Iraq Economic News and Points To Ponder Monday Afternoon 10-19-26
Finance Minister Orders Rafidain Bank To Resume Lending
2026-10-19 Shafaq News- Baghdad Iraq’s Finance Minister Falih Al-Sari on Monday instructed state-owned Rafidain Bank to resume lending to public-sector employees, streamline loan applications, and expand financing for private businesses.
During a visit to the bank, Al-Sari met Director General Ali Karim and other officials to review operations and services, calling for faster loan processing and fewer administrative requirements. Bank management also presented plans to automate procedures and upgrade digital systems
The minister pressed for easier access to credit for private companies, particularly those undertaking production and investment projects, alongside improvements to the bank’s technical infrastructure and customer services.
He also inaugurated a branch at Rafidain’s headquarters dedicated to business clients, offering specialized services and faster transactions.
The directive comes after months of lending restrictions at state-owned banks. By September, most had suspended loans and salary advances because of liquidity shortages, while Central Bank data showed deposits falling 5.6% and cash credit contracting 5.4% in the first half of 2026.
An informed source previously linked the lending freeze at Rafidain and Rasheed banks to declining liquidity, poor credit planning, and delays in technological modernization. Both institutions have also faced regulatory scrutiny over their lending practices, investment financing, and liquidity management.
Read more: Iraq’s private banks: Capital Growth and the structural credit gap
Iraqi PM Orders Oil Production Capacity Boost
2026-10-18 15:15 Shafaq News- Baghdad Iraqi Prime Minister Ali Al-Zaidi on Sunday directed the Oil Ministry to implement government plans to increase crude oil production capacity and revenues as regional conflicts continue to put pressure on Iraq's economy, his office said.
Al-Zaidi issued the directive during a visit to the ministry's headquarters in Baghdad, his second since the government took office five months ago.
Al-Zaidi said the government would take steps to increase oil revenues but did not specify them. He also called for addressing previous mistakes and shortcomings in the oil sector, saying he had instructed the Federal Commission of Integrity to follow up on corruption cases he blamed for inaction and lost opportunities to develop the sector.
The deputy prime minister for energy affairs will be tasked with following up on the ministry's work, including oil production and exports.
The directives follow a 53% year-on-year decline in Iraq's oil revenues during the first seven months of 2026, according to Finance Ministry accounts cited by the country's federal revenue oversight authority. Iraq relies heavily on crude exports to finance public spending, leaving its economy vulnerable to disruptions in the Strait of Hormuz caused by the US-Israeli war on Iran.
Iraqi oil production recovered to 4.4 million barrels per day in September, its highest level this year, according to the Financial Times, although renewed attacks on shipping in October have threatened that recovery. Seven OPEC+ producers, including Iraq, agreed on October 4 to maintain their September production targets for November. Separately, a review of members' sustainable production capacity for 2027 remains delayed.
Read more: No exit but Hormuz: Iraq's economic vulnerability exposed
https://shafaq.com/en/Economy/Iraqi-PM-orders-oil-production-capacity-boost
Gold Steadies In Baghdad, Ticks Up In Erbil
2026-10-19 04:58 Shafaq News- Baghdad/ Erbil On Monday, gold prices held steady in Baghdad but edged higher in Erbil markets, hovering around one million IQD per mithqal, according to a Shafaq News survey.
Gold prices on Baghdad’s Al-Nahr Street recorded a selling price of 990,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 986,000 IQD, unchanged from Sunday.
The selling price for 21-carat Iraqi gold stood at 960,000 IQD, while the buying price reached 956,000 IQD.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 990,000 and 1,000,000 IQD, while Iraqi gold sold for between 960,000 and 970,000 IQD.
In Erbil, 22-carat gold was sold at 1,050,000 IQD per mithqal, 21-carat gold at 1,002,000 IQD, and 18-carat gold at 860,000 IQD. https://shafaq.com/en/Economy/Gold-steadies-in-Baghdad-ticks-up-in-Erbil
US Dollar Falls In Baghdad And Erbil
2026-10-19 10:01 Shafaq News- Baghdad/ Erbil The US dollar closed Monday’s trading lower in Iraq, hovering around 168,300 dinars per 100 dollars.
According to a Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchange markets at 168,350 dinars per 100 dollars, down from the morning session’s 168,600 dinars.
In the Iraqi capital, exchange shops sold the dollar at 168,750 dinars and bought it at 167,750 dinars, while in Erbil, selling prices stood at 168,250 dinars and buying prices at 168,150 dinars.
https://shafaq.com/en/Economy/US-dollar-falls-in-Baghdad-and-Erbil-9
Dollar Rebounds In Asia With French Protests Pressure On Euro
Money and business Economy News — Follow-up The dollar rose at the start of Asian trading on Monday from levels close to its lowest level of the month, while violent protests in France pressured the euro.
The euro fell 0.1% to $1.1225 as trading began in Asia, and the decline of the single currency, which has the largest weight in the dollar index, helped stabilize the US currency, which traded at 101.83.
Kieran Williams, director of Asian currencies at N Touch Capital Markets in London, said: “Weekend disruptions are more and more influential for the euro, mainly through French bonds than directly.
The dollar held steady against the yen at 158 yen after Bank of Japan Governor Kazuo Ueda said on Monday that core inflation was “very close” to the central bank’s 2 percent target.
The dollar held steady at 6.6842 yuan in foreign trading, ahead of the release of Chinese GDP data for the third quarter, and the Chinese economy is expected to have accelerated slightly in the period, after hitting its lowest level in more than three years.
In emerging Asia markets, much of the attention will be focused on the Indonesian rupee after the threat (M. S. C.C. I*, last week, downgraded the country’s stock market to “independent” position, which led to a 11.6% contraction in stocks.
The rupee touched its weakest level in about three months on Friday, closing at 18000 against the dollar.
The Australian dollar rose 0.3% to $0.6965, while the New Zealand dollar stabilized at $0.5656. The pound settled at $1.3329.
For cryptocurrencies, Bitcoin rose 1.4% to $82067.66, while Ether rose 3.0% to $2,420.22.