Removing Zeros: 170 Tons of Gold and One Decision on the Table... Will the Iraqi Dinar Survive Erosion?
Amid the complexities of the financial landscape and increasing pressures on the money supply, the Central Bank of Iraq is opening the door to one of the most sensitive decisions in its modern monetary history: the project to remove zeros from the local currency. This step coincides with the bank's announcement that it will increase its gold reserves from 90 tons to 170 tons, representing approximately 20% of its total assets and placing Iraq fourth in the Arab world and twenty-ninth globally in terms of gold reserves.
the video for this My FX Buddies Blogpost is below here:
Meanwhile, Deputy Governor of the Central Bank, Ammar Khalaf, confirmed that there is no intention to float the Iraqi dinar exchange rate in order to preserve the stability of the financial market and the national economy. He noted that "there is an intention to remove zeros from the currency to alleviate the burden resulting from the accumulation of banknotes within the financial sector." He explained that the goal of the measure is to reduce transportation and storage costs and improve the efficiency of cash circulation.
However, this step, which appears to be technical and reformist on the surface, has raised a wave of questions about its actual effectiveness, and whether it represents a radical solution to the monetary policy crises, or whether it is merely a cosmetic measure to relieve pressure without addressing the core structural imbalances in the Iraqi economy.
According to estimates by international monetary institutions, Iraq is currently experiencing moderate inflation of around 2.5%, a relatively stable environment compared to previous years. However, the money supply (M0) reached historic levels at the end of 2023, making cash transactions a logistical burden for banks and institutions. Comparative studies indicate that deleting zeros is a technical accounting step that does not change purchasing power, but rather simplifies calculations and reduces errors in financial systems. However, the success of this step depends on its integration with comprehensive economic reform, rather than a measure isolated from the overall financial reality.
Economic expert Ahmed Al-Tamimi told Baghdad Today that "the project to remove zeros from the Iraqi currency represents an important reform step that will facilitate monetary transactions and reduce administrative and logistical burdens on the country's financial and banking system, provided it is implemented within a well-thought-out, comprehensive plan that takes into account economic and market stability."
Al-Tamimi adds, "The accumulation of banknotes resulting from the current bulk of paper money is a significant burden on the financial sector, requiring additional costs in transportation, storage, and management, in addition to making daily transactions difficult for citizens and institutions."
According to comparative economic approaches, countries such as Turkey in 2005 and Ghana in 2007 saw relative success in removing zeros after long periods of stability and strict financial discipline. The move helped reduce the costs of cash transactions and boost confidence in the currency. However, failed experiments, such as those in Zimbabwe and Venezuela, have shown that removing zeros without institutional reform opens the door to renewed inflation and undermines public confidence in the national currency.
Al-Tamimi continues, "Removing zeros will not change the purchasing power of the dinar per se, but it will contribute to simplifying the accounting and financial system and reducing significant numerical discrepancies in financial statements, making money management more efficient and easier to use within government institutions and the private banking sector."
He points out that the success of the experiment depends on "a stable economic environment, effective control of inflation rates, and close cooperation between the Central Bank and the Ministry of Finance to ensure a smooth transition without market disruptions or a loss of confidence in the national currency."
According to accurate economic readings, Iraq today stands at a crossroads between comprehensive monetary reform and a symbolic measure with limited impact. Removing zeros may be technically beneficial, but it becomes dangerous if perceived as an attempt to conceal structural crises under an administrative guise. Analysts warn that poor timing or poor communication with public opinion could lead to pricing confusion and possibly "silent inflationary cycles" exploited by some commercial parties.
Al-Tamimi concluded his statement by saying, "The primary objective of this step is to enhance confidence in the Iraqi dinar, facilitate financial transactions, and reduce the burdens resulting from the accumulation of paper currency. It is also a structural reform in monetary policy that should be included within a comprehensive economic reform program that serves the stability of the dinar and enhances its efficiency in domestic and international transactions."
Modern economic analyses confirm that strengthening the gold reserve provides the central bank with moral cover for any future monetary reform. However, it does not replace financial control, strict oversight of public spending, and rebuilding trust between monetary policy and the economic community.
This might be part of the oliver wyman report findings...
Deputy Governor of the Central Bank: Five banks may exit the market soon.
Deputy Governor of the Central Bank of Iraq, Ammar Al-Aithawi, said in a press interview that: "Five private banks will exit the Iraqi banking sector in the coming period, due to their failure to adhere to the standards of the comprehensive review of the sector's strategy."
Al-Aithawi explained that the restructuring process for private banks in Iraq included three paths: remaining in the market by adhering to the standards, merging, or exiting the market.
He added, "Most private banks in Iraq have committed to the first and second paths, whether continuing alone while adhering to these standards, or merging... However, a small number of them chose to leave voluntarily, and they are a small minority, not exceeding five banks."
Banks eligible to remain within the Iraqi banking sector
The Deputy Governor of the Central Bank of Iraq described the standards that banks operating in Iraq must meet as "strict and clear," adding that banks that are unable to adhere to them "will be ineligible to be part of the Iraqi banking sector."
He explained that the plan includes interim evaluations every six months to a year, throughout the three-year plan, noting that any improvement in bank performance will require a period of time.
In April 2025, the Central Bank of Iraq launched a private banking reform plan in collaboration with the American firm Oliver Wyman. The plan focuses on enhancing and deepening financial inclusion, raising the efficiency and productivity of the private banking sector, and creating a fair and healthy competitive environment in the market, while enhancing the sector's resilience and ability to withstand risks.
Iraq begins banking sector reform, and these are the details of the plan.
Al-Ithawi reviewed the most important standards that banks must adhere to, saying, "We are focusing strongly on governance, business models, and compliance. There are five main axes, including 25 standards that banks must all adhere to." He added, "We seek to build strong and sound financial institutions that serve as an engine of economic growth and prosperity."
The plan includes several pillars for reforming banking standards, such as setting a ceiling on ownership to prevent excessive control, conducting intensive due diligence on all major shareholders, requiring banks to adopt sustainable business models, maintain capital adequacy and liquidity ratios, enhance transparency in reporting, and align with global compliance practices, including comprehensive measures to combat money laundering and terrorist financing, ensuring the sector's protection from financial crimes.
10 Licenses to Establish Digital Banks
Regarding digital banks, Al-Ithawi expects the Central Bank to grant up to 10 licenses to establish digital banks in Iraq, having recently received more than 80 applications.
Al-Ithawi explained that the Central Bank of Iraq will focus in the first phase on "selecting a very small number of applications to test their effectiveness, and we may expand in the future," noting that the Central Bank "is seeking to select the best of these applications, as the vetting process is still ongoing. We are selecting banks based on their business models, their expertise, and the partnerships they have established in this field."
Al-Aithawi also noted that the Central Bank of Iraq has allowed existing banks in the market to apply to open a digital path for them.
The Deputy Governor of the Central Bank of Iraq indicated that banks with foreign partnerships may have a good competitive position, saying, "It is preferable for the bank to have sufficient expertise to transfer this experience to Iraq."
Financial Inclusion in Iraq
The Deputy Governor of the Central Bank said that although financial inclusion is relatively low in Iraq compared to neighboring countries, and the use of cash is still high, "we have been able to achieve accomplishments and enhance electronic payment tools, with significant government support. There are encouraging figures, as we have achieved a more than 20% increase in the use of electronic payment tools over the past two years compared to the previous years."
Al-Aithawi pointed out that government decisions helped achieve this percentage, especially in light of government institutions receiving fees electronically, "which contributed to encouraging individuals to acquire electronic cards and financial wallets."
Iraq seeks to enhance international confidence in the banking sector, especially after the United States blacklisted 14 Iraqi banks, preventing them from conducting dollar transactions on suspicion of their use for money laundering and transferring funds to Iran and Syria. There are 83 banks operating in Iraq, including eight government banks, 24 commercial banks, and 31 Islamic banks, in addition to 17 branches of foreign commercial and Islamic banks operating, and three representative offices of foreign banks.
The US President affirms his commitment to the strategic partnership with Iraq.
link this is awfully late hmmmm...
President Abdul Latif Jamal Rashid received a congratulatory message from US President Donald Trump on the occasion of the 93rd anniversary of Iraq's National Day.
In his message, President Trump affirmed the United States' unwavering commitment to the strategic partnership with Iraq and joint cooperation in all fields, enhancing regional stability.
The following is the text of the message:
“Greetings, Your Excellency the President.
We and the people of the United States of America are pleased to extend our sincere congratulations and blessings to you, the government and people, on the occasion of the (93)th Iraqi National Day.
This year has been marked by remarkable achievements that highlight Iraq’s resilience and growing leadership in the region. The successful hosting of the Arab League Summit in Baghdad highlighted Iraq’s ability to enhance dialogue and cooperation among neighboring countries, and the visit of the US-Iraq Business Council in April confirmed the strength of our shared
economic partnership.
The United States demonstrates its steadfast commitment to the strategic partnership with Iraq. Together, we have worked to promote regional stability, enhance energy security, and maintain pressure to prevent the return of ISIS. We look forward to continuing our cooperation on shared priorities and building on the momentum of our economic successes.
We wish you and all Iraqis a happy holiday and a year full of peace, progress, and prosperity.
Presidency of the Republic: Iraqis have no choice but the constitutional option.
The Presidency of the Republic stated on Wednesday that Iraqis have no choice but to adopt the constitutional approach to resolving disputes and problems.
A statement by the Presidency of the Republic received by ( IQ ) stated: “On October 15, 2005, our people had their free say in a historic popular referendum through which the Constitution of the Republic of Iraq was approved. This day was a national turning point in the process of building the contemporary Iraqi state and its transition from a centralized totalitarian system to a democratic federal parliamentary system that embodies the will of the people and the principle of their sovereignty over their land and homeland.”
He continued: "The constitution is the fruit of a free and responsible national choice, and the result of a comprehensive societal and political consensus that brought together all components of the Iraqi people, including Arabs, Kurds, Turkmen, Christians, and other groups. It constitutes the social and political contract that regulates public life, guarantees rights and duties, and establishes the principle of partnership in governing the state and protecting its unity."
The Presidency of the Republic affirmed that "Iraqis have no choice but to adopt the constitutional approach to resolving disputes and problems, as adhering to the constitution and implementing its provisions, both in letter and spirit, is the only way to protect the democratic system and safeguard the country's unity."
She added, "The constitutional transformation that Iraq witnessed twenty years ago represented a fundamental turning point from a centralized, totalitarian system that monopolized state decisions to a democratic federal system based on the distribution of powers, ensuring participation, and respecting diversity and pluralism within the framework of national unity."
The statement continued: "On the twentieth anniversary of the adoption of the Constitution of the Republic of Iraq, the Presidency of the Republic calls on the Council of Representatives to approve the draft laws it submitted to the esteemed Council, such as the Federal Court Law, the Law of the Higher Commission for the Empowerment of Women, the Law of the Supreme Water Council, the Law of Amending the First Amendment to the Narcotics and Psychotropic Substances Law, the Law of the Iraq Creativity Award, the Law of the Division of Residential Lands, the Law of the Federal Council, and the Law of Recovering the Proceeds of Corruption, in addition to several draft laws to annul the decisions of the dissolved Revolutionary Command Council. It also calls on the political forces and the legislative and executive authorities to work to expedite the completion of the legislation stipulated in the Constitution, implement Article 140 of the Constitution, and approve the Oil and Gas Law to ensure the achievement of constitutional justice and national stability."
He continued, "Our choice to build a democratic constitutional system was not easy after decades of totalitarian rule, but the will of the Iraqi people was stronger than the challenges, and it continues to steadily advance toward consolidating a state of institutions and law."
He pointed out that "the Constitution of the Republic of Iraq is one of the most advanced constitutions, consistent with the principles of human rights and democracy, and represents a pioneering experience in the region." He called for unity and solidarity among our people, from southern Iraq to the Kurdistan Region, and from east to west, so that Iraq remains a free and unified homeland for all its people.
Al-Sudani affirms Iraq's welcome to European companies and investment in development and energy projects.
Al-Sudani affirmed, according to a statement from his media office, a copy of which was received by {Euphrates News}, that Iraq welcomes and is interested in the presence of international companies, especially European ones, to work in various development sectors in light of the stability it is witnessing and the legislation and laws that support local and foreign investment.
Al-Sudani pointed out "the country's construction and development across all sectors, including the energy sector, which requires modern technology to advance and grow, a technology available to Swiss and Swedish companies that possess extensive expertise in this field."
The statement added, "The two ambassadors thanked Sudani for the opportunity to meet, affirmed their countries' interest in developing relations with Iraq, and expressed the willingness of Swiss and Swedish energy companies to work in Iraq."
The statement continued, "The meeting also reviewed Linxson's projects, which it began operating in Iraq in 2018, including power plant maintenance projects in Baghdad."
Al-Sudani directed "the development of a roadmap to explore the most important projects that Swiss and Swedish energy companies can implement in Iraq."
The Central Bank Governor meets with a group of researchers.
His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, met with a group of Iraqi international researchers working at prominent regional and international think tanks in Baghdad.standing and role.
The meeting
was held during their participation in the Iraqi Research Leaders Forum, organized by the Iraqi Group for Foreign Affairs in Baghdad. During the meeting, the two sides discussed the government's economic plans, ongoing banking reforms, and the role of the Central Bank in enhancing financial stability and supporting sustainable development paths.
Mechanisms for activating partnerships between monetary and research institutions were also discussed, contributing to the development of economic policies based on solid scientific and institutional foundations.
The meeting concluded with an emphasis on the importance of continuing dialogue and coordination between state institutions and the Iraqi research community, in a way that enhances sound decision-making and serves Iraq's regional and international
The office of Rafidain Bank in the Hashd Shaabi Directorate was closed
link
Rafideen Bank closed its office in Baghdad on Wednesday, October 15, 2025, and decided to move it to another branch in Baghdad.
"After the approval of the Central Bank-Supervision Department, Rafidain Bank closed its office in the Hashd Shaabi Directorate and transferred its financial accounts to the branch of the Seven Palaces area in Baghdad," an informed source said on condition of anonymity.
The source said the closure of the Rafidain Bank office in the department comes days after the US Treasury Department imposed sanctions on several Iraqi entities and personalities, including the company 'Mohandis'
The source said the closure of the Rafidain Bank branch in Yemen and the end of its financial and banking activities was due to the Houthis.
Iraqi banks have offices and branches in government ministries and agencies and work to organize their financial affairs quickly and easily.
On Thursday, October 10, 2025, the US Treasury Department imposed sanctions on the Hashdi Shaabi company Mohandis and a number of banks and businessmen involved in money laundering, currency smuggling and financing Iranian activities inside and outside Iraq.
Contractors rally in Baghdad over unpaid project funds
this is another headline for the same article
Basra contractors demonstrate in front of the Finance Ministry headquarters in Baghdad, demanding their dues: "Before the volcano erupts."
Iraqi contractors from several provinces gathered in Baghdad on Wednesday to protest outside the Finance Ministry, demanding payment of overdue dues for public works carried out across the country.
Hussein al-Maliki, head of the Iraqi Contractors Union in Basra, told Shafaq News that contractors have continued implementing service and infrastructure projects “despite financial hardship and heavy obligations,” but the ministry’s delay in releasing funds “now threatens the continuity of projects and the livelihoods of thousands of workers.”
“Further delays could bring near paralysis to service projects and deepen the crisis facing local companies and their employees,” he warned, adding that the Basra union has already cautioned local and federal authorities, including Prime Minister Mohammed Shia al-Sudani and Finance Minister Taif Sami, against ignoring the contractors’ demands and vowed to continue legal and peaceful action until all dues are settled.
Erbil, Baghdad to begin budget talks; A delegation will go to Baghdad soon
Peshawar Hawramany said that Erbil and Baghdad have started talks on the 2026 budget, and a delegation from the Kurdistan Region will soon go to Baghdad for this issue.
The big picture: In the Iraqi budget for 2023, 2024 and 2025, 12.67% was approved for the Kurdistan Region in the budget law, but the Iraqi government has not implemented the budget law as it is. The Kurdistan Regional Government is working to consolidate its financial rights and demands in the 2026 budget.
Official statement: Peshawa Haramani, spokesman of the Kurdistan Regional Government (KRG) told Ava Media: We have entered into negotiations with the Iraqi government for the 2026 budget, for this purpose, a delegation will soon go to Baghdad.
More information: According to Peshawar Hawramany, the Kurdistan Regional Government (KRG) has requested that the budget of the Kurdistan Region be determined on the basis of population.
Alongside this article; According to the tripartite agreement between the Kurdistan Region, the Iraqi government and oil companies, the export of oil from the Kurdistan Region and marketing through SOMO will continue until the 2026 budget is approved.
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After shaking hands with Al-Sudani, whoever fulfills Trump's conditions will be the next prime minister.
Sharm el-Sheikh Summit Confuses the "Axis of Factions"
US President Donald Trump is sending signals to Iraq, waiting for whoever picks them up to be the next prime minister.
According to politicians, Washington's calculations differ from the complex internal sectarian and partisan equations, specifically related to "disengagement from Tehran."
A photo of Prime Minister Mohammed Shia al-Sudani raising his finger while shaking hands with Trump at the recent Sharm el-Sheikh summit sparked divisions within the Shiite political system.
Politicians close to the "factions" and their supporters attacked the prime minister's behavior at the summit held last Monday, considering the
handshake an "insult to Iraq" in exchange for his bid for a second term.
News outlets affiliated with these groups described al-Sudani as having participated in Trump's "bad comment" when he said, "Iraq has a lot of oil but little brains!" according to the interpretation of these outlets.
During his speech at the Sharm el-Sheikh Peace Summit, while thanking the countries that contributed to the calming efforts, Trump warned that Iraq could face a “problem” if it failed to properly manage its oil wealth, saying: “Iraq is a country full of oil, and it will be a problem for you if you don’t know how to deal with oil.”
Meanwhile, Sadrist movement leader Muqtada al-Sadr rejected al-Sudani’s participation in the summit, describing it in a tweet as a “disgrace.”
Shibl al-Zaidi, leader of the Imam Ali Brigades, said in a post that attending the “normalizers’ summit” constituted “unacceptable flirting with the normalization axis,” considering al-Sudani’s participation “personal marketing at the expense of national constants.”
Last Monday, the official agency quoted an unnamed “senior source” as saying that al-Sudani would withdraw from the summit if Israeli Prime Minister Benjamin Netanyahu participated.
According to the Iraqi Foreign Ministry, al-Sudani's participation came at the official invitation of Egypt and the United States. Netanyahu did not actually attend the summit.
The handshake between al-Sudani and Trump came days after the US Treasury announced the designation of figures from the so-called "Axis of Resistance" and an Iraqi government institution on the "terrorist list."
According to his foreign affairs advisor, Farhad Alaa al-Din, al-Sudani was looking for a "mediator" or "lobbyist" to convey Baghdad's point of view to Washington, amid reports of a cooling of relations between the two countries.
"A showboating scene
"
Australia-based political affairs researcher Ahmed al-Yasiri believes Trump's comment on Iraqi oil is "normal" and part of a "political showboating scene."
Al-Yasiri told Al-Mada: "Not everything Trump says becomes his administration's foreign policy. His statement on Iraq was one of many he made to other leaders at the summit."
He added that "Trump often discusses Iraq in his posts, describing it as an oil country that has become the Harvard of corruption."
Trump previously expressed his displeasure in an interview with ABC News about "leaving Iraq" to be filled by the Iranians and ISIS, noting that the US administration should have stayed there "to control Iraqi oil."
Al-Yasiri believes that the Iraqi prime minister may have benefited from the way he met with Trump, explaining that "the signals that came out of the meeting show that al-Sudani may be a figure who understands the US administration."
The Road to a Second Term
Al-Yasiri, head of the Arab Australian Center for Strategic Studies, asserts that "the main basis of the Trump administration's policy toward Iraq is linked to the Iranian issue. If Trump is in a state of conflict with Iran, he tries to separate Iraq from it, and if he is in a state of rapprochement, he gives it space to be a local manager or contractor in Iraq."
He continues: "So far, Trump has not separated the Iranian issue from the Iraqi one, and this is clear from his administration's practices," adding that "Washington is not interested in the Iraqi elections themselves, but rather in the political figures they will produce."
He explained that what is important for the United States is that the elections produce "a figure who understands America, whether Shiite, Sunni, or Kurdish, provided that they are not affiliated with the Revolutionary Guard or subservient to Tehran." He added: "It does not matter if the figure understands Iran, as the Gulf states themselves are allies of America despite their understanding with Tehran."
On the other hand, Shiite political figures defended Al-Sudani's participation in the summit. MP Alia Nassif, a candidate on Al-Sudani's list, described his presence as "an honorable national stance."
Political analysts close to the "factions" and the "axis of resistance" ridiculed reports of America's intention to launch strikes on Iraq after the publication of a photo of a handshake between al-Sudani and Trump. Al-Sudani is presumed to be "wanted" in Iraq over the 2020 killing of Abu Mahdi al-Muhandis, deputy head of the Popular Mobilization Forces (
PMF). In contrast, former MP Mithal al-Alusi told Al-Mada: "The United States is looking for a government in Iraq that represents Baghdad, not Tehran."
He added: "There is an American trend toward increasing the investment of American companies in Iraq, and this is a message that Washington is pushing for stability, but will not accept the dominance of militias."
Last week, ExxonMobil, the American energy giant, returned to the Iraqi oil scene after a nearly two-year hiatus.
On October 8, al-Sudani announced the signing of an agreement with the company to develop the giant Majnoon oil field in Basra, in addition to expanding the country's oil export infrastructure.
Warning of US sanctions: "They have eroded confidence in Iraqi banking institutions."
Financial expert Mahmoud Dagher said on Wednesday that the recent US sanctions on Iraq have caused a "loss of confidence in the country's banking institutions."
Dagher, who previously served as the director general of the Central Bank, told Shafaq News Agency, "There is no direct impact from the US sanctions, but there is an indirect impact, which is the loss of confidence in Iraqi banking institutions."
He added, "The new sanctions targeted a public company that was subject to state-sponsored sanctions, which impacts psychologically, confidence, the economy, and finances," noting that "without this confidence, the market falters."
He expected that there would be a series of upcoming US sanctions.
Last Thursday, the US Treasury Department announced sanctions on Iraqi banking companies and individuals, including the Al-Muhandis State Company, the economic arm of the Popular Mobilization Forces (PMF), a number of prominent bankers, and companies suspected of having ties to the Iranian Revolutionary Guard Corps and Kata'ib Hezbollah.
An expert identifies the reasons for the country's fluctuating economic growth.
Nouri explained in a statement to Al Furat News Agency, that "the fluctuating economic growth in Iraq is mainly due to the almost total dependence on oil sales revenues for decades, and this faces the risks of a decline in the selling price." He pointed to "the weak contribution of non-oil revenues from the industrial, agricultural, tourism and tax sectors, in addition to the preparation of general budgets with high operating expenditures at the expense of the investment budget."
He added, "Diversifying revenues is an urgent economic requirement and is one of the recommendations of the International Monetary Fund, both past and present. This diversification is represented by reliance on national agricultural and industrial production, but there are no plans or insistence on this approach over decades." He noted "the deterioration of the infrastructure necessary to advance local production."
He explained that "one possible solution is public-private partnership contracts, whether local or foreign, and this requires legislation, and the draft law is present in the House of Representatives." He stressed "the importance of encouraging foreign and local investment in agricultural and industrial production."
Nouri continued, "The security and political situation, as well as administrative and financial corruption, are a major reason for the reluctance to invest," noting that "the problem, in general, lies in the integrity and economic orientation of public finance management."
Hawrami: The delay in August salaries is due to a lack of liquidity in Baghdad, and the problem will be resolved soon.
Kurdistan Regional Government (KRG) spokesperson Peshwa Hawrami said on Wednesday that the delay in sending August salaries to Kurdistan Region employees by the federal government in Baghdad is due to the lack of financial liquidity at the federal Ministry of Finance. He stressed that the problem is not difficult and will be resolved soon.
In a statement to Kurdistan 24, Hawrami said that today's Kurdistan Regional Government (KRG) Council of Ministers meeting was devoted to discussing internal revenues, particularly after a special delegation from the federal Ministry of Finance, tasked with non-oil revenues, visited the relevant ministries in the Kurdistan Region.
Hawrami emphasized that securing employee salaries is a core function of the government, noting that the Kurdistan Regional Government is making strenuous efforts to secure 120 billion dinars in non-oil revenues and send them to Baghdad to ensure that no local obstacles hinder the disbursement of salaries and safeguard employee rights.
He pointed out that the Kurdistan Regional Government is working quickly on the payroll issue, saying, "We are very quick to prepare lists, respond to requests, and organize oil and non-oil revenues so that there are no problems or disputes with the federal government, and the salaries of Kurdistan Regional Government employees are not lost."
Regarding the fate of salaries for the coming months, Hawramani explained that the federal government had requested additional time to secure liquidity, stressing, "We have been told to give them some time. The problem is not difficult and will be resolved soon."
He added, "The October payrolls are ready, and as soon as August salaries arrive, we will immediately begin preparing 120 billion dinars from internal revenues for next month's salaries."
Today, Wednesday, October 15, 2025, the Kurdistan Regional Government Council of Ministers held its weekly session, chaired by Prime Minister Masrour Barzani, and attended by Deputy Prime Minister Qubad Talabani.
The main focus of the meeting was to assess the financial situation in the Kurdistan Region, particularly after the tripartite agreement on oil exports came into effect. The Council also followed up on the steps related to the disbursement of salaries to the region's employees for August, September, and the remaining months of 2025.
The Council reviewed a report prepared by the Ministry of Finance and Economy on the financial situation. The Director General of Accounting provided a detailed explanation, supported by figures and data on revenues, expenditures, and the monthly deficit. The Federal Ministry of Finance had previously been informed of this data as part of the financial review balance.
The Minister of Finance and Economy, the Chief of Staff of the Council of Ministers, and the Secretary of the Council then provided additional clarifications on the report, which was prepared in coordination with the relevant ministries and institutions in the region.
After extensive discussions, the Council of Ministers approved a package of recommendations and proposals aimed at ensuring the security of salaries and financial benefits for Kurdistan Region employees and the continuity of providing essential services to citizens. The Council directed the Ministry of Finance to issue the necessary instructions to facilitate their implementation. These instructions include emphasizing the Kurdistan Region's commitment to transferring the federal treasury's share of non-oil revenues, and giving this issue top priority over all other expenditures. This aims to eliminate any excuses preventing the payment of salaries for August, September, and subsequent months, especially since the salaries for the aforementioned months have not yet been disbursed, despite us having reached the middle of October.
The Council of Ministers renewed its call for the federal government to instruct the federal Ministry of Finance to disburse the region's dues, especially in light of what the acting Minister of Natural Resources explained, that the tripartite agreement to export the region's oil is being fully implemented, as SOMO has marketed more than three million barrels of the region's oil on global markets, and its revenues have been deposited with the federal Ministry of Finance.
Rafidain Bank: Commencement of semi-annual interest payments to holders of the first Emaar bond issue.
Rafidain Bank announced, on Wednesday, the start of disbursing semi-annual interest payments to holders of the first issue of Emaar bonds, affirming its continued commitment to the principles of reliability and transparency towards its customers. According to a statement received by ( IQ
), the bank called on bondholders to visit its branches in all governorates to receive their financial dues with ease and convenience.
The bonds include the following: • Bonds of category (500,000) five hundred thousand dinars with an annual return of 6% paid every six months for a period of two years. • Bonds of category (1,000,000) one million dinars with an annual return of 8% paid every six months for a period of four years. Rafidain Bank stressed that “the regular disbursement of returns on their scheduled dates reflects the strength of the bank’s financial position and investors’ confidence in its capabilities, and reflects its position as one of the safest and most stable national investments.” The bank also emphasized that "Emaar bonds represent a unique opportunity for citizens and investors to contribute to supporting reconstruction and development projects within a framework of financial security and guaranteed returns, ensuring that Rafidain Bank remains a trusted partner in building Iraq's prosperous economy."
Jordanian firm to supply MIS to Iraqi Company for Bank Guarantees (ICBG)
Delta Informatics, based in the Jordanian capital Amman, has won a contract with the International Labour Organization (ILO) for, "Procurement of MIS for The Iraqi Company for Bank Guarantees (ICBG)"
Description (RFP/28/2025/JOG/HQ):
"The International Labour Organization (ILO) is seeking a qualified technology solution providers to propose a comprehensive, scalable, and secure Management Information System (MIS) solution that meets Iraqi Company for Bank Guarantees (ICBG) functional, technical, and regulatory requirements. The selected vendor will be responsible for the delivery, configuration, customization, deployment, coaching/training, and post-implementation support of the MIS system."
The contract value was not disclosed.
KB
KBR supporting Digital Transformation in Iraq
The Ministry of Trade has held a joint meeting between the Department of Foreign Economic Relations and the economic team from US-based KBR to discuss areas of cooperation supporting Iraq's trade policies and digital transformation efforts.
According to a ministry statement, Director General of the Department, Riyadh Al-Hashemi, highlighted the importance of strengthening technical collaboration in digital transformation, updating legislative and regulatory systems to improve the business environment, and enhancing Iraq's integration into the global economy in line with international standards.
The KBR team is working under a cooperation agreement with the Ministry of Planning aimed at supporting and evaluating Iraq's economic landscape, as part of joint efforts to enhance institutional performance and advance economic reforms.
Both sides agreed to continue coordination and dialogue to expand cooperation in trade, investment, and economic development to boost national competitiveness and achieve sustainable growth
Al-Sudani: We have achieved many accomplishments in less than 3 years and we aspire to more
Prime Minister Mohammed Shia Al-Sudani confirmed today, Wednesday, that his government has achieved many accomplishments in less than 3 years, pointing out that workers in the private sector are included in residential lands, in addition to granting them loans from banks.
The Prime Minister's media office said in a statement, received by Mail, that "Al-Sudani received a number of tribal sheikhs and dignitaries of Al-Mada'in district, southeast of the capital, Baghdad."".
According to the statement, Al-Sudani stressed his "keenness to meet our people from different governorates," noting that "the security and stability that Iraq is going through today has enabled the government to move with its efforts to services, reconstruction, and development, which is a right for Iraq and its people."".
He explained that "the country was exposed to wars and blockades, and suffered from terrorism after 2003, and this directly affected the general situation there," stressing that "Iraq paid a heavy price in order to achieve societal stability, and to support security that was achieved with the keenness of citizens, and the efforts of our security forces that impose their control today over the entire country."".
He added, "The government left a tangible impact on the citizen regarding what it accomplished in reconstruction and development projects throughout the country"".
The Prime Minister stressed: "In less than 3 years, we have achieved many accomplishments, and we aspire to achieve greater accomplishments."".
He added: "There are more than 2,538 projects that have been stalled for years. We have started implementing them and launched new projects in Baghdad and the governorates."".
He added: "We implemented infrastructure projects in the districts of Nahrawan, Al Wahda, Sabaa Al Bor and Abu Ghraib," noting that "the service effort projects provided a quick service and reduced the cost for more than 3 million citizens in various governorates."".
He added: "We have implemented 511 projects within the service effort projects in Baghdad and the governorates, and we are continuing to work to implement service projects."".
Al-Sudani went on to say: "We have full knowledge of the needs of the areas on the outskirts of Baghdad, and work is underway to provide all services, and we have focused on developing and rehabilitating the entrances to the capital, Baghdad," indicating that "the establishment of a 50-bed hospital in Al-Mada'in district will begin soon, in addition to completing Al-Nahrawan Hospital with a capacity of 200 beds."".
He pointed out that "youth constitute (60%) of society, and we were able to provide more than 500,000 jobs in the private sector"".
He stressed that "the worker in the private sector enjoys rights and privileges thanks to the Retirement and Social Security Law", stressing that "workers in the private sector have been included in residential lands, in addition to being granted loans from banks"".
He pointed out that "the government places the interests of Iraq and its people above all considerations, and we acted responsibly to avoid slipping into war, while maintaining our principled position on the Palestinian issue."".
He added: "Elections are everyone's commitment and responsibility, and broad participation in them means shaping the future of the country," adding that "choosing the most suitable and competent means continuing reform and work to achieve more accomplishments.""
Payroll cycle
There is no doubt that salaries and wages constitute the largest share of the state's general budget, given the large number of public sector employees, in addition to the salaries of retirees, those covered by the social security network, contractors, and other groups receiving income from the state treasury. The amount spent on salaries, including their various details, is estimated at approximately 86 trillion dinars in 2024, equivalent to more than $62 billion annually. This is a very large figure when compared to the budgets of other countries. This figure naturally raises questions about the developmental impact of this massive monetary bloc. If a portion of it were directed toward financing investment projects in vital sectors such as education, health, and infrastructure, it could bridge many of the development gaps that remain evident in various aspects of the national economy.
However, talking about the huge expenditure on salaries does not necessarily mean that it is a completely negative financial burden, as this monetary mass has tangible economic effects, as it drives the wheel of economic activity in the country.
Employees who receive a monthly salary allocate a portion of it toward construction or home purchases through bank loans. This revitalizes the housing sector, which is one of the most intertwined with other productive and service sectors, especially given the banking facilities banks offer to borrowers for housing or car purchases.
The impact of salaries also extends to other sectors, such as transportation, restaurants, medical clinics, education, entertainment, tourism, trade, and other daily activities, as they constitute the primary source of demand that ensures the continued circulation of the market.
This is most evident when salaries are delayed by just a few days, as markets stagnate and business activity declines significantly.
Another equally important aspect relates to the services provided by the state to citizens, which are often free or virtually free, such as electricity, fuel, education, health, roads, and others.
These services are provided by state employees who receive their salaries from the general budget. This means that the state pays them for the service they provide to citizens, as if it were paying the cost of these services on their behalf, which would be very expensive in other countries.
While the number of government employees in Iraq is large relative to the population, and may exceed actual needs in some sectors, salaries and wages have an effective and influential economic cycle, contributing to maintaining market stability and stimulating economic and social activity.
The larger the size of this monetary mass, the greater the impact on the country's general economic cycle.
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