No fear for the dinar... The "Monetary Authority's" measures absorb the dollar shock and prevent inflation.
since the beginning of 2026, and the Iraqi street is cautiously monitoring the display screens in the local "stock exchanges" (Al-Kifah and Al-Harithiya), where the past few days have witnessed fluctuations that have pushed the dollar exchange rate in the parallel markets to approach the threshold of 149 thousand dinars per 100 dollars.
The "unified price" strategy: The budget as a safety valve.
The first indication of the strength of fiscal policy lies in "legislative stability." While the parallel market is in turmoil, the government addressed...Central Bank of Iraq Ministry of FinanceOfficially, regarding the 2026 budget, the exchange rate will remain fixed at 1,300 dinars to the dollar.
This insistence on maintaining the fixed rate for the third consecutive year sends a decisive message to speculators that the state will not be swayed by the fluctuations of the black market.
This system operates according to a precise financial sequence that prevents waste:
the Ministry of Finance sells dollars to the Central Bank at a rate of 1,300;
the Central Bank supplies banks at a rate of 1,310;
and the banks sell them to merchants and the public for foreign exchange purposes at a rate of 1,320.
Maintaining the official rate fixed in the budget means that all government-subsidized basic commodities and raw materials will not be affected by the fluctuations of the parallel market.
Haider Ghazi, the media officer for the Central Bank of Iraq, attributes the recent rise in the parallel market to a purely technical and regulatory reason: the "pre-clearance customs duty." Iraq no longer operates with traditional, outdated mechanisms; rather, it has transitioned to the global ASYCUDA system for managing customs.Customs
This system requires the merchant to obtain a "permit" .CustomsThe digital transfer was made before the bank transfer was completed. This procedure, although it caused temporary pressure as a result of some merchants trying to evade it.TaxesResorting to cash dollars from the black market is, in reality, a "surgical operation" to cleanse the economy of money laundering and smuggling. Once traders are fully integrated into this digital system, the demand for parallel dollars will disappear because trading through official channels (at 1320) will be cheaper and safer than buying from the black market (at 1490).
As for the Prime Minister's financial advisor,Mazhar Muhammad SalihHe clarifies the situation with a precise academic diagnosis, asserting that the current dollar fluctuation is "temporary and temporary." The reason for this reassurance is that the parallel exchange rate has become "practically detached" from the actual income and consumption levels of citizens.
The decline recorded in the markets confirms the success of these policies.BaghdadThis morning, Sunday, the dinar began to recover immediately following the release of official data and clarifications from the Central Bank.
Ultimately, the government and the Central Bank are not merely acting as "observers," but rather are working within an "institutional framework" that links the fixed exchange rate in the federal budget (1300), the digitization of customs through the ASYCUDA system to eliminate illicit trade, and the provision of cash to legitimate travelers and importers through banks.
This triad represents a "protective shield" preventing any speculative attempts from achieving their objectives. The message to the market today is clear: "Fiscal policy and monetary measures hold sway, and the Iraqi dinar is backed by legislative will and robust international reserves." Consequently, any rise in the dollar will remain limited to the realm of "temporariness" and will not become an imposed economic reality.
Government advisor: The 2026 budget will be the first law submitted to parliament, and the exchange rate will be at 130,000.
The Prime Minister’s financial advisor, Mazhar Muhammad Salih, revealed on Sunday (January 11, 2026) that the first law the new government intends to submit to Parliament is the 2026 budget law, while noting that the dollar has been fixed at 130,000.
Saleh told Baghdad Today that "the draft law is ready, but what prevented its submission was the government's transition to a caretaker role. Therefore, Parliament will pass the budget law, which will reflect its importance on the financial and service realities of the country."
Saleh, a member of the Central Bank's board of directors, confirmed that "the dollar has been fixed in the upcoming budget at 130,000 for every 100 dollars, and this is a message for the stability of the currency and the exchange process."
He pointed out that it “helped clarify the citizen’s vision that the Central Bank is closely monitoring this matter and does not want it to rise, which prompted it to notify the Ministry of Finance that the exchange rate remains as approved, and there is no increase in it as some are trying to promote.”
Earlier, the Central Bank of Iraq addressed the Ministry of Finance regarding the official exchange rate of the dollar to be adopted in the draft federal budget law for 2026.
A document issued by the bank, which was received by "Baghdad Today", stated that "the official exchange rate that will be adopted in 2026 is (1300) dinars per dollar."
The document explained that "this price has been in effect since February 2023," noting that "determining the price falls within the scope of the work of the Central Bank of Iraq."
Sources revealed that the Central Bank will buy dollars at a price of 1300 dinars from the Ministry of Finance, and sell them at a price of 1310 dinars to banks, which will sell them at 1320 dinars to traders and foreign transfers.
The announcement by the Central Bank of Iraq coincides with a rise in the local stock exchange markets for selling foreign currency, where the dollar recorded 147,850 dinars per 100 dollars in Baghdad on Thursday (January 8, 2026).
International Monetary Fund: Iraq's inflation rate is the lowest in the Arab world.
Data from the International Monetary Fund (IMF) showed that the inflation rate in Iraq reached about 1.5% by the end of 2025, making it among the lowest inflation rates in Arab countries, according to the Fund’s indicators for consumer price expectations.
According to data from World Economic Outlook and the IMF's country database, Iraq recorded a low inflation rate compared to a number of Arab economies that continued to experience high price pressures during the same year, reflecting relative stability in domestic prices.
Inflation rate in Iraq
The IMF data indicates that the decline in inflation in Iraq is linked to several factors, including improved availability of goods in the markets, relative stability of the exchange rate, and government policies related to imports and public spending, despite the continued regional and global economic challenges.
In the same context, the IMF data showed a wide disparity in inflation rates among Arab countries at the end of 2025, with some countries recording high rates, while others, including Iraq, maintained relatively low levels, reflecting the different economic conditions and monetary and fiscal policies adopted in each country.
A lower inflation rate is an important indicator of relatively stable purchasing power, but it does not necessarily reflect an overall improvement in living conditions, given the continued challenges of unemployment and income levels.
Baghdad merchants take to the streets in a large demonstration protesting the fees
Traders in the capital have launchedBaghdadToday, Sunday, a large demonstration took place nearBaghdad Chamber of CommerceIn protest against the feesCustomsThe new regulations that the government began implementing with the arrival of the new year, which led to an increase in the value of fees on some goods, especially gold, cars, electronics and electrical appliances.
goldsmiths, speaking to Alsumaria News, warned that the new fees will directly affect young people wishing to get married inIraqThis comes after the tariff increase.CustomsOn gold, 50 times.
One of the traders said that they used to pay 250,000 dinars in fees for every kilogram of imported gold, and today the fees have become 5%, which is equivalent to paying more than 12 million dinars in fees.
The traders confirmed that with one million dinars a young man about to get married could buy a good piece of furniture, but today it is impossible to get anything suitable for that price.
Reconstruction and Development: Al-Sudani has not withdrawn his candidacy for the position of Prime Minister
A representative of Al-Mirbad: Today's session was a continuation of yesterday's session, hosting the directors of customs, taxes, and border crossings.
MP Raja Fadel Al-Hamdi said that today’s session was a continuation of yesterday’s session, which also included hosting the directors general of the border crossings, customs and tax authorities.
Al-Hamdi added in her statement to Al-Mirbad that the revenues from those bodies were discussed, as well as how to maximize resources, in addition to discussing the waste of some revenues and the lack of control over them by the competent authorities. She also indicated that the dues of the governorates were also addressed.
Al-Hamdi revealed that she called for attention to be paid to the border crossings, especially the Shalamcheh border crossing in Basra, which represents a gateway to the governorate and is linked to the state of Iran, from which millions of visitors come annually, indicating that she asked the head of the Border Crossings Authority to visit it and learn about its needs.
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Customs Director: The ASYCUDA system will be completed in most ports by the end of 2026, except for Kurdistan.
During a session hosted by the House of Representatives, the Director of the Customs Authority stressed that: "A large percentage of federal ports are subject to the ASYCUDA system."
He indicated that "by the end of 2026 the system will be fully implemented in all ports except for the Kurdistan Region."
Qasim al-Araji receives the Chargé d'Affaires of the US Embassy in Baghdad
Activating electronic billing is on the agenda for the Ministers of Finance and Electricity.
Finance Minister Taif Sami confirmed on Sunday that she discussed with the Ministry of Electricity mechanisms for activating electronic billing, which would contribute to increasing financial resources.
A statement from her media office, received by Video News Agency, indicated that she "discussed with the Ministry of Electricity activating electronic billing to increase the financial resources of the ministry's affiliated companies and reduce government subsidies in accordance with financial reforms."
Earlier that day, Electricity Minister Ziad Ali Fadhil emphasized that securing a stable operating budget is a fundamental factor in ensuring the continuity of the electrical grid and improving supply levels.
A statement issued by the ministry, also received by Video News Agency, stated that "Electricity Minister Ziad Ali Fadhil discussed with Finance Minister Taif Sami the 2026 operating budget for the electricity sector, in the presence of the Director General of the Trade Bank of Iraq (TBI) and several officials from both ministries." The statement
added that "the meeting discussed the budget for the maintenance and upkeep of power generation plants, in addition to the transmission and distribution sectors, as well as the fuel costs required to operate the power plants, which will contribute to stabilizing the power supply and improving performance during the current year."
The Minister of Electricity affirmed that "securing a stable operating budget is a fundamental factor in ensuring the continuity of the electrical grid and improving the level of service," noting that the ministry operates according to clear technical and operational plans that require regular support to avoid any future bottlenecks.
For her part, the Minister of Finance emphasized the importance and vitality of the electricity sector, stressing the government's understanding of the need to prioritize this sector due to its direct impact on citizens' lives.
Baghdad merchants demonstrate against new taxes and fees
Dozens of merchants demonstrated today, Sunday (January 11, 2026), in front of the Baghdad Chamber of Commerce headquarters in the center of the capital, protesting against the new taxes and fees.
A reporter for "Baghdad Today" said that "dozens of traders from various industries demonstrated today in front of the Baghdad Chamber of Commerce headquarters to protest the decision to impose new taxes and fees."
He added that "the demonstrators denounced the recent decisions and the application of the customs tariff system to some imported goods."
Documents circulating from the Iraqi Cabinet, dated December 16, 2025, revealed the government’s plan to impose taxes, including “recharge cards and internet services,” as part of a package of economic reforms aimed at increasing revenues and improving the state’s financial situation, according to the documents.
The decisions also include measures to strengthen oversight of digital services and expand the tax base to include various categories of beneficiaries of electronic services.
Parliamentary signatures were collected to summon the Prime Minister and the Minister of Finance to discuss the tax decision.
text of the document:
Greetings,
Based on Article 28 of the 2005 Constitution of the Republic of Iraq, which stipulates that taxes and fees may only be imposed by law and in a manner that achieves social justice, and Article 61/Second, which concerns the oversight role of the Council of Representatives, and Article 61/First (b), which authorizes the Council to summon senior executive officials, in addition to Articles 30 and 14, which relate to a decent standard of living and equality before the law:
We kindly request your approval to summon the Prime Minister and the Minister of Finance to the Council of Representatives to discuss the procedures and policies related to imposing taxes and fees on citizens, to clarify their economic and social impacts, and to assess their compliance with the provisions of the Constitution and the principle of social justice.
We request that you take the necessary measures in this regard and schedule a suitable date for the hearing.
Thank you for your attention and consideration.
Iraq and the United States affirm continued joint cooperation in the security and military fields.
The Chief of Staff of the Army, Lieutenant General Abdul Amir Rashid Yarallah, and the US Military Attaché in Iraq affirmed the continuation of joint cooperation and coordination in the security and military fields.
The Ministry of Defense stated in a press release received by the Iraqi News Agency (INA) that "the Chief of Staff of the Army, Lieutenant General Abdul Amir Rashid Yarallah, received the US Military Attaché in Iraq at the Army Headquarters on Sunday evening."
The statement added that "during the meeting, several topics of mutual interest were discussed, and the continuation of joint cooperation and coordination between the two sides in the security and military fields and capacity building was emphasized, particularly regarding the provision of logistical support and bolstering efforts that contribute to strengthening the capabilities of the military establishment and raising the combat readiness of the Iraqi Army at all levels."
Al-Halbousi stipulates that the candidate for prime minister must present a government program before the vote.
The House of Representatives concluded its fourth session of the sixth electoral term on Sunday, chaired by Hebat al-Halbousi and attended by 222 members, discussing non-oil revenues in the presence of the heads of tax, customs and border crossings. During the session, al-Halbousi stressed the importance of the next government candidate presenting his government program for review and study in a manner consistent with strategic financial reforms before voting on it in the House.
The Media Department of the House of Representatives stated in a statement, a copy of which was received by 964 Network, that “at the beginning of the session, the Speaker of the House, Mr. Hebat Al-Halbousi, announced that the Ministers of Foreign Affairs and Water Resources would be hosted during the session on Monday of next week to discuss the water agreement with the State of Turkey, based on a request submitted by the ladies and gentlemen of the House of Representatives.”
In another context, MPs Jihad Al-Abadi and Ashwaq Al-Jaf took the constitutional oath to become members of the House of Representatives after the approval to include the item on the agenda.
According to the statement, the council continued its discussion of the reality of non-oil revenues in the presence of the head of border crossings and the directors general of the General Authority for Taxes and the General Authority for Customs.
The statement continued, “The interventions of the ladies and gentlemen of parliament focused on the importance of activating and strengthening the electronic automation project in collecting taxes and customs tariffs, setting a time limit for completing the project to preserve revenues, as well as demanding the rotation of the functional staff working in the bodies concerned with collections, and the need to seek the assistance of specialized university professors to listen to their opinions and experiences in the field of strengthening government automation, in addition to knowing the effective ways to address the manipulation of the weights, descriptions and quality of goods at ports and customs.”
A number of MPs also stressed “the importance of the participation of representatives from the Ministry of Electricity in discussing maximizing revenues, especially given the indications of large sums being lost from the ministry’s collection, and revealing the number of unofficial outlets that are not subject to the authority of the federal government, as well as demanding the issuance of binding parliamentary resolutions to the executive authority regarding its authority to raise taxes only through existing laws, and demanding maximizing revenues from other levies related to the work of ministries, companies, investment projects, communications, and others.”
During the same session, the Speaker of the Council stressed, according to the statement, “the importance of the next government’s nominee presenting his government program for review and study in a manner consistent with strategic financial reforms before voting on it in the Council, noting the importance of amending the investment law in a way that serves to enhance state revenues.”
The interventions during the session, part of which was chaired by the First Deputy Speaker of the Council, Adnan Faihan, also called on the government to “diversify sources of income and increase non-oil revenues to ensure a secure future for all generations of the people, and the importance of carrying out administrative reforms in order to improve services, while empowering the agriculture and industry sectors as they are among the most important sources that provide the state treasury with large sums, in addition to revitalizing the tourism sector.”
In response to the interventions, the statement clarified that “the head of the Border Ports Authority confirmed that the application of electronic governance has greatly reduced the phenomenon of corruption that plagued the ports in the past,” noting that “work is being carried out at the Ports Authority in Baghdad around the clock and on a regular basis at all border ports belonging to the federal government,” noting that “no official understandings have been reached with the concerned parties to control the ports in the Kurdistan Region,” and categorically denying “the existence of any unofficial port in the central and southern governorates.”
For his part, the Director of the Customs Authority stressed that “a large percentage of federal ports are subject to the ASYCUDA system,” indicating that “by the end of 2026 the system will be fully implemented in all ports except for the Kurdistan Region.”
At the end of the session, the Speaker of the Council called on the parties being hosted to provide the parliamentary committee with all the answers that were addressed through the interventions of the ladies and gentlemen of parliament. After that, it was decided to adjourn the session until Monday, January 19, 2026.
Washington and Tehran clash moves into Baghdad .. US warns seedlings | تقرير
https://www.youtube.com/watch?
This warning came from the mouth of the U.S. Embassy in Baghdad, accompanied by the sounding of alarm bells that Washington is closely monitoring the situation in Iraq.The statements announced by the U.S. Embassy spokesperson followed by asserting that the factions refusing to disarm do not act in the interest of Iraq or the Iraqi people, but rather in the interest of Iran. They undermine the sovereignty of the land of the two rivers (Mesopotamia/Iraq) and plunder its resources for the benefit of Iran.These public American statements were met with a warning statement from the Iranian Embassy in Baghdad, in the language of caution: not to allow foreigners to interfere in the affairs of the Iranian people.According to observers, the scene is most similar to the Iranian-American confrontation having transferred and become linked to the Iraqi interior—especially the reactions from the embassies of Washington and Tehran.But what is most important for the Iraqi street is that the country not be dragged into a conflict whose fuses have reached a blazing volcano in the Iranian street, along with real threats of a military strike.This, according to predictions read by those in political salons, indicates that Iraq faces a genuine threat if armed factions persist in their stance of refusing to disarm on one hand, and on the other hand, the media inclinations on many platforms among numerous people who reject American intervention in Iran and accuse Washington of undermining Iranian stability—specifically the existing authority represented by the Khamenei regime.This is what Washington and Tel Aviv together view as a challenge and support for the Iranian regime, which is considered the number-one enemy of Washington in the region.Amid these developments, voices of reason are emerging, stressing the necessity for a change in the position of armed factions that are included in Washington's calculations under the Iranian cloak. They should hand over their weapons before it is too late.Otherwise, the upcoming conflict—with Washington's refusal to allow those factions to enter the form of the new Iraqi government—will not serve the new Iraqi political scene or the stability of its land from the Iranian-American conflict.
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