Iraq Economic News and Points To Ponder Sunday Morning 1-18-26

Government Advisor: Inflation In Iraq Is The Lowest In The Arab World

The Prime Minister's financial advisor, Mazhar Muhammad Salih, confirmed on Friday that Iraq is experiencing a low inflation rate of approximately 1.5% by the end of 2025, noting that this is the lowest inflation rate in the Arab world.

Salih told the Iraqi News Agency (INA) that "the Iraqi economy is witnessing a remarkable period of monetary stability, with an inflation rate of approximately 1.5% by the end of 2025, according to estimates by the International Monetary Fund, which is among the lowest rates in the Arab region, “He explained that "this achievement is attributed to the monetary policy that has succeeded in maintaining price and exchange rate stability, protecting the purchasing power of the dinar, thus strengthening confidence in the national currency and providing a more favorable environment for investment."

He added that "the recent Cabinet decisions aim to address what is known as 'job inflation' as a step to support social stability and improve income levels," noting that "these measures achieve positive short-term returns by stimulating domestic demand and boosting economic confidence, especially if they are financed within the bounds of fiscal sustainability and do not exceed the economy's absorptive capacity."

He explained that "the biggest challenge remains in translating this monetary stability into sustainable, productive economic growth, as government employment, if not linked to productivity, could create a gap between public spending and real output, and increase the economy's vulnerability to oil price fluctuations."

He added, "The solution lies in linking employment to training and qualification programs, empowering the private sector through legislative and financial reforms, and diversifying the economic base by focusing on agricultural development, manufacturing, renewable energy, and increasing opportunities in the digital economy."

He emphasized that "Iraq currently possesses a rare dual opportunity: low inflation and monetary stability,”He added, "This opportunity can be transformed into a long-term gain if invested in building a robust productive base, ensuring the sustainability of financial and monetary stability in the medium and long term, and moving the economy from a cycle of rentier dependency to a path of sustainable growth."   https://ina.iq/en/economy/44846-government-advisor-inflation-in-iraq-is-the-lowest-in-the-arab-world.html

CBI: Iraq Spending Outpaced Revenues In 2025

2026-01-17 07:19   Shafaq News– Baghdad   Iraq’s public spending exceeded revenues in the first 10 months of 2025, according to Central Bank of Iraq (CBI) data released on Saturday.

In a report, the CBI revealed that total public revenues reached 104.434 trillion Iraqi dinars ($72.0B), while public expenditures amounted to 115.535 trillion dinars ($79.7B) over the same period.

Non-tax income dominated state revenues at 99.625 trillion dinars ($68.7B), compared with 4.809 trillion dinars ($3.3B) in tax receipts. On the spending side, current expenditures accounted for the bulk of outlays at 96.378 trillion dinars ($66.5B) and investment spending stood at 19.157 trillion dinars ($13.2B).

The gap between revenues and expenditures widened last year, the Eco Iraq Observatory reported, with the fiscal deficit reaching 17.7 trillion dinars ($13.5B), while Iraq has yet to approve the detailed budget tables for 2025, constraining the implementation of spending plans and the release of funds for development projects.https://www.shafaq.com/en/Economy/CBI-Iraq-spending-outpaced-revenues-in-2025

USD/IQD Exchange Rates Dip In Baghdad, Erbil

2026-01-17 Shafaq News– Baghdad/ Erbil   The US dollar exchange rates fell on Saturday in the markets of Baghdad and Erbil as trading opened for the week, according to a Shafaq News survey.

Baghdad’s Al-Kifah and Al-Harithiya central exchanges registered a rate of 147,500 Iraqi dinars per $100, down from 148,000 dinars on Thursday. Local exchange shops recorded a selling rate of 148,000 dinars and a buying rate of 147,000 dinars per $100. In Erbil, the dollar eased as well, selling at 147,350 dinars per $100 and buying at 147,250 dinars. https://www.shafaq.com/en/Economy/USD-IQD-exchange-rates-dip-in-Baghdad-Erbil-8-4

Gold Prices Fall In Baghdad, Erbil

2026-01-17 Shafaq News– Baghdad/ Erbil   Gold prices, both imported and locally produced, fell on Saturday in the markets of Baghdad and Erbil, according to a Shafaq News survey.

In Baghdad’s wholesale gold market on Al-Nahr Street, the selling price of one mithqal of 21-carat Gulf, Turkish, and European gold dropped to 948,000 Iraqi dinars, with the buying price at 944,000 dinars, down from 958,000 dinars recorded last Thursday.

The price of one mithqal of 21-carat Iraqi gold also declined, selling at 918,000 dinars and buying at 914,000 dinars.

At retail jewelry shops in Baghdad, the selling price of 21-carat Gulf gold ranged between 950,000 and 960,000 dinars, while Iraqi gold of the same purity sold for 940,000 to 950,000 dinars.

In Erbil, the selling price reached 1.005 million dinars for 22-carat gold, 960,000 dinars for 21-carat, and 823,000 dinars for 18-carat gold.   https://www.shafaq.com/en/Economy/Gold-prices-fall-in-Baghdad-Erbil-8

Iraqi Crude Exports To US Jump Past 200,000 Bpd

2026-01-18   Shafaq News– Baghdad/ Washington   Iraqi crude oil exports to the United States rose sharply last week, exceeding 200,000 barrels per day (bpd), according to data from the US Energy Information Administration (EIA).

In its weekly report, the EIA reported that US imports of crude from Iraq, OPEC's second-largest producer, averaged about 209,000 bpd during the week, up from 129,000 bpd the previous week, marking an increase of roughly 80 bpd.

Overall, US crude oil imports from 10 major suppliers averaged 6.234 million bpd last week, compared with 5.667 million bpd a week earlier, the data showed.

Canada remained the largest source of US crude imports at an average of 4.226 million bpd, followed by Mexico at 386,000, Brazil at 343,000, and Saudi Arabia at 288,000.

The United States consumes around 20 million barrels of oil per day, making it the world’s largest oil consumer, with imports sourced primarily from these major suppliers.   https://www.shafaq.com/en/Economy/Iraqi-crude-exports-to-US-jump-past-200-000-bpd

The Matter Is Settled... A Political Agreement Has Been Reached Between Maliki And Sudani Regarding The Premiership.

Information/Baghdad...   Nouri al-Maliki, head of the State of Law Coalition and prime ministerial candidate, is awaiting the outcome of the presidential election in the coming days before being tasked with forming the new government and selecting his cabinet. The race for prime minister has narrowed down to al-Maliki and al-Sudani, the two figures considered the frontrunners for the position. Sources within al-Sudani's bloc have confirmed that an agreement has been reached for al-Maliki to assume power for a third term.

Bahaa al-Araji, head of the Reconstruction and Development parliamentary bloc, stated in remarks reported by Information that "the decision to withdraw from the competition with the head of the State of Law Coalition was made with complete conviction. The decision is serious and not tactical, as some believe. The coordinating body rejects any role for the international community in selecting the next prime minister."

He added that “the Reconstruction and Development Party has a project, and Maliki is the closest to his project. Also, the relationship between him and the State of Law Coalition is not related to giving up the position, but rather to joint cooperation in the issue of distributing ministries and parliamentary committees, because the next stage is an important and difficult stage that requires concerted efforts to face internal and external challenges.”

On another front, MP Hussein al-Ankoushi, from the Reconstruction and Development Coalition, confirmed to Al-Maalomah that "Sudani directed the Reconstruction and Development Coalition to support Maliki's nomination for prime minister in the upcoming phase, as Maliki has become the candidate of 81 MPs representing the Reconstruction and Development Coalition and the State of Law Coalition."

He pointed out that "the Coordination Framework did not force Sudani to withdraw his candidacy; rather, the decision came voluntarily and personally from him." He indicated that "the political forces within the framework will not allow its disintegration or abandonment under any circumstances, as the upcoming phase requires maintaining the unity and cohesion of the Coordination Framework to ensure political stability and proceed with forming the government according to clear understandings among all parties."

Meanwhile, former MP Yasser al-Husseini explained to Al-Maalomah that "Maliki and Sudani publicly display harmony and agreement, but this agreement is underpinned by internal and external pressures that have imposed themselves on the political scene. However, the current stage requires the selection of a strong prime minister capable of leading the country through its complex crises."

He continued, "Iraq is facing imminent danger, and citizens may be forced to tighten their belts due to the difficult economic conditions," noting that "the current government has obstructed the work of Parliament and contributed to preventing interrogations and the normal exercise of its oversight role."

He added that "the next government will move to cancel some of the decisions of Sudani's government as part of a comprehensive review of the policies pursued during the past period, especially since the country needs bold decisions to correct its course and confront the upcoming challenges." End 25N   LINK