Iraq Economic News and Points To Ponder Monday Afternoon 9-21-26
Parliamentary Warning Of A Severe Financial Crisis
Information/Baghdad... Ali Shaalan, a member of the State of Law Coalition, confirmed on Sunday that Iraq is suffering from a severe financial crisis at the moment, pointing to the need to pay attention to the economic challenges facing the country.
Al-Daraji told Al-Maalouma that “the economic reality clearly indicates the existence of a real financial crisis that requires objective and serious solutions by the concerned authorities to mitigate its effects.”
He added that "the current financial situation requires a thorough review of spending mechanisms and resource management to overcome this crisis and ensure the stability of the country's economic landscape."
Iraq is facing a severe structural financial crisis, which is evident in the 2027 budget project scheduled to be submitted to the House of Representatives on October 15. Operational spending is draining 150 trillion dinars - 100 trillion of which go to salaries and wages - compared to allocating only 50 trillion dinars for investment spending.
The crisis is exacerbated by the adoption of a cautious hedging price for a barrel of oil ranging between $50 and $65, resulting in a projected budget deficit of 64 trillion dinars. To bridge this funding gap, the government is resorting to excessive domestic borrowing of 114 trillion dinars, which poses a real risk to the stability of the banking sector and the country's liquidity. End/25z
Iraq's WTO Accession and National Trade Strategy on Agenda
By John Lee. Iraq's Ministry of Trade has held an expanded meeting with the International Trade Centre (ITC) to discuss cooperation on WTO accession and the preparation of a national trade and investment strategy.
The Ministry was represented by Ghassan Al-Mohammadi, Under-Secretary for Economic Affairs, and Malik Khalaf Al-Durai'i, Director General of the Private Sector Development Directorate. Also present were Maher Hammad Jouhan, Under-Secretary of the Ministry of Planning for Technical Affairs, and Adel Dakhil Muhammad al-Yasiri, head of the National Investment Commission (NIC). ITC's Iraq director, Eric Bouchot, participated via Zoom.
According to the Ministry of Trade, the meeting covered the steps being taken to advance Iraq's accession to the World Trade Organization (WTO), as well as the mechanisms needed to develop the national trade and investment strategy.
Participants also discussed preparations for a National Iraqi Trade and Investment Forum to be held in Baghdad on 28-29 October 2026, which is intended to promote dialogue between the public and private sectors. The forum is expected to draw local, regional, and foreign investors, as well as representatives of the European Union (EU) mission.
From 12 Times To Only Twice... The Iraqi Central Bank Moves To Close The Gateway For Smuggling Dollars By Travelers
Last updated: September 21, 2026 Independent/- Informed sources revealed to the Independent Press Agency a new trend within the Central Bank of Iraq to reorganize the mechanism for granting cash dollars to travelers, by reducing the number of times to benefit from the allocated quota at the official rate to only twice during the year for each citizen, instead of the possibility of obtaining it on a monthly basis.
According to the sources, this move comes as part of a comprehensive review of the “travelers’ dollar” file, after cases of manipulation and exploitation of the mechanism for obtaining foreign currency were detected, particularly through some exchange companies and outlets designated for delivering dollars at airports.
The sources explained that the Central Bank is working to reduce opportunities for repeated exploitation of the official quota, in an attempt to limit the smuggling of dollars and their resale in the parallel market and to take advantage of the price difference between the official rate and the trading rate outside banking channels.
Information indicates that the anticipated measures may include stricter controls to verify the citizen’s actual travel, and linking dollar acquisition processes to an electronic record that prevents repeated use outside the limits that will be determined by the bank.
Tightening Restrictions On Exchange Companies
The new approach comes in conjunction with regulatory measures taken by the Central Bank during the past period against a number of exchange companies, including the withdrawal and cancellation of licenses of companies that violated the applicable instructions.
According to the sources, investigations and oversight revealed irregularities in the mechanism for delivering dollars to travelers, in addition to suspicions related to the exploitation of some outlets designated for selling foreign currency for purposes that do not match the stated purpose of the travelers' window.
This does not mean that all exchange companies are involved in these violations, but the recent measures reflect a growing trend at the Central Bank towards restructuring this sector and tightening control over it.
From 12 Chances To Just Twice
If the new regulations are adopted, citizens will not be able to obtain their dollar quota at the official rate on a monthly basis as is currently the case, but the benefit will be limited to only twice during the year.
If approved, this shift would represent a major change in the policy of distributing cash dollars, as it would significantly reduce the number of annual uses and close the door to frequent travel operations that are primarily aimed at obtaining foreign currency and reselling it.
Reducing Smuggling And The Parallel Market
Banking sources believe that reducing the number of times the quota is granted may contribute to reducing some of the unreal demand for cash dollars, especially if it is accompanied by tightening airport procedures and linking travel data to the banking system.
The move, if implemented, could also reduce the ability of some intermediaries to accumulate large amounts of dollars by using multiple passports or arranging short, frequent trips to obtain the official quota.
Conversely, the potential impact of the decision on the parallel market will depend on the actual demand for dollars and the effectiveness of oversight of -ي/other channels through which cash leaks out of the banking system
Al-Kinani: Washington Has Set 10 Points For The Continued Transfer Of Iraqi Funds
Information/Special... Economic and strategic expert Nasser al-Kinani revealed on Monday that the United States has set ten conditions for the continued transfer of Iraqi funds, including the surrender of weapons. He emphasized that these funds belong to Iraq and are not a US grant.
Speaking to the Information Agency, al-Kinani stated, “The United States has set ten conditions for the continued transfer of funds to Iraq, including the surrender of weapons and other matters, even though these funds are Iraqi and no entity has the right to withhold them from Iraq.”
He added, "Any funds Iraq needs must be requested by the Central Bank of Iraq from the US Federal Reserve for transfer, even though these are Iraqi revenues from oil sales and are not American funds charity or a grant."
He explained that "the solutions are simple; a request can be submitted to the United Nations to confirm that Iraq is not indebted and that controlling Iraqi funds constitutes an infringement on Iraqi sovereignty." He also noted that "the Iraqi negotiator was weak from the beginning and was unable to defend the rights of the Iraqi people."
Al-Kinani pointed out that "an agreement was reached in 2010 to end the transfer of Iraqi funds to the Federal Reserve, and it included three obstacles imposed by the United States, which previous and current Iraqi governments have been unable to overcome."
He added that "the argument that funds were going to entities claiming financial dues from Iraq has ended, especially after the payment of the last amount claimed by Kuwait, which was $1.65 billion." He considered that the absence of other entities claiming financial dues from Iraq eliminates the justifications for continuing to control Iraqi funds.
Qi Card Confirms Limited Payment Disruptions
2026-09-20 Shafaq News- Baghdad Qi Card, an Iraqi electronic payment company, acknowledged limited disruptions to its card services on Sunday, hours after a source reported problems affecting some Iraqi payment cards abroad.
The company described the disruptions as “limited fluctuations,” assuring customers that its cards remain operational inside and outside Iraq and that it was working to resolve the issue as soon as possible.
Qi Card also clarified that fees for using its cards abroad are calculated according to the exchange rate approved by the Central Bank of Iraq (CBI).
Earlier today, a source told Shafaq News that some Iraqi electronic payment cards had stopped working for purchases, online payments and cash withdrawals outside Iraq since Sept. 19. The source cited several possible factors, including higher transaction fees, tighter auditing and monitoring of electronic payments, and concerns over potential US economic sanctions that could affect external financial transactions.
https://www.shafaq.com/en/Economy/Qi-Card-confirms-limited-payment-disruptions