Iraq Economic News and Points To Ponder Sunday Afternoon 8-2-26
Iraq Faces ‘Cash-Flow’ Strain, Not Bankruptcy
2026-08-02 Shafaq News- Baghdad Iraq’s financial situation reflects difficulties managing cash flows under exceptional uncertainty, rather than a lack of resources or risk of bankruptcy, Prime Minister Ali Al-Zaidi’s financial and economic adviser Mudher Mohammed Saleh told Shafaq News on Saturday.
Saleh stated that the government could continue paying salaries and meeting essential obligations if it managed its fiscal and monetary tools efficiently, but if the war continues into early next year and further affects oil exports, Baghdad may rely on domestic and external borrowing alongside reordered spending priorities.
Iraq’s foreign reserves are a “safeguard” for stable financial flows, he said, arguing that effective crisis management and faster economic reforms could preserve budget financing despite regional disruption.
The country relies heavily on crude exports to finance public spending, earning over $18 billion from the sale of 268.09 million barrels during the first half of 2026, according to the State Organization for Marketing of Oil (SOMO), less than the revenue reported for only four months of the same period last year. Shipping disruptions through the Strait of Hormuz sharply reduced exports from Iraq’s southern terminals, tightening government liquidity while salaries and other recurrent obligations continued to fall due.
Finance Minister Faleh Al-Sari said monthly payments to public employees, pensioners, and social-welfare recipients total about 7.8 trillion dinars ($5.95B). The ministry had disbursed around 3 trillion dinars ($2.29B) and held about 1.5 trillion dinars ($1.15B) in available liquidity, leaving an estimated funding gap of 3.3 trillion dinars ($2.52B).
The shortage has also affected essential services, with Health Minister Abdul Hussein Al-Mousawi saying salaries had become the government’s priority.
Read more: No exit but Hormuz: Iraq's economic vulnerability exposed
https://www.shafaq.com/en/Economy/Iraq-faces-cash-flow-strain-not-bankruptcy
US Extends Streak Of Zero Iraqi Oil Imports
2026-08-02 Shafaq News- Baghdad/ Washington The United States imported no crude oil from Iraq for the fifth consecutive week, according to data released by the US Energy Information Administration (EIA).
Canada remained the largest foreign supplier of crude to the United States during the week, exporting 3.62 million barrels per day (bpd), followed by Venezuela (673,000 bpd), Brazil (269,000 bpd), and Ecuador (230,000 bpd). The EIA data showed no crude imports from either Iraq or Saudi Arabia during the reporting period.
Iraq last exported crude to the United States during the week ending June 19, when shipments averaged 71,000 bpd.
The country lost an estimated 302.8 million barrels of oil production during the first half of 2026 as the US-Iran war disrupted extraction and exports through the Strait of Hormuz. As OPEC’s second-largest producer, Iraq relies on crude sales for about 90% of state revenue, leaving its economy highly vulnerable to disruptions in the Strait, which carries roughly one-fifth of global oil supplies.
Read more: No exit but Hormuz: Iraq's economic vulnerability exposed
https://www.shafaq.com/en/Economy/US-extends-streak-of-zero-Iraqi-oil-imports
USD/IQD Exchange Rates Climb In Baghdad, Erbil
2026-08-02 Shafaq News- Baghdad/ Erbil The US dollar strengthened against the Iraqi dinar in Baghdad and Erbil on Sunday, hovering around 152,000 dinars per $100 across local currency markets.
According to Shafaq News market survey, the dollar traded at 151,800 Iraqi dinars per $100 on Baghdad’s al-Kifah and al-Harithiya central exchanges, up from 150,850 dinars on Saturday.
In Baghdad’s retail market, exchange offices sold dollars at 152,250 dinars per $100 and bought them at 151,250 dinars.
In Erbil, the dollar sold at 152,200 dinars per $100 and was bought at 152,100 dinars.
https://www.shafaq.com/en/Economy/USD-IQD-exchange-rates-climb-in-Baghdad-Erbil-5-3
OPEC Eyes 185K+ Bpd Output Boost Before Year-End Freeze
2026-08-02 Shafaq News- Vienna OPEC will raise its oil production targets by about 188,000 barrels per day (bpd) in September before pausing further output increases for the rest of the year, Reuters reported on Sunday.
Citing sources familiar with the matter, the outlet noted that the alliance is tying the adjustment to its plan to gradually return more supply to the market after years of production cuts designed to support oil prices.
At its meeting on Sunday, OPEC will also assess market conditions and discuss production quotas for 2027.
OPEC output climbed to 19.34 million bpd in June, rising by 3.3 million bpd from the previous month, as Gulf producers restored supplies following disruptions linked to the effective closure of the Strait of Hormuz.
The strategic maritime gateway, which carries about 20% of global oil supplies, has remained largely closed since Feb. 28 after Iran restricted maritime traffic in response to the conflict involving Washington and Tehran.
Read more: No exit but Hormuz: Iraq's economic vulnerability exposed
https://www.shafaq.com/en/Economy/OPEC-eyes-185K-bpd-output-boost-before-year-end-freeze
Gold Prices Inch Higher In Baghdad, Erbil
2026-08-02 Shafaq News- Baghdad/ Erbil Gold prices rose in Baghdad and Erbil on Sunday, with 21-carat gold hovering around 870,000 Iraqi dinars per mithqal (about five grams) in local markets, according to Shafaq News survey.
In Baghdad’s wholesale market on Al-Nahr Street, imported 21-carat gold from the Gulf, Turkiye and Europe sold for 870,000 dinars per mithqal and was bought at 866,000 dinars, up from 866,000 dinars on Saturday.
Iraqi 21-carat gold sold for 842,000 dinars per mithqal and was bought at 836,000 dinars.
In jewellery shops, imported 21-carat gold ranged from 870,000 to 880,000 dinars per mithqal, while Iraqi gold traded between 840,000 and 850,000 dinars per mithqal.
In Erbil, 22-carat gold sold for 905,000 dinars per mithqal, 21-carat gold for 865,000 dinars, and 18-carat gold for 740,000 dinars. https://www.shafaq.com/en/Economy/Gold-prices-inch-higher-in-Baghdad-Erbil-3-1
Weekly Trading Value On Iraq Bourse Plunges 63%
2026-08-02 Shafaq News- Baghdad Trading activity on the Iraq Stock Exchange (ISX) slowed sharply, with the value of transactions falling more than 63% from the previous week to 17.46 billion Iraqi dinars ($13.3M).
According to the exchange's weekly report, trading took place over five sessions involving 69 listed companies. Shares of 26 companies were not trade because buy and sell orders failed to match, while eight companies remained suspended for failing to meet disclosure requirements.
The ISX15 index closed at 1,267.67 points, down 0.17% from the previous week, while the broader ISX60 index slipped 0.30% to 1,041.07 points.
Weekly trading volume dropped 67.90% from the previous week, and the total value of trades declined 63.62%. By contrast, the number of executed transactions rose 3.41%.
Foreign investors bought 65.596 million shares worth 55.461 million Iraqi dinars ($42.3K) in 102 transactions and sold 32.742 million shares valued at 282.051 million Iraqi dinars ($215.3K) through 150 transactions.
The Iraq Stock Exchange holds five trading sessions each week, from Sunday to Thursday, and includes 104 listed Iraqi joint-stock companies representing the banking, telecommunications, industry, agriculture, insurance, financial investment, tourism, hotel, and service sectors. https://www.shafaq.com/en/Economy/Weekly-trading-value-on-Iraq-bourse-plunges-63