Central Bank: Gold reserves reach 170 tons, with intention to remove zeros from dinar
The Central Bank of Iraq announced, on Tuesday, October 14, 2025, its gold reserves and its intention to remove zeros from the Iraqi currency.
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Deputy Governor of the Central Bank, Ammar Khalaf, said in a press statement, followed by Baghdad Today, that: "The Central Bank of Iraq has increased its gold holdings from 90 tons to 170 tons at the present time."
Khalaf added, "This amount of gold now constitutes 20% of the Central Bank's total assets, and Iraq currently ranks fourth in the Arab world in gold holdings and 29th globally."
The Deputy Governor of the Central Bank confirmed that "there is no intention to float the Iraqi dinar exchange rate, so as not to affect the stability of the economy at the present time."
Khalaf revealed that "there is an intention to remove zeros from the Iraqi dinar to ease the burden of banknote hoarding on the financial sector."
VIDEO UPDATE LATER TONIGHT
Stability of the Iraqi Dinar Exchange Rate: CBI Paper
The Central Bank of Iraq (CBI)'s Mosul branch, represented by Director General Dr Hussein Lazem, participated in the "Informatics, Digitalisation, and Their Impact on Sustainable Development" conference organised by the College of Administration and Economics at the University of Kirkuk.
The event featured several research papers and studies, including two submitted by the Central Bank of Iraq's Mosul branch:
The CBI did not make the papers available on its website.
The university's president expressed appreciation to the Central Bank for its support in organising the conference, and awards were presented to participants.
On the sidelines of the event, a financial inclusion exhibition was held featuring government and private banks, as well as electronic payment companies in Kirkuk. The exhibition aimed to promote financial literacy, raise public awareness of banking services, and showcase products related to loans, deposits, money transfers, prepaid cards, and account openings.
The President of the Republic stresses the importance of strategic cooperation with the United States
President Abdul Latif Jamal Rashid stressed on Tuesday the need to enhance security cooperation with the United States of America within the framework of the long-term strategic partnership.
A statement issued by the media office of the Presidency of the Republic, received by the Iraqi News Agency (INA), stated that "President of the Republic Abdul Latif Jamal Rashid received at Baghdad Palace the former director of the Central Intelligence Agency and former commander of the international coalition forces in Iraq, General David Petraeus, and his accompanying delegation."
He pointed out that "during the meeting, bilateral relations between Iraq and the United States were discussed, as well as developments in regional and international events".
The President of the Republic stressed "the necessity of strengthening security cooperation between the two countries within the framework of the long-term strategic partnership", praising "The role played by the United States and international coalition forces in supporting Iraq during its battle against terrorism.
He pointed to "the stable security situation in Iraq, and the efforts made to preserve the achievements made in this regard," stressing that "stability in the country was a starting point for moving to focus on service aspects, rehabilitating infrastructure, and implementing strategic projects that contribute to achieving sustainable development."
For his part, General Petraeus expressed his "appreciation for the efforts of the President of the Republic in unifying the visions of the political parties to enhance stability in the country," praising "the progress achieved by Iraq on the security and political levels," stressing "his country's continued support for Iraq in various fields."
Sudanese advisor identifies the reasons for the rise of gold globally and reveals the value of Iraq's mineral reserves
On Tuesday, advisor to the Iraqi Prime Minister, Mazhar Muhammad Saleh, revealed the reasons for the rise in global gold prices, noting that Iraq diversifies approximately 15% of the value of foreign currency reserves with gold.
Saleh told Shafaq News Agency, "There is a violent cycle of strategic asset cycles in the world, led by gold, which broke the barrier of $4,000 per ounce", noting that "since 1971 until today, the dollar has continued to occupy its transactions in dollar trade settlements, dominating approximately 83% of the international payments system and about 50% or more in countries' official reserves".
He added, "Despite this, gold has remained a standard percentage in diversifying the investment portfolios of central banks, including Iraq, which diversifies approximately 15% of the value of foreign currency reserves with gold, which is a conservative diversification that is good in light of fluctuations in the risks of the value of foreign currencies".
According to Saleh, "The reasons for the rise in gold prices, which led to the increase in demand for it, are that gold is considered a safe haven in a turbulent global system," noting that "geopolitical tensions (Ukraine, the Middle East, Taiwan…) increased market risks, so central banks and investors rushed to gold as an asset that does not depend on political trust."
He stressed that "the erosion of confidence in the US dollar due to the rise in the US federal debt and the politicization of the use of the dollar in international sanctions has prompted many countries (especially China, Russia, India, Turkey and a series of other countries) to diversify reserves away from the US currency."
Saleh continued, "Gold came as a monetary alternative in the post-dollar system, and since 2022, the (BRICS) countries and the countries of the Global South have been moving to rebuild their gold reserves as part of their strategy to reduce dependence on the dollar in intra-trade, especially China, which alone bought through Shanghai Stock Exchange more than 300 tons of gold in 2024 to strengthen the gold yuan and cover part of its non-dollar reserves" And it still continues largely in this manner."
Al-Sudani's advisor continued, saying: "Gold is not treated as a regular commodity, but rather as a parallel reserve currency in the making, as it is estimated that the matter is related to global monetary policies, as the decline in expectations of reducing US interest rates has made investors turn to gold because it retains its value as a safe haven without a doubt."
Saleh concluded by saying: "The main reason behind the rise is due to China's recent rush to buy gold to push its currency to enter the global currency club at the required speed, reinforced by a strategic asset, gold, which is the reason behind the rise in global gold prices, as it is the beginning of the currency war between China and the United States and China in exchange for the trade war between them and the United States' threat to raise customs tariffs to 100% with China."
Gold prices have risen dramatically in Iraq over the past period, with the selling price of a single 21-karat gold weight in goldsmiths' shops in Baghdad reaching 820,000, while the selling price of an Iraqi gold weight ranged between 780,000 and 790,000 dinars. In Erbil, the capital of the Kurdistan Region, 21-karat gold was sold for 833,000 dinars, and 18-karat gold was sold for 715,000 dinars.
Iraq is in the credit risk zone.. A (B-) rating raises the cost of borrowing and threatens major projects.
Iraq's credit rating remains stuck in the high-risk category, at B-, according to Standard & Poor's and Fitch Ratings, with a stable outlook, reflecting a fragile balance between strong reserves and a turbulent political and economic environment. This rating means the country is just one notch away from financial distress, keeping the Iraqi economy a source of concern for investors and creditors alike.
Rating agencies confirm that Iraq has relatively comfortable foreign reserves that cover its short-term liabilities. However, its heavy dependence on oil revenues, weak diversification of income sources, and governance and transparency challenges all prevent it from being upgraded to investment grade. While the UAE and Qatar are rated AA, and Saudi Arabia and Kuwait are rated A+, Iraq remains at B- alongside Egypt, just one notch above Lebanon, which is in distress at SD, according to Standard & Poor's latest rating.
What does B- mean and why is it dangerous?
B- is a non-investment grade, also known as speculative, and indicates a high probability of default or late payment. This means that international investors or lenders demand higher interest rates to compensate for the risk, making external borrowing more expensive for Iraq than for other Arab countries.
According to financial analysis, each one-notch rating downgrade raises borrowing costs by approximately 0.5 to 1.2 percent in international bond markets. With Iraq's current rating, any new public debt issuance could face interest rates exceeding 9 percent, compared to less than 4 percent in highly creditworthy countries such as Saudi Arabia or Qatar. This rating also reduces foreign investor appetite for major strategic projects such as the Development Road and the Baghdad Metro, which require long-term international financing.
The risk is higher than it seems.
Economic expert Ziad Al-Hashemi said in a clarification on his official page on the Aks website, followed by "Baghdad Today":
Iraq's credit rating continues to remain in the "high risk" zone, one notch above the financial distress zone, despite reports of official Iraqi moves to reform the banking and economic systems.
The high-risk rating issued by international rating agencies indicates that the risks of investing or lending within Iraq remain very high. This means that investment flows into the Iraqi economy will remain weak and limited.
This classification also reflects the difficult economic and political conditions facing Iraq, and that any political, economic, or security deterioration could lead to financial distress and repayment difficulties.
In other words, global investors view Iraq's high-risk rating as a warning of increased sovereign risk, making external borrowing more expensive for Iraq because the interest required is higher to compensate for the risk.
Major strategic projects, such as the Development Road and the Baghdad Metro, will face real difficulties in attracting international investment to finance their implementation phases, as long as Iraq continues to operate in a high-risk credit zone.
Figures and Facts
Data shows that every increase in operating spending increases the likelihood of the deficit widening, which means a greater need for borrowing and, consequently, pressure on the credit rating, as shown below:
The government debt-to-GDP ratio reached approximately 42.9 percent at the end of 2024, which is a global average but high in an economy that relies on oil as almost the sole source of revenue.
Iraq's total external debt reached approximately $54.6 billion in mid-2024, down from $56.2 billion the previous year, according to data from the Central Bank of Iraq.
External debt service (interest and annual installments) amounted to $4.48 billion in 2023, representing approximately 3.9 percent of total exports.
While external debt as a percentage of GDP is only about 20.4 percent, high government expenditures and the absence of fiscal reforms keep the rating at its lowest levels.
How can I improve my ranking?
Analysts believe that raising the rating to BBB- investment-grade requires real measures, most notably:
- Establish a multi-year financial framework that reduces the deficit and improves financial discipline.
- Diversifying sources of revenue through tax reform and expanding the production base.
- Enhancing banking governance and applying international transparency standards in transfers and contracts.
- Linking investment spending to performance, and neutralizing political influence in the management of major projects.
According to economic approaches, any slight improvement in debt management and public finances could translate into a gradual rating upgrade over three years, provided the political situation stabilizes and confidence in monetary and regulatory institutions is strengthened.
Despite its vast reserves and strategic geographic location, Iraq remains in a high financial risk zone, leaving the economy operating under limited confidence. While improvement is possible, the path to it requires bold reforms that put the economy before politics and transform oil wealth from a temporary source of funding into a permanent basis for financial stability, according to observers.
Coordination Framework: We are committed to the constitutional system and the consolidation of the peaceful transfer of power.
The Coordination Framework affirmed in a statement received by {Euphrates News} a copy of it, that: “On the centenary of the first Iraqi constitution and the twentieth anniversary of the permanent constitution of 2005, its firm commitment to the democratic constitutional system as a guarantee of the unity and stability of the state, and that the preservation of the constitution and its fair implementation represent the essence of the contract between the people and the state institutions.”
The framework noted that "the Iraqi constitutional experience has faced significant challenges in implementation and practice, which calls for serious reform of the political and institutional process to enhance justice and citizenship and restore trust between citizens and the state," guided by "the directives of the wise religious authority and the will of the people."
In light of the upcoming elections, the framework emphasized that "free and fair elections are the best way to consolidate the peaceful transfer of power and renew popular legitimacy, and that developing the constitutional experience is an ongoing national duty to ensure the building of a just and strong state that reflects the aspirations of all Iraqis."
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Anbar is sinking into a stifling recession: dormant markets, stalled projects, and a faltering economy.
Anbar is suffering from an economic recession that has impacted the lives of citizens. Market activity has declined and job opportunities have diminished, while many small business owners suffer from weak demand and a lack of liquidity. Experts attribute this recession to the delay in approving the general budget and the failure to release financial allocations, which has led to the suspension of a number of projects, negatively impacting commercial and economic activity in the governorate.
Adnan al-Kubaisi, a member of the Anbar Provincial Council, told Al-Mada, "The governorate is witnessing a clear economic
recession that has affected citizens and the local market. The main reason is the failure to approve budget schedules and the delay in releasing financial allocations to the governorates."
He added, "Anbar governorate has large financial dues to contractors, in addition to differences for employees and financial obligations related to government departments that have not been received for some time."
Al-Kubaisi pointed out that "this reality has negatively impacted market activity and led to weak economic activity across the governorate."
For his part, economic affairs expert Mustafa Hantoush explained to Al-Mada that "the delay in approving the budget does not mean a complete halt to spending, as salaries and employment are still ongoing, especially since the budgets for 2023, 2024, and 2025 have already been approved."
He added that "investment spending continues only for ongoing projects, and according to the state's financial liquidity availability, but the failure to approve the new budget certainly means the inability to launch new projects or achieve sufficient financial
flexibility."
Hantoush asserted that "the approval of the upcoming budget may not lead to a significant leap in the areas of employment and unemployment, but it will partially stimulate the market, especially if there is a clear economic vision focused on supporting the private sector and infrastructure, at which point the results will be more influential."
Falah Al-Kubaisi, a merchant in Ramadi, told Al-Mada that "market activity has been almost stagnant for months," indicating that "the main reason is the delay in approving the budget and the failure to disburse financial dues to contractors and departments,
because most transactions in the governorate depend on government spending."
He points out that "citizens today are hesitant to buy, and purchasing power has clearly weakened. Even shop owners have begun reducing their stock for fear of losing money."
He concludes by saying, "We hope the budget will be approved soon so that life can return to the market and the economy can get moving again."
The delay in approving the budget is no longer just a financial issue; it has become a factor affecting the overall economic activity within Anbar province. While citizens and investors await a quick resolution to the disbursement of allocations, hopes remain pinned on the speedy resolution of the budget to ensure market stability and the continuity of projects and services to kick-start development once again.
Bank of the Nation; The bank, which provides 19 loans and advances, will open soon
The Kurdistan Regional Government (KRG) is in the final stages of establishing the National Bank, a strategic project to renew and reorganize the banking sector in the Kurdistan Region; The bank is expected to be operational before the end of this year.
What you need to know; The capital of the National Bank is 250 billion Iraqi dinars. Of this amount, Dh25 billion will be deposited as cash in a special account, and another Dh225 billion will be provided by private commercial banks. The bank will be directly affiliated with the Central Bank of Iraq and will operate with an advanced electronic system.
the positive points; One of the main objectives of establishing the National Bank is to provide about 19 types of loans and advances to employees and citizens. These services cover the areas of real estate, automobiles, agricultural projects, industry and microcredit. The amount and type of loans are determined by the financial capacity of the bank.
Official Statement: Mawlood Sabir, Director General of Commercial Banks told Ava that with the establishment of this bank, the citizens of the Kurdistan Region can benefit from all the loans offered by the Central Bank of Iraq.
The next step; To run the bank, nine people have been elected as the board of directors and are currently undergoing a three-day training course. Jamil Abubakr, Director General of the Specialized Banks of the Kurdistan Region and one of the members of the board, said that after the course, they will hold interviews in Baghdad and is expected to officially start working before the end of this year.
At the same time; With the establishment of the National Bank, the KRG has a plan to reduce the number of banks. A committee has been formed to reduce the number of specialized banks, which currently number By early 2026, their numbers are set to be significantly reduced to just one specialist bank in each province. For example, agricultural, commercial and industrial banks will be consolidated into one bank.
The number of commercial banks, 96, will also be reduced, although the final number has not yet been determined. These steps are part of the banking sector reform process to strengthen and make the financial system in the Kurdistan Region more efficient.
Digital banks in Iraq
True digital transformation doesn't begin with simply restoring the old; it may sometimes require building a new one in parallel. A digital bank is not just a mobile phone application; it represents a completely different operating philosophy.
Amid the media hype surrounding the Central Bank of Iraq's receipt of dozens of applications to establish digital banks, a fundamental question arises: Isn't this an unjustified rush, while the traditional banking sector still suffers from deep structural problems? To some, announcing this step contradicts the painful reality of a fragile banking system, but the reality may be more complex.
It's undeniable that the criticism directed at this step carries within it facts that are difficult to ignore. How can we talk about a digital transformation in a country where cash transactions still dominate the landscape? How can virtual banks be built in an environment that lacks a supporting legislative and technical infrastructure? What confidence can an ordinary citizen have in the face of the faltering electronic systems and the lack of legal protection for their transactions?
However, viewing digital banks as an intellectual luxury or a mere blind imitation of Gulf models overlooks a fundamental truth: Sometimes, escaping a crisis requires breaking its vicious cycle. Traditional banks, unable to attract more than 70 percent of Iraqis to the formal banking sector, will themselves be unable to lead the digital transformation process. This is precisely where the wisdom of creating a new model, starting from scratch, with global standards and flexible operating mechanisms, may lie.
True digital transformation doesn't begin with simply restoring the old; it may sometimes require building a new one in parallel. A digital bank is not just a mobile application; it represents a completely different operating philosophy. It targets precisely those who have been marginalized for decades by the traditional system: young people, small traders, and those with limited income. It speaks to them in contemporary language, offering them low-cost services, bypassing the obstacles of expensive infrastructure and bureaucratic complexity.
While the legislative environment still needs urgent development, the law often evolves in response to practical requirements. The access of these banks will be a strong impetus to accelerate the issuance of data protection and electronic transactions laws, as it will create an unavoidable urgency.
Enlisting international expertise does not mean compromising on local insights, but rather ensuring the objectivity of standards and the integrity of the licensing process. The deciding factor is not the number of applications submitted, but rather the Central Bank's ability to sift through them, select the most qualified and committed, and link licensing to a clear timeline that includes enhancing interoperability between systems, citizen awareness campaigns, and parallel legislative reform.
Ultimately, the point is not the digital banner we raise, but our ability to transform this path into a real bridge connecting citizens and the formal economy. Digital banks are not a substitute for comprehensive reform, but they may be the engine that pulls it forward. Success depends on making this technology a tool to serve humanity, not just a facade.
A cosmetic change to a reality we don't want to change.
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