Iraq Economic News and Points To Ponder Thursday Evening 9-25-25
Inflation Balance
Abdul Zahra Muhammad Al-Hindawi Data released by the Ministry of Planning and the Central Bank of Iraq indicate a decline in inflation rates in Iraq, both monthly and annually. Experts and economic specialists differ on the interpretation of this decline, with some viewing it as a negative indicator and others considering it a positive sign that can be built upon.
The first group argues that a decline in inflation does not necessarily reflect a real improvement in the economic situation, but rather indicates a state of contraction and stagnation, particularly given the continued weakness of non-oil activities. Accordingly, in their view, this decline is not based on a solid production base, and its results may be limited or temporary.
The second group—and I find myself closer to this view, without claiming to be an expert or specialist—considers that the decline in inflation rates is an encouraging sign, reflecting a number of positive indicators, including the clear improvement in the value of the Iraqi dinar in recent months.
This improvement has contributed to strengthening public confidence in the national currency, reducing the tendency to acquire the dollar or gold as safe havens, and even encouraging what might be called "positive savings."
From a societal perspective, price stability, particularly for basic food commodities, sends a reassuring message to citizens and reduces their consumer concerns. Consumers are no longer forced to hoard food at home, as was the case in previous years, as its availability is now guaranteed, whether through the ration card or through imports directly linked to the official dollar exchange rate through the Central Bank's platform, independent of fluctuations in the parallel exchange rate.
Moreover, this stability in inflation rates carries an important message for investors: Iraq's economic environment is moving toward greater security, which could encourage increased investment and, consequently, stimulate the economic cycle. Conversely, this stability provides fiscal and monetary authorities with greater scope to formulate economic policies that align with development requirements and growth aspirations across various sectors.
Ultimately, Iraq's "inflation balance," despite its varying readings, reflects the fact that the number alone is insufficient to understand the economic landscape. What's more important, however, is the significance and implications it conveys, related to confidence, stability, and growth opportunities.
If these indicators continue, Iraq will have a real opportunity to establish a more balanced economic environment that reassures citizens, entices investors, and supports decision-makers https://alsabaah.iq/121017-.html
An Integrated Digital Economy In Iraq Next Year
Baghdad: Morning The Prime Minister's financial and economic advisor, Mazhar Mohammed Salih, stressed the importance of the Central Bank of Iraq's announcement that cash payments will be phased out in all government institutions and other facilities in July 2026.
The Central Bank made a statement reported by Al-Sabah newspaper the day before yesterday, confirming the farewell to paper transactions in July of next year.
In a press interview, Saleh said that Iraq's farewell to cash payments in 2026 represents a major strategic step toward building an integrated digital economy that reduces corruption, enhances transparency, and encourages financial inclusion.
This shift will not simply represent a change in payment methods, but rather the beginning of a new era of financial modernity in the country.
Saleh believes that, in terms of fiscal policy, this shift will facilitate total government payments, including salaries, pensions, loans, and support, as well as the collection of wages, fees, and government taxes through faster and more accurate digital channels, all of which will enhance the liquidity and governance of the general budget.
Saleh added that this step strengthens the unified treasury account and the cash flow account for public finances, reducing the chances of emergency government borrowing. Regarding monetary policy, it strengthens the close monitoring of capital flows, giving the central bank better tools to control inflation rates and liquidity simultaneously.
The advisor pointed out that this shift will encourage citizens to embrace a culture of electronic payments and encourage unbanked individuals to join the banking system, expanding the financial customer base, expanding the scope of financial inclusion and reducing the cost of cash transactions.
Economist: The Central Bank Of Iraq's Gold Reserves Have Risen To 24 Trillion Dinars.
Wednesday, September 24, 2025 | Economic Number of readings: 371 Baghdad / NINA / Economic expert, Manar Al-Obaidi, announced today, Wednesday, that the gold reserves of the Central Bank of Iraq reached more than 24 trillion dinars,an annual increase of 13.3% andan increase of 135% compared to 2022.
Al-Obaidi said in a statement that the Central Bank's gold reserves amounted to 20% of the Central Bank's total reserves,which amounted to 123 trillion Iraqi dinars.
He explained that this value is considered a record and the first time that Iraq has reached it since the establishment of the Central Bank of Iraq, asgold reserves have not exceeded the 20 trillion dinar barrier throughout the Central Bank of Iraq's operation.
This is the first time that the contribution of gold to reserves has exceeded 20% of total reserves. He stressed that the arrival of gold reserves to this level enhances the strength and value of the Iraqi dinar, especially with the fluctuations occurring in various global currencies, including the dollar.
Therefore, the Central Bank of Iraq sought to increase the percentage of its gold reserves,which is considered a safety factor in light of international financial fluctuations. /End 9
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