Iraq Economic News and Points To Ponder Monday Evening 2-16-26
Standard & Poor's International Agency: The Iraqi Economy Is Moving Steadily Towards Strengthening Financial Sustainability
Baghdad/ Nina / Standard & Poor's (S&P) credit rating agency confirmed that "the Iraqi economy is moving steadily towards strengthening financial sustainability despite regional challenges."
According to a statement from the Ministry of Finance, the agency, in its February 2026 report, which affirmed Iraq's rating at (B-/B) with a positive outlook, anticipated that increased oil production during 2026 would provide crucial support for Iraq in the face of global price volatility and surrounding geopolitical tensions.
Regarding fiscal management, the report commended the government's successful implementation of its spending control policy, which directly led to a reduction in the fiscal deficit to 2.5% of GDP in 2025, a significant improvement compared to the 2.7% recorded in 2024.
The agency also highlighted the country's financial strength, noting that Iraq is expected to maintain average international reserves of approximately $100 billion until 2029, representing nearly 35% of GDP. This figure far exceeds the size of the public sector's external debt, thus bolstering international confidence in the country's financial solvency.
A Standard & Poor's report explained that "inflation rates in Iraq remain low and stable compared to regional standards, with expectations that the average annual inflation rate will decline to 1.9% in 2025 after reaching 2.6% in 2024."
The agency believes that "this stability is supported by improved tax collection mechanisms through the introduction of new digital systems in the customs sector, along with effective measures taken by the Central Bank of Iraq in the area of compliance to enhance transparency and governance and develop channels for foreign currency flows, in addition to the judicious use of monetary policy tools and the restructuring of the banking sector, which will in turn lead to raising the overall efficiency of the national economy." / https://www.ninanews.com/Website/News/Details?key=1278204
Sudanese: We Have Eradicated Corruption!!!!
Baghdad/Iraq News Network – The Iraqi government issued a statement today, Sunday (February 15, 2026), regarding the results of the Corruption Perceptions Index. The Prime Minister's Media Office stated that “the results of the Corruption Perceptions Index, issued on February 10, 2026, by Transparency International, show that Iraq has made significant and remarkable progress in its ranking among countries for 2025.
This reflects the government's unwavering commitment and the contribution of all public institutions towards enshrining the principles of transparency, integrity, and good governance in the public sector.
This improvement is also a positive indicator of the will to consolidate the principles of transparency and accountability, strengthen trust in public institutions, and implement the requirements related to combating and reducing corruption.”
The government added that “this progress in the international ranking, year after year, is a result of the comprehensive efforts led by the government and its adoption of several priorities in its government program, most notably combating corruption.
It also reflects the government's commitment to providing support to oversight bodies and continuing reforms in various areas to raise the levels of integrity in all government institutions, and its adoption of appropriate measures to improve and develop the overall performance level.”
This has resulted in tangible progress in the international ranking,” she noted, adding that “efforts are continuing to intensify at various levels to achieve the best results through the combined efforts of all.”
The government, according to its statement, affirms that “these results represent an incentive to increase efforts in the coming years in order to maintain and develop them, and we appreciate the roles of public institutions, each according to its specialization, that contributed to achieving these results.” https://aliraqnews.com/السودانيقضينا-على-الفساد/
The Central Bank Of Iraq Clarifies The Mechanisms For Dealing With The Dollar In All Its Issuances
Baghdad Today – Baghdad The Central Bank of Iraq issued a clarification today, Monday (February 16, 2026), regarding the mechanisms for dealing with the US dollar in all its versions, stressing the need to not differentiate between the old and new versions of the currency.
The bank stated in a statement received by “Baghdad Today” that “the directive aims to reduce the phenomenon of discrimination in the dollar exchange rate between different issues, while emphasizing the commitment of all banks and financial institutions to the instructions for trading and exchanging banknotes according to the approved standards for foreign banknotes, in order to ensure the safety of transactions and the stability of the market.”
The bank explained that "the applicable laws and instructions do not recognize any discrimination between editions of the US dollar," noting that it "continues to receive and deal with these editions through all authorized banks, provided that they are within the standards and controls approved locally and internationally."
This clarification comes within the framework of the Central Bank of Iraq’s commitment to enhancing transparency and discipline in the banking sector, protecting the rights of customers, and supporting monetary and financial stability in Iraq. https://baghdadtoday.news/293343-.html
Iraq’s Maliki Standoff: Three Exits, No Easy Way Out
Iraq’s political deadlock now turns on a single question: does Nouri al-Maliki come back?
His bid to return to power has pushed the government formation crisis into a more volatile phase, deepening divisions inside the Shiite Coordination Framework and drawing an unusually blunt warning from Washington.
For the second time, parliament failed to convene a session to elect a president and designate a prime minister. This time, the collapse was driven not by Kurdish infighting, but by disagreement over Maliki’s candidacy, according to sources inside the Coordination Framework, the Shiite coalition entitled to nominate the next government.
Nearly two weeks after President Donald Trump warned that Maliki’s return would have consequences for U.S.-Iraq relations, Shiite leaders remain deadlocked. A Framework official told Alhurra that three scenarios are now under discussion.
The first is persuading Maliki to withdraw in favor of a consensus figure acceptable domestically and internationally. The name most frequently mentioned is Hamid al-Shatri, Iraq’s intelligence chief, seen by several factions as a low-profile security figure with broad backing. This option hinges on Maliki stepping aside, which he has so far refused.
The second scenario is pressing ahead with Maliki’s nomination and forcing a parliamentary vote. That path faces stiff resistance. Sunni blocs and key Shiite factions, including Ammar al-Hakim’s Hikma Movement, have declared their opposition, making it difficult to secure the quorum and votes required.
A third option, now being discussed more openly, would keep Prime Minister Mohammed Shia al-Sudani’s caretaker government in place for up to a year with expanded authorities, effectively postponing resolution while negotiations continue.
In Washington, the standoff is seen as more than an internal Iraqi dispute. A former U.S. ambassador to Iraq told Alhurra that Trump’s opposition reflects a broader judgment about Iraq’s direction. “This isn’t about personalities,” he said. “There is a view in Washington that returning to that model of governance would deepen instability and complicate Iraq’s external relationships.”
Inside the Coordination Framework, intermediaries have tested whether the U.S. position is negotiable. According to a senior member, the response was clear: Trump’s opposition remains firm, and proceeding with Maliki would carry diplomatic and economic consequences.
Maliki has rejected what he calls “blatant American interference” in Iraq’s sovereignty. But his stance has sharpened internal rifts, where resistance to his candidacy existed even before Trump’s intervention.
For now, the Framework is stuck between escalation and retreat – pushing forward at the risk of confrontation with Washington or backing down at the cost of internal unity. With no consensus in sight, Iraq’s paralysis is deepening, and the question is no longer just who governs next, but how long the system can absorb the strain. https://alhurra.com/en/12521
Government Formation: Why Do Parties Treat The Constitution As A Non-Binding "Memorandum Of Understanding"?
Baghdad Today – Baghdad The stalled formation of a new Iraqi government is no longer merely a dispute over the prime minister's name or the distribution of ministerial portfolios. As political analyst Mohammed Ali al-Hakim told Baghdad Today, it has become "a clear indicator of a deep-seated dysfunction in the structure of public decision-making and the mechanisms of power production."
The prolonged waiting period following each election, and the protracted conflict over the government's form and composition, have made delays in its formation seem like the norm, while adherence to constitutional deadlines has become the exception.
The Constitution: From A Governing Authority To A Bargaining Chip
Al-Hakim believes that what is happening is not merely a matter of political disagreements, but rather a question of the constitution's place in public life. The constitutional articles that stipulate the deadlines for electing the president, appointing the prime minister, and approving the cabinet are treated in every crisis as clauses open to interpretation and obstruction, rather than as binding red lines for all.
In this way, the constitution is transformed from a governing framework that regulates the balance of power into a bargaining chip within the political arena, used when it serves a particular party's interests and disregarded or frozen when it becomes an obstacle to gains or compromises. This selective use of the text, as Al-Hakim warns, opens the door to the growing influence of external powers that find in internal division and the absence of a unified national will an opportunity to intervene and influence the course of sovereign decision-making.
Multiple Decision-Making Bodies: One State Or A Network Of Power Centers?
The failure to form a government also reveals the extent of fragmentation within decision-making centers. Political will does not emanate from a single, clear source, but rather from a wide network of actors.
Parliamentary blocs and alliances are vying for "entitlement" and influence.
-Political houses and authorities within the same component have the power to approve or reject.
-Armed forces with a field presence and direct or indirect political influence.
-Regional and international extensions that have the ability to exert pressure, provide support, or impose red lines.
In this context, the next government is not the natural outcome of a clear electoral process, but rather the result of a long series of compromises between these various power centers. Each party possesses, in one way or another, the ability to use a "veto" to obstruct the process if it does not receive what it deems appropriate in terms of shares and positions, thus transforming the formation process into a redistribution of influence rather than a response to the voters' choices.
Is It A Crisis Of Forming A Government Or A Crisis Of Sovereignty?
When Al-Hakim speaks of the "growing role of external powers," he is directly linking internal setbacks to Iraq's position on the map of regional and international conflicts. Every governmental crisis brings sensitive issues back to the forefront, including:
-The future of the foreign military presence in the country.
-The level of engagement between the United States and Iran on the Iraqi scene.
-Shaping Iraq's economic and energy relations with its surroundings and the world.
The longer a government vacuum persists or a fully empowered government is absent, the weaker the state's ability to make independent decisions on these issues becomes, and the wider the influence of foreign powers grows. At that point, the form and program of the government are no longer the product of purely internal will, but rather the result of a balance with external interests and pressures, thus transforming the crisis of government formation from a domestic political issue into one that touches the very core of sovereignty.
Public Trust: Between Erosion, Protest, And Withdrawal
The most dangerous aspect, according to Al-Hakim, is the impact this trajectory has on the relationship between citizens and the state. The difficulty in forming governments, the recurring crises of political deadlock, and the prioritization of elite deals over the needs of the people all weaken public trust in the political process.
The average citizen observing the situation sees that elections always end in closed-door meetings that redistribute power among the established elites, while issues like public services, unemployment, and corruption remain unresolved or postponed. Over time, a widespread conviction takes root that the political system is closed to genuine change, and that only the faces change, not the underlying principles.
This feeling leads to divergent behaviors: some citizens withdraw from participation and succumb to apathy and despair, while others lean towards more radical options, whether through new waves of protest or by seeking radical alternatives outside the existing system. In both cases, the gap between the public and the ruling class deepens, and the legitimacy of the state and its institutions is undermined in the public consciousness.
A Crossroads... Between The Logic Of The State And The Logic Of Guardianship
In concluding his remarks to “Baghdad Today”, Mohammed Ali Al-Hakim points out that “historical responsibility requires political forces to demonstrate political courage and move from the logic of obstruction and immediate gains to the logic of the state and national partnership, before the government formation crisis turns into an existential crisis that affects the very existence of the state.”
This warning places Iraq at a clear crossroads: either to restore the logic of the state, based on respect for the constitution as a governing reference, not a bargaining chip, and to prioritize the general national interest over sectarian interests, and to build an independent decision stemming from the internal will, or to remain in the circle of multiple tutelages and the struggle for internal and external influence, with all the cumulative risks this entails for sovereignty, stability, and the future of the entire political process.
Between these two options, there seems to be an urgent need for practical steps, not general slogans: transforming constitutional deadlines into an actual, non-negotiable commitment, stopping the use of obstruction as a negotiating tool, separating weapons from political decision-making, and gradually moving from broad power-sharing governments to governments with specific, measurable, and accountable programs.
Without this serious review, the failure to form governments will continue to occur in every cycle, not as an emergency crisis, but as part of the nature of the system itself, which turns the question from "When will the government be formed?" to "What country can be stable on this shaky foundation?" Source: Baghdad Today https://baghdadtoday.news/293349-.html