Iraq Economic News and Points To Ponder Sunday Afternoon 6-7-26
The Finance Committee Rules Out Approving The 2026 Budget And Confirms: Salary Payments Will Not Be Affected.
Money and Business Economy News – Baghdad The parliamentary finance committee explained that approving the 2026 budget is unlikely given the ongoing work to complete the government program and the cabinet, while stressing that the current priority is securing salaries and addressing the economic challenges facing the government.
Finance Committee member, Ribwar Karim, told the official newspaper, as reported by "Economy News," that "this year's budget will most likely not exist, and work will begin on studying the 2027 budget, stressing that securing salaries will not be affected, and that the government has very large capabilities to address the deficit through internal or external borrowing or by using the Central Bank."
Karim added that "everyone agrees on supporting the government's efforts in securing salaries and reaching the next budget, indicating that things will be clearer in the next budget with regard to the effects of the Strait of Hormuz and oil prices and expanding revenues, especially after the application of the Customs Tariff Law and the ASYCUDA system, which will provide greater diversity in sources of income."
Karim explained that the absence of a budget until the middle of the fiscal year is directly related to the government program, especially since the government is still in the process of completing its formation, and the House of Representatives has granted the Prime Minister the necessary confidence and powers. He stressed that the Finance Committee is ready to support the government in facing the economic challenges, whether the 2026 budget is presented or not, indicating that any move to legislate an alternative law similar to the Food Security Law has not been proposed yet, and the matter is left to the request of the government and the Prime Minister’s vision for the next stage. https://www.economy-news.net/content.php?id=69946
CBI Denies Printing Money To Fund Salaries
2026-06-07 Shafaq News- Baghdad The Central Bank of Iraq (CBI) rejected on Sunday claims that it is printing money to cover government salaries, following remarks by Foreign Minister Fuad Hussein about printing 25 trillion Iraqi dinars to address the country's financial crisis.
Discounting treasury bills differs fundamentally from issuing currency, the bank stressed, describing the former as a standard mechanism used by central banks to provide temporary liquidity against government debt that is repaid at maturity. However, issuing money without corresponding assets is prohibited under Iraq’s Central Bank Law No. 56 of 2004 because it can fuel inflation and weaken the national currency.
CBI pointed out that its role is to manage monetary policy and protect the financial system rather than serve as a permanent source of budget financing, adding that any exceptional measures are implemented under strict controls and according to economic requirements.
“The current circumstances highlight the need for long-term fiscal policies aimed at building financial buffers capable of absorbing economic shocks and oil market volatility,” the bank said, calling for greater economic diversification, broader revenue sources, and efficient public debt management to reduce the impact of future crises and preserve overall economic stability. https://www.shafaq.com/en/Economy/CBI-denies-printing-money-to-fund-salaries
A Busy Week For Financial Markets: Markets Await Spacex's IPO And Inflation Data Amid Interest Rate Concerns.
Money and Business Investors began the week amid sharp fluctuations in global markets, following last week's heavy losses that pushed major US indices lower, as investors reassessed expectations of interest rate hikes this year.
The S&P 500 fell 2.6% on Friday, posting a similar weekly loss, while the Dow Jones Industrial Average declined 1.4% on the same day, ending the week down 0.6%. The Nasdaq Composite suffered the biggest losses, plunging 4.2% on Friday and closing the week down 4.7%.
This week, markets are focused on several key economic and financial events, most notably the highly anticipated initial public offering (IPO) of Elon Musk's SpaceX, as well as major corporate earnings reports and crucial US inflation data.
Oracle is scheduled to announce its earnings on Wednesday, followed by Adobe's results on Thursday, while investors await indicators related to the artificial intelligence and cloud computing sectors.
The most significant event is the anticipated initial public offering (IPO) of SpaceX on Friday, one of the largest in market history, with a price tag of $135 per share, potentially valuing the company at around $1.78 trillion. Investors are closely watching the impact of the listing on the Nasdaq indices and the potential for a significant rebalancing of index funds.
Economically, attention is focused on US inflation data, with the Consumer Price Index (CPI) due on Wednesday, followed by the Producer Price Index (PPI) on Thursday. The Federal Reserve continues to monitor inflation as part of its monetary policy decisions.
The week concludes with the release of the University of Michigan's Consumer Sentiment and Inflation Expectations report, offering further insights into the overall mood of American households after the index fell to a historic low last month.
This momentum comes as investors attempt to balance relatively strong economic data with concerns about persistent inflationary pressures and the possibility of tighter monetary policy in the near future.
https://www.economy-news.net/content.php?id=69981
Iraqi Oil Exports To US Resume At 43,000 Bpd
2026-06-07Shafaq News- Baghdad/ Washington US imports of crude oil from Iraq, OPEC's second-largest producer, rose to 43,000 barrels per day (bpd) last week after no imports were recorded a week earlier, according to data from the US Energy Information Administration (EIA).
The increase placed Iraq eighth among the 10 main suppliers of crude oil to the United States during the reporting week.
Canada remained the largest exporter to the US market with 3.677 million bpd, followed by Venezuela at 568,000 bpd, Brazil at 414,000 bpd, Mexico at 323,000 bpd, Ecuador at 300,000 bpd, Saudi Arabia at 283,000 bpd, and Colombia at 167,000 bpd.
Nigeria followed Iraq with 23,000 bpd, while Libya ranked last among the listed suppliers with 8,000 bpd.
https://www.shafaq.com/en/Economy/Iraqi-oil-exports-to-US-resume-at-43-000-bpd
OPEC+ Approves Fourth Straight Production Hike
2026-06-07Shafaq News- Baghdad/ Vienna Iraq and six other members of the OPEC+ alliance agreed on Sunday to increase oil production by a combined 188,000 barrels per day from July 2026, extending a series of monthly output increases aimed at gradually unwinding earlier supply cuts.
The decision, reached during a virtual meeting involving Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, will lift Baghdad’s production target by 26,000 barrels per day to 4.378 million barrels per day, while Riyadh and Moscow will each increase output by 62,000 barrels per day, bringing their respective targets to 10.353 million and 9.824 million barrels per day.
The boost forms part of the gradual rollback of voluntary production cuts first announced in April 2023. According to OPEC+, the seven countries maintained that the production adjustments remain subject to change and could be paused or reversed depending on market developments.
July’s increase marks the fourth monthly hike, and matches the June hike, which was reduced from the 206,000-barrel-per-day increase implemented in April and May following the UAE's departure from OPEC.
https://www.shafaq.com/en/Economy/OPEC-approves-fourth-straight-production-hike
Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, And Oman Adjust Production And Reaffirm Commitment To Market Stability
The seven OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman met virtually on 7 June 2026, to review global market conditions and outlook.
In their collective commitment to support oil market stability, the seven participating countries decided to implement a production adjustment of 188 thousand barrels per day from the additional voluntary adjustments announced in April 2023. This adjustment will be implemented in July 2026 as detailed in the table below. The additional voluntary adjustments announced in April 2023 may be returned in part or in full subject to evolving market conditions and in a gradual manner.
The countries will continue to closely monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach and retaining full flexibility to increase, pause or reverse the phase out of the voluntary production adjustments, including reversing the previously implemented voluntary adjustments announced in November 2023.
The seven OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation. The seven countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments that will be monitored by the Joint Ministerial Monitoring Committee (JMMC).
They also confirmed their intention to fully compensate for any overproduced volume since January 2024. The compensation period will be extended until the end of December 2026.
The seven OPEC+ countries will hold monthly meetings to review market conditions, conformity, and compensation. The seven countries will meet on 5 July 2026. https://www.opec.org/pr-detail/1781604-7-june-2026.html