Iraq Economic News and Points To Ponder Monday Morning 7-20-26
Association Of Banks: Central Bank's Understandings With The US Treasury Will Reflect On The Stability Of The Iraqi Dinar
Baghdad – WAA The Association of Iraqi Private Banks confirmed on Saturday that the Central Bank’s understandings with the US Treasury represent an important turning point in the course of reforming the Iraqi banking sector, and indicated that this development will have a positive and direct impact on increasing the stability of the value of the Iraqi dinar.
A statement issued by the association, received by the Iraqi News Agency (INA), said that "the Association of Iraqi Private Banks welcomes the important positive results that resulted from the high-level talks held by the Governor of the Central Bank of Iraq, Nizar Nasser, with officials at the US Treasury, which came as a culmination and completion of the governmental efforts made during the official visit of the Prime Minister, Ali Faleh Al-Zaidi, to the United States of America."
The association, according to the statement, praised the "strategic decision to agree on the return of (7) Iraqi banks to foreign correspondent banking channels in foreign currencies (other than the US dollar), and this is a fundamental step that confirms the success of the first phase of the banking sector reform and relicensing program led by the Central Bank of Iraq."
The association affirmed that "this important development will have a positive and direct impact on increasing the stability of the value of the Iraqi dinar, as well as its effective contribution to strengthening Iraqi banks and enhancing their soundness and ability to meet the requirements of foreign trade and financing the local market."
She pointed out that "all other banks that are still subject to restrictions can operate in other currencies when the requirements of the first phase are completed. Therefore, these banks are required to intensify their efforts and fully and quickly comply with the standards and requirements of the Central Bank of Iraq, and complete the procedures for compliance, combating money laundering and terrorist financing."
The association reiterated its "full support for the comprehensive strategy of the Central Bank of Iraq, which aims to modernize the banking sector and enhance its resilience and competitiveness, in order to ensure full and sustainable integration into the global financial system, and to create the ideal environment for the Iraqi economy to open up to international financial institutions." https://ina.iq/ar/economie/268591-.html
Iraq Arrests Bulk Cash Couriers, Seizes Million In Mastercards
ERBIL, Kurdistan Region - The Iraqi National Security Service (INSS) announced on Sunday that it had dismantled several currency smuggling networks operating across the country, including a group illegally transferring over a million in funds between Baghdad and Sulaimani using bank cards.
Arshad Hakim, spokesperson for the INSS, told Rudaw's Hastyar Qadir on Sunday that intelligence-based operations carried out by the agency’s unit in Diyala province led to the arrest of two suspects involved in a network smuggling money between Baghdad and Sulaimani.
“The group was smuggling funds using Mastercards,” Hakim said, adding that security forces seized Point of Sale (POS) devices and a large number of bank cards prepared for illegal transfers.
The arrests come amid increased Iraqi government efforts to curb foreign currency smuggling and regulate access to US dollars. Earlier in July, the Central Bank of Iraq (CBI) reduced the monthly dollar allocation for adult travelers from $3,000 to $2,000, saying the measure aimed to improve foreign currency management and encourage electronic payments.
The arrests also coincide with ongoing investigations and national efforts to curb corruption, embezzlement, and money laundering in accordance with Iraq's ongoing anti-corruption campaign launched in June, known as Operation Dawn, which has resulted in the arrest of dozens of Iraqi politicians and lawmakers, former officials, and senior government employees, in addition to hundreds of millions of dollars in stolen assets and seized state properties illegally transferred into private ownership.
Under Iraqi regulations, transferring funds abroad through bank cards outside approved channels is considered a form of illicit bulk cash smuggling.
The CBI said at the time that the move was part of efforts to “develop the management of foreign currency sales operations, enhance the efficiency of resource distribution, and align with international banking best practices.”
The INSS said in a statement that its Diyala units acted “based on precise intelligence and continuous field surveillance” and dismantled the network following judicial warrants.
In Kirkuk, security forces also arrested six people accused of operating another currency smuggling network. Authorities seized 251 Mastercards and 252 SIM cards allegedly used to move foreign currency out of Iraq.
The security agency said it also carried out operations in several other provinces targeting financial crimes.
In Nineveh, intelligence units arrested an individual carrying $100,000 in counterfeit currency, while in Baghdad, officers detained a suspect wanted under article 456 of Iraq’s Penal Code for fraud. Authorities seized more than 1.324 billion Iraqi dinars ($1 million) and $256,000 from the suspect.
In Basra, the INSS said it disrupted a scam operation in which suspects allegedly created fake Facebook pages advertising the sale of “frozen dollars” at attractive exchange rates before providing victims with counterfeit bills. Four suspects were arrested with around $10,000 in fake currency, according to the agency.
“All suspects and seized items have been referred to the relevant authorities for legal proceedings,” the INSS said.
The Iraqi government has been under pressure to address dollar shortages and exchange rate pressures, with officials previously warning that some travelers and traders had exploited dollar allocation systems, contributing to demand on the parallel market. https://www.rudaw.net/english/categories/iraq/1078425
Oil Surges Above $90 On Gulf Escalation
2026-07-20 01:23 Shafaq News Brent oil prices rose 2% to more than $90 per barrel on Monday, as escalating U.S.-Iran hostilities in the Middle East restricted oil shipments through the Strait of Hormuz.
Brent crude futures climbed $2.09, or 2.37%, to $90.19 by 0241 GMT, touching the highest since June 11, extending gains after rising 15.9% last week, its biggest weekly gain since April.
U.S. West Texas Intermediate crude was at $84.20 a barrel, up $1.71, or 2.07%, the loftiest since June 12. Front-month prices gained 15.5% last week, the largest weekly ascent since early March.
The Middle East conflict escalated over the weekend with the U.S. conducting a ninth straight night of attacks against Iran, while U.S. allies Kuwait and Bahrain reported more Iranian strikes.
"ICE Brent broke above $90 per barrel this morning with no let-up in the escalation in the Gulf," said ING analysts in a note on Monday.
"The U.S. and Iran continue to exchange strikes, which are proving to be deadly for both sides. If this escalation goes unchecked, we could return to an environment of wide-scale attacks across the Gulf."
The Islamic Revolutionary Guard Corps said on Monday that two oil tankers had exploded and been immobilised after attempting to transit what it described as an unsafe southern route through the Strait of Hormuz, alleging they had been encouraged by the U.S. military to use the passage.
Reuters could not immediately verify the incident.
In recent days both sides have taken aim at shipping traffic, with the U.S. saying it is enforcing a naval blockade on Iranian ports, and Iran saying it targets vessels violating its rules on navigating the Strait of Hormuz, which usually handles one-fifth of global oil trade.
A vessel was on fire northwest of Oman's Kumzar, the United Kingdom Maritime Trade Operations agency said early on Monday.
"The coming days and weeks will provide a clearer picture of the sustainable level of oil exports from the region under renewed dual blockades," Barclays analyst Amarpreet Singh said in a note.
"As things stand, we think oil markets are still too complacent about the potential fallout for inventories, which, unlike at the beginning of the war, are at the tightest of the past five years."
Four vessels made the transit through the Strait of Hormuz on Sunday, down from eight in the previous day, LSEG data showed. At least three oil products tankers and one Very Large Crude Carrier, have entered the strait since Friday to load oil, the data showed. https://www.shafaq.com/en/Economy/Oil-surges-above-90-on-Gulf-escalation