Iraq Economic News and Points To Ponder Late Monday Evening 6-22-26
The Government Comments On Intentions To Change The Dollar Exchange Rate.
{Economic: Al-Furat News} Government spokesman Haider Al-Aboudi confirmed that the government and the Central Bank of Iraq are adopting a flexible economic approach regarding the policy of the dollar exchange rate against the Iraqi dinar, which currently stands at 1557 dinars.
Al-Aboudi explained in a press statement that "this policy is based on achieving the national interest and enhancing economic stability, and it can be described as an exchange rate policy consistent with the requirements of economic growth."
He pointed out that this approach seeks to achieve a well-considered balance between the exchange rate and the gross domestic product, reflecting the true strength of the national economy and its structural characteristics, and ensuring the stability of macroeconomic indicators.
He explained that the monetary policy authorized by the Central Bank of Iraq under its law is consistent with the general directions of the government based on promoting economic solutions and activating the tools of sustainable growth.
https://alforatnews.iq/news/الحكومة-تعلق-على-نوايا-تغيير-سعر-صرف-الدولار
Al-Aboudi: The Government And The Central Bank Are Adopting A Flexible Approach To The Exchange Rate.
Economy News – Baghdad Government spokesman Haider al-Aboudi spoke about the most prominent features of the work of Ali Faleh al-Zaidi’s government during its first month, stressing that the initial indicators reflect a clear harmony between the practical steps and the announced government program, especially in the files of restricting weapons and combating corruption, in addition to economic reform and diplomatic openness.
Al-Aboudi explained that the Prime Minister's upcoming visit to Washington in mid-July will be his first official foreign trip, aimed at building a productive economic partnership that serves development in Iraq and deepens strategic relations with the United States in a way that enhances trade and investment. He emphasized that this visit will open the door to broader cooperation between the Iraqi and American private sectors, which will positively impact the national economic environment.
Regarding monetary policy, Al-Aboudi emphasized that the government and the Central Bank are adopting a flexible approach to the exchange rate, based on the national interest and achieving a balance between the exchange rate and GDP, thus ensuring the stability of macroeconomic indicators. As for the budget, the Prime Minister affirmed his rejection of the current formula based on allocations and payments, indicating the need to adopt a "program budget" that directs funding towards productive projects that generate tangible returns and support development initiatives.
As for the fight against corruption, he stressed that the government is determined to protect public funds by all means, and that confronting corruption represents a national and moral commitment that cannot be abandoned.
Al-Aboudi also addressed the policy of diplomatic openness, explaining that the government seeks to strengthen its relations with internationally influential countries, thereby achieving greater economic and political integration and bolstering Iraq's standing in the region and the world. He also noted that the relationship with the Kurdistan Region is managed in accordance with the constitution and laws, and that the government is working to resolve outstanding financial and administrative issues in a way that ensures transparency and fairness for all Iraqis.
Al-Aboudi revealed that the completion of the ministerial cabinet will take place in the first half of next July, stressing that the government is monitoring the performance of ministries and the services file on a daily basis, and that its priorities during the next stage are economic reform, combating corruption, developing the electricity sector, in addition to strengthening Iraq’s role in its regional and international environment.
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Dinar Destabilized By Reports Of Newly Printed Currency, Devaluation Fears, And CBI Leadership Shift
Daban Mohammed Kaifi Khoshnaw, a spokesperson for the Erbil Currency Market, stated that market rumors are destabilizing the Iraqi dinar, fueled by unverified reports of newly printed dinars in circulation, speculation over an official government devaluation, and a leadership vacuum following the removal of the Central Bank Governor.
The U.S. dollar experienced a sharp surge against the Iraqi dinar in the Kurdistan Region's parallel market on Monday, with the exchange rate climbing toward the 160,000 IQD mark per $100.
Khoshnaw Outlines Rumors Driving Dinar Instability
Addressing the market's exchange rate instability, Khoshnaw told Channel8 that the volatility is driven by widespread rumors. Chief among them, he noted, are unverified reports regarding whether 25 trillion newly printed dinars remain in circulation, adding that "nobody knows if this is true or false."
"The second reason is a rumor that the Iraqi government will raise the dollar, but there is nothing official yet because parliament must convene and vote on it,” he added.
Khoshnaw noted that market instability is also being driven by rumors surrounding the removal of Ali al-Alaq as Central Bank Governor.
Spokesperson: Widening Exchange Rate Gap Could Trigger Public Protests
“Therefore, the situation is somewhat complicated,” he stressed, adding that the Iraqi government is waiting for the new CBI Governor to assume office.
The spokesperson warned that the surging value of the U.S. dollar could trigger public protests due to the widening gap between the official exchange rate (1,320 IQD per $1 USD) and the parallel market rate.
Immediate Government Intervention and Transparency
Khoshnaw stated that the Iraqi government "must step in as soon as possible" to stabilize the currency and prevent public financial losses.
He emphasized that authorities must officially clarify whether an adjustment to the exchange rate has been enacted or provide a transparent update on current monetary policies.
Iraqi PM Calls for Banking Reforms and Global Digital Transformation
Meanwhile, while overseeing the handover ceremony for incoming Central Bank Governor Nizar Nasser Hussein, Prime Minister Ali Faleh al-Zaidi highlighted “the importance of advancing banking reform programs in a manner that contributes to financial stability and provides a favorable economic and investment environment to support development.”
He reiterated the need to align with global digital transformation and adopt international standards across financial operations. https://channel8.com/english/news/60360
The Central Bank Announces The Completion Of The Requirements For Reintegrating Banks Restricted From Dealing In US Dollars
Baghdad - WAA The Central Bank of Iraq announced on Monday the completion of procedures and requirements for the reintegration of a number of banks restricted from dealing in US dollars in foreign currency transfer operations.
The bank stated in a statement received by the Iraqi News Agency (INA): “Within the framework of the Central Bank of Iraq’s efforts to enhance monetary and financial stability, develop the banking sector, and raise its level of integration into the global financial system, the bank continues to implement its reform program in coordination with relevant international institutions, focusing on several key areas.”
The statement added that "the Central Bank of Iraq has completed the procedures and requirements for the reintegration of a number of banks restricted from dealing in US dollars in foreign currency transfer operations, after they met the requirements of the reform plan and the relevant supervisory and technical standards, and strengthened their frameworks for combating money laundering and terrorist financing," explaining that "this file has reached its final stages in preparation for the gradual and organized reintegration, which will enhance the ability of these banks to serve their customers and support the expansion of their foreign correspondent relationships in accordance with best practices and international standards."
He added that “the Central Bank has completed the necessary technical and procedural requirements to raise the limits of electronic payment cards for the category of registered companies and businesses, which contributes to expanding the scope of digital financial services, enhancing financial inclusion, and meeting the needs of various segments of customers with payment tools.
The bank is proceeding with the implementation of the subsequent phases of this project in a gradual and deliberate manner, in a way that ensures the consolidation of regulatory controls that will enhance the integrity and effectiveness of the system, and keep pace with the rapid developments in the financial sector.”
The Central Bank of Iraq, according to the statement, affirmed its commitment to “meeting the demand for the US dollar in accordance with the approved controls and standards, ensuring the smooth flow of transfers and covering the legitimate needs of the public and private sectors, based on strong foreign reserves and effective monetary tools. This is done with full commitment to compliance requirements and standards for combating money laundering and terrorist financing, and a monetary policy based on the stability of the exchange rate and the integrity of financial channels.”
The bank stressed, according to the statement, that "these measures are part of a comprehensive reform program aimed at addressing existing challenges and resolving priority issues, thereby strengthening confidence in the Iraqi banking sector, supporting the foundations of financial and monetary stability, and backing the country's economic development."
He concluded that he “will continue to take the necessary measures and policies to develop the banking environment, raise the efficiency of the financial system, and provide the necessary elements to support sustainable economic growth, thereby achieving long-term financial stability and preserving the stability of the exchange rate and the integrity of financial channels.” https://ina.iq/ar/economie/266486-.html
Central Bank Of Iraq: Reintegration Of Dollar-Denominated Banks Is In Its Final Stages
{Economic: Al-Furat News} The Central Bank of Iraq affirmed on Monday its continued implementation of its comprehensive reform program aimed at strengthening monetary and financial stability, developing the banking sector, and raising its level of integration into the global financial system, in coordination with relevant international institutions, stressing its firm commitment to maintaining the stability of the exchange rate and meeting the legitimate demand for the US dollar in accordance with the approved controls and standards.
The bank explained in a statement received by Al-Furat News that: “Its reform efforts are focused on a number of key areas, foremost among them the file of reintegrating Iraqi banks into foreign transfer operations, as it has completed the procedures and requirements for reintegrating a number of banks restricted from dealing in US dollars into foreign currency transfer operations, after they met the requirements of the reform plan and the relevant regulatory and technical standards, and strengthened its frameworks for combating money laundering and terrorist financing.”
He explained that "this file has reached its final stages in preparation for a gradual and organized reintegration, which will enhance the ability of these banks to provide their services to their customers, and support the expansion of their correspondent banking relationships with foreign financial institutions in accordance with best practices and international standards."
Regarding the development of electronic payment services, the Central Bank of Iraq indicated the completion of the necessary technical and procedural requirements to raise the limits of electronic payment cards for the category of registered companies and businesses, which contributes to expanding the scope of digital financial services, enhancing financial inclusion, and meeting the needs of various segments of customers with modern payment tools.
He added that "work is continuing on implementing the subsequent phases of this project in a gradual and deliberate manner, in order to ensure the consolidation of regulatory controls and the enhancement of the integrity and effectiveness of the financial system, as well as keeping pace with the rapid developments witnessed by the financial sector locally and internationally."
Regarding meeting the demand for US dollars, the Central Bank of Iraq stressed its "continued commitment to providing the needs of the public and private sectors for foreign currency in accordance with the approved legal and regulatory frameworks, and in a way that ensures the smooth flow of external transfers and covers the legitimate requirements of economic and commercial activities, based on strong foreign reserves and effective monetary tools."
The bank affirmed that "the management of this file is carried out in full compliance with the requirements of compliance and standards for combating money laundering and terrorist financing, and in line with the monetary policy that is based on maintaining the stability of the exchange rate and the integrity of financial channels," denying "the existence of any intention to change the exchange rate in light of the stable monetary and financial indicators enjoyed by the Iraqi economy."
He pointed out that "these measures are part of an integrated reform program aimed at addressing existing challenges and resolving priority issues, thereby enhancing confidence in the Iraqi banking sector, strengthening the foundations of financial and monetary stability, and supporting economic development efforts in the country."
The Central Bank of Iraq reiterated its commitment to "continuing to take measures and policies that will develop the banking environment, raise the efficiency of the financial system, and provide the necessary support for sustainable economic growth, thereby achieving long-term financial stability and maintaining the stability of the exchange rate and the integrity of financial channels." https://alforatnews.iq/news/البنك-المركزي-العراقي-إعادة-دمج-المصارف-المقيدة-بالدولار-في-مراحلها-النهائية