Saleh's statement: No change in the exchange rate and the Iraqi economy is stable.
Saleh said in a press statement followed by Al-Furat News that “what happened in the parallel exchange market during the past few days is nothing more than an emergency and temporary fluctuation resulting from inaccurate information effects known in economic analysis as “color noise,” which is confused information that is mostly based on rumors, and leads to uncertain behavior and short-term speculation in the unregulated money market.”
He added that "transitional periods usually witness such price movements, especially as the country continues in the post-legislative election phase, and in parallel with the implementation of the customs governance system and its digital procedures in accordance with international standards, including customs tracking systems and modern digital applications that enhance transparency and discipline in the commercial and financial environment together."
Saleh explained that “the aforementioned fluctuation in the price of the dollar against the dinar in the parallel market has not left a substantial impact on the stability of the general price level, as monetary policy continues to achieve its operational and intermediate goals in stabilizing prices in general and maintaining the stability of the official exchange rate in particular, a path that is reflected in the decrease in the annual inflation growth rate to normal fractional levels not exceeding 2.5% annually.”
He pointed out that “the policy of fixed exchange rate is an adopted policy based on fundamental principles, foremost among them the efficiency of foreign reserves supporting the stability of the official exchange rate of 1320 dinars per dollar. It is also noted that international institutions, foremost among them the World Bank and other multilateral global financing institutions, view with satisfaction the government’s reform steps in the banking sector and the general financial and economic sector, which encourage the investment environment, especially the trend towards strengthening the partnership between the state and the private sector, all of which are among the basic pillars for building a diversified economy that supports the paths of sustainable development identified by the methodology of Iraq Vision 2050.”
Iraq's budget deficit is nearing 20%... and Al-Sudani's advisor says the economic situation is stable.
The “Eco Iraq” economic observatory revealed on Saturday the size of the financial deficit in Iraq for the first nine months of this year, which amounted to 17 trillion and 686 billion dinars.
The observatory stated in a statement that “the total expenditures of the state until the end of September amounted to 108 trillion and 854 billion dinars,” adding that “oil and non-oil revenues amounted to 91 trillion and 168 billion dinars.”
The observatory stated that “the real deficit until the end of the ninth month amounted to 17 trillion and 686 billion dinars,” explaining that “this deficit is increasing month after month without any real solutions to reduce it or increase revenue streams.”
The observatory pointed to “the need to reduce expenditures not related to salaries, such as investment expenditures that exceeded 14 trillion dinars, as well as limiting the purchase of unnecessary goods and services,” while stressing “the need to increase taxes on imported non-food goods and commodities, in addition to imposing higher fees on tourists and expatriates for the purpose of working in the country.”
The observatory revealed figures documenting the Iraqi financial situation up to the end of September 2025, which are as follows:
1- Actual spending: 108,854,840,677,853 dinars
2- Total revenues: 91,168,419,514,684 dinars
3- Financial deficit up to the end of September: 17,686,421,163,169 dinars (about 17.7 trillion Iraqi dinars)
4- Percentage of financial deficit up to the end of September: about 19.4% of total revenues.
For his part, the Prime Minister’s financial advisor, Mazhar Muhammad Saleh, confirmed on Saturday that the official exchange rate is fixed at 1320 dinars and that the recent fluctuations have no significant impact, while indicating that the Iraqi economy is stable and inflation has declined to 2.5%.
Prime Minister's Advisor Mazhar Muhammad Salih told the official news agency, as reported by Iraq Observer, that "what happened in the parallel exchange market in recent days is nothing more than a temporary and temporary fluctuation resulting from inaccurate information known in economic analysis as 'color noise.' This is distorted information, often based on rumors, that leads to uncertain behavior and short-term speculation in the unregulated money market."
He added that "transitional periods typically witness such price movements, especially as the country continues in the post-parliamentary election phase, and in parallel with the implementation of the customs governance system and its digital procedures according to international standards, including customs tracking systems and modern digital applications that enhance transparency and discipline in both the commercial and financial environment."
Saleh explained that “the aforementioned fluctuation in the dollar-dinar exchange rate in the parallel market has not had a significant impact on the stability of the general price level, as monetary policy continues to achieve its operational and intermediate objectives in stabilizing prices in general and maintaining the stability of the official exchange rate in particular. This trajectory is reflected in the decline of the annual inflation growth rate to normal levels, not exceeding 2.5% annually.”
He pointed out that “the fixed exchange rate policy is an established policy based on fundamental principles, foremost among them the efficiency of foreign reserves supporting the stability of the official exchange rate at 1,320 dinars per dollar. It is also noteworthy that international institutions, particularly the World Bank and other multilateral financing institutions, view with satisfaction the government’s reform measures within the banking sector and the broader financial and economic sectors, which encourage an investment-friendly environment, especially the move towards strengthening the partnership between the state and the private sector. All of these are considered fundamental pillars for building a diversified economy that supports the paths of sustainable development outlined in the Iraq Vision 2050 methodology.”
The exchange rate in Iraq is the first victim of the implementation of the "ASCUDA" customs audit system.
With the start of the implementation of the European audit system “ASYCUDA” in Iraq, the exchange rate of the dollar rose within the parallel market, which economists considered a normal matter in the first stage of implementation.
Since the beginning of December, Iraqi markets have witnessed a gradual rise in the exchange rate of the dollar in the parallel market, reaching 1430 dinars after a period of stability in which the dollar reached less than 1390 dinars.
This continuous increase coincides with the entry into full implementation of the European audit system “SKODA” at customs ports, a system that relies on digital tracking and linking customs data with banks, which reduces reduced invoices and non-conforming documents.
Skoda advanced connectivity system
Skoda represents a digital inspection system developed in Europe, a transition from a customs model based on the traditional document to a system that links customs data with banks and ports.
Once the system is operational, it is no longer possible to pass goods based on low-value invoices or non-conforming documents.
The system fixes the true price of goods according to international databases, matches certificates of origin with transfer movements, and prevents any transaction in which financing transparency is not available.
Economic experts believe that this transitional phase, although a step towards greater transparency and discipline, naturally generates temporary pressures on the market and raises the actual demand for the dollar, especially with the increasing talk about the possibility of tightening banking compliance rules related to foreign transfers.
Dollar exchange rate rise
Financial and banking expert Mahmoud Dagher said that the rise in the dollar exchange rate in the parallel market came after the announcement of the implementation of the ASYCUDA customs system starting from December 1st.
He explained that the current application includes only four goods, namely gold and jewelry, mobile phones, cars and refrigeration equipment, and that the mechanism will be extended to include all goods at the beginning of 2026.
Dagher added that the government may face challenges in implementing the system within the border crossings in northern Iraq, as they do not rely on Skoda, which will hinder the ability of traders there to conduct financial transfers officially, making the market watchful for any reactions that may come during the next stage.
He added that this system created a “temporary duplication” of fees between the old and new systems, which led to additional pressure on the market and short-term effects on the exchange rate.
On the other hand, economic researcher Ali Awad believes that the recent rise in the dollar exchange rate is a natural result of the transitional phase the country is going through with the full implementation of the European customs audit system “Skoda”.
He explained that the market is undergoing a comprehensive restructuring of import costs, which usually leads to a temporary increase in demand for the dollar before prices stabilize at new levels that demonstrate the ability of institutions to manage the transition and secure official channels that comply with the requirements of the new system.
Awad added that there are serious concerns being raised today about possible attempts to sabotage the program.
He pointed out that previous experiences have shown the ability of some influential parties to disrupt customs reform efforts and to thwart similar systems by circumventing procedures or hindering their implementation.
The Ministry of Commerce announces the imminent launch of an application that will allow citizens to complete their transactions via mobile phone.
Minister of Trade, Atheer Dawood Al-Ghurairi, announced the launch of more than 60 digital services before the beginning of 2026, emphasizing that the official application will allow citizens to complete their transactions via their mobile phones.
Al-Ghurairi stated that "the ministry will witness a significant transformation in the field of digitalization across various sectors before the start of the new year, 2026, including the ration card, e-commerce, certificate of origin registration, and company registration," confirming that "more than 60 services will be launched through the electronic application."
He indicated that "ideal service will be provided to Iraqi citizens through a mobile application encompassing more than 60 services."
He explained that "company registration procedures will be entirely electronic, and upon completion of the update, all ration card procedures will be electronic, and certificate of origin authentication will be done electronically without the need to travel from one country to another, from one governorate to another, to a commercial attaché, or elsewhere."
He continued, "There will also be an e-commerce website controlled by the Ministry of Trade to protect both producers and consumers, and all businesses promoting through social media platforms will be licensed, similar to company registration, but with simplified procedures."
Qatar's Minister of Finance at the Doha Forum 2025: Financial sustainability and reducing debt to 41%
He explained that Qatar is seeking to double its gas exports over the next five years, noting that most of the country's economic growth is achieved through the non-oil economy, with non-oil GDP recording growth of 5.3% this year.
The minister noted that the Qatar Investment Authority continues to perform well in the field of foreign investment, pointing out that disciplined economic policies have resulted in reducing the public debt ratio from 58% in 2021 to 41% currently.
Al-Kuwari concluded by noting that the global credit rating of the Qatari economy has reached AA+, reflecting the strength of the economy and the financial policies followed.
The Foreign Minister is holding a series of meetings on the sidelines of the Doha Forum
Foreign Minister Fuad Hussein held a series of meetings on the sidelines of the opening of the Doha Forum 2025, held in the State of Qatar in its twenty-third edition.
In separate statements , the Foreign Ministry said that Hussein met with the Deputy Foreign Minister for Political Affairs of the Kingdom of the Netherlands, Marcel de Vink.
During the meeting, “bilateral relations between the two countries and ways to strengthen them in areas of common interest were discussed.”
Iraqi-Dutch talks
According to a statement from the Iraqi Foreign Ministry, De Vink offered his congratulations on the success of the electoral process in Iraq.
Minister Hussein noted that “the elections proceeded very smoothly,” emphasizing that “they were characterized by accuracy and organization.”
He added that "this success reflects the progress of the democratic experience in the country."
The minister also reviewed “the ongoing political activity in Iraq to form the next government.”
He stressed "the keenness of all parties to promote political stability."
The meeting addressed “the upcoming visit of the Dutch Prime Minister to Baghdad next February, which will witness the signing of a number of memoranda of understanding in the fields of energy, water and agriculture.”
According to the statement, the visit will include “inspecting the ongoing work at the Grand Faw Port in Basra, where Dutch companies are involved in a joint project to carry out dock construction and infrastructure development work.”
The two sides discussed “developments in the region, particularly the Iranian issue, and stressed the need to adopt dialogue as the best option for achieving regional stability.”
The importance of the role played by Iraq in promoting regional security and maintaining balance in the region was also noted.
The Foreign Minister meets with his Spanish counterpart
In addition, the Foreign Minister met with the Spanish Foreign Minister, José Manuel Álvarez, on the sidelines of their participation in the 23rd Doha Forum in the State of Qatar.
According to a statement from the Ministry of Foreign Affairs, “During the meeting, emphasis was placed on the importance of strengthening bilateral relations between the two friendly countries, in a way that serves common interests and enhances cooperation in various fields.”
The Spanish minister expressed his country's readiness to sign a strategic partnership agreement with Iraq, which would establish a comprehensive framework for the distinguished relations between the two sides.
For his part, Minister Hussein affirmed his pride in Iraq’s relations with Spain and the European Union, praising the support provided by NATO and the existing cooperation with the Iraqi Ministry of Defense.
He also reviewed the developments in the political process in Iraq, noting the “efforts made by the Iraqi parties to form a comprehensive national government.”
The situation in Gaza and Lebanon
The two sides also discussed regional developments, particularly the situations in Gaza and Lebanon, and stressed the importance of achieving stability in the region and supporting efforts to de-escalate tensions.
At the end of the meeting, Minister Hussein extended an invitation to his Spanish counterpart to participate in an international conference on combating terrorism scheduled to be held in Baghdad next May.
, Carl Skau, on the sidelines of the 23rd Doha Forum programme Hussein also met with the Deputy Executive Director of the World Food
Holiday hype: Festive fever takes over Kirkuk streets
oliday crowds are filling Kirkuk’s markets ahead of Christmas and New Year, with streets shimmering with lights and shopfronts putting up trees, ornaments, and festive displays, Shafaq News correspondent reported on Saturday.
Qishla Street, one of the city’s busiest commercial areas, has taken on a distinctly seasonal look, drawing families who come to browse its growing variety of holiday decorations.
Among them was Ninos Jamil, a young Christian choosing new ornaments for his home. He said the spread of decorations across Kirkuk has brought a cheerful mood to the city and encouraged families to prepare early for the celebrations.
On the same street, Rita Khalid pointed out that the tradition of decorating begins two weeks before Christmas, and that her children wait eagerly for the moment the lights are switched on. Despite economic difficulties, she said, the holiday remains a cherished part of the year.
Shop owner Abbas Hassan said commercial activity picked up in early December, with steady purchases from both Christians and Muslims. Small and medium-sized trees are the most in demand, he noted, adding that although import-related costs have pushed prices up slightly, local alternatives remain available.
Churches across Kirkuk are also preparing for the season, setting up nativity scenes, candles, and soft lighting that add to the city’s warm atmosphere. Families are getting ready for masses and gatherings, while neighbors exchange greetings and traditional sweets.
As Christmas Eve approaches, the spirit of coexistence that characterizes Kirkuk becomes even more evident. Christian families select trees and ornaments, while many Muslim families decorate for the New Year, giving the city a shared festive glow.
Proposing bold decisions... An economist tells Iraq Observer: The drop in oil prices threatens Iraq's finances... and multiple exchange rates will not withstand market turmoil.
Economic expert Adel Al-Dalfi warned that Iraq is approaching a sensitive economic stage in which public finances may be directly affected if oil prices are subjected to a new wave of decline as a result of the return of supplies from producing countries - such as Venezuela, Iran and Russia - to the markets, or if political breakthroughs occur that may increase global supply and put pressure on prices.
In an analytical article sent to Iraq Observer, Al-Dalfi said that Iraq’s dependence on oil for more than 90% of its budget makes the general budget “fragile in the face of any external turmoil,” stressing that the current policy of multiple exchange rates “will not be able to protect the currency or the market against expected global shocks.”
Al-Dalfi explained that the multiplicity of exchange rates temporarily helped to control the demand for the dollar and secure basic imports, but on the other hand it led to the growth of the parallel market, distortion of prices and weakening confidence in the currency, which makes it (in his words) “a transitional path that cannot be relied upon for long.”
He pointed out that any shock in oil prices will immediately affect the state’s financing capacity and the stability of the exchange rate, which forces Iraq to think about broader options than just managing the dollar exchange rate.
Al-Dalfi called for the adoption of a package of internal alternatives that would enhance Iraq’s ability to finance its needs away from the fluctuations of oil, most notably:
accelerating the implementation of the development project and the Grand Faw Port as a gateway to creating sustainable resources from transportation and logistics and attracting international investments.
Directing all revenues from petroleum derivatives to the treasury
And reducing waste that deprives the state of important financial resources.
Restoring and centrally managing the revenues of the Ministry of Interior, ports and Baghdad Municipality through digitization and transparency, to provide the budget with large daily revenues.
Reforming the tax system and activating tax collection to create a stable financial resource reduces pressure on the exchange rate and limits reliance on auctions.
Developing savings and financing tools in dinars to enhance confidence in the currency and reduce demand for the dollar in the market.
Updating the banking sector and linking it to international standards to facilitate transfers and reduce reliance on the currency auction window.
Al-Dalfi's vision reflects that Iraq's financial stability will not be achieved solely through exchange rate management, but rather through a shift towards a productive economy with diversified sources of funding. He believes that confronting a potential drop in oil prices requires bold decisions that address the root causes of economic imbalances, not merely short-term monetary measures.
Want to Support My FX Buddies?
.png)
CoinChapter dot com new write up with emojis
https://coinchapter.com/
Pre-Launch Ending December 15th, 2025
After that date the Launch price will be $0.001
my link to get 5000 bonus coins or use the QR code below
Support My FX Buddies Big or Small I appreciate it all
BuyMeACoffee CashApp:$tishwash
https://paypal.me/tishwash
.jpeg)
Washington is upset: Baghdad's reversal on freezing Hezbollah and Houthi assets puts the Central Bank in "trouble".
Iraq’s freezing of Hezbollah and Houthi assets and placing them on the terrorism list, and then reversing that decision, has sparked widespread concern, given the serious political and economic consequences of this fluctuation.
According to observers, such confusion undermines the international community's confidence in Iraq's ability to adopt stable decisions, and puts its financial institutions under direct pressure from the US Treasury, which may reclassify it as a financially unsafe environment, as well as threatening new sanctions and deepening internal divisions.
The US State Department expressed its “deep disappointment” at the Iraqi government’s reversal of its decision to freeze the assets of the Lebanese Hezbollah and the Yemeni Houthi group, considering that the two groups pose a “danger to the Middle East and the world,” amid escalating regional tensions.
A spokesperson for the US State Department said, in a statement followed by “Al-Alam Al-Jadeed” (December 6, 2025), that his country expected Baghdad to take practical steps to reduce the influence of armed groups loyal to Iran, including those active inside Iraq.
The spokesman stressed that the United States will continue to pressure Iraq to curb the activities of groups linked to Tehran, emphasizing that Iraqi territory must not be used by these entities for training, fundraising, acquiring weapons, or carrying out attacks.
This stance comes in the context of an American escalation against armed groups in Iraq, following a series of attacks targeting bases housing American forces, while Washington continues to call on Baghdad to impose full control over weapons and enforce financial measures against entities classified as terrorist.
In this regard, economist Ziad al-Hashemi warned that the Central Bank of Iraq is entering a “real predicament” and a potential crisis with the US Treasury Department, due to internal political pressures to cancel the decision to freeze the assets of regional armed groups that have close ties to the ruling system in Baghdad.
Al-Hashemi explained, in a post on his account on the “X” platform, which was reviewed by “Al-Alam Al-Jadeed”, that the decision, which was published in the Official Gazette and issued by a committee headed by the Governor of the Central Bank and his deputy, was in line with the sanctions issued by the US Office of Foreign Assets Control (OFAC), which target entities and individuals accused of money laundering or supporting terrorism.
He stressed that the central bank is facing a very critical situation, between international legal obligations regarding compliance with US sanctions, and local pressures demanding a reversal of the decision, which may actually lead to its cancellation in response to those pressures.
Al-Hashemi warned that “any reversal of the decision will put the Central Bank in direct confrontation with the US Treasury, and undermine its recent efforts to improve financial compliance and combat money laundering, which could lead to Iraq being reclassified as a center for facilitating the financing of sanctioned groups, and open the door to new sanctions that may target Iraqi parties this time.”
The Iraqi government issued an official decision classifying both “Lebanese Hezbollah” and “Ansar Allah” (the Houthis) as “terrorist entities” within the country, and accordingly ordered the freezing of all their funds and assets. The Iraqi Gazette published in its issue (4848) dated 11/17/2025 a decision issued by the (Committee for Freezing Terrorist Funds) No. (61) dated 10/28/2025 ordering the “freezing of terrorist assets” of 24 entities, which it classified as terrorist organizations.
However, the Iraqi government, represented by the “Media Office of the Prime Minister,” stated that Prime Minister Mohammed Shia al-Sudani directed “an urgent investigation into the error contained in the decision of the Committee for Freezing Terrorist Funds (No. 61 of 2025), published in the Iraqi Gazette in its issue dated November 17, 2025, which included texts reflecting inaccurate positions that do not express the official policy of Iraq,” noting that “the Iraqi side’s approval to freeze the funds was solely in response to a Malaysian request, and was limited to entities and individuals associated with ISIS and al-Qaeda only.” Meanwhile, the Central Bank quickly submitted an urgent and confidential request to remove the names of Hezbollah and the Houthis from the decisions to freeze the funds of “terrorists” published in the Iraqi Gazette.
Washington Institute: Resumption of the Kurdish ITP oil pipeline to America boosts the Iraqi economy
The Washington Institute highlighted the symbolic, political and economic importance of delivering the first shipment of oil exported from the Kurdistan Region via the ITP pipeline to the US port of Louisiana.
The American Institute, in a report translated by Shafaq News Agency, stated that in addition to providing this low-cost crude oil of a quality suitable for American refineries, the resumption of oil flows through this pipeline reflects a potential strengthening of American policy towards both partners and adversaries.
The report stated that on November 24, two months after the reopening of the ITP pipeline, an oil tanker loaded with oil from the Kurdistan Region, after sailing from the Turkish port of Ceyhan, was unloaded at the Louisiana oil terminal.
He noted that although US oil imports are generally driven by trade and pricing dynamics, this particular shipment would not have been possible without the interim deal brokered by the United States last September, under which Baghdad, regional officials in Erbil, and international oil companies operating in northern Iraq agreed to reopen the ITP pipeline after it had been shut down for more than two years.
According to the American report, Washington played an influential role in the Iraqi energy landscape, ensuring that the 2005 Iraqi constitution recognized the Kurdish joint administration's rights to oil resources and linking the encouragement of American international companies' participation in southern Iraq with support for American companies in the north, in addition to mediating several deals between Baghdad and Erbil regarding the sharing of oil revenues.
In addition, the report noted that Washington encouraged Turkey, Iraq and the Kurdistan Region to accept compromises to achieve a breakthrough in the ITP pipeline issue.
Therefore, the report called on US officials to work to maintain this current close engagement, given its importance to the stability of Iraq, a major producer and supplier of oil to global markets, and to US companies seeking to expand their projects in the north or return to strengthen their assets in the south.
The report suggested that American support for these economic assets of Baghdad could help counter Iranian influence by demonstrating to Iraqis that there are tangible benefits to cooperating with the United States.
After questioning why US refineries were importing northern Iraqi oil, the report explained that, according to data from Kpler, the tanker Seaway Brazos loaded about one million barrels of northern Iraqi crude at the Ceyhan terminal in late October before sailing towards Louisiana, noting that more of these ships are expected to be unloaded in the United States in the near future.
The report explained that these shipments were partly driven by the desire to obtain medium sour crude of the type produced in northern Iraq, noting that while US refineries work on different types of oil, not all types are produced locally or transportable in a cost-effective manner.
He went on to say that although the United States exports light sweet crude, it imports medium, heavy sour and other types from places such as the Middle East and Latin America in order to meet the demand from refineries designed to work on these crudes.
The report stated that Kurdish oil exporting companies, in order to attract buyers via Ceyhan, offered large discounts after the ITP pipeline was reopened, and exports were quickly resumed.
The report addressed the geostrategic importance of the ITP pipeline, noting that the interim agreement to resume work on the pipeline paved the way for further negotiations between Baghdad and Erbil on the controversial issue of oil production and exports from northern Iraq, as well as talks related to the more than $1 billion in arrears owed by Erbil to International Oil Companies (IOCs).
The report considered these talks and the ITP line itself to be of great importance to both global energy markets and Washington’s geostrategic interests.
He went on to say that the more Baghdad uses this pipeline to export oil from other parts of Iraq, the stronger its bilateral ties with Turkey become, adding that, ideally, this would also reduce Iran’s influence in Baghdad, especially with regard to energy issues.
After noting that the Kurdistan Region is relatively rich in both gas reserves and electricity generation compared to the rest of Iraq, the report went on to say that as the energy relationship between Baghdad and Erbil grows, international companies operating in northern Iraq and other investors can expand their operations in the region in ways that enable the Kurds to export gas to the rest of Iraq, thereby reducing Baghdad’s dependence on Iran and strengthening electricity cooperation between the Kurdistan Region and the federal government.
According to the report, "it is not surprising that pro-Iranian militias attacked Kurdistan's largest gas production complex with a missile strike last week."
The report suggested that other positive outcomes might include an amicable resolution to the fallout from Iraq’s international legal case against Türkiye for importing Kurdish oil over the past decade without Baghdad’s permission.
Therefore, he indicated that US officials must also do everything they can to facilitate successful talks between Iraq and Turkey regarding the expanded deal on the ITP pipeline.
The report concluded that "pressure from the United States and the European Union appears to have forced Turkey to reduce its imports of Russian crude oil - which averaged around 300,000 barrels per day during the first nine months of this year - and to diversify its oil sources, so the ITP pipeline could offer Ankara a similar type of crude oil from a nearby source, with potentially steep discounts."
