Iraq Economic News and Points To Ponder Monday Afternoon 10-6-25

Imminent Economic Explosion
 
Smuggling dollars under the guise of gold is pushing the mithqal toward "one million," and popular concern is growing about the collapse of purchasing power.

Economy / Special Files | Baghdad Today – Baghdad   Iraq is witnessing a complex gold crisis in early fall 2025, combining two main dimensions: the first is the record-breaking rise in gold prices both locally and globally, with the price of a mithqal approaching one million dinars; the second is the use of imports as a cover for smuggling dollars abroad.

This dual equation has placed the Iraqi economy under increasing pressure, threatening monetary and social stability at a time of escalating regional tensions and increasing fragility in global markets.

Economic expert Nasser Al-Kanani explained to Baghdad Today that "the price of a mithqal of gold has reached unprecedented levels, approaching one million dinars, sparking widespread concern among citizens and traders.

This sharp rise is linked to intertwined internal and external factors, most notably the rise in global gold prices as a result of geopolitical tensions and slowing economic growth, in addition to the decline in the value of the Iraqi dinar against the dollar due to speculation and the scarcity of hard currency in the local market."

Al-Kanani points out that the increased demand for gold locally as a safe haven for storing money amid financial market instability has contributed to the amplification of the crisis, especially given the absence of clear fiscal policies and weak oversight mechanisms for goldsmith markets. These factors have raised the costs of marriage and popular savings to unprecedented levels, reflecting the profound social dimensions of the economic crisis.

For his part, economic expert Ahmed Al-Tamimi confirmed to Baghdad Today that the import operations themselves have turned into a means of smuggling hard currency.

 Al-Tamimi told Baghdad Today, "Recently, we have witnessed gold imports from the UAE and Turkey more than in previous periods, which indicates the presence of dollar smuggling operations through such import operations, especially since the dollar for these operations is exchanged at the official rate via a special platform, which generates significant profits for some of these smugglers."

Al-Tamimi stressed that "there must be strict controls on gold imports from abroad, and imports must be according to specific weights and timescales between each transaction." He warned that the continuation of this pattern could lead to "renewed US measures on the dollar in Iraq."

According to economic estimates, the continued exploitation of the official dollar platform for imports exposes Iraq to additional pressure on the financial system and increases the likelihood of international restrictions or sanctions.

Independent MP Kazim Al-Fayyadh revealed in an interview with Baghdad Today that "there are fake and non-fake companies working to smuggle currency in various illegal ways, some of which were uncovered by the competent authorities in recent times.

" Al-Fayyadh added that "despite the tightening of security and oversight by the Central Bank and other agencies, these companies are still working to smuggle currency, and this is considered the most prominent reason for the continued rise of the dollar in the parallel market."

The statements reflect the nature of the overlap between economics and politics, as some of these companies operate under the cover of influential parties, which complicates the task of oversight and security agencies and makes smuggling a persistent phenomenon despite government campaigns.

The Parliamentary Security and Defense Committee, for its part, announced the implementation of a series of operations against currency smuggling mafias. Committee member MP Yasser Iskandar Witout told Baghdad Today, "Smuggling hard currency in all its forms drains the country's economic capabilities and leads to pressure on markets by raising the exchange rate, which in turn leads to higher prices.

" He added, "Six operations carried out in recent months represent qualitative strikes against hard currency smuggling mafias in Iraq, and they have borne fruit." However, he stressed that "smuggling has not ended yet, and efforts are ongoing to end it."

These attacks reveal an ongoing confrontation between state institutions and parallel economic networks. Security interventions have partially curbed the phenomenon, but the absence of long-term institutional solutions allows it to return in various forms.

From these data, it's clear that gold in Iraq has transformed from a mere consumer and investment commodity into a strategic asset reflecting broader crises. While the state benefits from the increased value of its gold reserves and the strengthening of the central bank's monetary position, society is paying a heavy price through price hikes and declining purchasing power, while imports become parallel channels for dollar smuggling.

Independent research estimates confirm that any radical solution requires linking fiscal and monetary policies with security measures, rebuilding oversight mechanisms for gold trade and imports, and providing citizens with alternative savings instruments that reduce their reliance on gold alone. Without these steps, gold in Iraq will remain a symbol of a double crisis: official gain and popular loss.

Source: Baghdad Today Monitoring and Follow-up Department   https://baghdadtoday.news/284526-.html

Iraq Is The First Arab Country To Buy Gold.

Money and Business  Economy News – Baghdad   The Prime Minister's financial advisor, Mazhar Mohammed Salih, confirmed on Monday that Iraq has become the Arab world's leading buyer of gold. He also noted that Iraq is working to localize the gold and jewelry industry within the country by launching the Global Gold City project.

Saleh said, "The Global Gold City, recently approved by the Council of Ministers in the capital, Baghdad, is expected to be completed within two to five years, with partial and gradual activation of the city beginning immediately under the supervision of the Ministry of Trade and in coordination with the National Investment Commission, which granted the land and investment license."

He added, "This city is expected to bring about a qualitative shift in regulating the gold and jewelry trade in Iraq in accordance with international standards, through the establishment of a transparent exchange, accredited laboratories, strict quality controls, and anti-money laundering measures, including monitoring gold sources and trading records, within a clear legislative and regulatory framework, including licensing laws, industry standards, and oversight mechanisms."

He emphasized that "the project's goal is to localize the gold and jewelry industry within Iraq, instead of its continued reliance on imports. It also aims to provide job opportunities and vocational training for Iraq's growing human capital, interested in crafting gold according to international standards."

Saleh continued, "The project is currently in the preparation and implementation phase, including land allocation, issuing investment licenses, preparing infrastructure, and establishing relevant factories and laboratories, all under the direct supervision of the Ministry of Commerce."

He explained that "the project is being implemented within the concept of an 'integrated economic city,' which will enhance Baghdad's position as a regional center for the gold and jewelry industry and trade, as well as raise Iraq's ranking on global gold exchanges."

He pointed out that "Iraq ranked first in the Arab world in gold purchases, according to 2024 statistics, with imports ranging between 50 and 70 kilograms flowing into the country daily."https://economy-news.net/content.php?id=60812

Gold Prices Rise To Record Highs In Baghdad 

Economy | 12:37 - 06/10/2025  Mawazine News – Baghdad  Gold prices in global and local markets recorded a significant increase on Monday, as the price of a 21-karat gold mithqal approached the 800,000 Iraqi dinar barrier.
The following is a breakdown of gold prices:

A 21-karat mithqal is 798,000 Iraqi dinars.          An 18- karat mithqal is 684,000 Iraqi dinars.
A 22-karat mithqal is 836,000 Iraqi dinars.          A 24-karat mithqal is 912,000 Iraqi dinars.
https://www.mawazin.net/Details.aspx?jimare=267915

Iraq Increases Gold Reserves To163 Tons

IRAQ Amr Salem October 5, 2025  Baghdad (IraqiNews.com) – The Prime Minister’s Advisor for Financial Affairs, Mazhar Saleh, revealed on Saturday that Iraq’s gold holdings have climbed to around 163 tons.

In a statement to Rudaw News, Saleh explained that the country’s gold reserves have climbed dramatically to 163 tons compared to 152.6 tons in October 2024.

The increase in these assets demonstrates Iraq’s strong financial and economic stability, according to Salih, who added that Baghdad’s significant reserves attract international investment and provide a long-term economic infrastructure for the country.

The World Gold Council announced in early September that Iraq’s gold reserves had remained stable.

According to the council’s most recent assessments, Iraq has made no gold purchases since the beginning of 2025. The council highlighted that it remained in 29th place internationally with the highest gold reserves.

Iraq’s gold holdings amounted to 162.7 tons, or 16.9 percent of its total foreign reserves.

Furthermore, following Saudi Arabia, Lebanon, and Algeria, Iraq kept its fourth rank among Arab countries.

In response to growing economic and geopolitical threats, central banks worldwide are increasing their holdings of bullion.

The country’s gold reserves increased by 45.1 percent in the fourth quarter of 2024 compared to the same period in 2023, according to data released earlier in March by the Central Bank of Iraq (CBI).

Iraq’s gold holdings show the country’s continued efforts to diversify its foreign reserves while also improving long-term financial and monetary stability.    https://www.iraqinews.com/iraq/iraq-increases-gold-reserves-to163-tons/

Basra crude prices rise in line with rising global oil prices.

Monday, October 6, 2025, | Economics  Reads: 218  Baghdad/ NINA / The prices of Basra Heavy and Medium crude oils rose in conjunction with the rise in global oil prices.

Basra Medium crude oil rose to $64.76 per barrel, while Basra Heavy crude oil recorded $63.21 per barrel, with a change rate of -0.98 for both.

Globally, Brent crude oil rose to $65.42 per barrel, while US West Texas Intermediate crude oil recorded $61.67 per barrel, with a change rate of +0.87 and +0.89, respectively.  https://ninanews.com/Website/News/Details?key=1255545

The Dollar Continues To Stabilize In Local Markets In Baghdad.

Economy | 06/10/2025  Mawazine News - Baghdad -  The US dollar exchange rate witnessed remarkable stability against the Iraqi dinar in local markets on Monday.  The selling price reached 142,500 dinars for $100, while the buying price reached 140,500 dinars for $100.  https://www.mawazin.net/Details.aspx?jimare=267913

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