cover for currency smuggling
The Shadow Economy in Numbers: Tons of Gold Worth Billions of Dollars to Make Up for the "Black Dollar" Shortage
In a volatile economic landscape dominated by weak oversight and a fluctuating local currency, gold in Iraq has transformed from a traditional commodity into a central financial instrument, simultaneously reflecting internal crises and external conflicts. Figures announced for the first half of 2025 revealed imports exceeding $30 billion from five major countries, led by the UAE with $10.5 billion, followed by China with $8.8 billion, Turkey with $4.9 billion, the European Union with $3 billion, and India with $1.8 billion. Among these imports, precious metals—led by gold—were valued at $3.3 billion, confirming that this sector now occupies an exceptional position in the structure of Iraqi trade.
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Given the restrictions imposed by the US Treasury Department since 2023 on bank transfers, gold has emerged as an alternative channel to compensate for the dollar shortage. Instead of outflowing hard currency through official remittances, importing gold in large quantities has become a means of recirculating funds, whether by re-exporting it to neighboring countries such as Turkey, bartering it for Iranian goods, or even using it as an asset that can be easily liquidated away from the banking system. According to economic estimates, gold has become a "practical cover" for dollar smuggling operations, as it is imported through official outlets but redirected through unregulated financial channels. This dual role makes the precious metal not just a commodity, but an alternative instrument that rivals the dollar in influence.
Previous data reveals that 2024 marked a shocking turning point, when the value of gold imports reached $12.5 billion, equivalent to 16% of the country's total imports. This figure is roughly equivalent to the Central Bank's entire gold reserve of $18 billion. In the absence of accurate data on the entry points through which the gold was imported or its internal distribution mechanisms, questions have grown about the final destination of these quantities: Was it actually consumed in the local market, re-exported, or used as a barter instrument in undisclosed trade relations?
This shift is no longer a purely financial matter. In the markets, rising gold prices have directly impacted daily life. A Baghdad Today correspondent observed a widespread recession in goldsmith shops, with the price of a 21-karat gold misqal exceeding 730,000 dinars, while 24-karat gold jumped to more than 830,000 dinars, coinciding with the global price of an ounce exceeding $3,600. These figures have prompted many young people to postpone marriage and imposed new burdens on families with the inflated dowries. Social affairs experts warn that the phenomenon is no longer merely a market crisis, but rather a threat to the fabric of society by deepening the phenomenon of aversion to marriage and delaying the age of starting a family.
Given these facts, economic expert Manar Al-Abidi stressed that "government efforts to control imports face significant challenges, particularly with the attempt to include all goods in the reform at once." He called for "focusing primarily on high-value goods such as gold, and linking transactions with them to transparent electronic payment mechanisms that allow tracking of sales and purchases and identifying the ultimate beneficiary." According to institutional estimates, automating the gold sector alone is sufficient to expose financial loopholes and close the door to its exploitation as a cover for parallel operations.
From a different perspective, economic expert Nasser Al-Kanani believes that the crisis is not limited to Iraq alone. "The recent rise in gold prices in the Iraqi market is inseparable from the global wave affecting the precious metal," Al-Kanani says, explaining that "the local market is affected by a dual effect: the movement of international stock exchanges and the dollar exchange rate on the parallel market." This approach reveals that Iraq, despite its unique crises, remains part of a global cycle that makes gold a safe haven for investors amid escalating geopolitical tensions. He also notes that the price rise is not just a local result, but a reflection of global shocks.
In a move described as a strategic shift, Al-Kanani revealed that "Iraq's purchase of more than 20 tons of gold in one year, and its rise to seventh place globally in this field, reflects a calculated move by the Central Bank to protect the national economy from fluctuations in foreign exchange rates." This move, according to Al-Kanani, "gives Iraq greater flexibility in managing monetary policy, enhances confidence in the local economy, and may positively impact the value of the dinar and market stability." However, this path remains fraught with risks, as gold could transform from a strategic asset into an open channel if smuggling operations continue or oversight is absent.
In conclusion, gold in Iraq has transcended its status as a commodity and has become a crossroads between three possibilities: an economic buffer, a pressing social burden, and a card of political influence. However, the lack of strict oversight also makes it an open loophole that could transform into a permanent channel for dollar smuggling or bartering with neighboring countries, away from the banking system. This exposes the country to further exposure to external pressures. The future of this resource will not be determined by the volume of tons entering the market, but rather by the state's ability to control its flow and prevent its leakage into the shadow economy. This would transform it from a source of concern to an element of strength, and from a parallel tool for currency smuggling to a strategic asset that reinforces confidence in the dinar and Iraqi financial policy, according to observers.
Rehabilitation is the cornerstone of reform
Yasser Al-Mutawali
Amidst the reform efforts undertaken by banks, and after overcoming the obstacles of capital and timeframes that represented the primary concern, a more fundamental and profound need emerges, one that permeates the very core of daily banking operations: human resources.
No matter how robust the reform document prepared by a global company specializing in the clarity of its objectives, and no matter how precise the laws and regulations, the ability of institutions to implement them remains dependent on the human capacity that will bear these burdens and translate them into a tangible reality.
Hence, it becomes imperative to enroll banking personnel at all levels, including senior bank management, in specialized training courses. This is a strategic necessity no less important than raising capital, and indeed, it is the sole guarantee of capital sustainability and growth.
A reform document aimed at enabling Iraqi banks to keep pace with changes and operate in accordance with practices in developed countries, as I mentioned, necessarily requires a staff that understands the philosophy of these changes and masters the tools used in those countries. A bank cannot, for example, implement the Basel standards, manage its risks in a modern manner, or keep pace with the financial technology revolution with staff that have not received adequate training in these concepts, which were not even present in the old academic curricula.
Therefore, attention must be focused on the Iraqi Private Banks Association's training center, which should spearhead this developmental endeavor. This center's role should not be limited to isolated basic courses, but rather should launch an ambitious and comprehensive program that rehabilitates the banking industry from its roots. This program should include:
First: Specialized courses in modern banking management, focusing on governance, financial and operational risk management, compliance with international and local central bank requirements, contemporary banking marketing strategies, and customer relationship management in the digital age.
Second: Workshops on digital transformations to explain the importance of shifting from traditional banking to e-banking, how to manage the digital transformation process, and how to secure digital channels and user experience, thus bridging the digital gap between Iraqi banks and their global counterparts.
Third: Intensive programs to teach AI technologies and their banking applications. This is the core of the challenge and the opportunity. Staff must learn how to use AI to analyze big data to assess customer creditworthiness, how it works in combating financial fraud, and how it can contribute to the development of customized financial products and process automation to reduce costs and increase efficiency. Investing time and money in building modern skills for banking sector workers is an investment to ensure the success of any reform document, now and in the future. It is the guarantee against the double-digit losses that experts have warned against, because a qualified staff is the one who will avoid costly mistakes, face changes with confidence, and ensure that reform is real and fundamental, not merely superficial and based on paper.
The upcoming challenge is not just financial or legal, but primarily educational, technical, and human. Neglecting this aspect will render any achievement in terms of capital or laws fragile. Therefore, the moral and professional responsibility we bear compels us all to demand that the training and qualification of human resources be the primary focus of the next phase of the reform journey, so that the project is completed and bears the desired fruits for the country's economy.
If there is one word that must be said, it is that the Association and its center have the ability to attract highly qualified training competencies with proven experience.
Iraq remains America's darling...the Supreme Court dismisses a lawsuit against Baghdad for hundreds of millions.
The Supreme Court in Washington ruled on Wednesday (September 17, 2025) to prevent an American military affairs company from fining the Iraqi government $121 million in a lawsuit related to breach of contract to rehabilitate Iraqi army weapons.
According to a Bloomberg report translated by Baghdad Today, Wy Oak Technology, a military-related company, filed a lawsuit against the Iraqi government, seeking $121 million in damages for the contract's suspension.
The Supreme Court affirmed that "Iraq is protected under the U.S. Foreign Immunity Act," noting that this law protects foreign governments from prosecution in such cases, even in the presence of formally signed contracts.
The report added that the court's decision means Iraq retains "immunity," which prevents companies and commercial entities from being sued within the United States, whether for breaches of contract or damages resulting from operating in Iraq.
The roots of this immunity date back to the aftermath of the 2003 invasion of Iraq, when the US Congress passed a special law signed by former President George W. Bush, known as the "Iraq Freedom from Judicial Attachment Act," which granted Iraq exceptional protection from lawsuits and seizures. Experts interpreted this move as maintaining Iraq's status as a "spoiled child" in US politics, amid subsequent presidential successions that ensured this privilege would continue for two full decades.
Kurdistan's oil is on the verge of export. SOMO completes its commitments, and the final obstacle is the companies' guarantees.
Oil expert Kovind Sherwani revealed on Wednesday (September 17, 2025) that the National Oil Marketing Company (SOMO) has concluded its contracts and obligations with companies purchasing oil from the Kurdistan Region, in preparation for resuming exports in the coming days.
In an interview with Baghdad Today, Sherwani said, "Completing these contracts means that SOMO has concluded deals with some buyers to market quantities of the region's oil," indicating that "the only remaining obstacle is the guarantees demanded by the oil-producing companies regarding how they will receive their dues."
He pointed out that "the companies stipulated written guarantees in a tripartite agreement between the federal Ministry of Oil, the region's Ministry of Natural Resources, and the foreign companies," explaining that "the issue relates to organizing the payment mechanism and receiving the funds, which is the last obstacle to resuming exports."
Kurdistan Region oil exports have been halted since March 2023 following an international arbitration ruling issued by the International Chamber of Commerce in Paris, which obliged Türkiye to halt the pumping of Kurdish oil through the Ceyhan pipeline without the approval of the federal government in Baghdad.
Since then, the issue has been embroiled in arduous negotiations between Baghdad, Erbil, and Ankara, with repeated attempts to find a formula to restore the flow of oil to global markets.
The federal government has repeatedly emphasized that the marketing of the region's oil must be conducted exclusively through SOMO, to ensure the unity of Iraq's oil policy. Meanwhile, foreign companies operating in the region fear losing their dues, prompting them to demand formal written guarantees.
This shutdown has inflicted significant financial losses on Iraq and directly impacted the Kurdistan Region's economy due to the suspension of oil revenues, the primary source of funding for its employees' salaries and service projects.
Kurdistan hands over all its cards to Baghdad: No more justification for cutting salaries
Kurdistan Regional Government spokesman, Peshwa Hawrami, announced today, Wednesday (September 17, 2025), that the region has met all the federal government's demands regarding the oil file, stressing that there is no longer any justification for not sending the salaries of Kurdistan employees.
In a statement received by Baghdad Today, Hawrami said, "The regional government has officially announced its readiness to hand over the entire oil production to Baghdad, amounting to 233,000 barrels per day, of which approximately 50,000 barrels will be consumed locally, while the remaining quantities will go to companies and the federal government." He added, "We have sent an official letter in this regard and are awaiting a response from Baghdad."
He explained that "the previous obstacles related to the demands of oil companies have been resolved, as companies now accept to deal in accordance with Iraqi laws," stressing that "the region has completed all the required procedures, and all that remains is Baghdad's commitment to disburse salaries starting in July."
Hawramani continued, "Talk about the existence of legal obstacles is no longer valid," noting that "the issue is being resolved based on the Financial Management and Budget Law, and what is currently being raised is merely political interpretations and unjustified procrastination."
He added, "It's strange that the Federal Court is demanding the payment of salaries while some parties in Baghdad are still searching for new pretexts. We have opened the door to dialogue at every stage, and our sole goal is to ensure that Kurdistan employees are not deprived of their rights."
The regional government spokesman noted that "the Iraqi Council of Ministers has given the Oil Minister a 48-hour deadline to reach an agreement with the companies operating in Kurdistan," stressing that "the argument that the file is incomplete no longer stands," expressing hope that no new excuses will be invented to delay the disbursement of salaries.
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Kurdistan Regional Government (KRG) Bishwa Huramani announced on Wednesday that the KRG has awarded its oil shares to Sumo Company There is no legal reason to suspend the payment of regional employee salaries.
According to Horamani in a detailed statement on the issue, the oil production companies failed to comply with Iraqi laws and complied with their previous demands to guarantee their rights under international laws, Lafta The regional government has issued an official letter announcing its readiness to deliver oil to Sumo.
Before delivering the oil, it must be obliged to send the July payments and the appropriate notice to the regional employee, removing any applicable laws according to this law The budget, the fiscal administration law, and the constitution are sufficient to justify the suspension of the disbursement of salaries, especially after the decision of the Federal Court.
Pointing to the production capacity of Adat oil at its natural rate, the region's daily production of 233,000 barrels warrants an export appeal It is at the service of the financial situation for all of Iraq and Kurdistan.
He also discussed all the efforts of the regional government and the implementation of the requirements of the federal government towards guaranteeing that no employee is deprived of his salary at any time Regional commitment to domestic decisions without excess or deficiency in accordance with the law.
In the context, the Press Office of the Prime Minister of the Kurdistan Regional Government Masrour Barzani announced that the Council of Ministers of the Regional Agriculture Contract, on Wednesday, meetings at the level of the printer through the mosques file Export of oil and non-oil inputs, salaries and financial entitlements to employees, in addition to the tools for implementing federal and regional government commitments.
According to the government statement, the regional government has fulfilled all its constitutional obligations and has taken the necessary steps to overcome the sanctions and technical problems it faces Subject to the non-submission of salaries, in addition to the fact that the salaries of the employee of the region are legal and legitimate and cannot be delayed, they must be sent from the Federal Government.
He pointed out that the coalition delegation presented details of the joint projects between the regional and federal governments after appealing against the export of oil, the country's voice on the Council of Ministers Iraq finally after the Regional Council of Ministers approved it last week.
As the discussion of the financial coordination council between the parties, which should not be associated with the problems, the establishment of the Kurdistan region, as a union entity, enjoys the right to exercise its jurisdiction Constitution and Finance. The Ministry of Finance and Economy and the Directorate of Public Expenditure are responsible for coordinating their views in the federal government to ensure the drafting of the constitution.
The Minister of Education added a statement on the performance of his ministry for the new academic year 2025-2 The 1969 consolidation of the former Iraqi regime into Christians (Chaldeans) and Muslims is the news of the government's call الاتحادية لتعويض ذحايا تلك الجريمة وسائر ذحايا النظام السابق.
Parliamentary Oil and Gas Committee: No stability in regional salaries without implementing this step.
Member of the Parliamentary Oil and Gas Committee, MP Bassem al-Gharibawi, confirmed on Wednesday that the majority of political blocs, with the exception of the Kurdistan Democratic Party, support resolving the Kurdistan Region's employee salary crisis, provided that the regional government adheres to the recent agreement with the federal government, which stipulates the delivery of non-oil revenues and produced oil to the State Oil Marketing Organization (SOMO).
Al-Gharibawi said in a statement, "The crisis of the region's employees' salaries will remain unstable and vulnerable to complications unless the regional government adheres to the agreement concluded with the federal government, which stipulates the delivery of non-oil revenues and produced oil to SOMO."
He added, "Talk about the region handing over 120 billion dinars to the government has not yet been confirmed and remains mere statements without tangible evidence." He pointed out that "the region, according to its own admission and according to international technical reports, produces about 280,000 barrels per day, while estimates, according to an agreement between the federal Board of Supreme Audit and its counterpart in the region, indicate that the region's actual need does not exceed 50,000 barrels per day, which means that the remaining quantities must be delivered to SOMO."
Parliament on the brink of closure: MPs' salaries exceed 400 billion dinars
The Council has been inactive for 14 months... and Al-Mashhadani was looking for a "religious
fatwa"!
MPs are estimated to have received more than 122 billion dinars in wages, salaries, and services during this current session, "without work" due to the suspension of sessions.
Parliament failed to hold more than 100 sessions during its fifth session, including only 12 sessions during the past 11 months.
Based on this poor performance, it is likely that September will be the last day of the parliament's term, which is supposed to extend its term until early 2026.
Last Tuesday, parliament failed to hold its session for the second time in the same week due to a lack of quorum.
Yasser al-Husseini, an independent MP, told Al-Mada, "Political disagreements over important laws led to the suspension," including a law related to Saudi investments in Iraq.
Al-Husseini asserted that "most MPs are busy preparing for the elections," scheduled for November 11.
A statement issued after a presidential meeting in parliament last Tuesday described MPs' attendance at sessions as "a national duty that cannot be postponed," following the failure of the last two sessions.
The statement, following a meeting between Parliament Speaker Mahmoud al-Mashhadani and his deputies, Mohsen al-Mandalawi and Shakhwan Abdullah, emphasized "the importance of the presence of parliamentary bloc heads and MPs at the upcoming sessions and their active participation in voting on vital laws."
Parliament published the agenda for the sessions of Monday and Tuesday earlier this week, which included a number of laws described as important.
In a video address, Deputy Speaker Shakhwan Abdullah expressed his regret over the lack of a quorum for the parliamentary session last Tuesday, despite the presence of important laws and legislation on the agenda.
He added that no more than 50 MPs were present, despite the 130 MPs who signed the attendance list. He explained that this was unacceptable, given that many MPs travel from outside Baghdad to attend the sessions.
Full salaries, no cuts!
Last August, Parliament imposed fines on MPs who miss sessions, deducting one million dinars from the salary of each MP absent from a single session. The number of absentees ranged between 100 and 150 MPs per session.
However, it appears that MPs have found a way around this punishment, sitting in the parliament cafeteria without attending sessions, thus avoiding salary cuts.
Mohammed al-Ziyadi, a representative of the Muntasiroun bloc, affiliated with Kata'ib Sayyid al-Shuhada leader Abu Alaa al-Wala'i, told Al-Mada: "We are not school students... MPs can express their opinion by boycotting and not attending sessions, but what matters is that they attend parliament."
In the past, al-Mashhadani, the last parliament speaker, hesitated to cut the salaries of absent MPs, although he said in March 2025 that he was seeking a "fatwa from the Najaf Martyrdom" regarding MPs' attendance at sessions, describing the current session as "the worst."
MPs like Yasser al-Husseini believe that "dismissing the absent MP," rather than simply cutting their salaries, will prevent others from being absent, explaining that "constitutionally, parliament's term is supposed to end on January 8, 2026."
The parliamentary term consists of four legislative years, each of which is divided into two terms, each extending for eight months, with a four-month recess.
This parliament was suspended for three months after the elections, and has two presidents since the removal of former President Mohammed al-Halbousi at the end of 2023.
So far, since its first session on January 9, 2022, the current parliament has only been able to hold 149 sessions out of approximately 265.
This means that parliament has not functioned for 14 months, but during that period, it has received full salaries and expenses amounting to more than "122 billion and 500 million dinars."
According to some reports, each member of parliament receives a monthly salary of 8 million dinars, in addition to 16 million dinars in protection allowances and 3 million dinars in rent allowances for members of parliament not residing in Baghdad, bringing the total monthly salary of each member of parliament to 27 million dinars.
The total annual cost of salaries and allowances for all 329 members of parliament amounts to more than 426 billion dinars.
"Hibernation Time"
Ghaleb Al-Dami, a political affairs researcher, says that "Parliament has now entered the winter hibernation phase.
" Al-Dami added to Al-Mada: "Most of the members of parliament are candidates and are busy campaigning in the governorates," predicting that this September will be "the last day of parliament."
The worst performance of the sessions this term occurred during the tenure of its current speaker, al-Mashhadani, who was only able to hold 12 sessions in 11 months, at a rate of one session per month instead of the usual eight.
For his part, Ziad al-Arar, an academic and researcher, said that "political disagreements between bloc leaders from all parties have brought parliamentary work to a near-standstill."
He added to Al-Mada: "There are clear disagreements between Speaker al-Mashhadani and his deputy, al-Mandalawi, and the Sunni forces, as well as a lack of trust among the leaders of the political scene."
Al-Arar pointed out that, due to these disagreements, the heads of the parliamentary blocs are "upset with each other and are not attending the sessions."
The researcher believes that the origin of the disagreement was on the day al-Mashhadani was elected (late October 2024), due to objections to his assumption of the position. His election was a "gracious response" to the parliament speaker's previous positions with some political parties.
American lobbies serving the region: a pressure card against the Baghdad-Erbil agreement... but what is their impact?
Since 2003, the relationship between Baghdad and Erbil has been one of the most contentious issues in the Iraqi political system, with oil contracts and financial agreements a constant source of dispute. The Iraqi constitution stipulates that oil and gas belong to all Iraqis, but differing interpretations of the principle of "sharing" have produced recurring crises between the federal government and the Kurdistan Regional Government. This crisis has taken on regional and international dimensions with the entry of the United States into the mediation and pressure process. The Kurds have historically enjoyed strong channels of communication in Washington, reinforced by effective political and media lobbies within both the Democratic and Republican parties. This has given them a distinct advantage in addressing US decision-making centers, unlike Baghdad, which has often struggled to build a similar pressure network.
In this context, political researcher Nawzad Latif explains that "the Kurds have a close relationship with a number of American lobbies, but their influence remains limited and does not affect the relationship between Baghdad and Erbil." According to modern political approaches, this reading reflects the existing contradiction: On the one hand, the Kurds possess truly influential lobbies in Washington, which have played historical roles in defending the region's issues in Congress and the US administration. On the other hand, these lobbies cannot overturn the higher-level understandings between Baghdad and Washington, especially on strategic issues such as oil exports.
Latif adds that "the delay and procrastination in reaching an agreement between the federal government and the Kurdistan Regional Government are due to the Kurds' reliance on relations with Washington to pressure Baghdad to ensure the continued payment of salaries. However, this reliance has proven unsuccessful, as the US senior administration supports the Baghdad-Erbil agreement and guarantees the delivery and export of oil exclusively from Baghdad." Comparative experience shows that relying on external pressure channels may achieve immediate gains, but it does not establish sustainable solutions, as Washington's interests are tied to the stability of Iraq as a whole more than its bias towards a specific local party. Monitoring data indicates that the lack of commitment to oil agreements between the central government and the region exacerbates the financial crisis and opens the door to the use of salaries as a mutual pressure card.
Diplomatic experts explain that the power of Kurdish lobbies in the United States effectively represents a pressure tool with media and political influence, giving the region greater leverage in Washington compared to Baghdad. However, this power clashes with the limits of American strategic interests, which prioritize the unity of Iraq and the stability of the energy market. According to legal interpretations, any agreement between Baghdad and Erbil will not be subject to overriding lobby pressure, as long as the constitutional text clearly stipulates the centrality of oil management. Therefore, the Kurds' reliance on these external channels may be used as a bargaining chip, but it cannot overturn the constitutional framework governing the relationship.
It can be argued that the landscape changed fundamentally when the Kurds shifted from relying solely on internal Iraqi influence to betting on American lobbies that forged influential relationships in Congress and the administration, giving them an advantage Baghdad lacks. What hasn't changed, however, is the fact that these lobbies, no matter how powerful, cannot override the US strategic decision to support the Baghdad-Erbil oil agreement. The expected impact is that continued reliance on external influence will prolong the disputes and increase the delay in implementing the agreements. Ultimately, however, it will not exempt the region from adhering to the constitutional and economic rules that link its resources to Iraq as a whole. The bottom line is that the power of the lobbies may give the region political leeway, but they are no substitute for sustainable internal understanding between the central government and the region.
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Central Bank: 6.8 trillion dinars in electronic collections in 2025
The Central Bank of Iraq revealed that the total government electronic collections through points of sale (POS) during the first eight months of 2025 exceeded six trillion dinars, while the number of employee payroll cards exceeded five million.
The Director General of the Information Technology and Payments Department at the Central Bank of Iraq, Adnan Asaad, said in an interview with Al-Sabah, followed by Al-Eqtisad News: “The volume of government electronic collections through points of sale so far has reached more than 6.8 trillion dinars in the first eight months of this year,” expecting that “it will exceed 10 trillion dinars by the end of this year, while last year it amounted to about 9 trillion dinars, while collections from gas stations exceeded 750 billion dinars, after it was 465 billion dinars last year.”
He added that "total government e-collection through various payment instruments amounted to approximately 2.1 trillion dinars, while last year it amounted to approximately 322 billion dinars," noting that "49 ministries and agencies have approved the deployment of e-payment instruments in more than 6,600 formations."
Asaad continued, "The number of domiciled employee cards has reached approximately 5.6 million, while the value of the use of electronic payment systems for real-time settlement has exceeded 200 trillion dinars. Automated clearing has exceeded 35 trillion dinars, and the national switchboard has recorded approximately 20 trillion dinars."
The bank's General Manager of Information Technology and Payments explained that "these figures for 2025 reflect the continued expansion in the adoption of electronic payment channels and the development of its infrastructure, in line with the Central Bank's strategic directions and the government's national plans to enhance financial inclusion and digital transformation in Iraq."
The Central Bank counts the number of electronic collections and domiciled cards.
The Central Bank of Iraq revealed that the total government electronic collections executed via points of sale (POS) during the first eight months of 2025 exceeded six trillion dinars, while the number of employee payroll cards exceeded five million cards.
The Director General of the Information Technology and Payments Department at the Central Bank of Iraq, Adnan Asaad, said in a statement to the official newspaper, followed by Mawazine News, that "the volume of government electronic collections via POS so far has reached more than 6.8 trillion dinars in the first eight months of this year," expecting it to "exceed 10 trillion dinars by the end of this year, while last year it amounted to around 9 trillion dinars. Meanwhile, collections from gas stations exceeded 750 billion dinars, after they were 465 billion dinars last year."
He added, "The total government e-collection through various payment instruments amounted to about 2.1 trillion dinars, while last year it amounted to about 322 billion dinars," noting that "49 ministries and agencies have adopted the deployment of e-payment instruments in more than 6,600 formations."
Asaad continued, "The number of domiciled employee cards reached about 5.6 million cards, while the value of using electronic payment systems for real-time settlement exceeded 200 trillion dinars. Automated clearing exceeded 35 trillion dinars, and the national switchboard recorded about 20 trillion dinars."
Rafidain: Achieving an unprecedented boom in the volume of electronic tax settlements.
afidain Bank confirmed on Wednesday that it had achieved an unprecedented boom in electronic tax settlements, exceeding 5.5 trillion dinars in eight months.
In a statement followed by Al-Masry, the bank's media said, "In a scene that reflects the rapid shift towards a digital economy in Iraq, Rafidain Bank has achieved an unprecedented boom in the volume of electronic tax settlements transferred to government department accounts. The total, from the beginning of the year until the end of August 2025, reached more than 5.5 trillion dinars, an annual increase of nearly 976%."
He added, "This achievement is not limited to numbers alone, but extends to the institutional structure, as the number of government entities activating the system expanded from 1,395 entities in early 2024 to 2,125 entities by the end of August 2025. This qualitative leap indicates the expanding scope of reliance on digital channels in managing public revenues and the enhanced confidence of government institutions in electronic payment and collection services."
He pointed out that "this performance comes within a strategic direction that goes beyond the bank's boundaries to form a fundamental pillar in the government's digital transformation program, contributing to raising the efficiency of financial resources management and enhancing transparency and governance. Through this shift, Rafidain Bank is consolidating its role not only as a traditional banking institution, but as a key player in redefining the relationship between the state and the citizen through a more efficient and flexible financial system."
Government advisor: TIR agreement reduces freight shipping time from 18 days to a week
The Prime Minister's Advisor for Transportation Affairs, Nasser al-Asadi, announced on Wednesday that Iraq's entry into the TIR agreement has reduced the shipping time between Turkey and the UAE from 18 days to a week. He also emphasized that the development road project is a major engineering and economic blow to those who doubt its success.
Al-Asadi said: "The transit time from the Turkish city of Mersin to the UAE used to take 18 days, but after Iraq entered into the TIR agreement, it became a week." He explained that "Iraq has shortened the distance, resulting in increased traffic and a benefit to traders."
He added, "This protects goods from maritime disasters," noting that "Oliver Wyman is the strategic economic consultant for the Development Road project, and it developed the basic idea through the technical presentation and economic vision of the Iraqi government."
He stated, "There were many objectors to the development road project, with some demanding clear information on whether this project is real or beneficial, the nature of its feasibility, and its difference with the Chinese Silk Road." He explained that "the project provides real figures proving that it is Iraqi and has high economic feasibility, as evidenced by the increased transport activity at the Faw Port and the increased transport activity on the land route, in addition to the economic activity in the region, which is increasing day after day."
He explained that "we are now moving in a different direction, which is correcting the information we previously announced at the start of the project two years ago, to provide more comprehensive information, as what is currently being offered is higher than what was previously proposed," noting that "this process is encouraging and allows us to say that the project is real and has high economic feasibility."
He stated that "the steps taken so far in the project's initial operational process are a major engineering and economic blow to those who doubt the project's success."
Minister of Transport Razzaq Muhaibis Al-Saadawi previously announced the launch of the TIR system to facilitate international transport, noting that it is one of the most successful customs systems and is implemented in more than 70 countries.
The TIR Convention is the Customs Convention on the International Transport of Goods under TIR Carnets, which simplifies and harmonizes international administrative procedures for road transport. The Convention establishes an international customs transit system that provides maximum facilities for the transport of goods.
Indonesian Ambassador: Invites Karbala merchants to participate in a trade fair in his country
The Indonesian Ambassador to Iraq, Didik Eko Pujianto, invited merchants from the holy Karbala Governorate to participate in a trade fair to be held in his country next month, stressing his country’s desire to invest in Iraq and Karbala in the fields of medicine, leather industries, electricity, and other projects.
The Indonesian ambassador told Al-Mustaqilla on the sidelines of his visit to the Karbala Chamber of Commerce and his meeting with the chamber’s president, Zaman Sahib Abdul Awad, “We discussed strengthening and deepening bilateral relations between the two countries, opening new horizons for joint cooperation to stimulate trade exchange, and we are working to facilitate procedures for obtaining entry visas.”
For his part, the head of the Karbala Chamber of Commerce said in a statement to Al-Mustaqilla after his meeting with the Indonesian ambassador, “We invited Indonesian traders, companies and businessmen to see and learn about the most important investment opportunities in the province.”
In addition, the Chamber's Vice President, Saeed Shukr, emphasized to the Indonesian Ambassador the importance of reviewing the Iraqi investment law to benefit from it, and to encourage Indonesian companies to establish projects, especially medical projects, to be of a standard befitting the quality of the holy Karbala Governorate, and the necessity of these companies obtaining approvals from the Iraqi Ministry of Health.
Chamber Board Member Mohammed Al-Hussaini concluded by stressing the need for Indonesian companies to visit Karbala Governorate and see for themselves the investment opportunities.
The delegation called for "facilitating the issuance of entry visas to Karbala merchants, as this would have a positive impact on strengthening and deepening economic relations."
Washington officially designates four Iraqi armed factions as "terrorist" organizations.
The US State Department announced on Wednesday that it had designated four Iraqi factions it described as "allied with Iran" as foreign terrorist organizations.
The ministry said in a statement published on its official website, and seen by Shafaq News Agency, that the al-Nujaba Movement, the Sayyid al-Shuhada Brigades, the Ansar Allah al-Awfiya Movement, and the Imam Ali Brigades were designated as "specially designated global terrorists," noting that Iran, as "the world's largest state sponsor of terrorism," continues to provide support to these "militias," enabling them to plan, facilitate, or carry out attacks across Iraq.
The statement added that these groups carried out attacks on the US embassy in Baghdad and bases hosting US and coalition forces, often resorting to using fake names or proxy groups to conceal their involvement.
The US State Department confirmed that this measure falls within the framework of Presidential National Security Memorandum No. (2) issued by President Donald Trump, which stipulates the application of maximum pressure on Iran to cut off sources of funding for the regime, its agents, and its terrorist partners.
The ministry stressed that the United States will continue to use all available tools to protect its national security interests and prevent terrorist groups from accessing funding and resources.
Earlier today, Republican Congressman Joe Wilson announced the US administration's intention to designate four Iraqi factions as terrorist organizations, while urging the inclusion of Hadi al-Ameri's Badr Organization on the list.
In a post on X (formerly Twitter), Wilson expressed his gratitude to President Donald Trump, US Secretary of State Marco Rubio, and White House Counterterrorism Director Sebastian Gorka.
Iraqi militia says US terror designation ‘expected’
An Iran-backed Iraqi militia designated as a Foreign Terrorist Organization (FTO) by the United States on Wednesday said the designation was “expected” but will have no impact on their operations.
The US State Department on Wednesday designated Harakat Hezbollah al-Nujaba, Kataib Sayyid al-Shuhada, Harakat Ansar Allah al-Awfiya, and Kataib al-Imam Ali as FTOs, saying the decision came as part of President Donald Trump’s order to impose “maximum pressure” on Iran.
Kadhim al-Fartusi, spokesperson for the Kataib Sayyid al-Shuhada, part of the government-linked but Iran-backed Popular Mobilization Forces (PMF, or Hashd al-Shaabi), told Rudaw that the decision “was expected” but will have no effect.
“We have no activities outside of Iraq for this decision to have any impact on us,” he said.
Fartusi further called on Iraq’s foreign ministry to respond, calling Washington’s decision an interference in Iraq’s internal affairs.
“We expect Iraq’s Ministry of Foreign Affairs to react to this matter,” he stressed.
The designations came three weeks after the Iraqi government - with intense pressure from Washington - revoked a controversial bill to restructure the PMF. Although the PMF is part of Iraq’s security apparatus, many of its factions still operate independently, with impunity, and reportedly maintain strong ties to Iran.
Iran is believed to have many proxy groups in Iraq, which it has used in the past to target US interests in the region. Washington has taken several measures to ensure that Baghdad is free of Tehran’s influence, including the termination of a waiver which had allowed Iraq to buy Iranian electricity for years.
Baker Hughes Secures Deal with Halfaya Gas to Drive Flare Reduction Initiative in Iraq
from news out of Egpyt
During the 2025 Gastech Exhibition and Conference, Baker Hughes inked an agreement with Iraq’s Halfaya Gas Company (HGC) to expand cooperation on a flare gas recovery project at the Bin Umar gas processing facility in southeastern Iraq. The initiative aims to cut upstream flaring substantially and convert waste gas into useful products, said the company in a statement.
This agreement follows a previously signed memorandum of understanding (MOU) focused on the Bin Umar development project and the completion of a pre-Front End Engineering and Design (pre-FEED) study.
This project is set to recover as much as 300 million standard cubic feet per day (mmscf/d) of flared gas, translating into roughly 32 billion kilowatt-hours of energy each year—the equivalent of supplying electricity to about 2 million typical households in Iraq. The captured gas will be processed into dry gas, liquefied petroleum gas (LPG), and condensate for domestic use, as well as for export. It serves as a significant step toward Iraq’s commitment to ending routine flaring and advancing its energy transition and environmental objectives.
Additionally, the two parties have also committed to working together on developing upstream oilfields in Iraq, drawing on Baker Hughes’ expertise in its Oilfield Services and Equipment area of specialty.
The Bin Umar project is a major gas processing initiative in southeastern Iraq, designed to capture and utilize associated gas from nearby oilfields that would otherwise be flared. The development aims to support Iraq’s strategy to reduce routine flaring, enhance domestic energy supplies, and create value-added products.
Abu Raghif: Electronic signatures are a step towards a secure digital Iraq.
In his speech at the conference "Activating Electronic Signatures to Support Electronic Payments," Nawfal Abu Raghif, Chairman of the Communications and Media Commission, said, "Electronic signatures represent a responsible strategic step that supports electronic payment and contributes to building a more secure, efficient, and effective digital Iraq." He noted that "the conference's vision stems from clear objectives, foremost among which is achieving an effective link between electronic signatures and the electronic payment system, which enhances trust and transparency in financial transactions."
He added, "The conference seeks to enable the financial sector to adopt digital solutions through strategic partnerships with digital infrastructure providers, opening up horizons for more advanced, faster, and more impactful services." He explained that, "The Commission, as the regulatory body for the communications and information technology sector in Iraq, recognizes that building a modern digital environment is not complete without a genuine partnership with financial technology companies to develop innovative and secure services that meet citizens' needs."
Abu Raghif pointed out that "activating this vision requires stimulating investment in digital infrastructure and information security as the fundamental pillar of data protection and ensuring digital trust," emphasizing that "the project's success depends on a national consensus on digital transformation priorities and openness to global experiences and practices, while taking into account Iraq's unique characteristics."
He pointed out that "the Commission is committed to strengthening the implementation of Electronic Signature Law No. 78 of 2012 and its updated regulatory instructions, as they constitute the legal framework that grants legitimacy and credibility to the digital system." He emphasized that "the Communications and Media Commission will support this transformation in cooperation with all partners in the public and private sectors, and in partnership with the international community, to achieve a safe and reliable digital environment that contributes to strengthening the national economy and serving the Iraqi citizen.
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Iraq & Kurdistan Finally Reach Oil Deal! & World Bank Moves to Iraq
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