The banking sector is under pressure from the turmoil; off-the-board activities threaten monetary policy.
According to observers, the banking sector is witnessing an expansion in practices that are inconsistent with real banking work, taking advantage of the state of instability, which negatively affects the policy drawn up by the Central Bank and the confidence of citizens.
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On Wednesday, financial and banking expert Abdul Aziz Hassoun called on the Central Bank of Iraq to take strict measures and oversight to regulate the work of banks, in order to ensure the protection of citizens' rights, noting that the banking system in Iraq operates within an unstable environment that has prevented it from performing its normal functions.
Hassoun said that “the security, economic and social conditions are major factors for instability in the banking sector, which negatively affects citizens’ confidence and pushes them to refrain from depositing, especially in government banks, which leads to a shortage of cash liquidity and disrupts economic activities in the country.”
He then added that “a large number of banks have begun to engage in activities that do not fall under the category of real banking, exploiting the state of turmoil to achieve private gains at the expense of the banking policy set by the Central Bank.”
He also explained that “the Central Bank is required today to put in place strict procedures and activate serious oversight of the work of banks, with the aim of securing the rights of citizens and enhancing confidence in the banking system.”
He pointed out that “directing financial returns towards imports only is one of the main reasons for the decline and delay in banking performance in Iraq.
An economic expert proposes a solution related to oil production to overcome Iraq's financial crisis.
Economic expert Nabil Al-Marsoumi revealed on Wednesday that Iraq could add four billion dollars annually to its oil revenues by canceling the voluntary cuts it pledged to the OPEC+ group, stressing that this amount would contribute to solving part of the financial crisis.
Al-Marsoumi told Shafaq News Agency that "this issue is not related to the quotas agreed upon in the OPEC+ group, but rather to voluntary reductions that Iraq committed to twice, as the government pledged three reductions, one of which is mandatory, around 220,000 barrels per day, and two voluntary reductions, each around 200,000 to 220,000 barrels per day."
He explained that “Iraq, along with OPEC+, has released part of these reductions, which is about 250,000 barrels per day, and Iraq remains committed to two reductions, one mandatory and the other voluntary. Baghdad has committed to the latter with some countries, but not all member countries of the group.”
He pointed out that "Iraq volunteered to commit to voluntary reductions, and therefore it has the right to inform OPEC+ of its desire to abandon the voluntary, not mandatory, reductions, due to the current circumstances the country is going through, and due to the financial crisis."
Al-Marsoumi explained that "this is not related to quotas, as the basic production line in Iraq remains the basis on which the production quota is calculated, which is 4 million and 650 thousand barrels per day, and now Iraq's production quota after releasing part of the reductions is 4 million and 270 thousand barrels per day."
He stressed that “this issue is much easier than Iraq demanding an amendment to its production quota because that would refer Iraq to 2027 according to the maximum production capacity standard, and this will take time, and it is possible that after 2027 they will set another time for Iraq if OPEC+ agrees to increase Iraq’s production quota, as this also requires a year or two, as happened previously with the UAE.”
Al-Marsoumi stressed that "the option of requesting exemption from voluntary reductions is easy and takes a short time, and if the Iraqi negotiator works on this option, it will be better and will yield quick results, and OPEC+'s response will not be stubborn because it does not relate to mandatory reductions."
Al-Marsoumi had previously written on social media that Iraq could quickly obtain more than four billion dollars annually if it abandoned the voluntary reductions it had committed to within "OPEC Plus" which amount to about 200,000 barrels per day, an amount equivalent to about ten times the amount that could be obtained from imposing a tax on mobile phone cards.
Al-Rasheed Bank denies rumors of a liquidity shortage and confirms the safety of customers' funds.
The bank said in a statement received by Al-Furat News, “What has been circulated through some social media sites regarding claims and inaccurate information about the lack of liquidity or the seizure of customers’ money are false and baseless claims.”
He added that "it continues to provide its banking services normally and in accordance with legal instructions and controls, and that all customer funds are fully protected," stressing that "the bank has taken the necessary legal measures against those who published these allegations, while reserving its full legal right against any abuse or defamation that affects the institution."
He called on "all citizens to obtain information from official sources and not to be misled by inaccurate information."
Al-Marsoumi: Abandoning the oil production cuts will generate $4 billion for Iraq – ten times more than the mobile phone tax.
Iraqi economic analyst Nabil Al-Marsoumi said that Iraq is capable of achieving more than four billion dollars annually and quickly, if it abandons the voluntary reductions it committed to within the OPEC+ agreement, which amount to about 200,000 barrels of oil per day.
Al-Marsoumi explained in a post on his Facebook page that this amount is equivalent to about ten times the expected revenues from imposing a tax on mobile phone cards, which raises serious questions about the priorities of the country’s financial and economic policy.
In 2015, the Iraqi parliament voted to impose a 20% tax on phone cards, as part of an austerity policy imposed by the repercussions of the sharp decline in oil prices at that time.
In 2022, the Iraqi government decided to abolish the 20% tax imposed on sales of mobile phone top-up cards.
However, on Tuesday, the government reinstated a 20% tax on mobile phone top-up cards and internet services, as part of measures aimed at maximizing revenues and reducing government spending.
Warnings about the new US approach to Iraq... and a fourth economic crisis looms.
Al-Sumaidaie said, during his appearance on the “Point” program on Al-Furat satellite channel, that “the decision to restrict weapons should not be merely a political maneuver,” noting that “Iraq has reached a stage of political and security stability where there is no longer any justification for carrying weapons outside the framework of the state,” indicating that “the parties that won in the parliamentary elections are the ones who decided to proceed with this path in response to American conditions related to disarmament as a basis for dealing with the Iraqi government.”
He explained that "the problem lies in the fact that some of the key partners in the political process and the state have armed wings, which will put the government in an embarrassing position in the face of American conditions," noting that "the path of the Sadiqun movement was clear in the direction of giving up weapons through political action," expressing his hope that "the factions that refuse to disarm will move away from the policy of stubbornness."
Al-Sumaidaie said that “selflessness for the benefit of the state should be the most important option,” warning that “weapons may turn into a curse on their holders and weaken the political system and may lead to its downfall,” stressing that “the real threat to Iraq is that the United States will not deal with a government that includes an armed presence outside the framework of the state.”
He added that "the United States will not move at the moment to target Iraqi armed factions; however, this option remains on the table," noting that "the government of Mohammed Shia al-Sudani is the first government to include disarmament in its government program, and that the administration of US President Donald Trump, along with developments in the region, has created additional pressure on the disarmament file."
Al-Sumaidaie pointed out that "the Popular Mobilization Forces need to unify the command and control system and that preserving it begins with changing its military doctrine," considering that "the presence of American bases at Baghdad Airport and Ain al-Assad base contributes to protecting Iraq from any external targeting."
On the political front, Al-Sumaidaie said, “Mohammed Shia Al-Sudani is the most prominent candidate among three main names for the premiership, and Nouri Al-Maliki represents one of the two poles in the Shiite house, and his nature is either he will or he will not make things happen, and we are facing political support, and we hope that there will be a breakthrough.”
He explained that "the nine candidates for the premiership represent the best administrative figures," noting that "the first Sunni political generation has ended and the current stage is witnessing the rise of a pragmatic generation, while the Sunni National Political Council has not yet decided its position on the presidency of the House of Representatives," suggesting that "the position will go to whoever is acceptable to the Shiites and Kurds, with Muthanna al-Samarrai being considered the closest to occupying the position."
Al-Sumaidaie predicted that “the position of Vice President of the Republic will be given to Mohammed al-Halbousi to maintain the political balance,” stressing that “the Shiite government was fair to the Sunnis, Kurds and others; however, Iraq is currently going through its fourth economic crisis as a result of fluctuations in oil prices.”
Al-Sumaida’i criticized Al-Sudani’s decision to change the exchange rate and cancel the white paper, considering that “there is a deliberate political deception aimed at discrediting him,” noting that “the Americans clearly declare that choosing the government is an Iraqi matter, but dealing with it is an American matter,” warning that “Washington’s dissatisfaction may push Iraq into a dark tunnel.”
The political analyst concluded by saying that "the United States sees the Sudanese as a good CEO capable of managing and running companies."
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American envoy Mark Savaya: I hope 2026 will be a year of happiness, stability and prosperity for the people of great and beloved Iraq
Prime Minister: The word normalization does not exist in the Iraqi dictionary
In a speech delivered during Christmas Mass at St. Joseph's Church, the Prime Minister stated, "Our commemoration of the glorious birth of Christ is a further affirmation of the strength of our cohesive society."
He added, "We are working with all our capabilities to preserve and protect the symbols of unity," explaining, "We are confident that Iraq is working to strengthen its position as an oasis of stability."
The Prime Minister emphasized, "We in Iraq do not need normalization; it is a word that does not exist in the Iraqi lexicon."
Experts: Liquidity is under control, reforms are necessary
Economic experts have downplayed concerns about financial risks threatening the reality of public spending in the country, stressing that what the state’s monthly liquidity is witnessing does not amount to a “financial gap” in the scientific and precise sense, but rather reflects mainly the effects of fluctuating crude oil prices in global markets, in addition to the limited non-oil resources.
They pointed out that the financial situation remains within manageable limits, but requires genuine structural reforms to prevent a recurrence of crises and enhance financial stability in the medium and long term. Experts believe that talk of a fiscal gap is often misunderstood, as a gap implies a persistent structural deficit between revenues and expenditures, whereas the current situation is linked to temporary fluctuations in monthly cash flows. These fluctuations stem from the nature of a rentier economy and its near-total dependence on oil, making public finances vulnerable to changes in global markets.
In this context, the Prime Minister's financial advisor, Dr. Mazhar Muhammad Salih, affirmed that the fluctuations in monthly liquidity cannot be classified as a genuine financial gap, but rather reflect temporary imbalances linked to the volatility of oil revenues and the weak contribution of non-oil revenues to financing the general budget. In an interview with Al-Sabah newspaper, he explained that managing this situation requires a high degree of realism in financial decision-making and swift action, avoiding reactive or temporary solutions that could lead to deeper imbalances in the long run.
The essence of financial stability
Saleh pointed out that maintaining financial stability at this stage necessitates controlling and prioritizing operational spending to ensure it is directed towards the state's essential obligations, primarily salaries for employees and retirees, social safety nets, and critical service and security sectors. He emphasized that rationalizing or postponing some non-essential expenditures does not mean reducing the state's role, but rather aims to protect financial and social equilibrium and prevent financial pressures from spreading to broader segments of society.
He added that any financial solution must balance the requirements of monetary stability with the social dimension, warning that ill-considered decisions could create inflationary or social effects that would be difficult to contain later.
Maximizing resources and improving tax collection
The financial advisor emphasized that maximizing financial resources is a complementary approach to controlling spending. This can be achieved by improving the efficiency of tax collection and the collection of outstanding dues, along with developing tax administration and expanding the tax base without overburdening low-income earners. He explained that strengthening non-oil revenues has become a strategic necessity to reduce the vulnerability of public finances to oil price fluctuations.
He also indicated the possibility of resorting to domestic borrowing within carefully considered limits and using short-term instruments, provided that this does not lead to liquidity pressures or create inflationary waves. At the same time, he emphasized the importance of activating the investment of underutilized government assets and transforming them into productive resources, thereby contributing to supporting public finances and achieving sustainable revenues in the medium term.
Diagnosing the structural problem
For his part, financial expert Alaa al-Fahd explained that Iraq's financial problem has been identified for years and stems from the rentier nature of its economy and its excessive reliance on oil revenues, making the country highly vulnerable to any rise or fall in crude oil prices on global markets. He emphasized that this structural problem requires reforms that go beyond temporary or patchwork solutions.
Al-Fahd told Al-Sabah: “The current stage calls for adopting urgent and immediate reforms to deal with the current challenges, in addition to future strategic reforms aimed at diversifying the revenue basket and reducing dependence on oil, as well as reducing government spending as much as possible without affecting social or productive investment spending.”
Strategic projects
As a safety valve
Al-Fahad pointed out that the major projects adopted by the government, including the Grand Faw Port and the Development Road project, as well as the revitalization of the agricultural and industrial sectors, represent a crucial pillar for mitigating the impact of any potential financial crisis. He explained that these projects not only provide direct revenues but also contribute to addressing chronic economic bottlenecks, creating job opportunities, and stimulating local production chains that enhance the added value of the national economy.
He added that investing in agriculture and industry represents a strategic option to transform the economy from a rentier, consumer-based economy to a productive one, thus ensuring more stable and less volatile sources of income.
Permanent sources of revenue
The financial expert stressed that the current financial situation does not pose a direct threat to the country’s stability, but that the continuation of the situation as it is without radical treatment may lead to unacceptable confusion, in light of the one-sided economy, weak government coordination, and the disruption of many sectors that are supposed to be key drivers of growth and permanent sources of revenue.
He pointed out that the next government bears a double responsibility in finding real solutions to the problems of the economy, by adopting clear policies to move towards diversifying financial revenues, while avoiding resorting to unstudied internal or external debt, due to the future burdens it places on public finances.
Digital transformation as a reform tool
Al-Fahad pointed out that automating taxes and customs, and transitioning to electronic collection systems, are pivotal reform tools for the next phase, given their role in increasing revenues, reducing waste and corruption, and improving financial transparency. He emphasized that these measures, along with activating productive sectors, can contribute to achieving sustainable financial and economic prosperity.
He concluded by emphasizing that the current financial situation is still under control, but managing the next phase requires courageous decisions and gradual and well-thought-out reforms, stressing that the search for real solutions is no longer an option, but an inevitable necessity to ensure economic and social stability in the country.
From Skoda to the parallel market: How did the dollar's fluctuations begin, and where might they stop? An expert explains to Basra 365
Economic expert Haider al-Sheikh revealed on Saturday the reasons behind the fluctuations in the exchange rate of the US dollar against the Iraqi dinar, emphasizing that the current market situation is temporary. Speaking to Basra 365, al-Sheikh stated that the exchange rate volatility stems from the implementation of the digital "Skoda" system, coupled with increased demand for dollars in the parallel market, which has directly impacted price movements. He explained that the exchange market remains unstable, with a noticeable rise in dollar demand from some traders and businesspeople. He warned that if the current situation persists without intervention, the exchange rate could reach approximately 145,000 dinars for 100 US dollars. Al-Sheikh noted that the Central Bank of Iraq is working to contain these fluctuations by bolstering foreign currency and gold reserves, as well as fulfilling all banks' requests for external financing in US dollars and other foreign currencies, in an effort to support market stability and curb speculation.
The Global Smart Card Company announces the launch of a new initiative
The global smart card company (K) announced the launch of a new initiative aimed at supporting merchants and stimulating business growth, starting from January 1, 2026, where a commission rate of (0%) will be applied to the merchant for all electronic payment transactions .
The company stated in a statement received by Mail that "the initiative includes all payments made through point-of-sale (POS) devices and the SuperKey application, without any deductions or hidden commissions, ensuring that the merchant retains the full profits of each sale transaction . "
She added that "this step comes within its strategy to promote financial inclusion, encourage the shift towards electronic payment, and provide a more transparent and profitable business environment for merchants in various sectors . "
The statement continued, "The company announced that it will provide payment devices free of charge to merchants wishing to join the Key system, with the possibility of easily registering via the SuperKey application."
She emphasized that "2026 will be a year of real growth and clearer profits for traders, in a partnership based on trust and continued support."
Judicial Council: The first session of Parliament must elect the President and his two deputies... and a warning
Zidane's meeting with the oldest speaker of parliament
The President of the Supreme Judicial Council, Dr. Faiq Zaidan, met with the oldest Speaker of Parliament, during which they discussed the constitutional requirements for holding the first session of Parliament, including the necessity of electing the Speaker of Parliament and his two deputies, while emphasizing the need to adhere to the constitutional texts and respect the legal deadlines, and warning against any contrary interpretation that is considered an explicit constitutional violation that may hinder the formation of the legislative and executive authorities.
The President of the Supreme Judicial Council, Judge Dr. Faiq Zaidan, received today, Wednesday, December 24, 2025, Member of Parliament Amer Al-Fayez, who will preside over the session of Parliament on December 29, 2025, as he is the oldest member.
The Speaker of the Council stressed the importance of respecting and applying the constitutional texts as they are stated in the Constitution and not interpreting the texts with baseless interpretations, as Articles (54 and 55) of the Constitution explicitly stipulate the election of the Speaker of the House of Representatives and his two deputies in the first session of the new Council, and any interpretation to the contrary is a clear constitutional violation that opens the door to other violations that hinder the formation of the legislative and executive authorities within the constitutional deadlines.
The Iraqi Gazette publishes the presidential decree calling for Parliament to convene on the 29th of this month.
The Ministry of Justice announced on Wednesday the issuance of the new issue of the Iraqi Gazette, which included Republican Decree No. (54) of 2025 regarding the invitation of the elected House of Representatives for the sixth session to convene on Monday, the 29th of this month, under the chairmanship of the oldest member.
The Ministry of Justice announced the issuance of the new issue of the Iraqi Gazette No. (4853), which included the publication of a presidential decree, two resolutions, and a number of instructions.
The Director General of the Iraqi Gazette Department, Ms. Haifa Shukr Mahmoud, said, “The issue included the publication of Republican Decree No. (54) of 2025, which included the invitation of the elected House of Representatives in its sixth session to convene on Monday, December 29, 2025, and the session shall be chaired by the oldest member.”
The Director General added, “The issue also included the publication of a decision issued by the Supreme Federal Court No. (235/Federal/2025) on 14/12/2025, in addition to the instructions for scientific promotions in the Ministry of Higher Education and Scientific Research No. (10) of 2025.”
She explained that “the issue also included the publication of the decision to amend the founding statement of the “Al-Rafidain General Company for Dam Implementation / one of the formations of the Ministry of Water Resources, along with the amended founding statement.”
Issue No. (4853) of the Iraqi Gazette was published on 22/12/2025
- Presidential Decree No. (54) of 2025, which includes (inviting the elected House of Representatives to convene in its sixth session on Monday, December 29, 2025, and the session shall be chaired by the oldest member).
- Decision issued by the Supreme Federal Court No. (235/Federal/2025) on 12/14/2025.
- Instructions for scientific promotions in the Ministry of Higher Education and Scientific Research No. (10) of 2025.
- Decision to amend the founding statement of "Al-Rafidain General Company for Dam Implementation/One of the formations of the Ministry of Water Resources with the amended founding statement".
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