Iraq Economic News and Points To Ponder Late Saturday Evening 7-25-26
Economic Expert: Iraqi Government Studying Currency Change Proposal To Boost Liquidity And Strengthen The Dinar
An economic expert has told Channel8 that the Iraqi government is studying a proposal to change the country's currency as part of broader economic reforms aimed at recovering hidden cash, increasing state liquidity, and strengthening the Iraqi dinar against the U.S. dollar.
Proposal Emerged After U.S. Visit
Speaking to Channel8, economic expert Haider al-Sheikh said Prime Minister Ali Faleh al-Zaidi's recent visit to the United States produced several economic outcomes, including the lifting of U.S. sanctions on seven Iraqi banks, allowing them to resume international transactions and rejoin the correspondent banking system.
Al-Sheikh said discussions following the visit also led to a proposal to overhaul Iraq's currency as part of efforts to improve financial liquidity.
According to al-Sheikh, the proposal currently being studied includes two possible approaches.
The first would introduce a redesigned Iraqi currency with new banknote designs across existing denominations.
The second would remove one zero from the currency as part of a redenomination process.
He stressed that the proposal does not involve printing larger denominations, such as IQD 50,000 or IQD 100,000 banknotes, but instead focuses on replacing the existing currency.
Recovering Hidden Cash
Al-Sheikh said the primary objective is to bring large amounts of cash held outside the banking system back into circulation.
He argued that much of Iraq's liquidity is held by individuals rather than the state, while government cash reserves remain limited.
Under the proposal, authorities would establish a limited period during which citizens could exchange existing banknotes for the new currency through government banks.
He said unusually large exchanges would be subject to scrutiny, allowing authorities to investigate the source of the funds and identify assets linked to corruption.
Al-Sheikh linked the proposal to al-Zaidi's anti-corruption "Dawn Campaign," which has led to the arrest of more than 40 suspects and the discovery of large quantities of cash allegedly hidden in private properties.
Expected Economic Impact
Al-Sheikh said changing the currency could help increase government liquidity, stabilize the exchange market, and strengthen the Iraqi dinar against the U.S. dollar.
He added that the government hopes the measure would improve public confidence in the national currency and reduce the volume of cash circulating outside the formal banking system.
Al-Sheikh noted that a separate proposal to adjust Iraq's official exchange rate had been discussed under former Prime Minister Mohammed Shia al-Sudani, including the possibility of setting the rate at IQD 140,000 per $100.
He said that proposal is no longer being pursued, and the current government's focus has shifted toward changing the currency itself rather than altering the exchange rate.
Additional Financing and Legislative Process
Al-Sheikh also claimed that Iraq secured between $2 billion and $3 billion in loans and financial grants from the United States during the prime minister's visit. He added that Qatar, the United Arab Emirates, and other countries are also expected to provide additional financing.
According to al-Sheikh, the currency proposal remains under study and will be reviewed by the Ministerial Council for the Economy, the Ministry of Finance, the Central Bank of Iraq, and a joint consultative committee before being submitted to the Council of Ministers and later to Parliament if approved.
He estimated that, if adopted, implementation could take approximately five to six months.
Al-Sheikh said Iraq's currency remains among the weakest-performing in the Middle East and argued that a well-planned currency reform, supported by research from the Central Bank and the Ministry of Finance, could contribute to increasing the value of the Iraqi dinar against the U.S. dollar.
He emphasized that the proposal remains under government review and has not yet been formally approved. https://channel8.com/english/news/62022
Prime Minister Chairs the 12th Regular Session of the Council of Ministers
Iraqi News AgencySaturday, 25 July 2026Baghdad -INA- Prime Minister Ali Faleh Al-Zaidi chaired, this evening, Saturday, the 12th regular session of the Council of Ministers, during which the overall situation in the country was discussed, the items on the agenda were reviewed, and the necessary directives and decisions were issued.
The Media Office of the Prime Minister said in a press release , received by The Iraqi News Agency-INA “On the occasion of the Arbaeen commemoration of Imam Hussein (peace be upon him), and to ensure the smooth return of pilgrims following the pilgrimage, the Council of Ministers declared Monday and Tuesday, August 3–4, 2026, public holidays”.
As part of efforts to strengthen Iraq’s external relations, the Council of Ministers voted to activate the Iraq–Türkiye Framework Agreement on water resources, with the financing mechanism for projects under the agreement to enter into force on September 1, 2026.
To diversify Iraq’s crude oil export routes and outlets, the Council of Ministers approved authorizing the Chief Executive Officer of Basra Oil Company to sign a memorandum of understanding between the Ministry of Oil and the Syrian Ministry of Energy concerning the establishment of a pipeline project linking Iraqi oil production to global export markets through the Mediterranean Sea.
The Council also authorized the Minister of Oil to sign a memorandum of understanding with the consortium of companies (ConocoPhillips, TI Capital, and NovaTerr) to commence discussions on assessing the exploration and development potential of the Akkas Field in western Iraq and the surrounding areas.
To develop oil infrastructure and increase production capacity, the Council of Ministers voted to authorize the Ministry of Oil to announce the Integrated Qayyarah Project for competitive bidding in accordance with the Government Contracts Implementation Instructions No. (1 of 2025).
The Council also approved the recommendation concerning the Integrated Field Management Services (IFMS) and Engineering, Procurement, and Construction Management (EPCM) services contract for the West Qurna-2 Field of Basra Oil Company.
In the same sector, the Council approved the recommendation to exempt the tender for drilling the Qara Tapa-A exploratory well from the provisions of Council of Ministers Resolutions No. (1128 of 2025) and No. (325 of 2026), which regulate government contracting.
In the electricity sector, the Council approved the recommendation to cover the costs of implementing field works related to the 3.6-kilometer underground transmission line, with Basra Oil Company providing the materials and cables required for the project.
The Council also approved the recommendation to extend the contract addendum for the floating power stations supplying electricity from June 24, 2026, through September 30, 2026, providing a generation capacity of 350 megawatts in return for a daily service fee.
As part of the government’s support for the education sector, the Council of Ministers voted to address the issue of allowances for gifted students studying abroad under the Scholarships, Fellowships, and Financial Assistance Regulation No. (3 of 2018).
It also approved adding a provision to Council of Ministers Resolution No. (24803 of 2024) specifying the amount of allowances during the scholarship period, while coordinating with the Ministry of Higher Education and Scientific Research to submit a proposal for determining tuition fees, taking into account the country of study.
CBI Revamps Organizational Structure
2026-07-25 / Shafaq News- Baghdad Iraq's Central Bank (CBI) approved a broad restructuring of its organizational framework, upgrading its Directorate of Non-Bank Financial Institutions Supervision to a full general directorate as part of efforts to strengthen oversight and improve institutional performance.
According to an official document, the restructuring includes transferring the Operations and Settlements Department from the Information Technology and Payments Directorate to the Accounting Directorate, while policy, regulatory, digital solutions and financial services units will be moved to the newly established Directorate of Non-Bank Financial Institutions Supervision.
The bank also renamed the Information Technology and Payments Directorate as the Information Technology Directorate and abolished its Financial Inclusion and Information Security departments, redistributing their responsibilities among existing directorates and the Risk Management Department.
In addition, CBI dissolved its office responsible for coordinating branch operations, placing its branches in Basra, Mosul, and Erbil under the direct supervision of the deputy governor. It also introduced changes to reporting lines within its quality management and institutional development departments.
The restructuring is scheduled to take effect by July 30, with the Human Resources Directorate tasked with reallocating staff in line with the new organizational structure.
https://www.shafaq.com/en/Economy/CBI-revamps-organizational-structure