The Central Bank continues to strengthen the stability of the dinar and the sustainability of the cash dollar.
The Prime Minister’s financial advisor, Mazhar Muhammad Salih, confirmed on Friday that the stability of the exchange rate is part of the Central Bank’s monetary policy, noting that there are ongoing measures to enhance the stability of the dinar, control liquidity, and ensure the sustainability of cash dollar supplies .
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Saleh said, in a statement to the official agency followed by Al-Sa’a Network, that “the exchange rate policy and the monetary system are among the exclusive jurisdictions of the monetary authority, according to the Central Bank of Iraq Law No. (56) of 2004, which granted the Central Bank legal independence in formulating and implementing its monetary policies, while subjecting it to accountability before the House of Representatives based on Article (103) of the Constitution of the Republic of Iraq .”
He added that "the Central Bank of Iraq adopts a fixed official exchange rate policy as a nominal anchor to achieve general price stability in the long term, maintain monetary balance, and reduce inflationary expectations ."
He pointed out that “despite the independence of monetary policy, the management of the exchange rate is not done in isolation from coordination with the executive authority under the constitution, especially coordination with public finance in implementing fiscal policy, as the official rate is, in part, a contractual rate between monetary and fiscal policies .”
He pointed out that “the Central Bank informed the Ministry of Finance, late last year, that the exchange rate adopted for the purposes of preparing the draft federal budget law for 2026 would be around (1300) dinars per dollar, which reflects the continued adherence to the fixed official rate adopted since February 2023 until today, and is an important indicator of stability for the market and its expectations .”
Regarding the parallel exchange market, Saleh explained that “adopting financing foreign trade through official channels and at a fixed exchange rate has contributed to achieving important results in reducing the impact of black market fluctuations on price stability, most notably that the official market contributes to absorbing more than 90% of the real demand for the dollar, reducing demand in the parallel market to marginal limits, enhancing monetary balance, and improving control over liquidity levels by controlling their levels .”
He stressed that “stabilizing the parallel market is not achieved only through increasing the injection of cash dollars for travelers and others, which represents a percentage between 5% and 10% of the total demand for foreign currency, but rather through an integrated package of continuous measures, including effective management of cash liquidity through intervention in the exchange market, controlling and regulating official demand channels for foreign currency, enhancing confidence in institutions and monetary policies, as well as developing the internal commercial and financial infrastructure .”
He pointed out that "the sustainability of supplying cash dollars remains a key factor in stabilizing the parallel market and the noise that accompanies it, in accordance with well-thought-out supply plans that meet the needs of the local market, while adhering to national and international institutional compliance standards related to the use of foreign currency, and combating money laundering and the financing of illegal activities .
Sources: Al-Zaydi insists on keeping Taif Sami and Ali Al-Alaq in their positions
Negotiations to form the new Iraqi government have entered a decisive phase, as the prime minister-designate, Ali al-Zubaidi, presented his ministerial program to the Speaker of Parliament, Hebat al-Halbousi, amid reports that next Sunday has been set as the date for the vote on the new cabinet.
Press reports revealed Al-Zidi’s desire to keep Finance Minister Taif Sami and Central Bank Governor Ali Al-Alaq in their positions, in a move aimed at ensuring the stability of the financial and monetary file under his direct supervision.
In contrast, the obstacle of "newly created positions" stands out as one of the main points of contention, as political forces seek to impose the appointment of 4 deputy prime ministers outside of the traditional sovereign entitlements, which observers see as an attempt to "appease the parties" at the expense of the efficiency of the executive branch.
Washington sends a new message to the next Iraqi government
The US government sent a new message today, Friday, toIraqi governmentThe next one, while reiterating its rejection of the involvement of armed factions in the next Iraqi government.
The official called on the governmentIraqThe next step is to issue a clear statement stating that the militias are not part of it,” stressing that “American facilities in Iraq were subjected to more than 600 attacks during the military conflict that the region witnessed from the end of February until the ceasefire came into effect on April 8.”
Abdul Hadi sets a date for submitting the names of candidates for ministerial portfolios in Ali al-Zidi's government.
On Friday, Uday Abdul-Hadi, a member of the Coordination Framework, set the date for political blocs to submit the names of their candidates for ministerial portfolios in the government of Prime Minister-designate Ali al-Zaidi.
Abdul-Hadi told Al-Maalouma that "Prime Minister-designate Ali al-Zaidi's submission of the ministerial program to the Speaker of Parliament yesterday represented the first step in the process of forming the government." He explained that "the next anticipated step is for the political blocs and lists to submit the names of their candidates for ministerial portfolios, based on their electoral entitlements."
He added that "the names of the candidates will be submitted at the beginning of next week, with more than one name for each ministerial portfolio, from which al-Zaidi will choose the most suitable candidate." He emphasized that "so far, there are no disagreements hindering this process."
Abdul-Hadi indicated that "the issue of the sovereign ministries is witnessing serious steps toward resolution in the coming hours," expecting that "the lists of proposed names will be ready shortly, paving the way for the completion of the government formation."
An oil spill covering 45 square kilometers was detected near Iran's Kharg Island.
Satellite images this week have detected what is suspected to be an oil spill covering tens of square kilometers of sea near Kharg Island, which is Iran's main oil hub.
Images taken by the Sentinel-1, Sentinel-2 and Sentinel-3 satellites of the Copernicus program between May 6 and 8 showed the possible leak, which appears in the images as a gray and white patch, covering the waters west of the eight-kilometer-long island.
Leon Moreland, a researcher at the Conflict and Environment Observatory, said the slick's shape "appears visually consistent with oil," adding that he estimates it covers an area of about 45 square kilometers.
Louis Goddard, co-founder of the climate and commodities consulting firm Datadesk, agreed with him.
Goddard said the images likely show an oil slick, possibly the largest since the start of the US-Israeli war on Iran 70 days ago.
The U.S. military and Iran's mission to the United Nations in Geneva have not yet responded to Reuters' requests for comment on the images.
Moreland added that the cause and source of the possible leak are currently unknown, noting that images taken on May 8 did not show any evidence of any other active leak.
Kharg Island is a hub for approximately 90% of Iran's oil exports, most of which go to China. US forces have stated that they destroyed military targets on the island earlier in the war.
The US Navy is blockading Iranian ports in an attempt to prevent Tehran's tankers from entering and leaving, and US and Iranian forces have clashed in the Gulf.
The war also left hundreds of ships stranded in the Gulf and caused the world's largest disruption to crude oil supplies, as well as affecting global supplies of petroleum products and liquefied natural gas.
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Expert warns Iraq is becoming an "accomplice state" in Iranian oil smuggling - Urgent
Economic expert Ziad al-Hashemi warned on Friday (May 8, 2026) of the dangers of Iraq becoming a "complicit state" in Iranian oil smuggling operations, indicating that the continuation of this involvement will put the official Iraqi regime under severe international and financial pressure.
Al-Hashemi stated in a post on his Facebook page, which was followed by “Baghdad Today”, that “the US Treasury’s punishment of the Iraqi Deputy Oil Minister on charges of facilitating the forgery of official documents to change the identity of Iranian oil to Iraqi and smuggle it through the (shadow fleet), is not the first event of its kind, pointing to previous pressures exerted by Washington on the SOMO company to replace managers who were involved in issuing Iraqi certificates of origin and documents used for the same purpose.
He explained that the results of this official involvement with smuggling networks will be "very bad" at the level of the regime and the economy, as international accusations confirm the infiltration of the Iraqi government and the use of state resources to circumvent international sanctions, noting that legitimate Iraqi oil has become "suspicious" in global markets, giving Western frigates a justification to stop ships and check their papers, which causes disruption and an increase in transportation costs.
The economist added that international buyers may demand higher price discounts or complex legal guarantees if they doubt the accuracy of the documents or the possibility of shipments being mixed up, stressing that sanctions may expand to include transport companies, brokers, ship owners, banks, and even other government entities if an institutional pattern of collusion is proven.
Al-Hashemi pointed out that Iraq may face greater financial and banking restrictions, through the tightening of international banks and insurance companies in dealing with Iraqi oil deals and the increase in the cost of marine insurance, indicating that the Ministry of Oil and the SOMO company will be among the most affected, given that their work depends on reputation and reliability as an official source of crude oil.
Al-Hashemi concluded by saying that the Ministry of Oil’s denial alone is not enough, but rather requires an independent audit of the shipments’ route and the chains of intermediaries, and the exposure of those involved, warning of a strategic danger that threatens the reputation of Iraqi oil, the country’s relationship with the global financial system, and the state’s ability to prove its authority over the energy sector away from the influence of political networks.
Financial savings are out of control... warnings of the fragility of the economic system
Economic concerns have been raised regarding the management of the Central Bank's financial reserves, amid assurances that they are not subject to direct use except through borrowing.
Economic and oil expert Duraid Al-Anzi confirmed on Friday that Iraq is going through a major and suffocating crisis as a result of the failure to take measures related to the establishment of a sovereign wealth fund and financial savings.
Al-Anzi said that “Iraq is going through a major and suffocating crisis, as Iraq has not taken measures to establish a sovereign wealth fund and savings.”
He added that “the central bank’s savings are outside of financial and economic control, and can only be accessed through borrowing.”
He pointed out that “oil is essential, as Iraq has produced at least $17 trillion from oil sales over the past years.”
He explained that “the continuation of the current situation of restricting oil exports leads to deterioration,” expressing his fear that “there might be an idea to mortgage Iraqi oil.”
Al-Anzi stressed that “the country’s economic situation is very dangerous and needs to be monitored.”
Advisor Saleh: Providing cash dollars is one of the most important reasons for the stability of the parallel market.
The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed that there are ongoing measures to enhance the stability of the dinar, control liquidity, and sustain the supply of cash dollars in order to stabilize the parallel market.
Saleh said in a press statement that “the exchange rate policy and the monetary system are among the exclusive jurisdictions of the monetary authority, according to the Central Bank of Iraq Law No. (56) of 2004, which granted the Central Bank legal independence in formulating and implementing its monetary policies, while subjecting it to accountability before the House of Representatives based on Article (103) of the Constitution of the Republic of Iraq.”
Stability of the parallel market
He added that “the Central Bank of Iraq adopts a fixed official exchange rate policy as a nominal anchor to achieve general price stability in the long term, maintain monetary balance, and reduce inflationary expectations.”
He then pointed out that “despite the independence of monetary policy, the management of the exchange rate is not done in isolation from coordination with the executive authority under the constitution, especially coordination with public finance in implementing fiscal policy, as the official rate is - in part - a contractual rate between monetary and fiscal policies.”
He also pointed out that “the Central Bank informed the Ministry of Finance, late last year, that the exchange rate adopted for the purposes of preparing the draft federal budget law for 2026 would be around (1300) dinars per dollar, which shows the continued adherence to the fixed official rate adopted since February 2023 until today, which is an important indicator of stability for the market and its expectations.”
Foreign trade finance
Regarding the parallel exchange market, Saleh explained that “adopting financing foreign trade through official channels and at a fixed exchange rate has contributed to achieving important results in reducing the impact of the fluctuations of this black market on price stability, most notably that the official market contributes to absorbing more than 90% of the real demand for the dollar, reducing the demand in the parallel market to marginal limits, enhancing monetary balance, and improving control over liquidity levels by controlling the levels of that liquidity.”
He stressed that “stabilizing the parallel market is not achieved only through increasing the injection of cash dollars to travelers and others, which represents a percentage between 5% and 10% of the total demand for foreign currency, but rather through an integrated package of measures that are still ongoing, including: effective management of cash liquidity through intervention in the exchange market, controlling and regulating official demand channels for foreign currency, enhancing confidence in institutions and monetary policies, as well as developing the internal commercial and financial infrastructure.”
He pointed out that “the sustainability of supplying cash dollars remains a key factor in stabilizing the parallel market and the noise that accompanies it, in accordance with well-thought-out supply plans that meet the needs of the local market, while adhering to national and international institutional compliance standards related to the use of foreign currency, and combating money laundering or financing of illegal activities.”
Washington tightens its conditions, Baghdad wavers, and the factions become a stumbling block for the new government.
The Iraqi political scene is witnessing a remarkable escalation against the backdrop of the conditions put forward by the administration of US President Donald Trump regarding the formation of the new Iraqi government, which linked its support for Baghdad to keeping armed factions away from the upcoming ministerial formation, which opened the door to a wide political debate within the country.
In this context, the Friday prayer leader of Najaf, Sadr al-Din al-Qubanchi, described these demands as “blatant interference” in the Iraqi decision, calling on the coordinating framework and the prime minister-designate to take a position that preserves what he described as “the independence of the state.”
These developments coincided with sharp American criticism of what Washington considers to be “ambiguity” in the relationship between the Iraqi state and some armed factions, as the incoming US administration demands a clear declaration confirming that these groups are not affiliated with official state institutions.
Al-Qabbani linked these pressures to what he described as a state of “political confusion” within parliament, criticizing the large number of MPs who traveled to Mecca for Hajj at a time when the country is going through sensitive periods related to the formation of the government and the approval of the ministerial program.
In the international context, a report issued by Foreign Policy magazine, which was followed by (Al-Mada), concluded that Iraq has become closer to a “fragile state” due to political divisions, the influence of armed factions and foreign interventions, noting that the country is stuck between intertwined regional and international pressures.
According to the report, the escalation of attacks and regional tensions, especially between the United States and Iran, has had a direct impact on the Iraqi interior, at a time when the incoming government faces complex challenges related to sovereignty and controlling weapons outside state institutions.
The report also noted that armed factions linked to Iran have become a key player in the Iraqi scene, given their continued political and military presence, which puts the next government in front of a thorny equation between external pressures and internal balances.
For his part, US Republican Party member Malik Francis said that the Trump administration is dealing cautiously with Prime Minister-designate Ali al-Zaidi, focusing on issues of armed influence, energy stability, and limiting Iranian expansion within Iraqi state institutions.
Inside Iraq, the leader of the Sadrist movement, Muqtada al-Sadr, called for a reformulation of the role of armed factions and their transformation into formations with a humanitarian character, in a move that sparked widespread political controversy about the future of those groups within the state.
In light of these developments, Prime Minister-designate Ali al-Zaidi continues his efforts to form his government within the constitutional deadline, amid escalating pressure from internal and external parties, making the issue of the next government one of the most sensitive and complex issues in the current political phase.
Al-Sadr sets 6 conditions for the next government and calls for the disbanding of armed factions.
The leader of the Shiite National Movement, Muqtada al-Sadr, issued a statement today, Friday (May 8, 2026), in which he outlined a political roadmap that includes six basic conditions directed at the person tasked with forming the government, stressing the need to achieve "the satisfaction of the people" as a top priority for the next stage.
The issue of uncontrolled weapons topped al-Sadr’s statement, in which he called on the incoming government to transform the armed factions into a formation called “Soldiers of Religious Rites,” to be under the authority of the “Hajj and Umrah Authority,” or to transform them into humanitarian relief formations.
Al-Sadr stressed that any party that rejects this transformation will be considered "outlaw".
Al-Sadr expressed his readiness to dissolve the "Promised Day Brigade" and hand over the "Peace Brigades" to the Commander-in-Chief of the Armed Forces as a step to strengthen state sovereignty.
The Shiite leader expressed his categorical rejection of a return to political power-sharing, stressing his rejection of the "perfumer's mix," and calling for a move away from ministerial formations based on power-sharing, and the exclusion of any party that has an armed wing from the cabinet.
He also called for the formation of a government that meets the demands of the Iraqi people, free from partisan pressures.
Al-Sadr set a maximum time limit of three months for the immediate start of suppressing corruption and holding accountable those involved in major cases, most notably what he described as the "deal of the century".
In his statement, Al-Sadr emphasized the “neither Eastern nor Western” approach, working tirelessly for the true independence of Iraq from all foreign interference.
Strengthening foreign relations within frameworks that preserve Iraq's prestige, while opening up to the Arab, Islamic and international environment, provided that there is no interference in internal affairs.
To ensure that no one is involved in power-sharing, al-Sadr said, "We do not accept the presence of any individual from the Shiite national movement in the cabinet... and none of their ministers represent us."
Al-Sadr concluded his statement by emphasizing that the goal of these steps is to elevate Iraq and its people, who have long suffered from the ravages of war, placing the ball in the court of the person tasked with forming the government and other political forces.
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