Friday Iraq News Posted by Tishwash at TNT 6-26-2026
TNT:
Tishwash: Head of Money Changers Syndicate: Recent Central Bank Changes a Positive Step to Enhance Financial Stability
The head of the Exchange and Mediation Syndicate, Diaa Al-Tai, confirmed that the recent changes made by the Central Bank of Iraq represent a positive step in the path of developing the financial sector, praising the selection of Nizar Nasser to assume his new duties due to his experience and competence in the field of combating money laundering and the financing of terrorism.
Al-Ta’i told “Al-Jarida” that Nizar Nasser’s expertise is in line with the requirements of the current stage and the challenges facing the financial sector, which contributes to enhancing compliance with international standards and consolidating financial stability in the country.
He added that the previous changes in the Directorate of Supervision of Non-Bank Financial Institutions, which included the appointment of Dr. Dirgham and his assistant Zaid Hamid, proved successful thanks to their high professionalism and extensive experience in following up on the affairs of exchange companies and handling administrative and supervisory files.
He pointed out that these measures contributed to accelerating the completion of many pending files, as well as strengthening communication and coordination channels between exchange companies and the Central Bank of Iraq.
Al-Ta'i reiterated the Money Exchange and Mediation Syndicate's support for all steps and reforms aimed at developing the financial sector and consolidating the principles of oversight and compliance, thereby enhancing the stability of the financial market and raising the level of confidence in financial institutions operating in Iraq. link
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Tishwash: Soon, Baghdad will host international figures: oil, electricity, and strategic partnerships.
Informed sources revealed on Thursday that important visits by international figures to Baghdad are expected, to conduct economic understandings that will bring mutual benefit to the parties concerned, just hours after reports spoke of the possibility of Iraq withdrawing from OPEC, and the repercussions of this decision on the global energy market.
A government source told Shafaq News Agency that “figures and representatives from some European Union countries will soon visit Iraq to reach understandings that achieve common interests, which will include presenting offers and economic partnerships in developing the energy sector in Iraq, including the oil and electricity sectors, in order to reach self-sufficiency and resolve the problem of supply hours.”
The source added that "among the proposed offers is the processing of associated gas and making the most of it in order to achieve self-sufficiency within a short-term plan not exceeding two years."
He pointed out that “supporting electricity production, along with proposals to implement projects to increase storage capacity and to acquire a joint maritime fleet with important countries, including the United States, is being arranged, with the aim of expanding the volume of Iraq’s crude oil exports.”
Oil Ministry spokesman Salim al-Rikabi had hinted, in a comment seen by Shafaq News, at the possibility of withdrawing from OPEC if the production level allocated to Iraq is not increased in line with its production capabilities and future needs.
In this context, economic analyst Joel Rimmer, who specializes in the global stock market, revealed on Thursday the repercussions of Iraq's exit from the Organization of the Petroleum Exporting Countries (OPEC) on the future of the global oil market, stressing that recent reports from Baghdad carried a message that said, "Either allow production to increase more freely or we will leave the organization."
Reimer said in an analysis published on the MarketWatch website and translated by Shafaq News Agency that “Iraq’s threat to withdraw from OPEC appeared deliberate and intentional, and any progress in this direction will have major repercussions on the global oil market, as an increase in Iraqi production outside the quota system could put strong pressure on prices that are already witnessing a significant decline.”
According to the analyst, Qatar's exit from OPEC in 2019 and the UAE's withdrawal on May 1, 2026, did not pose a major threat to the organization, given that Doha was primarily focused on gas production, while the UAE's production was only about 3.4 million barrels per day.
As for Iraq, the situation is different, as it is one of the founding members of the organization when it was established in 1960, and the second largest producer in it after Saudi Arabia, with a production of about 4.5 million barrels per day, according to him.
Reimer stressed that Iraq’s importance goes beyond its membership in OPEC, because the size of its production makes it a pivotal player in the global supply and demand equation, noting that the Iraqi position carries an indirect message to Saudi Arabia and the influential countries within the organization regarding Baghdad’s dissatisfaction with the current production ceilings imposed on it.
The US Energy Information Administration estimates that Iraq, if it ignores production quota restrictions, could raise its production to seven million barrels per day by 2029, an increase of more than 75% compared to current levels.
Reports also indicate that major American companies such as ExxonMobil, Chevron and Halliburton may be among the biggest beneficiaries of any anticipated investment expansion in the Iraqi oil industry.
Reimer concluded that OPEC losing a founding and major member like Iraq shortly after the UAE's withdrawal could lead markets to question the organization's ability to control or support oil prices when they decline.
The economic damage inflicted on the Gulf states by the war with Iran has created significant financial needs for reconstruction and investment, which may prompt some producers to demand an increase in their production quotas, raising the likelihood of a future oil supply surplus and increasing pressure on global prices. link
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Tishwash: After the end of the war, the Iraqi economy is on the path to recovery.
The Iraqi government has reaffirmed its commitment to the stability of the exchange rate, in a move that should reassure markets against the backdrop of the US-Israeli war on Iran, the closure of the Strait of Hormuz, and the disruption of oil exports.
The Iraqi government joined the Central Bank in reassuring markets about the dinar's exchange rate, with its spokesman Haider al-Aboudi stressing that there was no intention to print currency or adjust the exchange rate to compensate for lost liquidity amid the repercussions of the Iran war.
Al -Aboudi said in a television interview on Tuesday that “there is no intention to print currency or raise the dollar exchange rate to compensate for the lost liquidity,” considering that such options “do not serve the citizen and constitute a burden on him.”
The Central Bank of Iraq denied last week its intention to amend the dinar's exchange rate, warning against the circulation of misleading news, after a forged document was spread claiming there was a request to change the rate to 1,600 dinars per dollar.
Pressure on the dinar
However, these assurances did not completely stop the pressure on the dinar in the parallel market, where the price of the dollar rose from about 1449 dinars ten days ago to between 1550 and 1560 dinars, compared to the official price of 1310 dinars.
Reducing dependence on oil in the budget
In parallel, Al-Aboudi said that the government is working to reduce the country’s budget dependence on oil and enhance non-oil revenues, noting that Prime Minister Ali Al-Zaidi heads a specialized committee that aims to reduce the budget’s dependence on oil to 45% instead of 90% during the next ten years.
Al-Aboudi did not explain the mechanism for achieving this goal, but he indicated that the committee will work to maximize revenues from border crossings and customs and activate collection, at a time when the government needs to secure at least 10 trillion dinars per month to cover salaries and public expenses.
He added that “this figure requires revenue engineering in light of the current crisis, which is not easy at all.”
These moves come as Iraq faces exceptional financial pressures since the closure of the Strait of Hormuz, given its almost complete dependence on oil to finance its budget and exports.
The financial advisor to the Iraqi cabinet, Mazhar Muhammad Salih, said last week that Baghdad has not yet decided to request a loan from the International Monetary Fund, but it will need to decide its position by July if estimates indicate that the Iran war will continue beyond October.
Saleh added that Iraq is “almost financially settled until next October,” but noted that there are intensive consultations with the IMF about the nature of possible assistance.
Jihad Azour, director of the Middle East and Central Asia Department at the International Monetary Fund, said in April that Iraq had few options other than reducing spending and temporarily resorting to foreign exchange reserves, at a time when Bloomberg Economics estimated that Iraq needed about $75 billion to maintain the fixed exchange rate of the dinar against the dollar, out of foreign reserves that amounted to $100 billion on the eve of the war.
The Washington-Tehran agreement eases the pressure
With a temporary agreement reached between Washington and Tehran that would reopen the Strait of Hormuz, pressure on the Iraqi economy is likely to ease.
The economy needs two months to recover.
Zafer Mahdi Abdullah, head of the Iraqi External Development Fund and Iraq’s governor at the OPEC Fund for International Development, predicted that the Iraqi economy would recover within two months from the impact of the Strait crisis, with the gradual return of oil flow.
He added: “After the Strait of Hormuz was opened and Iraqi oil flowed through it, the economic situation began to recover gradually. It certainly needs time, but it will not take more than a month or two.” link
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Tishwash: A year without a budget... and the government is banking on comprehensive financial reforms in 2027.
In a new indication of the complexities of the financial and administrative landscape, attention is turning to the 2027 budget after the chances of approving the 2026 budget declined, as a result of the delay in completing the formation of the government and the continued vacancy in a number of key ministries.
On Thursday, Hussein Al-Darraji, a member of the Parliamentary Finance Committee, ruled out the possibility of the government finalizing the current year's budget within the required constitutional and administrative timeframes. He emphasized that the remaining time in the year is insufficient to prepare a comprehensive draft and present it to the Council of Representatives for approval.
Al-Darraji explained that the government is effectively moving toward preparing the 2027 budget, anticipating that the draft will be sent to Parliament this coming October or November, in preparation for debate and approval prior to the start of the new fiscal year.
He noted that the upcoming budget would undergo fundamental changes regarding the philosophy of its preparation and the mechanisms for organizing its financial schedules. Additionally, spending priorities will be re-evaluated and the actual needs of government institutions assessed to align with current economic and financial conditions.
This approach comes as the state continues to rely on the "1/12" provisional spending mechanism—authorized by current financial management laws—to cover employee salaries and essential operating expenses. This reliance follows the failure to pass the 2026 budget, a process that has since become complicated by accounting and technical challenges.
According to the Finance Committee, there is a preliminary consensus between Parliament and the government of Prime Minister Ali Al-Zaidi to focus efforts on drafting a new budget with a distinct economic vision. This new budget aims to rectify past imbalances and reduce the fiscal deficit, while ensuring readiness before the start of the upcoming fiscal year.
This delay is attributed to a range of political and administrative factors—most notably the recent election period and ongoing disputes regarding the completion of the current cabinet—which have hindered the ability of executive institutions to prepare a comprehensive draft budget during the first half of the year. link