Iraq Economic News And Points To Ponder Monday Afternoon 3-23-26
Iraq increases holdings of US bonds to $42B in December
2026-03-23 Shafaq News- Washington Iraq’s holdings of US Treasury bonds reached $42 billion by the end of December 2025, up from $41.1 billion in November, the US Treasury’s Treasury International Capital (TIC) system said on Monday. The data showed that long-term holdings accounted for $40.8 billion, while short-term bonds totaled about $1.2 billion.
Monthly figures for 2025 indicated a steady rise in long-term bond holdings, while short-term holdings remained relatively stable. Total holdings increased from about $39.85 billion in January to $42 billion in December 2025.
In 2024, Iraq’s total holdings stood at around $23.4 billion, with an annual increase of nearly 79%, driven primarily by higher investment in long-term bonds.https://www.shafaq.com/en/Economy/Iraq-increases-holdings-of-US-bonds-to-42B-in-December
Precious Metals Tank In Global Liquidation Wave
2026-03-23 Shafaq News Gold slid more than 5% on Monday, reaching its weakest level of 2026 after logging its worst week in about 43 years, as an escalating Middle East conflict stoked inflation concerns and raised expectations of higher global interest rates.
Spot gold fell 5.8% to $4,226.16 per ounce as of 0633 GMT, its lowest since December 11, and extended losses into a ninth straight session.
The metal dropped more than 10% last week, its worst week since February 1983, and has also retreated more than 20% from its record peak of $5,594.82 an ounce reached on January 29.
U.S. gold futures for April delivery fell 7.5% to $4,231.80.
"With the Iranian conflict into its fourth week, and oil prices hanging around the $100 level, expectations have pivoted from rate cuts to potential rate hikes, which have tarnished gold's appeal from a yield point of view," said Tim Waterer, chief market analyst, KCM Trade.
Iran said on Sunday it would strike the energy and water systems of its Gulf neighbours in retaliation if U.S. President Donald Trump follows through with his threat to hit Iran's electricity grid in 48 hours.
Asian shares fell, and oil prices stayed well above $110 a barrel.
"Gold's high liquidity appears to be hurting it during this risk-off period. Downturns in stock markets are leading to gold portions being closed to cover margin calls on other assets," Waterer said.
The closure of the Strait of Hormuz has kept crude elevated, stoking inflation fears by pushing up transport and manufacturing costs. While rising inflation typically boosts gold's appeal as a hedge, high rates curb demand for the non-yielding asset.
"A reinforced shift from safe-haven allocation towards macro-driven positioning could skew risks further to the downside, as a firmer U.S. dollar and the receding probability of the Fed easing dominate the narrative," said BMI, a unit of Fitch Solutions.
Market pricing for a U.S. Federal Reserve rate hike this year has shot up, with rate futures showing the U.S. central bank is more likely to raise interest rates than cut them by the end of 2026, according to CME's FedWatch tool.
Other precious metals also declined sharply, with spot silver declining 8.9% to $61.76 per ounce. Spot platinum slipped 9% to $1,749.31 and palladium shed 5.2% to $1,330.50.
(REUTERS) https://www.shafaq.com/en/Economy/Precious-metals-tank-in-global-liquidation-wave
Dollar Trading Halts In Baghdad, Resumes In Erbil After Holiday
2026-03-23 Shafaq News- Baghdad/ Erbil Dollar trading halted in Baghdad on Monday as wholesale markets still closed for the Eid al-Fitr holiday, while trading resumed in Erbil of the Kurdistan Region.
Some exchange shops in Baghdad continued limited activity, with the selling price at 155,500 Iraqi dinars per 100 US dollars and the buying price at 154,500 dinars.
In Erbil, the US dollar declined slightly, trading at 154,400 dinars for selling and 154,300 dinars for buying per 100 dollars.
Baghdad’s currency markets are expected to reopen on Tuesday as the Eid holiday concludes across Iraq, with trading set to resume gradually. https://www.shafaq.com/en/Economy/Dollar-trading-halts-in-Baghdad-resumes-in-Erbil-after-holiday
Gold Prices Fall In Baghdad And Erbil Markets
2026-03-23 Shafaq News- Baghdad/ Erbil On Monday, gold prices declined in Baghdad and Erbil markets, with trading activity in the capital remaining limited due to the Eid holiday.
According to a survey by Shafaq News Agency, gold prices on Baghdad's Al-Nahr Street recorded a selling price of less than 1 million IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 875,000 and 885,000 IQD, while Iraqi gold sold for between 845,000 and 855,000 IQD.
In Erbil, prices also declined, with 22-carat gold selling at around 975,000 IQD per mithqal, 21-carat gold at 930,000 IQD, and 18-carat gold at 797,000 IQD.https://www.shafaq.com/en/Economy/Gold-prices-fall-in-Baghdad-and-Erbil-markets-1-0
Iraq, Five Arab States Hold 1K+ Tons Of Gold Reserves
2026-03-23 Shafaq News- Baghdad Iraq and five Arab countries hold a combined over 1,000 tons of gold reserves, according to global data for March 2026, underscoring a steady build-up of bullion holdings in the region.
Saudi Arabia led Arab states with 323.1 tons, followed by Lebanon (286 tons), while Iraq ranked third with 174.6 tons, ahead of Algeria (173.6 tons) and Libya (146.7 tons).
Iraq’s gold holdings account for 24.6% of its total foreign reserves, according to the data.
Globally, the United States topped the list with 8,133 tons, followed by Germany (3,350 tons), Italy (2,451 tons), France (2,437 tons), and Russia (2,326 tons).
Data from the World Gold Council showed Iraq increased its reserves in 2025, purchasing 1 ton in March, 1.6 tons in June, 3.1 tons in July, 2.5 tons in August, and 3.8 tons in October.https://www.shafaq.com/en/Economy/Iraq-five-Arab-states-hold-1K-tons-of-gold-reserves
Iraq-Italy Trade Surpasses $2.7B
2026-03-23 Shafaq News- Baghdad Iraq’s trade with Italy topped $2.7 billion in 2025, largely fueled by crude oil exports, the international trade platform OEC reported on Monday.
According to the data shared, roughly $2.6 billion of that total came from crude oil shipments. Non-oil exports added about $112 million, covering agricultural products, raw materials, and selected manufactured goods.
Imports from Italy reached around €192 million ($207 million), consisting of industrial equipment, machinery, and business services exchanged between Iraqi and Italian companies.https://www.shafaq.com/en/Economy/Iraq-Italy-trade-surpasses-2-7B
IEA Prepared To Unseal Strategic Oil Reserves
2026-03-23 Shafaq News- Paris The International Energy Agency (IEA) is weighing a release of emergency oil stocks as tensions linked to the Strait of Hormuz closure strain global supply, IEA Executive Director Fatih Birol indicated on Monday, describing the situation as the most severe since the energy crises of the 1970s.
Speaking at the National Press Club, Birol noted ongoing assessments of supply conditions and coordination with member states. “If necessary, we will of course do so. We are looking at the conditions,” he added, stressing that no fixed crude price would trigger another coordinated release.
“The most important and only solution to this problem is to open the Strait of Hormuz,” he remarked.
IEA member countries agreed on March 11 to release a record 400 million barrels of oil from strategic reserves to counter the sharp rise in global crude prices.
On Saturday, US President Donald Trump pledged to launch broad strikes on Iranian energy sites within 48 hours if Tehran does not fully reopen the Strait of Hormuz. In response, Iran threatened to fully close the maritime gateway and target regional energy infrastructure if its power facilities face attacks.https://www.shafaq.com/en/Economy/IEA-prepared-to-unseal-strategic-oil-reserves
Iraq’s 20% Telecom Tax Sparks Debate Over Economic Burden On Citizens
2026-03-23 Shafaq News- Baghdad The decision by Iraq’s caretaker government, led by Mohammed Shia Al-Sudani, to reimpose a 20% tax on internet services and mobile recharge cards has sparked debate over the country’s fiscal policy and its direct impact on citizens.
The measure, which took effect on March 10, 2026, reinstates a tax previously abolished in 2022. However, it is now applied differently, with the levy added directly to the price paid by users rather than being imposed on telecom companies, as was the case under former Prime Minister Haider al-Abadi (2014–2018).
In 2016, Haidar Al-Abadi’s government defended salary deductions of 3.8% and telecom taxes as necessary during the costly war against ISIS and a sharp decline in oil prices. At the time, Iraq’s domestic debt stood at 63 trillion dinars ($52–53B in 2016 terms).
Recent economic data indicate that domestic debt rose to 91 trillion dinars in 2025–2026 (USD69 - 70 B), prompting the government to seek additional liquidity and focus on increasing non-oil revenues.
Economic experts interviewed by Shafaq News say the key difference between the two periods lies in how the tax is applied. Previously, companies could absorb part of the cost or adjust pricing structures. Now, the tax is passed directly to consumers, with an immediate effect on service prices.
Nawar Al-Saadi, a professor of international economics, described the shift as a “dangerous transformation” in tax policy. “In 2015, the tax targeted telecom companies as the legally responsible entities, allowing them some flexibility in managing the cost,” he told Shafaq News, adding that today, the burden has moved entirely to the consumer, meaning the impact is immediately reflected in the price of recharge cards or internet subscriptions.
He noted that this approach eliminates room for competition among providers to absorb costs, explaining, “Users now pay the full 20% when purchasing mobile credit or renewing fiber-to-the-home (FTTH) subscriptions.”
Saadi stressed that telecommunications and internet services have become essential to economic activity, education, and work, making any increase in their cost significant for a broad segment of the population.
Economic researcher Ahmed Eid said the decision reflects a government push to boost non-oil revenues but raises concerns about how the tax burden is distributed.
Speaking to Shafaq News, he said, instead of addressing inefficiencies in public revenue management or collecting outstanding dues from major companies accused of failing to meet past financial obligations, “the government has turned to taxing everyday services used by citizens because it is the easiest option.”
Eid pointed out that many countries are reducing taxes on digital services to support technological transformation, “while Iraq is moving in the opposite direction.” He also argued that imposing a tax of this scale on services relied upon by millions for work and education highlights a misalignment in fiscal priorities and deepens perceptions of inequality.