More Iraq News Posted by Tishwash at TNT 8-19-2026
TNT:
Tishwash: Two million barrels since the beginning of August... Iraq opens alternative routes for its oil exports
Anbar Alliance leader Mohammed al-Dhari al-Dulaimi revealed on Wednesday that Iraq has exported approximately two million barrels of oil since the beginning of August via the Ceyhan pipeline in Turkey and by tanker trucks to Syria and Jordan.
Al-Dulaimi told the Information Agency that “crude oil exports via the Ceyhan pipeline and by tanker trucks through the Trebil border crossing with Jordan and the al-Walid crossing in western Anbar have reached unprecedented levels, exceeding two million barrels since the beginning of August.
These quantities are roughly equivalent to what Iraq previously exported through the Strait of Hormuz, and it is hoped that the pace of refined oil exports to Turkey, Jordan, and Syria will increase in the coming days.”
He added that “the central government’s plan is to find an alternative to exporting oil through the Strait of Hormuz, replacing it with the Ceyhan pipeline and tanker trucks to Jordan and Syria, to compensate for the near-complete halt of Iraq’s oil exports through the Strait of Hormuz.”
He affirmed that “increasing the pace of Iraqi oil exports to neighboring countries would secure salaries for employees and retirees, social welfare payments, and allow for the utilization of Iraq’s non-oil revenues in various sectors.” link
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Tishwash: The Iraqi treasury is looking for a way out... Borrowing, oil bonds, and the digital dinar are on the table for discussion.
Experts favor traditional tools in the short term but warn of legislative challenges.
The pressures facing the Iraqi treasury are prompting a range of proposals to address the liquidity crisis, from diversifying revenues and borrowing to restructuring spending, and even ideas like a digital dinar and using oil as a financing tool. Experts believe that implementing these new tools requires legislation and financial and economic arrangements, making traditional solutions the most feasible in the short term.
These pressures come amidst the continued application of the 1/12 spending limit, which allows the public finances to manage spending and finance essential obligations until the budget is approved. Meanwhile, the government is discussing measures aimed at rationalizing spending, diversifying revenues, and reducing dependence on oil.
Hussain Al-Daraji, a member of the parliamentary finance committee, told Al-Mada, "The current approach should focus on diversifying revenues and capitalizing on the current crisis to create an additional resource for the state, rather than treating the liquidity problem as a temporary crisis that will end as soon as oil prices improve or exports return to their previous levels."
Al-Daraji added that “previous financial policies have caused disasters in the Iraqi economy due to continued reliance on oil and the failure to build stable resources from other sectors. Therefore, the current stage requires genuine measures to rearrange spending priorities and enhance non-oil revenues, while seeking financing tools that will not increase the state’s burdens in the future.”
In this context, the proposal to adopt a digital Iraqi dinar has resurfaced, after being presented as a means that could help reduce reliance on paper currency and facilitate salary payments through electronic wallets and accounts. However, according to experts, this proposal does not represent a solution to the deficit problem or the lack of resources, as addressing the liquidity crisis requires first securing financial sources capable of covering government spending, while digital transformation represents a tool for managing and circulating money more efficiently.
Economic expert Dirgham Muhammad told Al-Mada that “the digital dinar proposals, as well as oil bonds, are difficult to implement at present because they require time, arrangements, and legislation, especially since oil represents the primary resource of the Iraqi state, and any transaction involving it outside the traditional framework of sale requires a law that allows its use as collateral for loans or to obtain financing.”
Mohammed added that “a digital dinar also requires legislation and financial and economic arrangements that are not currently available. Therefore, the immediate solutions will remain within the traditional framework, including domestic borrowing, attempting to market oil through unconventional means and opening new markets, as well as increasing export volumes through alternative outlets, whether through regional agreements or land routes via Turkey and Syria.”
Among the proposals put forward by experts to address the liquidity crisis is the sale of a portion of future oil through bonds or financial instruments, whereby the government would receive payment in advance from citizens or banks at a fixed price, in exchange for settling these bonds later according to an agreed-upon pricing mechanism.
This proposal faces objections related to the need for clear legislation regulating the mechanism for selling oil in this way and determining the quantities that can be offered. There are also concerns about the risks of volatile crude oil prices in global markets and the potential losses that could result from fixing the selling price in advance if prices rise later. Furthermore, it is essential to identify the entity that will manage these bonds, the mechanism for their settlement, and how to guarantee the rights of the state and the parties involved.
Economists believe that the liquidity issue has shifted from a crisis related to the timing of salary payments to a broader test of the state's ability to manage its resources. Traditional tools, such as borrowing, restructuring spending, and increasing exports, appear to be the most feasible in the short term. Conversely, resorting to tools like the digital dinar and oil bonds requires more mature legislation and a more robust financial and banking infrastructure to address the repercussions of the current situation. link
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Tishwash: Economist: Removing zeros will reduce inflation and withdraw money from corrupt officials.
Economic researcher Haitham al-Khazali believes that removing zeros from the currency will reduce inflation in the financial markets and markets. He added that it will also draw cash held by citizens, merchants, and investors into banks, and compel corrupt individuals to surrender their illicit funds.
Al-Khazali told Al-Maalouma, "The government's move to remove zeros from the currency would be a step in the right direction if it proceeds with such a transformation, as it would restore the Iraqi currency's strength and reduce the inflation rate."
He added, "Removing zeros opens the door to the reintroduction of smaller denominations, such as dirhams and fils, which were previously in circulation. Furthermore, it will force those holding cash, including merchants and investors, to deposit it in banks."
He explained that "removing zeros will reveal the size of the cash held by citizens and will also recover funds acquired by corrupt individuals, ensuring their return to the state." link
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Tishwash: Removing zeros: A currency restructuring or a step to boost confidence in the dinar?
The issue of removing zeros from the Iraqi currency has resurfaced, amid economic debate about the feasibility of this step and its implications for the value of the dinar and the purchasing power of the citizen, as well as the readiness of the banking and financial sectors to implement it.
Economic experts believe that removing zeros, if implemented within a comprehensive study and a clear plan, could contribute to restructuring the currency and simplifying financial and banking transactions, while emphasizing that the measure itself does not mean an increase or decrease in the purchasing power of the dinar, as long as prices, salaries and savings are transformed at the same rate.
Strengthening the value of the dinar
Economic expert Haider Al-Sheikh told Al-Sabah newspaper: “Changing the Iraqi currency and removing zeros will enhance the value of the Iraqi dinar against foreign currencies,” explaining that “changing the currency will contribute to reviving the economy and providing cash liquidity to the government.”
The sheikh explained that the currency change process, according to the study, requires several months to print specific denominations in batches, in preparation for replacing them with the current currency. He pointed out that this process could contribute to strengthening the balances of government and private banks in Iraqi dinars and providing liquidity.
The necessary cash.
He added that another benefit of the process is “knowing the amount of currency held by the government and banks, as well as knowing the volume of currency circulating in the market.”
The sheikh pointed out that Iraq, after 2003, printed more than 100 trillion dinars, indicating that about 70 percent of the printed cash is outside the government's control and stored in homes. And it is traded on the market.
Renaming the monetary unit
For his part, economist Mustafa Faraj said that "removing zeros from the Iraqi currency, if implemented according to a comprehensive study and plan, represents a positive step towards restructuring the currency and simplifying financial and banking transactions," stressing that "the process itself does not necessarily mean an increase or decrease in value."
The purchasing power of the dinar.
Faraj explained that removing three zeros, for example, means changing prices, salaries, and balances by the same percentage, and therefore the citizen's purchasing power does not change as a result of the removal alone.
He added that the main economic benefit is “reducing the volume of circulating figures, facilitating accounting and banking operations, supporting electronic payment systems, and making dealing in dinars more efficient and transparent,” stressing that the success of the step is linked to monetary stability, price control, and broad public awareness.
He explained that removing zeros could be part of a “broader monetary and banking reform package that enhances confidence in the dinar and supports economic stability.”
It is not a single, formal procedure.
Risks of the conversion phase
In contrast, economic researcher Ahmed Eid warned that the most prominent risks that may accompany the removal of zeros are not related to the accounting removal process itself, but rather to the conversion phase and what may accompany it in terms of confusion in the markets and exploitation by some traders, especially in rounding prices upwards.
He explained that goods with small prices may be more likely to increase when converted to the new monetary unit, which, if this is repeated on a large scale, may lead to citizens feeling an actual increase in the cost of living, even though the process of removing zeros is theoretically supposed not to change purchasing power.
Eid pointed to other risks, including the weak financial literacy of some citizens, particularly with regard to converting cash savings, pricing goods and services, contracts and debts, as well as the possibility of speculation and rumors spreading about the value of the dinar.
He stressed that these risks become greater if the operation is carried out during an economic period suffering from financial pressures and problems related to liquidity and confidence.
Dual pricing and oversight
To protect the purchasing power of citizens, Eid called for the adoption of a sufficient transitional period preceding and accompanying the change process, during which dual pricing in the old and new dinars would be adopted, and precise rules would be put in place to prevent arbitrary rounding of prices, in addition to tightening control over markets and implementing a broad awareness campaign.
He stressed the need for the central bank to ensure that all bank accounts, savings, debts, salaries and contracts are converted in the same proportion, with the new currency being made available in an organized manner, and a period of simultaneous circulation of the two currencies being maintained.
He stressed that “the most important thing is that the removal of zeros should be preceded by real financial and monetary stability,” explaining that protecting purchasing power is not achieved by changing the form of the currency, but rather by controlling inflation, stabilizing the exchange rate and addressing financial and economic imbalances. link
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Tishwash: Prime Minister's Advisor: Digital Dinar a promising project to enhance the efficiency of monetary policy
The Prime Minister's advisor, Mazhar Muhammad Salih, confirmed on Monday that the digital dinar is a promising strategic project and not an independent solution to the liquidity crisis. While he pointed out that paying salaries digitally enhances the speed of payments and reduces cash transactions, he indicated that the success of the digital dinar depends on expanding banking services and infrastructure.
Saleh told the Iraqi News Agency (INA): “The proposal to launch the digital Iraqi dinar is one of the ideas that deserves to be studied within the framework of Iraq’s move towards digital transformation and the development of the financial system. If the digital dinar is meant to be a digital currency issued by the Central Bank of Iraq and enjoys the same legal force as the paper dinar, then it could represent a modern tool to enhance the efficiency of monetary policy, improve liquidity management, and develop the government payments system, which is what most central banks in the world are working on today.”
He added that “a sovereign digital currency does not mean creating a new currency, but rather issuing a digital form of the Iraqi dinar, so that it becomes available for electronic trading through digital wallets and bank accounts, while its value remains equal to the paper dinar,” explaining that “the importance of the digital currency lies in reducing reliance on cash, lowering printing, transportation and protection costs, speeding up payment processes, enhancing financial inclusion, as well as reducing the unregulated cash economy and its associated tax evasion, money laundering and corruption.”
Saleh pointed out that “the digital dinar should not be blamed for addressing the cash liquidity crisis, as the crisis, if it exists, is primarily linked to structural economic and financial factors, including the structure of the general budget, the level of government spending, citizens’ confidence in the banking sector, the size of deposits, and monetary policy,” stressing that “the digital dinar is a means to improve the efficiency of cash management, and not an independent cure for macroeconomic imbalances.”
He continued: “The Central Bank of Iraq has made significant progress in the digital transformation process by expanding electronic payment systems, digital wallets, point-of-sale devices, and linking banks to modern settlement systems.” He pointed out that “these measures represent the foundation upon which future decisions can be made to issue a sovereign digital currency, but this requires completing the legal and legislative frameworks, strengthening cybersecurity, and providing a technological infrastructure capable of accommodating this transformation.”
He explained that “disbursing salaries to employees and retirees in digital form is technically possible, especially since a large segment of salaries are currently disbursed via bank cards linked to the localization of government salaries and pensions,” noting that “in the future, the possibility of depositing salaries directly into digital wallets or accounts linked to the digital dinar can be studied, which reduces the need for cash transactions, enhances the speed of payment execution, and limits the risks of transferring and handling money in cash.”
Saleh explained that "the success of this transformation depends on several requirements, most notably expanding the spread of banking services in all governorates, increasing the number of electronic payment devices and ATMs, improving the quality of communications and internet services, and raising the level of digital financial literacy among citizens, in order to ensure that society accepts these modern methods and uses them with confidence and security."
The Prime Minister’s advisor pointed out that “the launch of the digital Iraqi dinar represents a promising strategic project, but it is not a substitute for economic and financial reforms, rather it is part of them. Its success requires a more diversified economy, a more efficient banking sector, and disciplined financial policies, in addition to an integrated legal and technical framework.
When these elements are available, the digital dinar can contribute to enhancing financial stability, improving liquidity management, and supporting the transition towards a more efficient and transparent digital economy, in line with modern global trends in managing monetary systems link