimed specifically at developing and expanding trade and economic relations.
The discussions also encompassed the pressing political landscape, with both sides exchanging views on the efforts to form the new government cabinet in the Kurdistan Region.
They also addressed the critical importance of resolving the outstanding issues between the Kurdistan Region and the federal government in Baghdad, focusing on the need to secure the constitutional rights and financial entitlements of the people of Kurdistan.
The Prime Minister's expression of gratitude for Dutch support in agriculture is rooted in a highly successful, decade-long partnership that has produced tangible and transformative results, as previously reported by Kurdistan24.
This cooperation has been instrumental in revitalizing a key sector of the Kurdish economy and stands as a model for the KRG’s broader diversification strategy.
The most striking example of this success is in potato production. In a July 2025 interview with Kurdistan24, Dutch Consul General Adriaan IJsselstein detailed the dramatic outcomes of this joint effort. “This cooperation has been ongoing for over a decade, and we've seen strong results, going from a production of around 2,000 tons a year to over 600,000 tons now,” he stated during the unveiling of a new locally produced potato variety in Erbil.
This remarkable increase is the result of a comprehensive approach, with Dutch expertise and investment supporting the entire agricultural value chain—from providing high-quality seed potatoes to implementing modern harvesting and processing techniques.
According to the Consul General, this partnership has not only boosted production figures but has also had a profound socio-economic impact. “This project is important for the farming sector in the Kurdistan Region because it creates thousands of jobs. It contributes not only to employment, but also to food security and the potential to export to other parts of Iraq and the wider region,” IJsselstein explained to Kurdistan24.
He described the relationship as a “win-win situation,” where Dutch companies gain access to a growing market while the Kurdistan Region benefits from world-class agricultural expertise. The success in the potato sub-sector has laid the groundwork for future collaboration, with IJsselstein identifying significant potential for expansion into other areas such as vegetable and dairy production.
This agricultural collaboration is a cornerstone of a much broader and multifaceted strategic relationship.
The Netherlands views the Kurdistan Region as a key partner for stability in a volatile Middle East. In a February 2025 interview with Kurdistan24 English, Consul General IJsselstein emphasized the region's unique strategic position and its potential to enhance regional connectivity and foster economic growth.
He noted that the Kurdistan Region’s ability to maintain strong relationships with various regional actors allows it to play a constructive diplomatic role, but stressed that this requires continued political stability both internally and in its relations with Baghdad—a point that resonates with the discussions held in the Monday meeting with Prime Minister Barzani.
The political ties between the two governments are robust and marked by high-level engagement. IJsselstein previously cited meetings between Prime Minister Masrour Barzani and Dutch Prime Minister **** Schoof, as well as a visit by the Dutch Minister of Defense to Erbil, as clear indicators of deepening ties.
However, he also emphasized that the foundation of the bilateral relationship rests on strong people-to-people connections in business, entrepreneurship, and governance.
The upcoming trade delegation announced in Monday's meeting aligns perfectly with the Netherlands' stated strategy to enhance its economic footprint in the region. The Dutch Consulate has been actively working to raise awareness among Dutch investors about opportunities in Kurdistan, organize trade missions, and provide detailed market assessments to Dutch companies.
The economic stakes are substantial. While precise figures for the Kurdistan Region are not separated, a significant portion of the Netherlands' trade with Iraq passes through its territory. In 2023, total trade between the Netherlands and Iraq amounted to €4.7 billion in imports and €1.3 billion in exports, with similar figures anticipated for 2024.
The planned delegation represents a focused effort to build on this foundation and capitalize on the stable and promising investment climate the KRG has worked to cultivate.
Therefore, the meeting between Prime Minister Barzani and the Dutch diplomatic mission was more than a routine courtesy call; it was a reaffirmation of a strategic alliance that is yielding concrete results. From the fields where potato harvests have multiplied three-hundred-fold to the high-level political corridors where strategies for regional stability are discussed, the partnership is maturing.
The announcement of a new trade delegation is the next logical step in this evolution, promising to translate a decade of successful collaboration in agriculture into broader economic prosperity and further solidifying the Kurdistan Region’s role as a reliable and dynamic partner for the Netherlands in the heart of the Middle East.
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