Iraq Economic News and Points To Ponder Thursday Evening 5-21-26
Washington Sanctions Lebanese Officials In Hezbollah Crackdown
2026-05-21 Shafaq News- Washington/ Beirut The United States on Thursday sanctioned Lebanese lawmakers, security officials, and Iran’s ambassador to Beirut over alleged support for Hezbollah.
The sanctions targeted Hezbollah MPs Mohammad Raad, head of the group’s parliamentary bloc, Hassan Fadlallah, and Amin Sherri, as well as Ambassador Mohammad Reza Raouf Sheibani and several Lebanese security and financial figures accused by Washington of using their positions to support Hezbollah and undermine Lebanese sovereignty.
Washington warned the measures were “only the beginning,” vowing to pursue individuals and entities that continue to provide political, financial, or security cover for the group. The US State Department’s “Rewards for Justice” program also announced a reward of up to $10 million for information leading to the disruption of Hezbollah financing networks.
The United States has repeatedly targeted Hezbollah-linked political, financial, and commercial networks in Lebanon and across the region. In March, the Treasury Department sanctioned a global network accused of funneling more than $100 million to the group through companies operating in Lebanon, Syria, and other countries.
Read more: Ceasefire without sovereignty: how Lebanon's fragmented power blocks a peace with Israel
https://www.shafaq.com/en/Middle-East/Washington-sanctions-Lebanese-officials-in-Hezbollah-crackdown
Hezbollah Calls US Sanctions An "Honor"
2026-05-21 Shafaq News- Beirut Hezbollah dismissed a new round of US sanctions targeting Lebanese lawmakers, military officers, and officials from both Hezbollah and the Amal Movement, calling the measures an attempt at intimidation that would have no practical effect on the group's choices.
The sanctions, the group said in a statement, were designed to "reinforce aggression and give it a political boost" after Washington failed to deter the Lebanese from exercising what Hezbollah described as their legitimate right to resistance.
Hezbollah framed the designations as "a badge of honor on the chest of those included" and further confirmation that the group's path was correct.
Read more: How Lebanon's fragmented power blocks a peace with Israel
https://www.shafaq.com/en/Middle-East/Hezbollah-calls-US-sanctions-an-honor
Iraq’s Federal Court to hear challenge to Al-Zaidi premiership
2026-05-21 Shafaq News- Baghdad Iraq’s Federal Supreme Court, the country’s highest judicial authority, on Thursday set July 1 as the date for its first hearing in a lawsuit challenging the legality of Prime Minister Ali Al-Zaidi’s appointment, marking the first formal constitutional challenge to his mandate since taking office.
Raed Al-Maliki, the former lawmaker who filed the case, said in a statement that he had received the official court notification by email along with the response submitted by the legal representative of President Nizar Amedi.
The presidential response argued that the plaintiff lacked the necessary legal interest to pursue the case and that the dispute was improperly directed at the presidency because Al-Zaidi’s nomination originated from the Shiite Coordination Framework (CF), the country’s largest parliamentary bloc, rather than the president himself.
f د. رائد المالكي / نائب مستقل's Post
We were officially informed by the Federal Supreme Court that on Wednesday, 7 / 1 a date for the first session to consider the numbered claim (152 / Federal / 2026) the appeal of the health of Mr. Ali Al-Zaidi as Prime Minister.
We have received the official notification via e-mail, attached with it the responsive bill to the representative of the President of the Republic on the claim filed by Dr. Raed Al-Malki, and the following statement included:
- Payment by not availing interest at the appeal Dr. Raed Al-Malki
- Payment by not directing the opposition, that the assignment was done by the most numerous parliamentary unit and not by the President of the Republic.
- Defended the availability of political experience of the candidate, Mohtja, that he has connections to the political media, in addition to the fact that he owns a "Degla" space channel that deals with and transmits political matters.
- The representative of the President confirmed that whoever holds such a position should concede the interests he possesses after assuming the position because of the conflict of interests, and otherwise he will be held accountable.
We would like to emphasize our adherence to continuing the claim and attending its sessions, a response list will be submitted to the payment of the President's agent, and we tolerate not to respond to the claim under the pretext of not having personal interest, because the appeal of the health is a decree that the Prime Minister is a public lawsuit that is not applicable to private claims.
The response also defended Al-Zaidi’s political qualifications, citing his ties with political circles and ownership of Dijlah TV, a satellite channel focused on political affairs.
According to the filing, the president’s legal representative further argued that officials assuming senior state positions are required to relinquish private interests after taking office in order to avoid conflicts of interest, warning that failure to do so could expose them to legal accountability.
Al-Maliki also filed a separate complaint with Iraq’s Integrity Commission, accusing Al-Zaidi and Electricity Minister Ali Saadi Wahib of conflicts of interest linked to alleged ongoing business and financial dealings involving state institutions. https://shafaq.com/en/Iraq/Iraq-s-Federal-Court-to-hear-challenge-to-Al-Zaidi-premiership
Ali al-Alaq: Central Bank Participation in Budget Drafting Is Essential
Ali Mohsen al-Alaq, Governor of the Central Bank of Iraq (CBI)
The Governor of the Central Bank of Iraq (CBI) stressed the need for stronger coordination between fiscal and monetary policy, stating that the bank’s involvement in budget preparation helps prevent an economic gap.
Coordination Between Fiscal and Monetary Policy
CBI Governor Ali al-Alaq said that the participation of the Central Bank in drafting the state budget is essential to ensure complementarity between fiscal and monetary policies.
He noted that such coordination helps prevent economic disparities and strengthens long-term fiscal and monetary stability.
Role of the Central Bank in Economic Policy
Al-Alaq explained that the Central Bank has detailed indicators and data on cash flow, foreign reserves, and money supply levels. Therefore, it must play a key role in shaping the country’s overall economic policy alongside the fiscal policies implemented by the government and the Ministry of Finance.
He also emphasized that a lack of coordination directly affects prices and inflation levels.
Toward a More Balanced Budget Framework
Al-Alaq stated that coordination between the two institutions would lead to a more realistic and balanced budget capable of responding to economic changes.
These remarks come as the Iraqi government has yet to prepare the 2026 budget, with indications that a budget law for this year is unlikely.
Al-Zaidi Emphasizes Economic Reforms and Stability Initiatives
In his first official address after becoming prime minister, Ali Faleh al-Zaidi underlined that one of the “top priorities” for his government is initiating a comprehensive economic and financial reform program.
He highlighted the program aims at "building a strong, diversified, and sustainable national economy that does not rely on a single resource.”
Al-Zaidi also chaired a meeting of the Financial Stability Council earlier this week with the CBI governor and the minister of finance, during which he underscored the importance of making financial decisions that support stability in a way that positively impacts the government’s development, service, and economic plans.
Ali al-Alaq: Central Bank Participation in Budget Drafting Is Essential
https://channel8.com/english/news/58421
Al-Zaydi directs the mobilization of electricity staff to increase supply hours and reduce summer outages
Baghdad - One News 5/21/2026 During a visit to the Ministry of Electricity headquarters in Baghdad, Prime Minister Ali Faleh al-Zaidi stressed the importance of the energy file as one of the most prominent aspects of the government’s plans to develop the electricity sector and improve the stability of the national grid during the summer months.
Al-Zaydi chaired a meeting of the ministry’s senior staff to follow up on projects and plans to increase energy production and improve the transport and distribution sectors, stressing the government’s keenness to support the ministry’s efforts to stabilize electricity supply and reduce outage hours.
The Prime Minister directed the staff of the Ministry of Electricity to mobilize work and efforts in all departments and divisions, with the aim of increasing supply hours, reducing loads and minimizing power outages during the summer peak season.
Al-Zaydi stressed the government’s commitment to implementing strategic plans to find radical solutions to the electricity crisis, ensuring that Iraq reaches stable levels in the energy sector, similar to other countries in the world, and ending the suffering of citizens with power outages in the future. https://1news-iq.net/الزيدي-يوجه-باستنفار-ملاكات-الكهرباء/
Al-Mada News: The Sudanese Coalition Got Rid Of The Burden Of Armed Groups With The Defection Of “Al-Fayyad And Al-Asadi,” And The American Role With Al-Zaidi Is Clear
Baghdad - One News 5/21/2026 Al-Mada newspaper reported that nine out of twelve leaders within the coordination framework officially signed the nomination of Prime Minister Ali al-Zidi, and he also received the vote of more than half of the members of parliament, indicating the formation of a political bloc supporting him, estimated to be around 170 seats.
She added that the coalition got rid of the biggest burden of militants, after the head of the Popular Mobilization Forces, Faleh al-Fayyad, and the leader of Jund al-Imam, Ahmed al-Asadi, (all IRI factions) defected from the bloc of former Prime Minister Mohammed Shia al-Sudani.
The source indicated that the remaining armed groups have begun taking serious steps towards disarmament, most notably Asaib Ahl al-Haq, led by al-Khazali, which was denied ministries in the first phase, hoping to obtain portfolios in the second ministerial formation after the Eid holiday. https://1news-iq.net/المدى-ائتلاف-السوداني-تخلص-من-عبء-المس/
Dollar Stabilizes In Baghdad And Erbil At The Closure
2026-05-21 Shafaq News- Baghdad/ Erbil The US dollar closed Thursday’s trading in Iraq, hovering around 154,000 dinars per 100 dollars.
According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 153,600 dinars per 100 dollars, unchanged from the previous session.
In the Iraqi capital, exchange shops sold the dollar at 154,000 dinars and bought it at 153,000 dinars, while in Erbil, selling prices stood at 153,500 dinars and buying prices at 153,400 dinars.
Gold Prices Climb In Baghdad And Erbil Markets
2026-05-21 Shafaq News- Baghdad/ Erbil On Thursday, gold prices hovered around 970, 000 IQD per mithqal in Baghdad and Erbil markets, continuing their upward trend, according to Shafaq News Agency survey.
Gold prices on Baghdad's Al-Nahr Street recorded a selling price of 970,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 966,000 IQD. The same gold had sold for 965,000 IQD on Wednesday.
The selling price for 21-carat Iraqi gold stood at 940,000 IQD, with a buying price of 936,000 IQD.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 970,000 and 980,000 IQD, while Iraqi gold sold for between 940,000 and 950,000 IQD.
In Erbil, 22-carat gold was sold at 1,021,000 IQD per mithqal, 21-carat gold at 975,000 IQD, and 18-carat gold at 835,000 IQD.
https://www.shafaq.com/en/Economy/Gold-prices-climb-in-Baghdad-and-Erbil-markets-7-7