Iraq Economic News and Points To Ponder Friday Morning 6-26-26
Parliamentary Finance Committee: There Is No Longer Enough Time To Finalize This Year's Budget, And The Government Is Moving Towards Preparing The 2027 Budget.
Shafaq News – Baghdad On Thursday, Hussein al-Daraji, a member of the parliamentary finance committee, ruled out the possibility of the Iraqi government being able to finalize the budget for the current year due to the delay in its formation, noting that the current trend is towards preparing next year's budget.
Al-Daraji told Shafaq News Agency that the remaining time in the second half of this year is insufficient for the government to prepare the 2026 budget for approval by the House of Representatives, indicating that the government will work on preparing a draft budget law for 2027, expecting the draft to reach Parliament in October or November of next year.
He added that there is a government trend to make fundamental changes to the 2027 budget law, which will be completely different from previous budgets in terms of the methods of preparation, schedules, and determination of necessary expenditures.
The decision to move directly towards the 2027 budget comes in light of the accounting absurdity in approving the 2026 budget, the second half of which is about to end, as the state currently relies on the temporary disbursement mechanism at a rate of (1/12) based on the continuing financial management law from the previous three-year budget to finance employee salaries and governing operational expenses.
According to the Finance Committee, the joint approach between Parliament and the government of Prime Minister Ali al-Zidi has settled on focusing technical efforts to draft the 2027 budget with a completely new economic philosophy and expenditure schedules, with the draft to be sent to the House of Representatives at the end of this year to avoid a deficit and ensure its passage before the start of the new fiscal year.
It is worth noting that the government of former Prime Minister Mohammed Shia Al-Sudani had prepared the outlines of the 2026 draft budget before leaving office, including extensive financial commitments, among them the issue of regularizing contracts and staffing levels. However, the draft was delayed due to the country entering the election and caretaker phase.
This financial vacuum was exacerbated after the current Prime Minister, Ali Faleh al-Zaidi, gained confidence on May 14 with a deficient cabinet (14 ministers out of 23), as political disputes and power-sharing caused a delay in completing the vacant portfolios (such as Interior, Defense and Planning) until next July, which paralyzed the executive branch’s ability to present a comprehensive budget law throughout the first half of this year.
Economist: There Is No Intention To Change The Exchange Rate, And What Is Being Circulated Is Just Rumors.
Baghdad Today – BaghdadEconomic expert Manar Al-Obaidi confirmed on Wednesday (June 24, 2026) that there is no intention to change the dollar exchange rate in the country, while indicating that what is being circulated on social media is just rumors.
Al-Ubaidi said in a post on social media, which was followed by “Baghdad Today”, that “during the past few days I received dozens of calls and messages about my opinion on the rumors of changing the exchange rate, and I would like to point out that all that is being circulated about an imminent intention to change the exchange rate is baseless rumors”, noting that “any change will lead to a number of problems that have been explained previously that outweigh the advantages of the change, so there is currently no intention to reduce or amend the exchange rate.”
He added that "what is necessary in the next stage is a package of reforms related to the structure of operational expenses, working to increase non-oil revenues, and regulating the process of importing non-essential goods."
The issue of the dollar exchange rate in Iraq is a recurring point of contention with every economic or financial challenge facing the country, as expectations and rumors about the possibility of adjusting the exchange rate or reducing the value of the Iraqi dinar escalate from time to time.
Iraq last made an official adjustment to its exchange rate in 2023 when it adopted an official rate of 1,300 dinars to the dollar, as part of measures aimed at achieving monetary stability and reducing the gap between the official rate and the market rate.
https://baghdadtoday.news/302042-.html
Reforming The Iraqi Currency: A National Demand Presented To The New Government
16/12/2025 Today, on behalf of a broad segment of our people, we present a clear national demand to the new government and the elected Council of Representatives The issuance of a law to remove three zeros from the Iraqi currency, as a fundamental step to restore confidence in the dinar, improve purchasing power, and facilitate daily transactions.
Monetary reform requires issuing a new 100-dinar banknote to serve as a symbol of economic stability and the strength of the state, alongside reprinting smaller denominations that citizens regularly use: 1, 5, 10, 25, and 50 dinars.
We also call for careful pricing and measures to prevent inflation in small goods. It is necessary to reintroduce smaller units, the fils, into circulation as in the 1970s, with denominations of 1, 5, 10, 50, and 100 fils.
Currency reform is incomplete without attention to the aesthetic design of the notes. We urge the involvement of Iraq’s leading artists in designing the new issues to embody the civilizations of Babylon, Assyria, and Sumer, reflecting the country’s strength, fertility, and rich history.
Restoring the stature of the Iraqi currency is not merely a financial step; it is a national demand that expresses the Iraqi people’s desire for a strong state, a stable economy, and a currency worthy of Iraq’s history, present, and future. We will continue to present this proposal clearly and responsibly… Iraq deserves a currency that matches its name, prosperity, and civilization. **Dr. Ali Al-Saadi** Lecturer, College of Law, Almustaqbal University https://uomus.edu.iq/CollegeEn/Details/99723
Iraq Customs Mandates ASYCUDA Electronic Invoice Verification By July 10
Iraq Jawad Al-Samarraie June 24, 2026 Baghdad (IraqiNews.com) – The Iraqi General Customs Authority announced a major step toward total digital automation on Wednesday, June 24, 2026. The authority has officially activated an electronic inquiry feature for Certificates of Origin and commercial invoices issued by the Federation of Iraqi Chambers of Commerce.
This update integrates directly with the global ASYCUDA (Automated System for Customs Data) network to systematically cross-verify and authenticate trade documentation, removing paper-based delays and tightening regulatory oversight against financial fraud.
The General Customs Authority emphasized that this phase represents a final call for importers to digitize their legal pipelines. The rollout follows a strict two-stage schedule:
The Pilot Phase (Current): The electronic verification feature is actively operating under a live trial system. Customs clearing agents and merchants can input document numbers into designated fields within ASYCUDA to check functionality.
The Mandatory Mandate (July 10, 2026): Starting July 10, 2026, the system becomes completely mandatory. The authority explicitly stated that no physical Certificates of Origin or commercial invoices will be accepted or processed at any Iraqi border point unless they are digitally verifiable through the automated link.
To ensure an uninterrupted flow of goods and avoid severe bottlenecks at border entries, the authority urged all merchants, international importers, and customs clearing agents to complete the following timeline:
Required Transition Steps
Register with the Federation:
Submit all valid commercial invoices and manufacturing documentation to the Federation of Iraqi Chambers of Commerce for official archiving.Verify Electronic Issuance:
Ensure that the Federation generates an official, trackable digital serial number for both the Certificate of Origin and the commercial invoice.Input ASYCUDA Fields:
Instruct your clearing agent to manually input the specific document serial numbers into the newly designated tracking modules within the ASYCUDA interface.Complete Automated Auditing:
Allow the system to run its automated authenticity check. Once matched with the Federation’s databases, the shipment will bypass traditional manual verification delays.
System Warning: Non-registered documents presented after July 10, 2026, will be automatically flagged by the ASYCUDA system, resulting in immediate suspension of customs declarations and potential administrative fines.
Israel-Lebanon Negotiations Extended By One Day
2026-06-26 Shafaq News- Washington/ Beirut US-mediated negotiations between Israel and Lebanon, originally scheduled to conclude on June 25, will continue for an additional day, the US State Department stated on Friday.
Lebanon's An-Nahar newspaper reported that discussions have become increasingly complicated by unresolved disputes and Iran's role in the security arrangements linked to the ceasefire. Israeli negotiators have refused to discuss a timetable for leaving southern Lebanon and continue to tie any redeployment to Hezbollah's complete disarmament.
Read more: US-Iran ceasefire deal leaves Lebanon without guarantees
The newspaper also said that Israel rejected more than 10 proposals submitted by the Lebanese delegation and US mediators for pilot security zones, insisting that the Lebanese Army operate only outside the Israeli-controlled area on both sides of the Litani River.
Speaking during Ashura* commemorations, Hezbollah Secretary-General Naim Qassem reiterated that Israel has “no option” but to withdraw completely from Lebanese territory, rejecting any arrangement that undermines Lebanon's sovereignty, and insisting the group remains committed to the Nov. 27, 2024 ceasefire framework, under which security measures apply only south of the Litani River.
The extension comes as the Israeli army announced that a combat officer was moderately wounded, while another officer and two soldiers sustained minor injuries during an exchange of fire with a Hezbollah fighter in the southern Lebanese village of Beit Yahun.
According to Israeli Army Radio, troops from the 679th Brigade were operating in the village when a Hezbollah member inside a building threw a hand grenade at the force. The soldiers returned fire, killing the attacker before evacuating the wounded to hospital.
Hezbollah has not commented on the incident.
*Ashura, observed on the tenth day of the Islamic month of Muharram, marks the killing of Imam Hussein bin Ali, the third Shia Imam and grandson of the Prophet Muhammad, at the Battle of Karbala in 680 CE. For Shia Muslims, the occasion symbolizes sacrifice, dignity, and resistance to injustice.
https://www.shafaq.com/en/Middle-East/Israel-Lebanon-negotiations-extended-by-one-day
Karbala launches extensive security plan for Ashura
2026-06-26 Shafaq News- Karbala Iraqi authorities and Karbala’s holy shrines have activated extensive security, health, and public service plans as millions of pilgrims arrived on Thursday night to mark the eve of Ashura, one of the country’s largest annual Shiite commemorations.
Ashura, observed on the tenth day of Muharram, marks the killing of Imam Hussein bin Ali, the third Shia Imam and grandson of the Prophet Muhammad, at the Battle of Karbala in 680 CE. For Shia Muslims, the occasion symbolizes sacrifice, dignity, and resistance to injustice.
Black banners lined the city's streets as Husseini mawakib, volunteer-run processions providing food, water, rest areas, and mourning services, received visitors arriving from across Iraq and abroad, while many residents opened their homes, continuing a long-standing tradition of hospitality.
Read more: Baghdad neighborhood revives Ashura ritual
Speaking to Shafaq News, Karbala Provincial Council member Israa Al-Nasrawi said preparations had been underway for more than a month, with government agencies deploying medical teams along the main routes from Najaf, Baghdad, and Babil, as well as across the city. She expected attendance to exceed last year’s estimated 12 million visitors.
The Imam Hussein and Al-Abbas Holy Shrines also unveiled coordinated operational plans for the Tuwairij Run, one of Ashura's largest mourning rituals, deploying 10,000 personnel, including 2,000 staff members and 8,000 volunteers, expanding surveillance with more than 4,400 cameras, organizing 831 mourning and service processions, and preparing three designated routes to manage crowd movement.
The arrangements also include covering the central courtyard between the two shrines with 10,000 square meters of red carpeting, distributing around 50,000 meals daily, and installing hundreds of misting fans to help visitors cope with the summer heat.
Read more: Millions gather for Ashura ahead of Karbala's peak pilgrimage
Media coverage has also expanded. Hussein Al-Shammari, head of the Iraqi Journalists Syndicate's Karbala branch, told Shafaq News that 419 accreditations had been issued to journalists representing 23 television channels, 20 news agencies, and 30 foreign correspondents.
Authorities further mobilized 120 firefighting and rescue teams, 1,350 civil defense personnel, 100 ambulances, 13 hospitals and emergency medical centers, more than 3,200 sanitation workers, 419 specialized vehicles, over 300 sewage trucks, 57 pumping stations, and nine wastewater treatment projects to support the commemoration.
Read more: Muharram in Iraq: New year becomes a season of mourning
https://www.shafaq.com/en/society/Karbala-launches-extensive-security-plan-for-Ashura