Iraq Economic News and Points To Ponder Sunday Afternoon 2-15-26
Iraq's Liquidity Crisis Threatens Public Sector Salaries And Pensions
2026-02-15 Shafaq News- Baghdad Iraq’s financial resources are no longer sufficient to secure public sector salaries and pensions, informed sources told Shafaq News on Sunday, as the government withdrew about $18B from official banks.
The sources noted that the Iraqi cabinet withdrew nearly 20 trillion Iraqi dinars (approximately $13.2B) from Rafidain Bank, between 7 and 8 trillion dinars ($4.6–5.3 billion) from Rasheed Bank, and about $7 billion from another bank. Additional funds were also drawn from the industrial and agricultural banks to finance salary payments in recent months.
These measures have significantly depleted liquidity in state-owned banks and increased the likelihood of payment delays unless urgent financial solutions are implemented. “The crisis could further strain Iraq’s fragile finances, particularly amid mounting concerns over mismanagement, waste of public funds, and suspected irregularities in certain issues,” they said, pointing to the need for urgent reform measures to safeguard financial stability and ensure the timely disbursement of salaries and pensions.
Since December, Iraq’s state-owned banks, particularly Rafidain and Rasheed, have suspended government lending programs due to declining liquidity and weak credit planning, informed sources previously told Shafaq News. The disruption coincided with delayed salary disbursements earlier this year, fueling public concern over the government’s ability to sustain payroll obligations amid mounting fiscal pressure and reliance on short-term liquidity measures.
Read more: Liquidity shortage delays Iraqi salaries: Experts warn of prolonged financial strain
Dollar Climbs In Baghdad And Erbil
2026-02-15 Shafaq News- Baghdad/ Erbil The US dollar closed Sunday’s trading higher in Iraq, hovering around 151,000 dinars per 100 dollars.
According to a Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 151,000 dinars per 100 dollars, up from the morning session’s 150,700 dinars.
In the Iraqi capital, exchange shops sold the dollar at 151,500 dinars and bought it at 150,500 dinars, while in Erbil, selling prices stood at 150,850 dinars and buying prices at 150,800 dinars.https://www.shafaq.com/en/Economy/Dollar-climbs-in-Baghdad-and-Erbil-8
Gold Prices Stabilize In Baghdad And Erbil Markets
2026-02-15 Shafaq News- Baghdad/ Erbil On Sunday, gold prices hovered around 1.07 million IQD per mithqal in Baghdad and Erbil markets, holding steady, according to a survey by Shafaq News Agency.
Gold prices on Baghdad's Al-Nahr Street recorded a selling price of 1,068,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 1,064,000 IQD.
The selling price for 21-carat Iraqi gold stood at 1,038,000 IQD, with a buying price of 1,034,000 IQD.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 1,070,000 and 1,080,000 IQD, while Iraqi gold sold for between 1,040,000 and 1,050,000 IQD.
In Erbil, 22-carat gold was sold at 1,133,000 IQD per mithqal, 21-carat gold at 1,082,000 IQD, and 18-carat gold at 927,000 IQD. https://www.shafaq.com/en/Economy/Gold-prices-stabilize-in-Baghdad-and-Erbil-markets-4-8
Dollar Edges Lower In Baghdad And Erbil
2026-02-15 Shafaq News- Baghdad/ Erbil The US dollar opened Sunday’s trading lower in Iraq, hovering around 151,000 dinars per 100 dollars.
According to a Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 150,700 dinars per 100 dollars, down from the previous session’s 151,250 dinars.
In the Iraqi capital, exchange shops sold the dollar at 151,250 dinars and bought it at 150,250 dinars, while in Erbil, selling prices stood at 150,700 dinars and buying prices at 150,600 dinars.https://www.shafaq.com/en/Economy/Dollar-edges-lower-in-Baghdad-and-Erbil
Iraq’s Basrah Medium Crude Rises 0.62% In January
2026-02-14 Shafaq News- Baghdad Iraq’s Basrah Medium crude averaged $61.28 per barrel in January 2026, up from $60.90 in December, according to OPEC’s monthly report.
The OPEC reference basket also climbed to $62.28 per barrel in January, compared with $61.74 the previous month. Despite the monthly increase, prices remain well below the $77.98 per barrel annual average recorded in 2025.
In spot trading, Basrah Heavy closed at $62.53 per barrel, down 1.29% on the week, tracking broader declines in global benchmarks including Brent and US West Texas Intermediate.
Iraq, OPEC’s second-largest oil producer, exports roughly 70% of its crude to Asia, 20% to Europe, and 10% to the United States. https://www.shafaq.com/en/Economy/Iraq-s-Basrah-Medium-crude-rises-0-62-in-January
Iraq’s Collapsed Economy Is Becoming A Threat To OPEC, Bloomberg Report Says
2020-10-28 Shafaq News / Iraq's collapsed economy could turn into a threat to OPEC, which is struggling to maintain oil prices, as some Iraqis want the government to put them first by pumping more oil.
A report by Bloomberg said that if an important partner like Iraq violates the agreement, it is certain that lesser countries will follow suit.
The report indicated that Iraq, the third-largest oil exporter in the world, is facing an economic collapse after COVID-19 led to a decline in global energy demand and lower prices, causing a financial that the government is unable to pay the salaries.
As by the report, this created a dilemma for Iraqi Oil Minister, Ihsan Abdul-Jabbar, who is now caught between the demands of the ongoing angry protests and the pledges made to OPEC allies.
The American Agency's report highlighted the Iraqi paradox. Reducing exports, according to the report, carries huge economic and political costs for Iraq, while the failure to adhere to OPEC+ agreement might cause a decline in prices, which will, consequently, has downsides on Iraq's financial income.
As one of the five founding members of the Organization of Petroleum Exporting Countries (OPEC), it is unlikely that Iraq would violate the agreement. However, Saudi Arabia, which actively participated in setting the agreement to reduce production, will retaliate by increasing production and pushing oil prices further down, according to the aforementioned report.
The report quotes a person familiar with the matter as saying that Iraqi officials might instead exert pressure on the Saudis to obtain financial aid if crude oil prices remained below the threshold of 45$ a barrel in the first half of 2021.
Oil prices in global markets have been slightly fluctuating recently but improved significantly compared to the early months of the COVID-19 pandemic. The price of a barrel currently ranges between 42 and 45 dollars compared to less than 20 dollars last April.https://www.shafaq.com/en/Economy/Iraq-s-collapsed-economy-is-becoming-a-threat-to-OPEC-Bloomberg-report-says