Saturday Iraq News Posted by Tishwash at TNT 10-10-2026
TNT:
Tishwash: Iraqi PM to visit Saudi Arabia, Kuwait
Iraqi Prime Minister Ali Al-Zaidi is expected to begin a Gulf tour on Wednesday, October 14, with visits to Saudi Arabia and Kuwait, a government source told Shafaq News.
The source said Al-Zaidi would discuss shared security and economic issues with Gulf officials, as well as regional developments and their impact on security and economic conditions.
During the tour, Al-Zaidi is expected to reaffirm Iraq’s rejection of any attacks launched from its territory against Gulf or other regional states and stress that his government would hold accountable any party involved in such cross-border operations, according to the source.
The trip comes after Al-Zaidi canceled a planned visit to Riyadh in July amid rapidly escalating regional security developments. link
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Tishwash: An economist explains why it's not possible to pay employee salaries in dollars.
Economic expert Nabil Al-Marsoumi explained on Friday (October 9, 2026) the reasons why it is not possible to pay employee salaries in Iraq in dollars, noting that this step may deplete foreign reserves and limit the Central Bank’s ability to manage monetary policy.
Al-Marsoumi stated in a clarification followed by “Baghdad Today”, that foreign reserves are not free funds at the disposal of the Ministry of Finance, nor do they represent a financial allocation within the budget, but rather they are external assets managed by the Central Bank to achieve the objectives of monetary policy, foremost among which are price and exchange rate stability, ensuring the financing of imports and external payments, and enhancing confidence in the dinar and the financial system.
He added that the adequacy of reserves is usually measured by their ability to cover imports and external obligations, not by the number of months during which salaries can be funded.
He pointed out that paying salaries in dollars could, in his estimation, deplete the central bank’s cash reserves, estimated at about $76 billion, in just eight months, explaining that financing imports and paying salaries in dollars could require about $10 billion per month.
Al-Marsoumi explained that this step may limit the Central Bank’s ability to control monetary policy and the money supply, as well as it does not guarantee a decrease in demand for the dollar in the currency auction, with continued speculation to achieve quick profits, which may lead to a widening of the gap between the official exchange rate and the parallel rate.
He added that among the possible repercussions are the loss of part of the independence of monetary policy, the impact on one of the symbols of national identity and sovereignty, in addition to the problem of the inconsistency of the currency used in evaluating the assets and liabilities of economic units.
He pointed out that adopting the dollar for paying salaries will entail administrative and technical costs, including readjusting accounting records and converting prices, as well as losing part of the proceeds from issuing currency, and reducing the central bank’s ability to perform the function of lender of last resort for banks. link
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Tishwash: The Association of Islamic Banks: We support the reform steps adopted by monetary and governmental institutions.
The Iraqi Association of Islamic Banks announced on Thursday its full support for the decisions and reform measures adopted by monetary and governmental institutions.
A statement issued by the association and received by the Iraqi News Agency (INA) stated that "within the framework of the commitment of the Central Bank of Iraq and the Federal Government to achieving sustainable economic stability and ensuring comprehensive development, and based on joint coordination with the Council of Ministers, the Iraqi Association of Islamic Banks announces its full support for the decisions and reform steps adopted by the monetary and governmental institutions."
The association affirmed that "these qualitative economic and banking reforms represent a fundamental pillar for opening new and tangible horizons that directly serve the national economy; this is achieved by supporting national products and local industry, facilitating fair competition for Iraqi goods in the markets against imported products, as well as encouraging the expansion of national factories and companies, and providing an attractive and stimulating investment environment for non-oil productive sectors."
She continued: “These trends also contribute to creating new job opportunities that open the way for small and medium enterprises to expand, thus achieving the desired national goals and reducing unemployment rates,” stressing her firm commitment to continuing the diligent efforts and effective measures and ensuring the safety and stability of its financial system.
The member banks called on all of them to continue their leading and active role in the success of the comprehensive reform plans and to strengthen the process of construction and development. link
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Tishwash: The dollar rises first... Baghdad is keeping the date for currency replacement secret for fear of a move by "big players".
Raising the price of the dollar to more than 1500 dinars may not be the last surprise that Baghdad has in store .
As Iraqi markets began to deal with the new dollar exchange rate, the government is preparing for a more sensitive step, which is replacing the currency and removing zeros from it. The process may begin within a few months, perhaps at the beginning of next year, but should not exceed the first quarter of 2027, according to Al-Mada newspaper .
The newspaper, in a report seen by Al-Sa’a Network, quoted its sources as saying that “replacing the currency could help to lock up at least $200 billion believed to be in the hands of corrupt individuals, and therefore the procedure is being kept secret until now .”
She added that “talking too early about changing the currency may give those with illicit funds time to act. They can buy dollars, real estate, or convert the money into assets that are difficult to link to the cash they will be asked to exchange later,” indicating that “Baghdad wants the money to reach the moment of exchange before the news reaches it .”
She pointed out that "real reform requires strict measures and decisions that the big players will not accept," adding that "the easiest option is to reduce the value of the dinar and hold the public responsible for the government's financial and administrative failures ."
The report noted that "this dispute places the dollar decision within a broader economic plan that Prime Minister Ali al-Zaidi had presented as a reform plan for the economic system," indicating that "it was supposed to be carried out in agreement with the US administration, and to include the entry of US investments in exchange for ending the arms issue, a path that is now faltering ."
He explained that "the initial figures for the 2027 budget reveal the extent of the pressure, and according to the Finance Committee and experts, the budget amounts to about 218 trillion Iraqi dinars," indicating that "oil revenues amount to about 144 trillion and 720 billion dinars ."
He added that “public expenditures amount to 217 trillion and 239 billion dinars, including 47 trillion and 897 billion dinars for investment expenditures, and 169 trillion and 342 billion dinars for operational expenditures,” noting that “the salaries of employees on the permanent staff amount to 68 trillion and 125 billion dinars, an increase of 8 trillion and 951 billion dinars .”
He explained that "the details of the new draft budget confirm that the Iraqi government has not done much to overcome the painful repercussions of the war on Iran, and that it aims to burden the people with a large part of the pain that they do not deserve link
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Tishwash: Faihan: Parliament supports any measure that achieves reform and serves the interests of the economy and protects the interests of citizens.
The First Deputy Speaker of Parliament, Adnan Faihan, affirmed that Parliament supports any measure that achieves reform and serves the interests of the economy and protects the interests of citizens.
A statement issued by the office of the First Deputy Speaker of Parliament, received by the Iraqi News Agency (INA), said: “During the expanded meeting with the Prime Minister, the Minister of Finance, and the Governor of the Central Bank, the First Deputy Speaker of Parliament affirmed that the government’s decision to raise the exchange rate of the dollar, taken within the framework of addressing the economic situation, directly impacts the lives of citizens and their standard of living, in addition to its repercussions on the overall economic reality.
He called on the government to clarify the procedures and measures it has taken to mitigate its effects on vulnerable and marginalized groups and various social segments, and to work on strengthening its control and oversight of the market to regulate prices, thus preventing citizens from bearing the burdens and economic and social costs of this decision.”
According to the statement, Faihan stressed this during the expanded meeting held by the Presidency of Parliament on Thursday in the Martyr Abu Mahdi al-Muhandis Hall at the Parliament building, with the Speaker of Parliament. Ministers Ali Al-Zidi, the Minister of Finance, and the Governor of the Central Bank, in the presence of the heads of the political blocs, stressed the importance of the government proceeding with taking additional reform steps and measures to address the economic challenges and enhance financial stability,” stressing that “the House of Representatives will support every serious and responsible measure that will achieve reform, serve the national economy, protect the interests of citizens, and serve the people.” link
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Tishwash: The Central Bank prohibits importers from bearing the burden of exchange rate changes and opens the door for complaints.
The Central Bank directed companies, traders and import financiers on Saturday (October 10, 2026) to review their banks and ensure that the transfers due before October 7 are completed without charging them any exchange rate differences, warning non-compliant banks and providing a postal platform to receive complaints against those who are late, while announcing coordination to launch payment cards to facilitate their foreign trade.
The Central Bank stated in a statement received by 964 Network that it “is monitoring banking operations carried out before and after the exchange rate adjustment and is verifying that banks are complying with the applicable instructions and controls in order to ensure the protection of the rights of traders and customers.”
The bank called on “companies and traders whose import financing transfers were due for execution before 7/10/2026 to review their banks and ensure their execution, especially since the Central Bank had previously strengthened the banks’ accounts to cover those transfers, stressing that it would follow up on any delays and verify that traders were not charged exchange rate differences for transfers that had been proven to have been purchased and covered at the previous rate.”
He added that “in case of delay in implementation or demand for additional amounts, a complaint can be submitted through (the complaints platform of the Central Bank of Iraq) or an email can be sent to the email address (media.office@cbi.iq) to follow up with the bank concerned.”
He added, “The Central Bank is also working in coordination with banks and electronic payment companies to launch special foreign trade cards for small traders to facilitate the financing of their imports, according to the mechanisms and controls determined by the bank.” link