Iraq Economic News and Points To Ponder Late Saturday Evening 6-13-26
The Events Of The Region Determine The Economic Paths Of Iraq. A Financial Crisis, A Rise In Prices And A Change In The Value Of The Dinar
12 Jun Information/Report... The events of the region directly affect the economic situation of Iraq, which is at the heart of the hurricane witnessed by the countries of the so-called Middle East, after the war invented by America and its Zionist entity against the Islamic Republic and the repercussions of this on the Strait of Hormuz, are all factors that may lead governments, especially in Iraq, to take decisions that mitigate the extent of the damage, but make the people pay the tax, by reducing the value of salaries in case of going towards devaluing the dinar, and following the policy of austerity and raising the amounts of fees in various sectors, which will harm the citizen.
“Everyone, whether in Iraq, its government and the rest of the world, is monitoring the developments of the current scene in the region, and awaits the outcome of the indirect negotiations between the American and Iranian sides,” says Imran Karkoush, a member of the State of Law Coalition.
He added that "the Iraqi economy has been affected by the developments in the region and military escalation, as Iraq is awaiting the results of negotiations between Washington and Tehran in order to restore the situation to what it was before in the Strait of Hormuz."
He pointed out that "Iraq was directly affected by the ongoing war in the region, as the government is waiting for the end of this file and closing it and work to strengthen relations within the region and build strong economic ties through the railway and commercial link between the countries of the region, Iraq and the world, as Iraq is currently in the heart of the storm and is directly affected by current events."
For his part, the economist Zia Al-Mohsen explained to /Al-Malma/, that "the government of Mustafa Al-Kazimi was the first to take the step of raising the exchange rate of the dollar against the Iraqi dinar under the pretext of providing financial liquidity and addressing the pressures on public revenues as a result of the repercussions of the Corona pandemic, and therefore any new economic measures must comply with the requirements of the local market and take into account the living conditions of citizens."
He added that "raising the exchange rate will lead to a decrease in the purchasing power of the citizen and weaken the real value of employees' salaries, in addition to causing a rise in the prices of goods and food, which reflects negatively on the standard of living of the Iraqi family."
Al-Mohsen pointed out that "addressing financial crises should not depend on burdening the citizen with additional burdens, but rather through the activation of productive economic sectors, foremost of which are the agricultural, industrial and manufacturing sectors, which contributes to diversifying sources of income and reducing dependence on oil revenues."
He pointed out that "the government may resort to other measures beyond raising the exchange rate, including reducing or canceling some forms of subsidies provided for fuel or food and medicine in order to increase public revenues," stressing that "such steps will be directly reflected on the citizen because they target his daily spending and living capacity."
On a related level, the political researcher Qassem Al-Tamimi said in his interview with /Al-Malama/, that "Iraq has internal debts of up to 90 billion dollars and foreign affairs of the limits of 30 billion dollars obtained by Iraq through borrowing due to the decline in cash flow inside."
He added that "there is a difficulty that the government will face in the process of controlling the dollar currency in local markets, especially since this currency is directly linked to the US Federal Bank, as Iraq depends on oil sales that reach the said bank before being sent to Baghdad."
He added that "Iraq suffers from many problems caused by the current situation in the region after the significant decline in oil sales, and this clearly affected securing liquidity, and therefore the Zaidi government faces a great challenge with regard to the financial and economic situation." https://almaalomah.me/news/135399/report/احداث-المنطقة-تحدد-المسارات-الاقتصادية-للعراق-ازمة-مالية-وار
Al-Karawi: There is currently no government intention to raise the exchange rate, and he warned of its repercussions on the markets.
Today The Information/Baghdad... Member of the Parliamentary Finance Committee, MP Mudhar al-Karawi, confirmed on Saturday that there is no current government intention to raise the exchange rate in the markets.
Al-Karawi told Al-Maalouma that "there is much speculation about government efforts to raise the dollar exchange rate in the coming period in an attempt to reduce the financial gap, especially given the country's critical financial situation."
He explained that "the past three months have witnessed a significant decline in oil export rates, which has had severe repercussions on the general budget."
He added that "to this moment, no official discussion has taken place regarding the possibility of raising the dollar exchange rate to reduce the financial gap," noting that "any decision in this direction will have direct repercussions on the markets in terms of price increases, and the poor and those with limited incomes will be the most affected."
Al-Karawi indicated that “there is no current direction in this regard,” stressing that “there are other alternatives to boost treasury revenues, foremost among them activating non-oil revenues and combating corruption, which is a crucial factor in reducing the waste of enormous sums of money within state institutions.”
https://almaalomah.me/news/135537/economy/الكروي:-لا-توجه-حكومي-حاليا-لرفع-سعر-الصرف-وتحذير-من-ارتدادا
Billions evaporate monthly... How is Iraq coping with the shock of declining oil exports?
Today Information / Report... Recent regional developments and the accompanying turmoil in global energy markets have brought the issue of Iraq's dependence on oil back to the forefront of economic debate, amid warnings of potential financial repercussions on the general budget and the state's ability to meet its obligations.
Meanwhile, experts assert that current cash reserves still provide a safety net, preventing the crisis from escalating into a full-blown financial collapse.
Iraq relies almost entirely on oil revenues to finance its public expenditures, with oil revenues constituting more than 90 percent of budget resources. This means that any decline in exports or global prices directly impacts the country's financial and economic situation.
In this context, economist Faleh al-Zubaidi warned of the serious consequences of declining oil exports, emphasizing that financial losses range between $250 and $300 million daily, while monthly losses reach approximately $7 billion, in addition to a monthly budget deficit approaching $5 billion due to the drop in oil revenues.
These figures reveal the magnitude of the challenge facing the Iraqi government. A prolonged decline in oil revenues could place increasing pressure on public spending, particularly given the rising costs of salaries, social welfare, and public services, all of which rely heavily on oil revenues.
Al-Zubaidi also pointed to a drop in oil exports of approximately 3 million barrels per day and a decrease in production from 4.3 million barrels per day to about 1.4 million barrels per day, allocated for domestic consumption and refining. This means Iraq has lost between 85 and 89 percent of its usual oil exports, a development described by observers as one of the most serious challenges facing the Iraqi economy in years.
For his part, MP Basim al-Gharabi warned of the repercussions of regional and international tensions on the national economy, emphasizing that the general budget's reliance on oil has made Iraq more vulnerable to external shocks and global economic fluctuations.
Al-Gharabi believes that the failure of successive governments to diversify national revenue sources has contributed to keeping the Iraqi economy hostage to international variables and energy markets.
These concerns are reinforced by reports indicating a decline in Iraqi oil exports of between 2.5 and 3 million barrels per day compared to normal levels, raising questions about the state's ability to maintain current spending levels if the crisis persists.
In contrast, financial expert and former Central Bank board member Ahmed Barhi offers a more optimistic view, asserting that Iraq possesses foreign currency reserves that enable it to weather the current crisis without resorting to external borrowing in the near term. He points out that these reserves provide a significant financial buffer that helps the government address the temporary challenges resulting from the decline in oil revenues.
However, economists believe that while these foreign currency reserves are important, they do not represent a permanent solution to the problem.
Rather, they serve as a means to absorb temporary shocks, while the fundamental solution remains linked to restructuring the Iraqi economy and diversifying income sources by supporting the industrial, agricultural, and investment sectors and developing non-oil revenues.
The current crisis reaffirms that the Iraqi economy continues to face a structural challenge: its over-reliance on oil.
This makes any regional tension or disruption in global energy markets a rapid and direct threat to financial and economic stability.
Amid warnings of a widening fiscal deficit and assurances regarding the strength of foreign currency reserves, the future of the Iraqi economy remains contingent on policymakers' ability to leverage this crisis as an opportunity to transition towards a more diversified economy, less dependent on the volatility of the global oil market. End / 25
Al-Zaydi's Advisor: No Return To Rentier Budgets, New Plans To Diversify Income Sources - Urgent
Baghdad Today – Baghdad On Saturday (June 13, 2026), the Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Salih, expressed his optimism about a plan developed by Prime Minister Ali al-Zidi to diversify the country’s sources of income, indicating that al-Zidi confirmed that there is no going back to the rentier budget that depends on selling oil.
Saleh told Baghdad Today, “It is shameful that we still import some oil derivatives to this day, in addition to our reliance on selling crude oil, at a time when, if a barrel of crude oil were to be put into manufacturing and conversion processes into petroleum products, its value could rise to nearly seven times its price.”
He added that "the price of a single barrel, after being converted into petroleum products, could exceed $400, which would boost the financial revenues of the Iraqi state's general budget."
Saleh pointed out that "the Prime Minister, as a son of the economic sector, will proceed with activating the various economic aspects in the country, and the economic mindset will change, as President Al-Zidi has a youthful vision, and will proceed with plans capable of reviving the economy of the Iraqi citizen, which is the least that the citizen deserves."
The Iraqi economy relies mainly on oil revenues, which constitute the largest share of the general budget resources, while Iraq continues to import part of its needs for oil derivatives despite having large oil reserves.
Over the past years, successive governments have put forward plans to develop the refining and petrochemical industries with the aim of increasing the added value of crude oil and reducing dependence on imports.
https://baghdadtoday.news/301318-.html
Iraq Is Moving Towards Balancing Programs With US Support And In Coordination With The World Bank.
Money and Business Economy News – Baghdad Finance Minister Faleh Sari discussed on Wednesday with the US Chargé d'Affaires to Iraq, Joshua Harris, prospects for economic cooperation between Baghdad and Washington and ways to strengthen the partnership with US financial institutions, while both sides affirmed their support for the path of economic and financial reforms.
The Ministry of Finance said in a statement received by "Al-Eqtisad News" that the minister stressed that the government has given the economic file high priority within its program, noting that the next stage will witness reforms aimed at addressing economic and financial challenges in a radical way, and in cooperation with international partners.
The minister revealed a government trend towards preparing a program budget and gradually moving away from the traditional budget system, with the aim of raising the efficiency of spending and linking financial allocations to goals and results, in line with the requirements of financial and administrative reform.
For his part, the US Chargé d'Affaires affirmed his country's support for the Iraqi government and its readiness to enhance economic and financial cooperation, in a way that contributes to supporting stability and achieving sustainable economic growth in Iraq.
This trend coincides with what the government spokesman, Haider al-Aboudi, announced, that the Council of Ministers approved a directive to proceed with drafting a "program budget" in coordination with the World Bank and the Parliamentary Finance Committee, within the framework of economic reform.
العراق يتجه لموازنة برامج بدعم أميركي وبالتنسيق مع البنك الدولي