Iraq Economic News and Points To Ponder Saturday Afternoon 12-20-25
The Dollar Is Rising Again And Putting Pressure On The Dinar In Local Markets.
Economy | 20/12/2025 Mawazin News - Baghdad: Local markets in Baghdad witnessed a rise in the exchange rate of the US dollar against the Iraqi dinar. The selling price reached 143,500 dinars per 100 dollars, while the buying price was 142,500 dinars per 100 dollars. Traders are cautiously monitoring market activity and the fluctuating exchange rates. https://www.mawazin.net/Details.aspx?jimare=271801
Government Advisor: Iraq's Debt Does Not Pose A Burden On Financial Stability
Economy | 20/12/2025 Mawazin News - Baghdad: The Prime Minister's Financial Advisor, Mazhar Muhammad Salih, confirmed that
Iraq's external debt is 4%, which is within safe limits. He also indicated that both internal and external debt are within internationally accepted safe limits.
Salih stated, "Iraq's external public debt constitutes only about 4% of its GDP, a very low percentage compared to internationally recognized safe limits, which allow external debt to reach up to 60% of GDP." He added, "This means that Iraq is outside the circle of external debt overburden, which is clearly reflected in its stable credit rating at level B over the past years and up to the present."
He continued, "As for domestic public debt, the accumulated amount during the current government's term does not exceed 34 trillion dinars, a figure significantly lower than the hypothetical ceilings anticipated in the three-year budget."
He added, "The financial planning for that budget assumed annual borrowing levels nearly double what was actually achieved over the three years, meaning that the ratio of actual domestic debt to the planned amount did not exceed 15% during the implementation period of the three-year budget, as stipulated by Law No. (13) of 2023."
He pointed out that "the 2026 budget planning takes into account that the outstanding debt balance, particularly the inherited domestic debt accumulated over more than a decade, along with the remaining external debt, collectively constitutes only 31% of the total annual GDP. This percentage also falls within the globally safe range for financial stability and does not represent a structural burden on public finances."
He added, "The 2026 budget's reliance on a hypothetical borrowing ceiling is not a cause for concern; rather, it falls within the framework of sound risk management, particularly regarding the risks of global oil market volatility and its potential impact on planned revenue levels."
He pointed out that "this approach is reinforced by adopting a high level of fiscal discipline, the foundations of which are being laid in the draft federal budget law for next year, through controlling expenditures, enhancing non-oil revenues, and implementing high-level financial governance, while taking into account external shocks, especially those related to energy markets." https://www.mawazin.net/Details.aspx?jimare=271809
Warning Against Using It To Address The Financial Deficit... Economic Observatory: Iraq's Gold Reserves At Their Highest Levels
Saturday, December 20, 2025, 10:28 AM | Economy Number of views: 220 Baghdad ( NINA ) – An economic observatory announced on Saturday that Iraq's gold reserves have reached a record high of approximately $23.064 billion, while simultaneously warning against using or disposing of them to address the country's financial deficit.
The observatory stated in a report that "Iraq purchased approximately 8.2 tons of gold during 2025, bringing the total reserve to 170.9 tons." The report further explained that "this increase was distributed as follows: one ton in March, 1.6 tons in June, 3.1 tons in July, and 2.5 tons in August."
The report indicated that "the total reserve of 170.9 tons is currently equivalent to $23.064 billion, the highest level of gold reserves in Iraq's history."
The observatory attributed "this significant increase to the rise in global gold prices, and not to the volume of purchases made during 2025," explaining that "recent purchases represent approximately 6.4% of the total reserves since the beginning of this year."
The observatory warned against "any manipulation or misuse of gold reserves to cover financial deficits, whether through selling a portion of them or investing them in high-risk ventures," emphasizing that "gold is a sovereign asset dedicated to supporting financial stability, not to generating immediate revenue." /End https://ninanews.com/Website/News/Details?key=1267601
Iraq And Jordan Are Developing A Roadmap For Economic Cooperation And Integration.
December 20, 2025 Amman – Rand Al-Hashemi Baghdad – Qusay Munther Iraq and Jordan agreed to launch a roadmap for economic cooperation and integration between the two countries, which includes opening new investment opportunities and developing trade relations, within the framework of pushing joint development to broader horizons.
Meanwhile, an independent economic observatory warned of the danger of manipulating gold reserves to cover the budget deficit, stressing that such a step could threaten the stability of public finances and weaken confidence in the local economy.
A statement received by Al-Zaman yesterday said that, “Following up on the initiative launched after the meeting between Prince Hassan bin Talal and both the Iraqi Ambassador to the Hashemite Kingdom of Jordan, Omar Al-Barzanji, and the Iraqi Commercial Attaché, Mustafa Thamer Al-Alam, the second meeting of the Iraqi-Jordanian Economic Cooperation and Integration Forum was held, with the participation of a select group of senior business leaders and representatives of the private sector from both countries.”
The statement added that, “This meeting comes within the framework of following up on the directions agreed upon during that meeting, and the resulting formation of a joint working group concerned with exploring mechanisms to enhance economic cooperation, studying opportunities for integration between Iraq and Jordan, and developing projects of common priority.”
It continued, “The participants discussed setting general strategic guidelines for the forum’s work, and defining the executive frameworks for the next phase, including supporting mutual investment, activating the joint industrial zone, and strengthening cooperation in the productive and service sectors. The outcomes of the first meeting were also reviewed, and follow-up mechanisms were updated.”
The statement concluded by saying that, “The forum concluded its meeting by affirming the continuation of holding periodic sessions, expanding participation, and working to develop a practical plan that opens new horizons for cooperation.” (Economic partnership between the two countries).
For his part, Barzanji affirmed that (the forum represents a practical step towards consolidating the economic partnership between the two countries), noting that (all outputs and recommendations will be presented to Prince Talal for final approval and implementation, in a way that supports the path of bilateral economic integration).
On the other hand, an observatory calling itself Eco Iraq warned of the dangers of tampering with Iraq's gold reserves, valued at approximately $23.64 billion, to address the country's financial deficit. The observatory stated in a report yesterday that Iraq purchased approximately 8.2 tons of gold this year, raising its total reserves to 170.9 tons. It noted that this increase was distributed as follows: one ton in March, 1.6 tons in June, 3.1 tons in July, and 2.5 tons in August.
The observatory explained that Iraq's total reserves of 170.9 tons are currently equivalent to $23.064 billion, the highest level ever recorded for gold reserves. It attributed the significant increase in the reserve's value to the rise in global gold prices, not to the volume of purchases made in recent months, which constituted 64 percent of the total reserves since the beginning of the year.
The observatory warned against any manipulation of the gold reserves to cover deficits, whether by selling a portion of them or subjecting them to high-risk investments, emphasizing that gold is a sovereign asset allocated for financial stability, not for generating immediate revenue. In a related development, an economic expert identified key pillars for strengthening the Iraqi economy.Salah Nouri stated yesterday that “economic strength lies in local production that competes with imported goods, especially agricultural and livestock production,” emphasizing that “Iraq is historically an agricultural country and the elements of agricultural production can be provided, provided the water problem is solved at present.”
Nouri explained that “the second pillar depends on strengthening industrial production through public-private partnership contracts, as well as encouraging small and medium enterprises by supporting them with soft loans while ensuring monitoring and regulation of these projects,” stressing “the importance of accelerating the completion of the electricity infrastructure and utilizing the natural gas associated with oil extraction,” calling for “reconsidering the size of the operational budget and streamlining spending, especially unjustified privileges in light of the financial crisis.”
He added that “the success of these pillars, in addition to the International Development Road project, depends on combating corruption in contracting and implementation processes.” LINK
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