Al-Muslawi: The Iraqi economy will not remain hostage to the decisions of the US Federal Reserve.
The video for this My FX Buddies Blog is below here:
Firas al-Muslawi, spokesperson for the Reconstruction and Development Coalition, affirmed on Saturday that the time has come to end the dollar's dominance over Iraqi resources, indicating that government plans are geared towards diversifying financial transactions to protect the national economy.
Al-Muslawi told the Information Agency, "American control through the Federal Reserve's platforms has become a real obstacle to the reconstruction and sustainable development process in the country," asking, "How long will the Iraqi economy remain hostage to the US dollar and the fluctuating decisions of the Federal Reserve, which do not consider the interests of our people?"
He added that "the Ministry and economic bodies within the government are seriously considering activating transactions in local currencies with international trading partners," noting that "breaking free from the shackles of American monetary hegemony will restore stability to local markets and protect strategic projects from artificially created financial shocks."
It is worth noting that political parties are demanding the necessity of severing financial ties with the US Federal Reserve and diversifying oil accounts, coinciding with calls to develop national capabilities to reduce dependence on foreign entities and ensure economic sovereignty.
Trump announces preliminary agreement with Iran
US President Donald Trump announced on Saturday that a preliminary agreement had been reached with Iran, which includes opening the Strait of Hormuz.
Trump said in a post on Truth Social: “I am now in the Oval Office at the White House, where we just had a very productive telephone call with Mohammed bin Salman Al Saud, Crown Prince of Saudi Arabia; UAE President Mohammed bin Zayed Al Nahyan; Emir Tamim bin Hamad bin Khalifa Al Thani, Prime Minister Mohammed bin Abdulrahman bin Jassim bin Jaber Al Thani, and Minister Ali Al Thawadi, of Qatar; Field Marshal Syed Asim Munir Ahmad Shah, President of Pakistan; President Recep Tayyip Erdoğan, President of Turkey; President Abdel Fattah al-Sisi, President of Egypt; King Abdullah II, King of Jordan; and King Hamad bin Isa Al Khalifa, King of Bahrain, regarding Iran.”
He added, "A preliminary agreement has been reached, subject to its completion, between the United States, the Islamic Republic of Iran, and the other countries mentioned. A telephone call was also made with Israeli Prime Minister Benjamin Netanyahu, which went very well. The final aspects and details of the agreement are currently being discussed and will be announced soon. In addition to many other provisions of the agreement, one of them is the opening of the Strait of Hormuz."
Earlier today, Israeli officials expressed concern about a US-Iranian agreement that does not address the nuclear program.
CNN quoted sources as saying that Israeli Prime Minister Benjamin Netanyahu was in contact with American officials throughout Saturday evening and is expected to speak with Trump soon.
She added that the Israeli concern is reaching a limited interim agreement that does not address the nuclear program and enriched uranium.
Israeli sources indicated that the United States continued to reassure us regarding the uranium issue.
For its part, the Haaretz newspaper revealed sources that Israel fears that it will be difficult for Washington to later pressure Tehran on the nuclear issue, and that it will then be difficult to resume fighting.
She added that Israel is concerned about reaching an interim agreement that would postpone the nuclear program to a later stage.
Senator Lindsey Graham, for his part, stressed that if the belief prevails in the region that the agreement with Iran allows the regime to survive, then America will have "poured oil on the conflicts in Lebanon and Iraq."
Graham said in a post on the X platform that "an agreement that is seen as allowing Iran to remain and have the ability to control the strait in the future will put Hezbollah in Lebanon and Shiite militias in Iraq in a very strong position."
Why did the central bank governor fail to reassure the markets? Temporary painkillers for a weary body.
The Governor of the Central Bank of Iraq is once again offering a “dose of anesthesia” in an attempt to calm the panicked markets, but it has come across as fragile, ineffective, and lacking any real economic diagnosis of the suffocating crisis.
Markets are not run by intentions and catchy words, and here is a breakdown of these statements that hide real disasters:
The game of reserves and salaries... (secured) but for how long?
The reserves are in danger: To say that the dollar reserves are “secured” is a smokescreen. The problem is not the current figure, but the alarming rate at which they are being depleted, and the fragile state’s ability to replenish them in light of fluctuating oil prices and the frenzied domestic demand for hard currency.
Salaries: A Sustainability Crisis, Not a Cash Crisis: The phrase “salaries are guaranteed” is a short-term anesthetic. Guaranteed for a month? For six months? In a country entirely dependent on oil, borrowing, and bank liquidity, the problem isn't immediate payment, but the complete absence of any financial sustainability for the future.
Changing the exchange rate... doesn't happen by intentions!
The governor's denial of any intention to change the exchange rate is economically meaningless. Markets are unforgiving, and the exchange rate is not determined by government promises, but rather by the pressure of the budget deficit, declining oil revenues, and the rampant black market. Denial does not address the root causes; it merely postpones the inevitable explosion.
A stab in the back of monetary independence!
The governor's talk of involving the central bank in budget preparation is a major blunder. Transforming the central bank into a "partner" in budget drafting simply means destroying its monetary independence and turning it into a mere financial tool and ATM in the hands of the executive branch—a precedent the governor should never have proposed.
Dollar smuggling: A protocol denial and an incomplete admission
Escaping reality: Describing talk of dollar smuggling as “inaccurate” is a gross understatement. Even if traditional smuggling were to cease, the leakage of dollars through inflated import invoices, front companies, and fictitious demand continues unabated. Markets need rigorous oversight mechanisms, not mere platitudes.
A structural deficit, not just a number: Acknowledging the fiscal deficit is a good but incomplete step. The deficit is not merely a number in a budget; it is the product of a failed rentier model: inflated operating spending, a paralyzed private sector, and a suicidal reliance on oil without any structural reform.
Summary:
The central bank governor's statements might succeed in calming the markets for a few hours in the media, but they are economically unsound. They focus on false reassurance instead of transparency, and deny risks instead of addressing them with real measures.
In short: Economic rules don't favor anyone, and hiding the symptoms won't cure the disease.
The Central Bank announces its achievements over the past five years in modernizing the Iraqi banking sector.
The Central Bank of Iraq is reviewing its most prominent achievements during the past five years, within the framework of its strategy aimed at developing oversight mechanisms, enhancing compliance standards, and raising the efficiency of banking operations, in addition to supporting efforts to develop the banking sector in the country.
According to the study below, which was received by “Baghdad Today”, the Central Bank focused during this period on strengthening its supervisory and regulatory role, and updating the tools and procedures adopted in monitoring the performance of banks, in order to contribute to raising the levels of transparency and governance within the Iraqi banking system.
To view the achievements, click her
. Overview of the Iraqi Economy
. Macroeconomic Indicators
. Government Financial Decisions
Financial Inclusion
Monetary Policy
Transfers and Foreign Currency Sales
The Central Bank of Iraq and Applicable Laws
Cash Sales to Travelers
. Monetary Policy Indicators
External Transfers
. Financing Initiatives
Automation and Monitoring of Electronic Card Settlement
The Banking Sector
VII Combating Money Laundering and Terrorist Financing
. Licensed Financial Institutions in Iraq
Regulatory Laws
. Strategic Initiatives
Relevant Stakeholders
Consolidated Balance Sheet of Banks
Realized Initiatives
. Banking Reform Project
Anti-Money Laundering Indicators
Non-Banking Financial Institutions
VIII Central Bank of Iraq Infrastructure
. Electronic Payment Indicators
. The New Headquarters
Consolidated Balance Sheet of Electronic Payment Companies
Human Resources
- Currency Exchange Companies
. Supporting Electronic Systems
. International Certifications
International Partners of the Banking Sector
Government advisor: The Prime Minister has outlined a firm vision for building the future of public finances.
He concluded by saying: “The future Iraq will be efficient in diversifying budget resources and efficient in diversifying sources of GDP, in line with the national strategy for developing market forces and the private sector.”
Want to Support My FX Buddies?
ThanksSupport My FX Buddies
BuyMeACoffee CashApp:$tishwash
https://paypal.me/tishwash
.jpeg)
Masrour Barzani will be in Baghdad next week to discuss the electricity and oil files.
Kurdistan Regional Government Prime Minister Masrour Barzani will head to Baghdad next week, leading a high-level delegation, for a series of talks with the federal government on the electricity and oil sectors.
Aziz Ahmed, Deputy Director of the Prime Minister's Office, stated in a post on the "X" platform that the regional government will present its successful "Ronaki - Electricity" project, which aims to provide 24-hour electricity, during the visit. He emphasized that the delegation will offer technical support to the new Iraqi government to accelerate reforms in the electricity sector across the country.
He added that "the Prime Minister will also address the issue of security guarantees necessary to enable oil and gas companies to resume production and export operations, noting that the ongoing drone threats make it difficult for these companies to continue their work."
Masrour Barzani meets with the head of the Popular Mobilization Forces
The Prime Minister of the Kurdistan Region, Masrour Barzani, met today, Saturday, May 23, 2026, in Baghdad, with the head of the Popular Mobilization Forces, Faleh al-Fayyad.
A statement issued by the Presidency of the Regional Government stated that during the meeting, which was attended by the head of the "Sumerians" movement, Ahmed Al-Asadi, the latest changes and developments on the public scene in Iraq and the region were discussed.
The statement also emphasized respect for the constitution and the federal system, and the need to maintain security and stability in Iraq and the Kurdistan Region.
Al-Fayyad describes Masrour Barzani's visit to Baghdad as "promising" and confirms the parties' readiness to legislate the oil and gas law.
The head of the Popular Mobilization Forces, Faleh al-Fayyad, stated today, Saturday, May 23, 2026, in a statement to the media: “The visit of the Prime Minister of the Kurdistan Region to the capital, Baghdad, was very important and positive, and this step represents a promising indicator and good news for accelerating the process of forming the new cabinet of the federal government.”
Faleh al-Fayyad indicated that the meeting discussed in detail ways to meet the demands and aspirations of the Iraqi people, adding: "The common understandings are at a very good level. We hope in the next stage to take serious steps to secure all the constitutional requirements and entitlements, especially the approval and enactment of the oil and gas law, and other laws that regulate relations between the region and Baghdad in a radical and sustainable way."
Faleh al-Fayyad also stressed the issue of maintaining security and stability, saying: “Just as we defend the security and safety of all of Iraq, we defend with the same responsibility and commitment the security and stability of the Kurdistan Region.”
Trump: The final decision on Iran may be made tomorrow.
On Saturday, US President Donald Trump revealed his hesitation between moving towards a new agreement with Tehran or launching a military strike against it.
Trump told Axios that he would hold a meeting today with his top advisers to discuss the latest draft of the agreement with Iran, noting that a final decision could be made tomorrow.
He added that he would later meet with envoy Steve Wittkopf, along with Jared Kushner, to discuss the latest Iranian response, explaining that JD Vance might join the meeting.
Trump indicated that he would not accept any agreement that did not address the issue of Iranian uranium enrichment and the fate of the current stockpile of uranium, stressing that these issues represent the core of any possible understanding with Tehran.
The US president continued, saying: "Either we sign an agreement or I will deliver a powerful blow to them."
Trump denied reports that Israeli Prime Minister Benjamin Netanyahu was concerned about the possibility of concluding an "inappropriate" agreement with Iran, asserting that such information was "incorrect".
Meanwhile, Trump told CBS News that negotiators from the United States and Iran are "very close" to finalizing an agreement between the two countries.
The network quoted sources familiar with the negotiations as saying that the latest proposal includes a mechanism to reopen the Strait of Hormuz, release some frozen Iranian assets in foreign banks, and continue negotiations.
Trump declined to provide details about the agreement, but said things were "getting better and better every day."
Earlier today, the Iranian Foreign Ministry announced that it had put the "final touches" on the memorandum of understanding with the United States, indicating that negotiations were moving towards reducing differences with Washington.
Trump confirmed last Thursday that negotiations with Iran were still ongoing, while also stressing that his country would not allow Tehran to possess a nuclear weapon "in any possible agreement."
It is worth noting that Islamabad hosted the first round of direct negotiations between Washington and Tehran last April, but they did not result in an agreement.
Since then, the two sides have exchanged several proposals, while some points remain unresolved, most notably the transfer of highly enriched Iranian uraniumabroad, control of the Strait of Hormuz, and the complete lifting of US sanctions on Iranian oil, amid continued verbal warnings and US threats.
Experts: The Financial Stability Board contributes to supporting fiscal and monetary policies.
Financial and economic experts and specialists considered the formation of the Financial Stability Council by the government an important step towards supporting fiscal and monetary policies by maximizing revenues and protecting the national currency, while they stressed the importance of adopting comprehensive economic and structural reforms to achieve financial sustainability and diversify the national economy and revenues.
Unifying financial and monetary decisions
Economic expert Ahmed Al-Majidi told Al-Sabah: “The step of forming a Supreme Council for Financial Stability is one of the important steps at this time, because it reflects a trend towards unifying financial and monetary decisions within an institutional framework capable of facing current economic challenges, especially in light of fluctuations in oil prices and global and regional financial pressures.”
He added, “The presence of the Minister of Finance and the Governor of the Central Bank within the membership of the Council gives this formation great importance, because coordination between fiscal policy and monetary policy is essential for maintaining economic stability, protecting the value of the national currency, and enhancing confidence in the Iraqi economy.” He explained that “the Council can contribute to managing liquidity, controlling spending, maximizing non-oil revenues, in addition to supporting the banking and financial reforms needed in the next stage.”
Supporting the investment environment
He continued: "If the council is given clear powers and operates according to an integrated economic vision, it can form a real platform for making quick and effective decisions to confront crises, enhance financial stability, support the investment environment, and reduce the impact of economic shocks on the citizen and the local market."
For his part, economic researcher and academic Dr. Salem Al-Bayati told Al-Sabah: “One of the priorities of any country is to secure economic security in all its details, especially in formulating monetary and fiscal policy,” explaining that “the internal and external challenges facing the country require the state to set clear priorities for managing the current stage.”
Cash management and state funds
He added that "the government sought to provide the basic requirements for the citizen through managing the money and state funds, and despite the difficulties, it was able to secure a level of monetary stability and economic activity and maintain the citizen's purchasing power," noting that "these efforts are important solutions, but they still need integrated economic policies."
Al-Bayati pointed to “the need for the new government to adopt a comprehensive economic policy that includes fiscal and monetary policy, while supporting the independence of financial institutions and strengthening them with specialized personnel, especially since the government headed by Al-Zidi has taken an important step, which is the formation of a Supreme Council for Financial Stability, which will work to achieve a balance between the money coming into the state and what is being pumped into the markets in hard currencies, and this will lead to strengthening revenues and protecting the national currency.”
Developing productive sectors
He called for "developing various productive sectors to ensure food security, preserve the country's currency reserves, and control both local and foreign currencies." Al-Bayati emphasized the importance of "imposing oversight on border crossings and customs and preventing corrupt individuals from controlling public funds," stressing "the necessity of establishing and effectively implementing strict regulations and laws." He also called for "improving the financial situation by increasing production, providing diverse job opportunities, supporting the private sector, and utilizing the potential of young people in the agricultural, industrial, and service sectors, while adopting integrated policies that prevent conflicting projects and avoid creating new crises."
Geopolitical challenges
For his part, Dr. Ahmed Hadhhal, a professor of economics and financial expert, told Al-Sabah newspaper: “Iraq’s financial situation is facing exceptional and complex pressures as a result of geopolitical challenges, fluctuations in energy markets, and disruptions to international trade, in addition to chronic structural imbalances linked to near-total dependence on oil revenues.” He explained that “the government, the Ministry of Finance, and the Central Bank have managed over the past two months to manage the situation with a degree of financial and monetary containment by maintaining the stability of salaries and sovereign spending, securing the market’s needs for foreign currency and basic commodities, and preventing rumors from escalating into widespread monetary instability.”
Regular government funding
He added that "the Central Bank continued to manage monetary stability, the exchange rate, and control liquidity and inflation levels, while the Ministry of Finance succeeded in maintaining regular government financing despite increasing pressures on the general budget."
Hathal explained that "the current stage requires moving from traditional budget management to comprehensive economic crisis management based on sustainability and fiscal discipline," calling for "restructuring public spending and activating electronic systems for financial management, taxes, customs and collection to reduce waste and corruption and maximize non-oil revenues."
Controlling operating expenses
He pointed to the importance of "controlling unproductive operating expenses and directing resources towards productive and strategic sectors, while adopting conservative oil prices and expanding organized domestic financing tools such as treasury bills and investment bonds."
He stressed that "improving Iraq's financial situation in the medium and long term requires a comprehensive structural reform to diversify the economy and increase the contribution of agriculture, industry, energy and logistics to the gross domestic product, in addition to developing the investment environment and partnership with the private sector."
He concluded by saying, "The real challenge is not limited to financing the current budget, but rather lies in building a state capable of achieving financial and economic sustainability and protecting the social and economic security of future generations." Prime Minister Ali Faleh al-Zaidi had chaired the first meeting of the Financial Stability Council.
The Prime Minister's Media Office stated in a press release that "Prime Minister Ali Faleh al-Zaidi chaired the first meeting of the Financial Stability Council, which was included in the ministerial program, and which included the Minister of Finance and the Governor of the Central Bank of Iraq." Al-Zaidi emphasized "the importance of achieving financial stability due to its developmental and economic impacts," noting "the necessity of close coordination between the Central Bank and the Ministry of Finance, and the need to make financial decisions that support stability, which will positively impact the government's development, service, and economic plans
No embellishment, no exaggeration
It goes without saying that the events of recent months in the region, particularly the war waged against Iran, have had a negative impact on the Iraqi economy, as they have on the economies of other countries in the region. This is because oil exports constitute more than 90% of our economic resources, and any threat to export routes—such as the closure of the Strait of Hormuz—is bound to create a crisis. It suffices to mention that last month Iraq exported only one-tenth of its monthly oil exports before the strait's closure.
It is natural that this matter would have financial and economic repercussions, and these repercussions in the past months have been the subject of rumors that have reached the point of exaggeration, and some wanted to exploit them politically and in the media. However, the course of events has so far proven two facts, the first being that the crisis is not specific to Iraq alone, but is almost a global crisis, and the second being that Iraq is capable of overcoming such crises.
Prime Minister Ali Faleh al-Zubaidi's remarks yesterday during his visit to the Ministry of Finance were clear in diagnosing the situation surrounding Iraq's economy and outlining solutions that could avert serious repercussions. He focused on expanding the non-oil economy and adopting alternatives that support export diversification, while simultaneously emphasizing that these repercussions should not directly affect citizens. Notably, he stressed the necessity of paying citizens' salaries on time without delay.
There is a statement made by the Prime Minister that sums up the situation: “The Iraqi financial and economic situation is extremely sensitive, and we must be honest with our citizens about this without embellishment, but also without exaggeration.”
Oil: Talks with foreign companies are ongoing to resume work in the fields.
The Ministry of Oil announced on Saturday that discussions are ongoing with foreign companies to resume operations in oil fields, confirming that oil exports via the Turkish port of Ceyhan are imminent.
Ministry spokesman Sahib Bazoun stated, according to the official news agency, that "Prime Minister Ali al-Zaidi is very interested in generating revenue for the Iraqi state, and Oil Minister Basim Mohammed Khudair has established operational mechanisms and future projects for the ministry, most importantly the project to maximize revenue through oil exports by activating export terminals and reaching agreements with the parties involved in disputes over Iraqi oil exports."
He noted that "most of the foreign companies operating under the licensing rounds have withdrawn, and some fields have ceased operations, but the oil sector has maintained its oil reserves and fields, and we have no significant problems with the fields or exports." He explained that "discussions are underway with the foreign companies operating to resume work."
He affirmed that "oil exports via the Turkish port of Ceyhan will begin in the coming days, and the ministry is prepared for export operations."
Prime Minister Ali Falih al-Zaidi visited the Ministry of Oil last Wednesday and chaired a meeting with senior ministry officials.
According to a statement from the Prime Minister's Media Office, the Prime Minister listened to a briefing presented by the Minister of Oil on the progress of the ministry's projects, particularly those related to addressing the crisis caused by the closure of the Strait of Hormuz and the resulting halt in oil exports . The briefing also reviewed ongoing associated gas projects and the main challenges hindering their implementation.
The meeting addressed the issue of oil exports and finding diverse export outlets, the mechanism for implementing Cabinet decisions in this regard, and the Ministry of Foreign Affairs' procedures for following up on agreements concluded with several neighboring countries for overland oil exports.
Earlier, Oil Minister Basim Mohammed Khudair affirmed that the ministry's priorities for the coming period include increasing production capacity, resolving the issue of flared gas, and developing the oil sector's infrastructure. He noted that the current circumstances are difficult due to the war in the region and the resulting closure of the southern export route, indicating that Iraq exported only 10 million barrels through the Strait of Hormuz last April because of the war.
US Officials: Iran Won't Be Able to Access Most of Its Frozen Assets Without a Nuclear Deal
here:
