Iraq Economic News and Points To Ponder Tuesday Evening 5-26-26
Al-Saadawi: Addressing The Monetary Crisis Cannot Be Achieved By Raising The Exchange Rate.
Information/Special.. MP Abdul Hadi Al-Saadawi confirmed on Tuesday that addressing the monetary and economic situation in Iraq requires a comprehensive package of government measures, indicating that raising the exchange rate alone is not enough to achieve financial stability.
Al-Saadawi told Al-Maalouma News Agency, “Addressing the economic crisis must begin with clear government steps, not just by adjusting or raising the exchange rate, but by controlling the markets and preventing price hikes that burden citizens.”
He added that “the government is required to maintain the real value of the Iraqi dinar and enhance confidence in the local currency, especially with the continued existence of a difference between the dollar exchange rate in the currency selling window and the local markets that exceeds 20 points.”
He noted that “the Central Bank and the government have taken good steps in the past period to address the monetary and financial situation, but the next stage requires greater oversight of the markets and broader support for economic stability.”
Economic expert Nabil al-Ali stated in a previous interview with Al-Maalomah News Agency that the Central Bank should withdraw the newly printed currency from circulation as soon as it is no longer needed, and either destroy or store it instead of recycling it. He emphasized that this measure is the only way to maintain exchange rate stability and prevent monetary inflation that threatens citizens' purchasing power. End/25
https://almaalomah.me/news/132872/economy/السعداوي:-معالجة-الأزمة-النقدية-لا-تتحقق-برفع-سعر-الصرف
Denying The Printing Of Currency, A Financial Advisor Reassures The Public About Iraq's Cash Reserves
25 May The Information Agency / Baghdad... The financial advisor to the Council of Ministers, Mazhar Muhammad Salih, denied on Monday the circulating reports regarding the Central Bank of Iraq printing local currency outside of regulations, stressing that this process is subject to legal mechanisms and strict financial backing.
Salih told the Information Agency, "The talk circulating among the Iraqi public about the Central Bank printing local currency is completely unfounded," explaining that "the currency printing process is governed by two legal mechanisms: the first depends on the actual market need, and the second is to address any shortage of cash liquidity."
He clarified that "these two operations cannot be carried out without full backing in hard foreign currencies and gold," noting that "the function of the Central Bank's reserves is to maintain the stability of the exchange rate, and the current reserves are in very good condition and have never been withdrawn."
In another context, Saleh revealed the fate of the budget, emphasizing that "preparing a budget for the remainder of this year is contingent upon halting the war of aggression against the Islamic Republic of Iran." He noted that "if the war were to cease immediately, the government would be able to prepare an exceptional or indicative budget for the remaining months." End / 25
A Member Of Parliament Warns Of Impending Inflation In The Iraqi Economy And Calls On The Government To Implement Emergency Plans
Information / Baghdad... MP Bassem Al-Gharabi warned on Tuesday of an impending wave of inflation looming over the Iraqi economy due to the financial mismanagement pursued by successive governments, calling on the new Prime Minister to adopt urgent plans to avert the crisis.
Al-Gharabi told Al-Maalouma that “the country’s almost total dependence on oil revenues and the fluctuation of their prices in global markets has caused clear confusion in the formulation of federal budgets in Iraq,” noting that “this one-sided rent has produced successive and cumulative economic crises over the past years.”
He added that "the current stage requires serious government action to change the prevailing financial philosophy and diversify national income sources," stressing "the necessity for the new prime minister to formulate a flexible economic strategy to protect citizens' purchasing power and prevent the country from sliding into inflation." End / 25
PMF Restructuring Plan Prompts Iraq Request For Frozen Funds
2026-05-26 / Shafaq News- Baghdad Iraq’s government plans to seek the release of frozen state funds held abroad to finance the integration of more than 800,000 armed faction members into the Popular Mobilization Forces (PMF) and other security institutions, an informed source told Shafaq News on Tuesday.
The request will cover Iraqi assets frozen in the United States and several European countries, the source indicated, adding that approval from Washington could facilitate the release of Iraqi funds held elsewhere.
“Integrating members of armed groups that have agreed to surrender their weapons and join state institutions will require substantial financial allocations due to their large numbers.” According to the source, most factions have agreed to hand over their weapons, with the exception of Harakat Al-Nujaba and Kataib Sayyid Al-Shuhada.
He also revealed that major changes are expected within the PMF after the integration process is completed and its directorates are reorganized under the institution’s approved structure. “Among the proposals under discussion is the appointment of Ali Miah Al-Zaidi to head the PMF Commission if Abu Fadak is not approved as a successor to Faleh al-Fayyad.”
Coordination Framework (CF) leaders continue to hold meetings aimed at resolving the issue of armed factions operating outside the state’s official structure, the source added.
Earlier this week, a government source told Shafaq News that some political forces and armed groups had shown greater flexibility regarding efforts to place all weapons under state control, adding that any handover process would be implemented according to a specific timetable.
On May 9, an informed source pointed out that the CF and Prime Minister Ali Al-Zaidi had agreed to establish a committee tasked with overseeing the disarmament of armed factions following a call by Sadrist Movement leader Muqtada Al-Sadr.
Read more: Ali Al-Zaidi's incomplete cabinet faces Iraqi armed factions test
https://shafaq.com/en/Iraq/PMF-restructuring-plan-prompts-Iraq-request-for-frozen-funds
Observers: Baghdad's Pledge Of Accountability Is Insufficient If It Does Not Prevent Iraq From Being Used As A Launching Pad For Hostile Acts Against The Gulf
Baghdad - One News 5/26/2026 Observers have confirmed that the growing influence of militias and armed factions within Iraq harms Baghdad before it harms its neighbors, because the increasing power of armed groups weakens the state’s ability to build trust with its Arab and Gulf surroundings, and negatively affects investment, stability and development opportunities.
They pointed out that any country seeking stability cannot accept the presence of weapons operating outside its official institutions, and that neighboring countries cannot be satisfied with political assurances if Iraqi territory is being used to launch drones and threaten civilian and vital facilities.
They added that Iraq faces two choices: either to remain an open arena for the conflicts of others, or to restore its natural position as a responsible national state within its regional environment, stressing that this issue does not concern Baghdad alone, but is directly related to the security of the Gulf and the stability of the region.