Iraq Economic News and Points To Ponder Monday Morning 10-5-26
Al-Moussawi Told Al-Maalomah: There Is No Final Agreement On Raising The Dollar Exchange Rate.
Today 10:40 Information/Baghdad.. MP Mukhtar Al-Moussawi confirmed on Thursday that there is no final agreement to raise the dollar exchange rate, while he pointed out that the country's economic situation requires a strategy that maintains the stability of food prices and keeps them away from speculation, as well as creating a strategic reserve that takes into account the tensions in the region.
Al-Moussawi explained to Al-Maalouma that “until this moment, there is no clear government decision pushing for an increase in the exchange rate, especially since the dollar exchange rate in the parallel market witnessed a rise a few days ago exceeding 160,000 dinars per 100 dollars, while the official exchange rate is 132,000 dinars per 100 dollars. Consequently, this difference is being exploited for speculation and profit by some.”
He pointed out "the necessity of having a government strategy to reconsider the dollar exchange rate in a way that maintains market stability and prevents speculation and the exploitation of the difference by some to make profits," noting that "regional tensions compel us to demand the necessity of having a strategic reserve of food supplies to ensure stability and reassurance, and to prevent some unscrupulous individuals from exploiting any tensions that occur to raise prices under many pretexts and excuses."
Al-Moussawi stressed that “reconsidering the dollar exchange rate is extremely important during the coming period, especially with the current crisis, while maintaining the stability of food prices.” End 25
"Will Al-Zaydi's Government Be Completed?" The Framework Will Meet Monday Evening To Resolve Three Outstanding Ministerial Appointments And Agree On A Date For The Vote -
Baghdad - One News - 10/04/2026 On Monday evening, the Coordination Framework will hold a meeting at the home of Mohsen Al-Mandalawi to discuss completing the government cabinet and reaching an agreement on the date of the House of Representatives session dedicated to voting on the remaining ministers and deputy prime ministers.
An informed source told One News that the meeting will focus on understandings regarding the remaining portfolios and positions, in an attempt to resolve the disputes that have delayed the completion of the government formation and to reach a political agreement that paves the way for holding a voting session.
The source added that the deadlock is still concentrated in three ministries, namely the Interior, Defense and Planning ministries, amid ongoing discussions between political forces regarding the candidates proposed to fill these portfolios.
He indicated that the framework meeting on Monday evening could be crucial in overcoming the remaining obstacles and reaching understandings regarding the three ministries, thus allowing for a date to be set for the House of Representatives session dedicated to completing the government cabinet.
According to the source, the issue of the deputy prime ministers will also be on the meeting table, within the political understandings aimed at putting them to a vote simultaneously with the remaining ministers.
Following the framework meeting, the outlines of the final stage of completing al-Zaydi's government are expected to become clear, as well as whether the political forces will succeed in overcoming the obstacles regarding the Interior, Defense, and Planning ministries, and moving from the negotiation phase to setting a date for the decisive session within the House of Representatives. https://1news-iq.net/هل-تكتمل-حكومة-الزيدي؟-الإطار-يجتمع/
"Completing The Government Unites The Progressive And Democratic Blocs." Al-Halbousi Receives A Delegation Headed By Hoshyar Zebari, And Both Sides Emphasize The Importance Of Completing The Cabinet
Baghdad - One News - 10/04/2026 On Sunday, the head of the Progress Party, Mohammed al-Halbousi, discussed with a delegation from the Kurdistan Democratic Party, headed by Hoshyar Zebari, the political situation in the country and the issue of completing the cabinet, while both sides stressed the importance of completing the formation of the government and deciding on the remaining portfolios.
The media office of the head of the Progress Party stated in a statement that Al-Halbousi received a delegation from the Kurdistan Democratic Party headed by Zebari, and the meeting addressed developments in the political scene and the issues raised during the current stage.
Both sides stressed the importance of completing the cabinet, at a time when political dialogues are continuing regarding the completion of the remaining portfolios and positions in the government.
The meeting also addressed developments in regional and international affairs and their implications for Iraq and the region, in light of the changes taking place in the regional environment.
The meeting comes as part of the ongoing political activity between forces and parties to discuss internal issues and developments surrounding Iraq, most notably the completion of the cabinet. https://1news-iq.net/استكمال-الحكومة-يجمع-تقدم-والديمقرا/
Iraq Proposes Major Dinar Devaluation in 2027 Budget
Daban Mohammed
At a Glance
The draft 2027 budget proposes setting the official exchange rate at 150,000 IQD per $100 to eliminate the gap with the parallel market.
MP Dilan Ghafoor said fixing the dollar rate at this level is projected to inject an additional 20 trillion dinars into national revenues, bringing the total estimated budget to 218 trillion dinars.
The draft bill benchmarks the budget on an estimated crude oil price of $58 per barrel.
While public employee salaries are secured in the draft, other KRG demands remain unresolved.
Iraqi Parliamentary Finance Committee member Dilan Ghafoor, quoting Minister of Finance Faleh al-Sari, stated that the value of $100 has been set at 150,000 dinars in the draft 2027 budget, adding that there are numerous unresolved issues regarding the rights of the Kurdistan Region in the draft bill.
Key Statements and Focus Area
MP Dilan Ghafoor told Channel8 that according to the decision, the gap between the official exchange rate and the parallel market rate will be eliminated.
Ghafoor noted that the committee's meeting with the Finance Minister was dedicated entirely to gathering comprehensive details on the draft budget bill, emphasizing that the dollar exchange rate was discussed as one of the most critical aspects of the budget.
Speaking to Channel8, Lawmaker Ghafoor said that if the decision is implemented, both the parallel market rate and the official government rate will align at 150,000 dinars.
She stressed that fixing the dollar rate at 150,000 dinars will inject an additional 20 trillion dinars into the budget revenue.
Ghafoor also clarified that the approval and vote of the Council of Ministers and Parliament are required; although the Ministry of Finance has thoroughly studied the matter, “it does not mean this is a final decision. Principal agreement, however, is included in the draft.”
The lawmaker confirmed that the total estimated draft budget will reach 218 trillion dinars. The Next year’s draft budget is estimated at 200 to 240 trillion dinars, with the Kurdistan Region requesting roughly 29 trillion dinars.
This proposed allocation is intended to cover KRG public employee salaries, job promotions, new hires, and the permanent integration of contract teachers and civil servants.
Ghafoor highlighted that, thus far, only the salaries of the Kurdistan Region's public employees have been secured in the draft budget, adding that all other demands from the Kurdistan Region remain under discussion, with no guarantees provided yet.
She underlined that it is critical for the Kurdistan delegation to remain continuously engaged in Baghdad at this stage to resolve outstanding budget issues with the Iraqi government and effectively lobby for its interests.
Regarding the price of oil in the budget, the Finance Minister confirmed that a barrel of oil has been set at $58, while the total draft budget for Iraq next year has been projected at 218 trillion dinars.
FYI
The proposed currency devaluation comes amid a widening spread between Iraq’s official exchange rate and the parallel market, where street transactions have recently fluctuated between 1,570 and 1,600 dinars per dollar.
This drive to readjust the official peg to 1,500 dinars is fueled by a severe fiscal crisis, highlighted by a massive 26.3 trillion dinar ($20.16 billion) budget deficit in the first seven months of 2026 alone after geopolitical conflicts heavily disrupted seaborne crude exports.
While the Central Bank of Iraq (CBI) has historically resisted shifting its formal baseline from the 1,300 to 1,320 range to protect domestic purchasing power, intense pressure from the Ministry of Finance may force the bank to administer this shift.
If the draft budget passes, the administrative realignment will allow the ministry to convert oil dollars into a higher volume of local currency, though financial experts warn it could cause an immediate spike in consumer inflation and drive parallel market rates past 160,000 dinars per $100.
Concurrently, the draft 2027 general budget law is under evaluation by the Iraqi Cabinet and is slated for official submission to parliament by mid-month.
The Kurdistan Regional Government is demanding a full 14.14% share of the 2027 federal budget, calculated using recent census data to expand funding beyond public salaries into regional investment and infrastructure projects.
https://channel8.com/english/news/67130
Abu Maryam @AMrym93884
Translated from Arabic News That Will Ignite the Markets.. MP Dylan Ghafor: 2027 Budget Includes Adopting Exchange Rate of Dollar at 150 Thousand Per "Note"
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https://x.com/AMrym93884/status/2107052760050905235
5:18 AM · Oct 5, 2026 · 4,545 Views
graphic translation: Seventh
News that will ignite the markets... MP Dylan Ghafour: The 2027 budget includes adopting an exchange rate of 150,000 per dollar "paper" fOX alsaabiea 2026/10/5