Iraq Economic News and Points To Ponder Late Wednesday Evening 10-14-26
The US State Department Told One News: We Support Al-Zaidi's Efforts To Consolidate Iraq's Sovereignty And Strengthen The Partnership With Washington
Exclusive - One News - 10/14/2026 The US State Department announced its support for Iraqi Prime Minister Ali Faleh al-Zaidi’s efforts to consolidate national sovereignty and enable Iraq to exercise its independent decision-making, stressing Washington’s aspiration for a new phase of bilateral relations based on full partnership and the achievement of common interests.
The US State Department told One News that the United States supports al-Zaidi’s efforts to lead Iraq towards a new path that strengthens the country’s sovereignty and opens up broader prospects for cooperation between Baghdad and Washington in various fields.
She added that the partnership between the two countries aims to support a secure and prosperous Iraq, capable of serving its people and playing a positive role in the region, in line with the mutual interests of both sides.
This stance comes within the framework of Iraqi-American relations, which include political, security and economic files, amid emphasis on the importance of strengthening cooperation in a way that supports Iraq's stability and preserves its national sovereignty. https://1news-iq.net/الخارجية-الأميركية-لـوان-نيوز-ندعم/
Iraqi Trade: Any Merchant Who Manipulates Prices Will Be Imprisoned For Two Years
https://x.com/shafaqnewsarb/status/2110393557035143366
شفق نيوز - shafaq news @shafaqnewsarb
Translated from Arabic Iraqi Trade: Any merchant who manipulates prices will be imprisoned for two years #شفق_نيوز #العراق
https://x.com/shafaqnewsarb/status/2110393557035143366
Iraqi Plan To Reduce The Price Of The Dollar In The Market To 1,550 Dinars
The Iraqi government intends to proceed with a plan aimed at reducing the dollar exchange rate in the parallel market to 1,550 dinars. The official Iraqi News Agency (INA) quoted government spokesman Haider al-Aboudi on Wednesday as saying,
"The government and the Central Bank of Iraq are working according to a well-thought-out plan to bring the dollar exchange rate in the parallel market to 1,550 dinars per dollar in the near term."
Al-Aboudi added, "This path is based on secure and sufficient balances with the Central Bank, which allow for the smooth financing of foreign trade and meeting import needs."
The dollar exchange rate in the parallel market currently exceeds 1,660 dinars, after the Iraqi government officially announced, a week ago, that it would raise the dollar exchange rate in the 2027 federal budget bill to 1,500 dinars.
According to available data, the Central Bank of Iraq's foreign currency reserves amount to approximately $81 billion, in addition to gold reserves exceeding 170 tons.
The Iraqi government had decided to exempt imported food and medicine from customs duties as of October 7, as part of supporting the local market and controlling prices.
In early October, Iraq introduced a new devaluation of its currency, as the Council of Ministers approved a recommendation from the Central Bank to set a new official exchange rate at 1,500 dinars to the dollar, in the second major devaluation in six years.
The Central Bank adopted a gradual pricing structure, with 1,500 dinars used for government purchases from the Ministry of Finance, 1,510 dinars for official sales to commercial banks, and 1,520 dinars for citizens purchasing foreign currency directly from banks.
The move came after severe financial pressure, as the Ministry of Finance informed Parliament that it would not be able to cover the local budget for 2026 without adjusting the price of the dinar.
This is linked to fragile sources of income, as Iraq obtains more than 90% of its budget in dollars from oil exports, almost all of which pass through the Strait of Hormuz.
The 2027 budget, in turn, is facing great pressure, as it is estimated at about 217 trillion dinars, with an expected deficit approaching 50 trillion dinars due to the inflated salary bill and the volatility of oil prices.
However, the decision ignited the parallel market instead of calming it down. After the announcement, prices jumped in Baghdad and Erbil, and exchange shops reported that the dollar exceeded 1,700 dinars.
The central bank attributes the gap between the official and parallel rates to speculation, expectations and regional onditions.
The reduction sparked widespread political controversy, as Parliament suspended its agenda to discuss the decision, and representatives pressured Prime Minister Ali Al-Zaidi to retract it before submitting the 2027 budget.
On the other hand, Central Bank Governor Ali Al-Alaq informed the Finance Committee that the price of 1,500 dinars is the basis on which the budget was built, warning that any legislative decline requires recalculating the entire financial framework.
Critics of the decision warn of its cost to living, as the weakness of the dinar raises the prices of imported food, medicine, cars and building materials, almost everything that Iraq imports, which explains the government's resort to exempting food and medicine from customs duties.
Iraqis recall a previous experience: in January 2023, after the dinar fell to about 1,670 to the dollar amid American restrictions on the flow of the dollar, the then Prime Minister replaced Muhammad Shiaa al-Sudani as governor of the Central Bank, and then his government strengthened the value of the dinar, setting the price of the dollar to the public at 1,320 dinars.
https://www.alaraby.co.uk/economy/خطة-عراقية-لخفض-سعر-الدولار-في-السوق-إلى-1550-ديناراً?utm_source=hathalyoum.net&utm_medium=referral&utm_campaign=news_redirect