Erbil Money Changers Council issues a new decision to regulate the trading of dollar denominations in the markets
The Erbil Money Changers Council issued a new decision on Tuesday aimed at regulating the trading of US currency denominations (dollars) in local markets, and unifying the rates of dealing with them to ensure market stability and preserve the public interest.
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Determining trading ratios
According to a statement issued by the council, after extensive consultations and a majority vote, it was decided to adopt a new mechanism for trading dollar denominations at specific rates as follows:
80% of the dollar is blue (new edition).
18% for the white dollar bill (old edition).
2% for the $50 category.
Implementation date and commitment
The Erbil Money Changers Council confirmed that this decision will officially come into effect starting next Sunday, August 2, 2026.
Decision objectives
The statement explained that this step comes within the framework of seeking to regulate financial transactions between money changers and protect the security of the market from fluctuations or refraining from trading certain categories, calling on all exchange offices and market participants to fully comply with the specified ratios, in order to “preserve the stability of the currency market and serve the public interest.”
Minister of Trade: Our products have reached Europe
"Made in America" coming soon to Baghdad: A large exhibition of Washington products
Minister of Trade Mustafa Nizar Al-Ani confirmed on Friday (July 31, 2026) the work on organizing internal and external trade lines, noting that the government program aims to create a clear economic identity. While he touched on the visit of the Prime Minister and his accompanying delegation to Washington, he confirmed that there is a great desire among American companies to enter the Iraqi market, pointing out at the same time that the coming period will witness the opening of the “Made in America” exhibition in Baghdad.
Al-Ani said in an interview with the official channel, which was followed by the 964 network , that “Iraqi food products have reached European markets,” stressing that “the ministry has exported some quantities of wheat that are surplus to the need, in addition to launching the construction basket that provided many of the materials (items) that are needed in construction.”
He added that “the amount of imports reached $93 billion,” noting that “imports will not be banned, but there are controls to determine the market’s needs.”
Al-Ani added that “the visit to Washington had economic and developmental dimensions, as the formation of the Iraqi-American Business Council was announced during the visit,” noting that “the summit attended by the Prime Minister in Washington witnessed the presence of 500 American companies, with a great desire among American companies to enter the Iraqi market.”
He noted that “the American Chamber of Commerce will participate in the upcoming Baghdad International Fair, and next year will witness the opening of the ‘Made in America’ exhibition in Baghdad,” adding: “We asked the American side to support Iraq’s request to join the World Trade Organization, as all the requirements for joining the organization have been completed.”
The Minister of Trade explained the need to “amend some legislation and regulations and amend some registration regulations to facilitate the entry and work of foreign companies,” stressing that “by the end of September, company registration procedures will be done electronically, in addition to the existence of a platform for certifying the certificate of origin for goods electronically.”
Regarding trade relations, he stated that “trade with Iran amounts to $9 billion annually,” noting that “the security situation in the region has forced everyone to change the supply chains for goods.”
He went on to say: “We assure everyone that food security is a priority for the government, and 4.8 million tons of wheat have been marketed this year,” noting that “cooperative markets sell basic commodities at competitive prices, and the ministry is in the process of implementing the cooperative markets experiment in all governorates.”
Al-Ani also spoke about future issues and the private sector, stressing that “the main issue in the upcoming budget is reforming the energy system, and the private sector must be supported and developed to provide job opportunities.”
US dollar shipments to Iraq are a molehill, not a mountain
As the Iran war ramped up, it was reported that the United States halted dollar cash shipments to Iraq for about three months, before resuming them in early July. The international media coverage of both the halt and the resumption, however, reflected persistent misconceptions
One misconception is that the halt deprived the Iraqi government of its own oil revenues held at the FRBNY, leaving it struggling to pay public sector salaries and pensions. Another is that the shipments are needed to keep Iraq’s dollar-dependent economy running or to maintain the peg of the Iraqi dinar to the dollar.
These misconceptions have their roots in the economic and financial chaos that followed the 2003 US invasion of Iraq. Yet they have persisted for years, even as the country’s economy has evolved since then. In fact, Iraq has been moving toward a more formal banking system and away from the cash-based informality that once dominated its economy—a shift that has accelerated since late 2022.
A molehill of a problem
Iraq’s dollar accounts at the FRBNY are essentially two distinct and structurally different
However, the share of the CBI’s reserves held as cash dollars has declined sharply over the years, from 7.9 percent of total reserves at the end of 2014 to 1.5 percent at the end of 2025. Media reports indicated that at least two shipments were withheld, including one worth $500 million, between the first US-Israeli strikes against Iran in late February and the resumption of shipments in early July. It’s reasonable to assume that the total amount withheld was around $1 billion–$1.5 billion.
That may sound like a lot. But how much is it really in the context of Iraq’s economy? The latest budget data from Iraq’s Ministry of Finance (MoF), as of May, and CBI data, as of June, provide some perspective.
Iraq earned oil revenues of $10.9 billion from March through May that were deposited by oil buyers into its oil revenue account at FRBNY. Of this amount, the MoF sold $8.1 billion to the CBI in exchange for buying Iraqi dinars to help fund $22.2 billion in budget expenditures for these three months. The remainder was funded by $5 billion in non-oil revenues and domestic borrowing. This purchase of dollars by the CBI led to an increase in its foreign reserves. The MoF sold a further $1.1 billion in June, which would have been from its oil revenues for the month.
Between March and June, the CBI sold $18.3 billion from its foreign reserves to Iraqi businesses and individuals via banks to pay for imports into Iraq and other cross-border transactions. These dollars came from the same CBI reserves account at the FRBNY that funds the cash shipments. In effect, such transactions are the reverse of the sale of dollars from the MoF to the CBI, thus reducing the CBI’s foreign reserves.
At the same time, the value of the dollar against the Iraqi dinar in the parallel market remained flat between March and July. In other words, the halt in cash dollar shipments had no visible effect on the price of dollars in Iraq, suggesting there was no panic demand for dollars among Iraqis.
The broader data therefore suggests that the withholding of dollar cash shipments had little to no meaningful economic impact. It did not affect the government’s ability to receive its oil revenues in dollars at the FRBNY, convert those dollars into dinars, or use them to fund domestic expenditures. Nor did it constrain the CBI’s ability to use its foreign reserves to finance Iraq’s interactions with the outside world, particularly imports.
The only visible effect, had the shipments remained halted, would have been a squeeze on the supply of cash dollars at airports for Iraqis traveling abroad—and even then, travelers could still have used their bank cards to pay for expenses. The CBI also continued to provide Iraqis traveling abroad, particularly for the Hajj, with physical dollars, supplying $600 million between March and June from the cash dollars held in its vaults.
The absence of any visible economic impact from the most recent halt in cash shipments stands in sharp contrast to what happened the last time they were suspended. In 2015, the United States stopped the transfers amid concerns that dollars were being used by the Islamic State of Iraq and al-Sham and Iranian banks. At the time, the value of the dollar against the dinar in the parallel market increased by about 11 percent, reflecting a sharp increase in demand for dollars.
A mountain of a change
The Iraqi economy has evolved significantly following decades of conflict, particularly as the country has gradually shifted toward greater reliance on the formal banking system. This shift accelerated after the CBI updated its regulations for the provision of dollars for foreign transfers in November 2022, bringing the country’s cross-border fund transfers in line with global standards. Crucially, the new system was the result of two years of planning by the FRBNY, the US Treasury, the CBI, and the MoF.
At the time, those changes represented a seismic shift for a cash-dominated economy in which large informal sectors drove the bulk of economic activity. Yet the initial shock, combined with the raft of measures taken by the CBI and the government since then, helped fast-track the transition toward banking and formal economic activity.
Iraq's dollar auction has evolved rapidly
Source: CBI, as of June 2026.
As the table above shows, two changes in particular stand out. First, international transfers have increasingly shifted to Iraq’s strongest banks, which have correspondent banking relationships with major international banks and whose transactions are reviewed by an international risk-management agency nominated by the FRBNY. The share of these transactions rose from 40 percent in 2023, when they started, to 95 percent in January-May 2026, largely at the expense of the previous transfer system.
Second, cash transactions have become a much smaller share of total cross-border payments. These include the CBI’s provision of cash dollars to Iraqis traveling abroad at airports, the channel most directly affected by a halt in dollar cash shipments.
But the table does not capture another important change: the system introduced after November 2022 to provide these dollars is now among the most closely monitored cash-distribution systems in the world. Yes, cash transactions still have inherent limits to traceability. But for Iraqis obtaining cash dollars, the system captures detailed information, including passport numbers, travel destinations, travel frequency, and the amounts obtained. This gives authorities the information needed to investigate travelers and related parties if questions arise.
All of this points to a broader reality: Iraq’s economy—and particularly its financial sector—has changed dramatically since 2003, and the risks that come with that evolution cannot be properly understood, or addressed, through outdated assumptions. It’s about time media coverage caught up.
How long can Iraq rely on the Central Bank's reserves, money-printing scheme to survive?
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Worrying news from the government
Al-Zaydi tells Iraqis: Salaries will be delayed... the country is going through a real financial crisis.
Iraqi government spokesman Haider al-Aboudi acknowledged on Thursday (July 30, 2026) that the country is experiencing a real financial crisis, stressing that the recent statements made by Health Minister Abdul-Hussein al-Moussawi regarding the financial situation are accurate and realistic. Al-Aboudi explained that Iraq's monthly requirements are very large, noting that the mechanism for disbursing salaries will not be as before, as distribution is delayed until the Ministry of Finance has sufficient liquidity, especially with the continued repercussions of the closure of the Strait of Hormuz on revenue exports.
Al-Aboudi confirmed during an interview with journalist Mona Sami, which was followed by 964 Network , that “the crisis we are going through and the issue mentioned by the Minister of Health is true,” indicating that “Iraq’s monthly requirements are large and salaries are not as they were in the past.”
He explained that “there will be a delay in salaries until the funds are completed and distributed in the manner overseen by the Ministry of Finance. Are we in a crisis? Yes, we are in a crisis.”
Health Minister Abdul Hussein Al-Moussawi had previously revealed a severe financial crisis plaguing the health sector, stressing that “there is no money” and that the government’s main concern from the beginning to the end of the month is to secure salaries amounting to about 11 trillion dinars, at a time when the total of Iraq’s oil exports during 4 months did not exceed 2 trillion dinars.
Al-Moussawi explained that the hospitals' infrastructure is "in poor condition," and that the "Kimadia" company stopped supplying the medicines contracted with Iraq due to accumulated financial dues.
In light of this reality, the minister stressed his refusal to surrender by sitting idly by, emphasizing that he is personally concerned with putting pressure on the government, the Ministry of Finance, and health personnel to find solutions out of thin air. At the same time, he pointed out the disparity in the performance of the administrations, as some of them succeeded in running the hospitals with an amount of 45 million dinars due to the clean hands of their administrations, in contrast to other hospitals that have more than two billion, yet everything in them seems miserable.
Adnan al-Danbous, a leader in the Reconstruction and Development Coalition, held what he called “accidental leaders” who ruled Iraq after 2003 responsible for the country’s current financial hardship and difficulty in securing salaries as a result of the closure of the Strait of Hormuz. Al-Danbous believes that these “accidental leaders” did not consider diversifying Iraq’s non-oil revenues and relied on oil as the primary source of income. In his interview with journalist Sajjad al-Jubouri, which was followed by 964 Network , al-Danbous also expressed his strong resentment towards “neighboring Iran” for not allowing Iraqi oil to pass through the Strait of Hormuz and for contributing to “economically strangling Iraq,” noting that Iraq has suffered for centuries due to its geographical location.
Monetary stability map: Al-Zaydi's advisor reveals the truth about removing zeros and the reasons for the scarcity of small denominations
The financial advisor to the Prime Minister put an end to the growing debate in Iraq, asserting that talk of removing zeros from the currency or the existence of a cash crisis is merely baseless rumor. While attributing the scarcity of small denominations to their rapid deterioration due to frequent circulation, he emphasized that the problem lies not in printing new currency, but rather in the way liquidity is managed and circulated within banks.
Zero Removal Project
The Prime Minister’s financial advisor, Mazhar Muhammad Saleh, told Al-Alam Al-Jadeed on Wednesday (July 29, 2026) that “Iraq does not currently have any official indications or decisions regarding removing zeros from the Iraqi currency,” explaining that “this measure is part of a comprehensive monetary reform, and it cannot proceed except after creating a stable economic and financial environment and fulfilling the necessary technical and institutional requirements.”
He adds that “removing zeros, if implemented in the future, is a regulatory measure aimed at simplifying monetary transactions and accounting systems, and does not in itself result in an increase in the real value of the dinar or an improvement in the purchasing power of the citizen, because purchasing power remains linked to economic performance, production and financial stability.”
small denominations
Saleh explains the scarcity of small denominations of currency by their paper nature and high rate of circulation, which leads to their being damaged within a short period of time. He clarifies that this phenomenon is not related to a shortage in issuance, but rather to the characteristics of their daily use.
He points out that Iraq, unlike many countries that rely on coins for small denominations, still uses paper denominations, noting that the lifespan of these denominations does not exceed about one year according to international standards, due to the intensity of their use and their continuous transfer between hands, at a time when reliance on paper money remains high while electronic payment methods continue to grow.
The issue of small denominations of currency has resurfaced after increasing questions about the reasons for their scarcity in Iraqi markets, amid ongoing debate about cash liquidity management and mechanisms to meet daily trading needs.
Printing a new currency
Saleh believes that “it cannot be said that Iraq is suffering from a shortage of money supply in the sense that necessitates printing new currency, as the Central Bank has the ability to provide cash in accordance with the needs of the economy, and the size of the currency issuance is linked to specific technical and economic factors.”
He continues, “The most prominent challenge is managing and distributing liquidity efficiently within the banking sector, in addition to encouraging banking and electronic transactions to reduce hoarding outside the banking system and improve the efficiency of cash circulation.”
Saleh emphasizes that “issuing a new edition of currency is not just a technical decision, but rather an integrated process that requires a careful study of monetary needs, costs, and the characteristics of the new currency, as well as coordination between the Central Bank and relevant government agencies.”
The Prime Minister’s financial advisor points out that “no official announcement has yet been issued regarding the adoption of a new currency issue, which means that any steps in this direction remain subject to the monetary authority’s assessments and market needs, and are not related to the existence of a currency crisis. What is being raised in this regard is based on statements issued by non-specialized sources.”
Official assurances
Amid growing talk of liquidity pressures and delays in releasing some salaries, governmental and parliamentary assurances emerged that the current crisis is temporary and does not represent a structural flaw in the economy, coinciding with moves to address financial obligations, complete the preparation of the draft general budget, and initiate legislative reforms related to public finance management.
The parliamentary finance committee affirmed that the government possesses the necessary tools and capabilities to overcome the current stage, noting that the financial pressures came as a result of regional economic repercussions and a decline in oil exports, but they do not amount to a structural crisis, and that the government measures aim to contain the immediate challenges while continuing to implement the economic reform path, and ensuring the continuation of government obligations, foremost among them the salaries of employees and social entitlements.
Regarding the issue of salaries, the Finance Committee reassured employees about their entitlements, explaining that any delay in releasing salaries is due to an emergency and temporary shortage of financial liquidity, and that the concerned authorities are working to address it within a short period.
Jamal Kojar, a member of the parliamentary finance committee, said in a press statement followed by “Al-Alam Al-Jadeed” that the government places the issue of salaries among its priorities, expecting the disbursement procedures to be completed before the end of the week, and pointing out the readiness of the Ministry of Finance to work during Friday and Saturday to complete the necessary administrative orders and expedite the arrival of entitlements and prevent any further delays.
2026 Budget Project
In parallel, the Finance Committee revealed that the government intends to send the draft general budget law to the House of Representatives during the month of October, with the parliament to begin discussing it as soon as it arrives, with the aim of approving it before the end of the year. This step aims to provide a more flexible financial framework to deal with fluctuations in oil prices, given the continued heavy reliance of the Iraqi economy on oil revenues to finance public spending and government projects.
Between temporary liquidity pressures, preparations for budget approval, and the move towards new legislative reforms, the next stage appears to be a test of the ability of financial institutions to turn promises into practical measures, since the success of resource management will not be measured only by the speed of salary disbursement, but also by the extent to which the state is able to build a more stable financial system that is less affected by fluctuations in oil revenues.
Al-Aboudi: The government is seeking domestic borrowing to secure salaries.
Government spokesman Haider al-Aboudi revealed on Thursday (July 30, 2026) that the government is considering resorting to internal borrowing to secure employee salaries, given the financial crisis and liquidity shortage facing the country.
Al-Aboudi said in a statement followed by “Baghdad Today”, that “the Ministerial Council for National Security rejects and condemns the American-Saudi aggression that affects national sovereignty.”
He added that "the government has always maintained that diplomatic solutions and dialogue are the way to spare the region further crises and escalation," stressing that "Iraq has not and will not allow its territory to be used as a launching pad for attacks on neighboring countries."
He pointed out that "the government has not given any approval to carry out attacks on specific sites or specific groups within Iraqi territory," indicating that "the government has no prior knowledge of the attacks being carried out on Iraqi territory."
In another context, Al-Aboudi confirmed that "the government is seeking internal borrowing to secure salaries."
The US veto is hindering the completion of the government cabinet... a blatant interference that reaches the heart of the Iraqi state.
Maysar Al-Shammari, a leader in the Hikma Movement, confirmed today, Thursday, that the objections from the American side to the appointment of some figures affiliated with certain political forces to ministerial positions are the most prominent reason for the delay in finalizing the government cabinet throughout the past period.
Al-Shammari told Al-Maalouma that "the American side exerted pressure and bargaining on some political forces with the aim of handing over weapons, which is a dangerous precedent in the formation of Iraqi governments that has not happened throughout the past periods."
He added that "objections from abroad also included the political forces that began handing over their weapons, on the pretext that they did not hand them over completely and retained a large part of them, which complicates the completion of the government cabinet in full."
Al-Shammari pointed out that "the coordination framework is trying to reach political understandings and end the issue of foreign interference in the formation of the government, before proceeding to agree on the names that will
A former deputy confirms there are understandings regarding the timing of finalizing the cabinet and the American withdrawal.
Former MP Hussein Ali confirmed the existence of political understandings regarding the timelines for finalizing the cabinet and the American withdrawal from Iraq, noting optimism for achieving positive results in the coming days.
Ali told Al-Maalouma, "Iraq has set important timelines related to finalizing the cabinet, in addition to the American withdrawal from Iraqi territory. In return, Washington has set conditions for Baghdad to withdraw its forces from Iraqi soil."
He added, "America has set conditions, most notably those related to the disarmament of factions and the relationship with Iran. Trump has issued many tweets regarding these issues, but the wisdom of the leaders of the coordination framework will lead to positive results."
He explained that "the coming days cannot be predicted in detail, but there is optimism regarding the understandings and political activity aimed at achieving positive results, especially given the efforts to finalize the cabinet formation by next September and pass it in its entirety."
Liquidity shortages threaten Iraqi private banks and push towards mergers to settle obligations.
A banking source revealed a shortage of liquidity in a number of private banks in Iraq, attributing this to the limited deposits and the decline in citizens’ confidence in private banks, which has weakened their ability to meet some local and international obligations and the requirements of the Central Bank of Iraq.
The source said that this situation may push towards the merger of a number of banks, noting that mergers also come within the requirements of reforming the banking sector and trends related to international standards.
He added that banks are required to have financial assets and insurance with the Central Bank of Iraq, explaining that a bank that suffers from weak assets or is unable to meet its obligations towards citizens may be subject to closure, provided that the rights of depositors are dealt with in accordance with the approved principles and controls.
The source explained that merging struggling or liquidity-deficient banks does not necessarily mean the loss of citizens’ money, as financial obligations and rights remain in place, but the recovery of funds may not be as quick and easy as depositors expect.
He pointed out that addressing the liquidity shortage problem requires restructuring the banking sector and strengthening confidence in local banks, in addition to increasing their ability to comply with regulatory and financial requirements, which contributes to reducing the risks of default and protecting depositors' funds.
Fuad Hussein invites the Canadian Foreign Minister to visit Baghdad to strengthen bilateral dialogue.
Foreign Minister Fuad Hussein discussed on Friday (July 31, 2026) with Canadian Foreign Minister Anita Anand ways to strengthen bilateral relations and expand areas of joint cooperation between Iraq and Canada.
The Ministry of Foreign Affairs stated in a statement received by Network 964 that Hussein received a telephone call from his Canadian counterpart, during which they discussed prospects for developing relations in a way that serves the common interests of the two countries.
The Canadian minister affirmed her government’s keenness to elevate relations with Iraq and enhance cooperation in various fields, reiterating her congratulations to Fuad Hussein on assuming the duties of the Ministry of Foreign Affairs, and wishing him success in performing his duties.
For his part, the Foreign Minister expressed his gratitude to the Canadian Foreign Minister, appreciating her keenness to develop bilateral relations, and welcomed the appointment of a new Canadian ambassador to Iraq, expressing his hope to strengthen cooperation between the two countries.
The statement indicated that Anand affirmed the Canadian government’s support for the Iraqi government’s policy of restricting weapons to the state, reiterating her country’s commitment to continuing to support Iraq in various fields.
Hussein appreciated the support that Canada had provided to Iraq during previous stages, praising the level of cooperation between the two countries.
The Canadian minister also expressed her delight that her country was hosting the Iraqi national football team and that they were playing a match on Canadian soil, stressing that this contributes to strengthening popular relations between the two countries.
At the end of the call, the Foreign Minister extended an official invitation to his Canadian counterpart to visit Iraq, with the aim of strengthening political dialogue and developing bilateral relations.
US expands hunt for Iranian assets
US Treasury Secretary Scott Bessent on Friday vowed to pursue Iranian funds worldwide as part of Washington’s “maximum-pressure” campaign against Tehran.
“There is a lot of Iranian money circulating, and we will track it,” Bessent told Fox News.
On July 21, Bessent stated that the Treasury had identified a financier linked to Iran’s leadership and was tracing more than $100 million in properties worldwide.
Washington also sanctioned nine entities and four individuals tied to Iranian financier Babak Zanjani, accusing the network of concealing ownership, laundering revenue, and moving funds through Iran and abroad. The designations covered Zanjani’s Dot One conglomerate, companies supporting the Zedcex and Zedxion digital-asset exchanges, and executives operating in Iran, Turkiye, and the United Arab Emirates.
The Treasury claimed that addresses associated with the exchanges had processed funds for wallets linked to the Islamic Revolutionary Guard Corps (IRGC).
Since February 2025, the Treasury Department has sanctioned more than 1,000 Iran-linked people, vessels, and aircraft, targeting oil exports, shadow-banking operations, sanctions-evasion networks, weapons procurement, and shipping.
Iran’s rial has fallen to record lows, while the economy faces inflation exceeding 60% and negative growth, official data showed.
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Iraq enters a state of "financial hardship"... and a warning of a more severe crisis.
Researcher and economic consultant Ziad Al-Hashemi warned on Friday (July 31, 2026) that Iraq has officially entered a state of "financial hardship," noting that the government is going through its worst period while citizens are waiting to receive their financial entitlements.
Al-Hashemi said in a statement received by "Baghdad Today" that: "The government's recent admission of the shortage of liquidity in its treasury is no longer surprising, after long months of stubbornness, denial and obstinacy, and after the continuous deterioration in revenues forced it to admit the bitter truth to the people."
He added that "what is truly surprising is that there were those who were reassured that everything was going well, and that there was nothing to worry about, as long as Iraq had dollar reserves that allowed it to pay salaries normally."
He stressed that “it is Iraq’s misfortune that its oil revenues are considered depleted revenues even before they reach the government treasury,” explaining that “the corrupt are waiting for their share, the party’s economic offices are waiting for their share, the armed groups are waiting for their share, the creditors are waiting for their share, and the ghost employees are waiting for their share, so that the real Iraqi employee comes last on the list.”
Al-Yassiri pointed out that "the problem under such a lax and undisciplined financial model does not lie in the decline in oil prices or the decline in exports alone, but rather in governments that have spent recklessly for years as if revenues would remain high forever."
Al-Hashemi stressed that "Iraq does not suffer from a lack of resources, but rather from their mismanagement," calling on the government to "reduce waste, control the payroll, stop fictitious employment, suppress corruption and recover looted funds, dismantle economic offices, and develop non-oil revenues."
He explained that "any further rise in oil prices will only be a temporary respite before another, more severe financial crisis, unless these measures are taken."
He concluded by saying: "The truth that must be stated clearly is that a state that is unable to protect its revenues and regulate its spending will not be saved by reserves forever, and the employee and the citizen will not be able to continue paying the price for corruption and mismanagement indefinitely."
“No money” is a clear message that the crisis needs management, not excuses.
The Iraqi government acknowledged on Friday that the country is going through a real financial crisis that has led to a change in the mechanism for disbursing employee salaries and delaying them until the Ministry of Finance has sufficient liquidity, amid the continued repercussions of the disruption to revenue exports through the Strait of Hormuz.
Government spokesman Haider al-Aboudi stated in a press conference that Iraq faces enormous monthly expenses, emphasizing that spending cannot continue using the same mechanisms as before. This admission came shortly after a striking statement by Health Minister Abdul-Hussein al-Moussawi, who succinctly summarized the crisis by saying, “There’s no money,” referring to the severe funding shortage plaguing the health sector.
These developments put al-Zaydi’s government to a critical test; economic experts believe that the crisis, despite its roots extending back to the era of former Prime Minister Muhammad al-Sudani, who successfully managed it cautiously, now requires decisive alternatives and an immediate halt to costly promises.
Observers criticized the continuation of additional government pledges, such as the proposal to distribute one million serviced residential plots and amend the retirement of security forces, in parallel with the inflation of special grade privileges, uncontrolled expenditures in ministries, and the salary of the Rafha detainees.
Social media platforms witnessed a widespread wave of anger, as one activist wrote on the “X” platform: “Delaying salaries means starving millions of families, while the privileges and operational budgets of officials have not been touched by any rationalization.”
On Facebook, another citizen commented: “The real crisis is not just in Hormuz, but in continuing to make fanciful promises and neglecting to manage liquidity scientifically.”
Experts emphasize that a safe financial transition requires immediately controlling side spending and rationalizing government consumption, in order to avoid exacerbating the liquidity crisis and securing the basic entitlements of citizens.
I don't know if this is true or not I saw a post saying that it wasn't but let's see what happens tomorrow
“I will leave if I remain shackled”... Al-Zaydi’s resignation shakes the coordination framework, and the weapons issue ignites the confrontation.
In a remarkable political development, sources within the coordination framework, as reported by Al-Araby TV and followed by Al-Mustaqilla, revealed an escalating, undeclared crisis between Iraqi Prime Minister Ali Faleh al-Zaidi and the political forces supporting his government, reaching the point of hinting at the option of resignation.
According to the sources, Al-Zaydi expressed his dissatisfaction with the lack of response to his vision on a number of crucial issues, stressing that the continued obstruction of his government’s decisions may push him to take a decisive political stance.
These developments put the Al-Zaidi government in front of one of its most difficult crises since its formation, as the dispute is no longer about administrative details or differences in viewpoints, but rather about the nature of the security and sovereign decision and who has the final say in state matters.
The weapons issue: the flashpoint between al-Zaydi and the factions
According to the information circulating, the issue of restricting weapons to the state has become one of the most prominent causes of tension, after some factions did not respond to the Prime Minister’s directives regarding reorganizing the status of weapons and armed forces under the official state framework.
Observers believe that this issue represents the biggest test for al-Zaydi, as any attempt to redefine the relationship between the state and the factions will clash with complex political and security balances that have formed over the past years.
The unity government faces a moment of truth
The current escalation points to a deeper crisis within the Iraqi political equation, where the Prime Minister finds himself facing a difficult dilemma: either to proceed with implementing his program and strengthening the powers of the state, or to confront the pressures of the forces that contributed to his coming to power.
The al-Zaidi crisis raises a major question about the ability of Iraqi governments to make independent decisions on sovereign matters, especially when those decisions conflict with the interests of influential forces within the political and security landscape.
A political resignation or a warning message?
Politicians believe that al-Zaydi's threat to resign may be a pressure tactic to rearrange the rules of the relationship with his partners, but at the same time it reveals the extent of the tension within the coalition that leads the government.
If the crisis turns into an open confrontation, Iraq may be facing a new phase of political conflict, the title of which is: Who has the final say… the government or the forces behind it?
The coming days will be crucial in determining whether al-Zaidi's threat is merely a bargaining chip, or the beginning of a political crisis that could redraw the map of power in Baghdad.
Expected agreements to finalize the cabinet during September
Political calls are increasing to expedite the completion of the cabinet, particularly the security portfolios, amid assurances that the current regional circumstances require the resolution of this issue, while political parties indicate that there are understandings that may lead to its resolution in the coming months.
Political analyst Ibrahim Al-Sarraj told Al-Mada that the current circumstances necessitate creating an atmosphere conducive to expediting the formation of the cabinet, particularly the security ministries, stressing that the delay in completing it is not related to the anti-corruption campaign, but rather to the political disputes that preceded it.
He added that the objections to some of the candidates came as a result of disagreements between the political blocs, calling on Prime Minister Ali al-Zubaidi to bring the political forces closer together in order to complete the file in light of the challenges facing the country.
In this context, politician Wathiq al-Jabri stressed that the responsibility for completing the cabinet rests with the political forces, calling for this issue to be kept away from disputes and rivalries.
For his part, the head of the Reconstruction and Development parliamentary bloc, Bahaa Al-Araji, in a statement followed by (Al-Mada), called for the preparation of a national “working paper” to overcome the crisis, considering that Iraq is going through its most dangerous phase since the establishment of the state.
For his part, former MP Hussein Ali said in a statement followed by (Al-Mada) that there are political understandings regarding the timing of completing the cabinet, in addition to the issue of the withdrawal of US forces from Iraq, noting that there is optimism about the possibility of achieving positive results in the coming days.
He added that the United States had put forward, according to him, conditions related to the weapons of the factions and the relationship withIran, expressing his belief that the political movement may lead to the passage of the entire cabinet during the coming month of September.
Al-Sarraj: Current circumstances necessitate creating a conducive environment and expediting the formation of the cabinet.
Political analyst Ibrahim al-Sarraj believes that current circumstances necessitate creating a conducive environment and expediting the formation of the cabinet, particularly the security ministries.
Speaking to Mawazin News, al-Sarraj stated, "The lack of political momentum toward finalizing the cabinet is not related to the anti-corruption campaign targeting several officials and members of parliament, as disagreements among political parties regarding the cabinet predate the campaign."
He added, "The disagreements among political blocs manifested in objections to certain nominees," noting that "these objections were not based on objective grounds but rather aimed at marginalizing certain blocs due to existing disputes."
He further explained that "Prime Minister Ali Mohsen al-Ahmad has an opportunity to create a conducive atmosphere by working to bridge the differences between the various political blocs, especially given the current regional situation, which demands the completion of the cabinet, particularly the security ministries."
Economist Safwan Qusay: There’s no money, but we have 160 billion barrels of proven oil and 130
Let me start with the statement from the Ministry of Health, which was very clear: "There is no money." Does this statement indicate a temporary shortage or a structural flaw in financial management?0:13
Of course, there is no money, but there are huge resources. Iraq possesses 160 billion barrels of confirmed oil reserves, 130 trillion cubic feet of gas, a strategic geographic location, and valuable minerals. The level of internal and external debt currently places Iraq in the fifth position — meaning there are four Arab countries with higher debt than Iraq.0:43
Therefore, the issue of the closure of the Strait of Hormuz has certainly surprised the Iraqi economy, even though we had in fact warned that the Strait of Hormuz would close. However, the previous government did not take such warnings seriously.0:59
Currently, with this crisis, we are heading towards expanding exports through tankers via the Turkish Ceyhan port, the Syrian Banias port, and Aqaba, to compensate for the shortfall in revenues. We need 10,000 tankers to increase exports, and this matter should be taken more seriously than it is now.1:21
Because we cannot bet that the risks in the Strait of Hormuz will decrease and that Iraq’s oil exports will return to previous levels. Therefore, we must expand in this direction and also search for alternatives.
"No tanker has crossed our naval blockade."
US command: Iran lied about destroying fighter jets... We intercepted all missiles.
The US Central Command confirmed on Thursday (July 30, 2026) that no damage was recorded to aircraft as a result of the recent Iranian attacks, stating that it intercepted all Iranian missiles, and describing Iran's claims of destroying US fighter jets as false.
The command said in a statement followed by Network 964 that “during the past hours, Iranian official media continued to publish false claims, most notably that the Revolutionary Guard claimed again that the free and open shipping routes through the Strait of Hormuz have become dangerous for commercial ships,” indicating that “the real danger that threatens commercial ships and their civilian crews is the threats of the Revolutionary Guard and its attempts to attack them.”
She added that “the Revolutionary Guard also claimed to have destroyed three American F-35 stealth fighters and three other aircraft during a recent Iranian attack on an American airbase,” noting that “no American aircraft were destroyed or damaged in the recent Iranian attacks.”
She confirmed that “all missiles and drones were intercepted or failed to reach their targets.”
She added that “Iranian official media reported that the commercial oil tanker “MT Nora” had breached the American embargo,” clarifying that “the tanker did not breach the American embargo.”
She indicated that “more than 20 American warships, hundreds of aircraft, and thousands of American military personnel continue to enforce the blockade completely.”
Officially, the Iraqi government denies any knowledge of the recent strikes: We gave absolutely no approval for attacks on our territory.
The Iraqi government spokesman, Haider al-Aboudi, addressed several sensitive sovereign and economic issues related to the current situation in the region, announcing the suspension of the Prime Minister’s visit to Saudi Arabia in light of the recent attacks, and confirming that the regional crisis has cast a wide shadow on the national economy.
During his appearance on a television program, Al-Aboudi explained that the bombing, which targeted seven Iraqi provinces, resulted in the deaths of more than 18 martyrs and injuries to 20 others from the Popular Mobilization Forces. He emphasized that the National Security Council strongly rejects and condemns this "American-Saudi" aggression, which violates national sovereignty. He categorically denied any prior knowledge of these strikes by the government or that it had granted any approval for their execution against specific locations or groups within the country.
The government spokesman indicated that Baghdad had officially contacted Saudi Arabia to provide evidence regarding its claims about the attacks, asking it to share the security information it possesses to verify them, noting that the investigative committees formed by the Iraqi government have not yet found the validity of those claims.
In the context of national sovereignty, Al-Aboudi set September 30 as the deadline for ending the presence of the international coalition in the country, reiterating his emphasis that Iraq is located at the heart of the geography of war, but it adopts balance in its foreign policy, and will not be drawn into or be part of the axes of regional conflict, nor will it allow its territory to be used as a launching pad for attacks on neighboring countries.
Domestically, Al-Aboudi reassured citizens that salaries are a binding government obligation, revealing that internal solutions are in place to ensure their timely disbursement. He indicated that the government is currently seeking domestic borrowing to secure the necessary funds for salaries as a step to mitigate the economic repercussions of the regional crisis.
On the economic and oil front, Al-Aboudi affirmed that the government is striving to ensure the continued flow of Iraqi oil amidst regional crises, indicating that the Turkish port of Ceyhan is the most secure route for exports at this time. He announced the formation of joint committees with Ankara to conduct a comprehensive study on oil exports, while also revealing that a technical issue had delayed the Minister of Transport's signing of the joint memorandum of understanding.
Al-Aboudi concluded by pointing to the government’s success, during its recent visit to Turkey, in signing the agreement to implement the strategic “Development Road” project, stressing that Baghdad believes in partnership and good neighborliness, and adopts dialogue and diplomacy as the only way to spare the region from crises and escalation.
In response to the targeting of its forces in the region
CENTCOM: A wave of strikes targeting sites inside Iran has been completed.
The US Central Command (CENTCOM) announced on Thursday (July 30, 2026) that US forces had carried out airstrikes against Iran in response to Iranian attack attempts targeting its forces stationed in the Middle East.
A statement from the US Central Command (CENTCOM), which was monitored by 964 Network , stated that US forces began launching strikes against Iran yesterday at 8:00 PM Eastern Time.
The statement added that “these strikes are a strong response to the Iranian attack attempts that took place yesterday and targeted US forces stationed in the Middle East.”
Muqtada al-Sadr Calls for State Control of Weapons
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At a Glance
- Al-Sadr criticizes armed militias
- Calls for weapons under state control
- Says militia actions cost security force lives
- Offers condolences to victims' families
Influential Shia cleric Muqtada al-Sadr has blamed what he described as the "insolent acts" of militias and the failure to place all weapons under state control for the deaths of members of the Popular Mobilization Forces and Iraqi security forces.
Key Statements and Focus Area
- Criticism of militias: Al-Sadr said militia actions have contributed to the deaths of PMF and security personnel.
- State control of weapons: He renewed his call for restricting weapons exclusively to the state.
- Criticism of militia leaders: He said senior militia leaders remain safe while others bear the consequences.
- Message of condolence: Al-Sadr expressed sympathy for the families of those killed.
Al-Sadr Criticizes Militias
In a statement published on his verified account, Muqtada al-Sadr said the "insolent acts of the militias" and the continued failure to restrict weapons to the hands of the state have been responsible for what he described as the unjust deaths of members of the Popular Mobilization Forces and Iraqi security forces.
He also criticized militia leaders, saying they remain "in safety, comfort, and commerce" while others lose their lives.
Al-Sadr urged an end to what he described as "unilateral and irrational behaviors," reiterating his longstanding position that weapons should be under the exclusive control of the Iraqi state.
The cleric offered prayers for those killed and expressed condolences to their families.
He also said, "No condolences shall be extended to those whose actions caused their loss."
The statement concluded with a prayer asking God to protect Iraq from evil and harmful actions.
FYI
Al-Sadr has repeatedly called for all weapons in Iraq to be placed under the authority of the state and has frequently criticized the role of armed groups operating outside official command structures. His latest remarks come amid renewed security tensions and debate over the future role of armed factions in Iraq.
IRGC Attacks Iranian Kurdish Party Offices in Iraqi Kurdistan
In a continuation of missile and drone strikes carried out by the Islamic Revolutionary Guard Corps (IRGC) against Iranian Kurdish opposition parties based in the Kurdistan Region of Iraq, drone strikes targeted the offices and encampments of the Organization of Iranian Kurdistan Struggle (Khabat) in the Bashiqa and Topzawa regions early on Friday morning, July 31. According to a member of the organisation’s central committee, the attacks caused no casualties but resulted in extensive structural damage to buildings and residential homes.
A central committee member of the Khabat Organization confirmed the details to IranWire, stating:
“None of Khabat’s personnel sustained injuries in these attacks. However, as a result of the IRGC drone strikes, five residential homes and Khabat’s office facility were destroyed and burned to the ground.”
These strikes follow multiple recent missile and drone operations launched by the IRGC against the headquarters and bases of Iranian Kurdish political groups operating in Iraqi Kurdistan, as border tensions continue to escalate.
