European Center: The US Federal Reserve is the only current "way out" of Baghdad's economic crisis
The European Center for Economic Guarantees, Credendo, revealed in a report published today, Tuesday, May 26, 2026, the "depth of the crisis" that Iraq is going through during the current and upcoming stage, stressing that the government in Baghdad "needs" the US Federal Reserve.
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The center said, according to what was translated by “Baghdad Today”, that the economic shock resulting from Iraq’s loss of its ability to export its oil as a result of the closure of the Strait of Hormuz is still “not fully apparent”, stressing that the consequences will include “enormous financial pressure on liquidity and difficulty in meeting the government’s financial obligations in the public sectors, in addition to a significant decline in the value of the Iraqi dinar and a rise in inflation rates.”
He continued, "The outlook for the economic situation in Iraq appears to be highly difficult and challenging, especially if the current crisis in the Strait continues or the region witnesses a new escalation of violence, which could lead to permanent damage to the Iraqi oil sector that cannot be repaired or avoided."
He added, "Even if the United States and Iran reach a preliminary agreement to halt the war for a short period of time, restarting the oil fields will be extremely difficult, in addition to the risk of the conflict resuming at any time, which makes the process of resuming production and exporting again a major challenge for the Iraqi government."
The center confirmed that the Iraqi government has an economic "way out" of the current crisis, represented by the large foreign financial reserve it possesses in hard currency, which it can use as a barrier to protect the Iraqi economy from the most serious consequences of the cessation of exports for a period of time that could reach months, stressing, "This reserve is not in Iraq's possession."
The center also clarified that Iraq’s large financial reserves are held with the US Federal Reserve in New York and not with the Central Bank of Iraq, which makes the use of those funds, with its long-term risks and short-term benefits, subject to a US decision.
The center indicated that the United States is aware of Iraq’s need for the large financial reserves held by the Federal Reserve, which led to “Washington using it as a political pressure tactic against the Iraqi government to push it to dissolve the factions, something that became very clear during Washington’s imposition of restrictions on cash dollar transfers to Iraq, which placed further financial restrictions on the Iraqi government.”
The center noted at the end of its report that Iraq’s temporary and currently available way out of the financial crisis, represented by the dollar reserves at the US Federal Reserve, carries another risk, explaining, “If Washington imposes economic sanctions on Iraq, the country will not be able to access the reserves of funds that it may use to finance its work for the coming months,” as it described it.
It is noted that political analysts have spoken about conducting governmental and party negotiations and discussions to reach an agreement to integrate the armed factions into a new security ministry in order to avoid American restrictions and possible sanctions on the economy.
Government advisor: The dollar is the basis of Iraq's cash reserves.
On Tuesday, Mazhar Mohammed Saleh, the financial advisor to the Iraqi Prime Minister, stated that diversifying Iraq's foreign reserves within a balanced investment portfolio represents a strategic monetary policy aimed at enhancing financial stability and reducing the risks associated with relying on a single asset or currency.
Saleh told Shafaq News Agency that the management of foreign reserves at the Central Bank of Iraq is based on liquidity, security and return standards, explaining that the philosophy of managing reserves is based on achieving a balance between protecting the value of the national currency and ensuring the ability to intervene in the exchange market and finance foreign trade, in addition to reducing sovereign and financial risks resulting from global market fluctuations and geopolitical tensions.
He explained that Iraq, as an economy heavily dependent on oil revenues and foreign imports, keeps the US dollar as a key component of its foreign reserves due to its direct link to foreign trade, noting that the diversification policy also includes other currencies and assets such as the euro, yuan, and gold to enhance flexibility and reduce the risks of monetary concentration.
He added that the distribution of reserves is not limited to foreign currencies, but includes multiple investment instruments such as treasury bonds and sovereign deposits, explaining that the goal is not to achieve high profits as much as it focuses on maintaining security and liquidity while achieving an acceptable return.
He explained that gold is an important component of reserves within global diversification standards, as it provides a safe cover in times of turmoil, but it is not a complete substitute for the rest of the foreign assets because it does not generate a direct return and the costs of storing and securing it are high.
He stressed that the sound management of foreign reserves aims to achieve a balance between exchange rate stability, protecting the national economy, and reducing exposure to international market fluctuations, through building a balanced investment portfolio that provides liquidity, security, and an appropriate return.
Tehran seeks to contain public anger by restoring internet access.
After nearly three months of strict restrictions on the international internet, the Iranian government appears to be facing a new test between continued security pressures and growing popular demands to reconnect to the global network, amid signs of a partial return of service within the country.
The internet monitoring service NetBlocks reported today that there are signs of a partial restoration of international connectivity in Iran, after an 87-day outage, in a move that comes amid growing domestic criticism of the economic and educational losses caused by the ongoing blackout.
In the first official indication of a government move to ease restrictions, Iranian First Vice President Mohammad Reza Aref said that Tehran had begun “a first step towards free and orderly access to cyberspace,” stressing that reopening the internet would have an impact on smart services and alleviate obstacles to development.
According to Iranian media, Aref, who heads the Communications and Internet Committee, had expressed his objection to the policy of completely cutting off the international internet, before pushing for the resumption of the service while maintaining censorship related to security files.
However, this governmental approach does not seem to have full consensus within state institutions, as Iranian researcher Mohammad Saleh Sedghian pointed out in an analysis followed by (Al-Mada) that security agencies resorted to the Administrative Justice Court to try to disrupt the decision to restore the service, based on concerns related to the use of the Internet in activities that those agencies describe as threatening internal security.
The continuation of the restrictions is facing increasing objections from economic and academic circles, especially after the disruption of the work of companies and educational institutions during the past months, at a time when the government believes that the continuation of the disruption is carrying a high internal cost.
For years, Iran has relied on a dual communications system, consisting of an internal local network available to citizens but not connected to the outside world, alongside the international internet network, which is subject to strict security restrictions and controlled access levels.
Iranian media reported on Monday that Iranian President Masoud Pezeshkian had issued a directive to restore access to international websites, after months of restrictions imposed in conjunction with the US-Israeli war on Iran.
In a related context, Iranian government spokeswoman Fatemeh Mohajerani had previously announced that the Supreme National Security Council had approved a temporary plan to ease internet restrictions for businesses, known as the “Internet Pro” plan, which aims to ensure business continuity during crises.
Mohajerani stressed that the government considers internet access a “civil right,” but linked expanding the service to an assessment of the security situation in the country.
Masrour Barzani in Baghdad: A move that restores the KDP's presence in the capital and provides continued support for the Zaidi government.
Kurdistan Regional Government Prime Minister Masrour Barzani affirmed that reaching lasting solutions to the outstanding issues between Erbil and Baghdad requires a genuine commitment to the principles of dialogue and national partnership.
He stated, "We emphasized in Baghdad that lasting solutions can only be established through dialogue, genuine partnership, and respect for the constitution."
Kurdistan Regional Government Prime Minister Masrour Barzani met with Iraqi Prime Minister Ali Faleh al-Zubaidi during his official visit to Baghdad.
The Prime Minister stressed the importance of resolving outstanding issues between the Kurdistan Region and the federal government fundamentally and based on the constitution, while respecting the Kurdistan Region's federal status.
Barzani also held a series of meetings with Speaker of Parliament Haibat al-Halbousi, Chief Justice Faiq Zaidan, Mohammed al-Halbousi (head of the Progress Party), Hadi al-Amiri (head of the Fatah Alliance), Faleh al-Fayyad (head of the Popular Mobilization Forces), Khamis al-Khanjar (head of the Sovereignty Alliance), Muthanna al-Samarrai (head of the Azm Alliance), Mohsen al-Mandalawi (head of the Asas Alliance), and other figures.
Prime Minister Barzani described his initial meetings with officials in Baghdad as "positive and fruitful."
In a related
context, Wafa Mohammed Karim, a member of the Kurdistan Democratic Party, affirmed that Masrour Barzani's visit to Baghdad is a renewed commitment to resolving disputes between the federal government and the Kurdistan Regional Government (KRG) through constitutional means.
Speaking to Al-Mada newspaper, he noted that "the aim of the visit is to support the al-Zaidi government by presenting the Ronaki project to the federal government for electricity provision, as well as obtaining full guarantees against any attacks on Kurdistan's oil fields."
He added that "non-interference in the region and opening a new chapter will lead to the return of foreign oil companies and the swift resumption of the region's oil exports, which will boost the state treasury by exporting approximately 200,000 barrels of oil per day."
The former Deputy Speaker of the Iraqi Parliament stated that the visit of the KRG Prime Minister, Masrour Barzani, to Baghdad is a clear indication of the success of the region's diplomacy aimed at addressing all outstanding issues and files.
Bashir al-Haddad stated in a press release that "with the new Iraqi government assuming its duties, a new phase in the system of governance begins." He added that one of the priority goals of the ninth government cabinet of the Kurdistan Region is the successful management of relations with Baghdad on the basis of the constitution, and the consolidation of the principles of genuine partnership, in a way that ensures the full implementation of the rights of the Kurdish people as stipulated in the federal constitution.
On another positive note
, Kurdistan Democratic Party MP Shirwan Dubardani indicated that Barzani's visit was an important step in supporting the new Iraqi government headed by Ali Abdullah Saleh.
Speaking to Al-Mada, he explained, "The region wants to turn the page on disputes and problems once and for all by adhering to the constitution, and we have witnessed positive steps from the government and the new prime minister."
He added, "In all the meetings held by the prime minister, there were emphasis on the need to keep the issue of the region's employees' salaries and financial rights separate from political disputes, and this is an important step in any negotiation process."
The head of the Popular Mobilization Forces, Faleh al-Fayyad, stated in an interview with the media, "The visit of the Prime Minister of the Kurdistan Region to Baghdad was very important and positive. This step represents a promising indicator and good news for expediting the formation of the new federal government's cabinet."
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, and 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.”
Regarding the issue of salaries,
Masrour Barzani told various media outlets, "We discussed and deliberated on all outstanding files and issues with senior Iraqi officials and leaders, and we received very positive responses from them concerning the salary file, the financial entitlements of farmers, and all other existing problems. There was complete consensus and agreement from everyone on the necessity of resolving these problems and ending the disputes."
The head of the "Victory" Alliance, Haider al-Abadi, affirmed that protecting the Kurdistan Region is a shared national duty, considering any targeting or threat directed at the region as a direct attack on him, while simultaneously emphasizing the need to continue and further strengthen relations between Erbil and Baghdad.
Political analyst Hardi Abdullah stated that Masrour Barzani's visit is a renewed affirmation by the Kurdistan Democratic Party of the importance of its presence in Baghdad after a long period of estrangement.
In an interview with Al-Mada, he stated that "the visit reflects the positive atmosphere surrounding the new government headed by Ali al-Zaidi and the local and international support it has received. Therefore, it is another step towards securing support from the region and gives a positive impression for the next phase of relations between Baghdad and Erbil."
He noted that "this strong presence in Baghdad will enhance economic and security cooperation, and is an important step towards quickly resolving the issues between the two sides."
Russia: We are ready to receive enriched uranium from Iran... the decision rests with Tehran.
they've said this before so this might be an option that is really being discussed
Russia has announced its readiness to receive enriched uranium from Iran.
Russia's Permanent Representative to the United Nations, Vasily Nebenzya, said, "We have announced our readiness, but this decision must be made by Iran."
He added, "If Iran asks us to transfer the uranium to Russia within the framework of the agreement, then why not?"
Russia has repeatedly declared its readiness to mediate in resolving the dispute between the United States and Iran.
It is worth noting that the transfer of enriched uranium out of Iran was one of the American conditions for reaching a deal with Tehran regarding the Iranian nuclear program.
Iran insists on its right to enrich uranium and has not publicly agreed to the transfer of enriched uranium abroad.
Al-Zaydi's government: Opens the file on frozen funds to integrate factions; the decision rests with Washington.
An informed source revealed on Tuesday that the government of Ali al-Zaidi intends to address Washington to release part of Iraq’s frozen funds in some international banks to cover the allocations for the elements of the factions that will be integrated into the directorates of the Popular Mobilization Forces and some security and military ministries.
According to the source, who spoke to Shafaq News Agency, integrating the members of the armed factions who agreed to hand over their weapons to the government and join the government institution requires large financial allocations compared to their numbers, which exceed 800,000 people.
The source explained that most factions agreed to hand over weapons, with the exception of the Al-Nujaba Movement and the Sayyid al-Shuhada Brigades.
According to the source, the issue of releasing frozen funds does not only include funds in Washington banks, but also in some European countries. If Washington agrees to Iraq’s request, the remaining banks in other countries will certainly agree to release the frozen Iraqi funds.
According to the source, significant changes will affect the Popular Mobilization Forces after the completion of the process of integrating the factions’ elements and sorting its directorates according to the approved structure of the institution, the most important of which is replacing the head of the body with an alternative candidate, “Ali Mayah Al-Zaydi”, in the event that “Abu Fadak” is not approved as a replacement for Al-Fayyad.
The source concluded that “meetings between the leaders of the coordination framework are continuing to resolve the issue of armed factions outside the official state framework.”
Recently, disagreements have escalated within the Coordination Framework forces regarding the American proposal to disarm the factions and dissolve or integrate the Popular Mobilization Forces.
An informed government source had previously revealed that some political forces and armed factions had shown “flexibility” regarding the issue of restricting weapons to the state, after having been rigid on this matter, indicating that the process of handing over weapons would be within a specific timeframe.
Prior to that, an informed source had revealed to Shafaq News Agency on May 9 that the Coordination Framework had agreed with Prime Minister-designate Ali al-Zaidi to form a committee tasked with disarming armed factions, coinciding with the call made by the leader of the Sadrist movement, Muqtada al-Sadr.
On May 15, Nazim al-Saidi, head of the executive council of the al-Nujaba Movement, one of the most prominent armed factions, confirmed that the “weapons control” clause included in the new government’s program does not include “resistance weapons” but rather those that cause “chaos.”
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Trump cancels cabinet meeting at Camp David due to bad weather
US President Donald Trump announced the cancellation of the Cabinet's trip to the presidential retreat of Camp David, which was intended to discuss issues related to Iran, due to forecasts of severe weather. In a post on Truth Social on Thursday, Trump wrote that because of the expected bad weather on Friday, the Cabinet meeting would be held at the White House instead, adding that the trip to Camp David would be postponed until further notice.
Tartus port exports its first "transit" sulfur shipment from Iraq
On Tuesday, the port of Tartus witnessed the export of the first "transit" sulfur ship loaded with about 10,000 tons, coming from Iraq via Jordan, in a step that reflects the growing transit movement through Syrian ports.
The port authority stated in a statement followed by Al-Sa’a Network that “this shipment is the first of its kind for Iraqi sulfur to arrive via Jordan at the port of Tartus in preparation for exporting it by sea, which demonstrates the growing confidence in the port as a pivotal logistics center on the Mediterranean.”
The statement added that "the total quantity planned for export through the port is about one million tons, which will contribute to enhancing trade activity and regional transit traffic during the coming period."
Post-Eid period: Parliament faces a cabinet test, and the insistence of political forces on their candidates deepens the crisis.
The escalating political controversy surrounding the session to complete the cabinet threatens to complicate the parliamentary scene, with political forces insisting on reintroducing the names that failed to gain confidence during the first session. This puts Parliament in front of a new crisis that may hinder the resolution of the vacant ministries and open the door to deeper disputes within the political process, amid warnings of the country entering a phase of political deadlock that is difficult to contain.
In this regard, the MP from the Sadiqun bloc told Al-Maalouma that “the insistence of some parties on putting forward the same names that did not gain confidence in the previous session must be overcome,” noting that “Parliament did not grant confidence to these names before Eid, so how will it grant it to them after Eid?” stressing that “Iraq cannot stand helpless in the face of the emergence of new talents who can be appointed as ministers.”
Karim called on political blocs to "look for alternatives that enjoy the confidence of Parliament and political forces," noting that "parties should give themselves more space to put forward new names and increase the options for candidates for ministerial portfolios, in order to give the opportunity to the largest possible number."
In contrast, Kurdistan Democratic Party member Ribin Salam confirmed in a statement to Al-Maalomah that “the submission of the same Democratic Party candidate to fill the Ministry of Reconstruction and Housing depends on what will be issued by the Federal Court regarding the appeal submitted against the session of granting confidence, and what accompanied it in terms of failures and mismanagement by the Speaker of Parliament, as well as the deliberate violation of legal procedures in submitting the names of ministers for voting.”
The political arena is experiencing a state of cautious anticipation for the upcoming parliamentary session after the Eid al-Adha holiday, amidst growing doubts about its feasibility or its ability to resolve the remaining vacant ministerial posts. This stems from the sharp disagreements that erupted during the previous confidence vote session. Political forces accuse Speaker of Parliament Haibat al-Halbousi of mismanaging the session and violating established voting procedures, leading some blocs to reject the results and challenge the legitimacy of certain measures. Amid this crisis, the affected parties are insisting on resubmitting the same candidates who failed to secure a vote of confidence, threatening a repeat of the political division and further complicating the process of completing the cabinet.
Economic Expert Safwan Qusay Objects to Proposal to Cut High-Level Salaries... And the Reason Is ...
https://www.youtube.com/watch?v=sxyM5JJExzY
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