Iraq Economic News and Points To Ponder Sunday Afternoon 8-30-26
Iraq Economic News and Points To Ponder Sunday Afternoon8-30-26
Al-Amiri: I Assure Everyone There Will Be No Confrontation Between The State And The Resistance - 8/30/2026
Baghdad - INA - 8/30/2026 The Secretary-General of the Badr Organization Hadi al-Amiri said there would be no confrontation whatsoever between the state and the IRI resistance, stressing that the Coordination Framework had agreed on a decision to combat corruption and those responsible for it.
“I assure everyone that there will be absolutely no confrontation between the state and the resistance,” Al-Amiri said in remarks delivered at a memorial ceremony marking the anniversary of the martyrdom of Grand Ayatollah Mohammed Baqir al-Hakim, according to remarks followed by the Iraqi News Agency (INA).
“The fight against corruption and the corrupt is a decision agreed upon by the Coordination Framework, and we support system" rel="">support the prime minister in this regard,” he said.
Al-Amiri said regulating weapons was “a legitimate national and constitutional objective” and a fundamental step towards building a strong state capable of protecting Iraq and safeguarding its security, sovereignty and dignity.
“Regulating weapons is not an external decision, but a purely Iraqi one,” he said.
Iraq Considers Loans From US Banks To Ease Liquidity Crisis
2026-08-30 Shafaq News- Baghdad The Iraqi government is considering borrowing from US banks as a quick way to address its liquidity crisis rather than print more currency, an informed source told Shafaq News on Sunday.
“The Iraqi government sees this as a practical and quick solution amid the ongoing crises in the region,” the source said, without providing further details.
Iraq is preparing temporary legislation on borrowing, grants and subsidies to cover essential government spending while no federal budget is in place. The parliamentary Finance Committee said Parliament is awaiting the government’s formal submission of the draft law to prevent a funding gap.
Data from the Central Bank of Iraq (CBI) showed that the total value of currency issued rose to 111.189 trillion dinars ($84.5 billion) by the end of June 2026. By the end of June, currency held outside banks accounted for about 91.7% of the total, while the remaining 8.3% was held in bank vaults.
https://shafaq.com/en/Economy/Iraq-considers-loans-from-US-banks-to-ease-liquidity-crisis
Banking Sector Faces Turning Point In Iraq’s Reform Drive
2026-08-30 Shafaq News- Baghdad Iraq’s banking sector faces a “critical crossroads” after years of weak management, oversight failures and declining public confidence have limited its ability to attract savings and finance investment and development, the prime minister’s economic adviser told Shafaq News on Saturday.
Mudher Mohammed Saleh said building an efficient banking system could no longer be delayed, particularly in an economy heavily dependent on oil for foreign currency.
“Restoring confidence requires stronger governance, supervision and compliance, strict anti-money laundering and counter-terrorist financing standards, restructuring troubled banks, addressing weaknesses in their financial positions and raising capital in line with risk levels and modern banking requirements.”
Technology is another key part of the overhaul, Saleh said, calling for improved digital systems, cybersecurity and risk management, along with secure and reliable electronic payment services. Such measures would reduce reliance on cash, expand financial inclusion and bring more people into the formal banking system.
However, technology and oversight alone would not restore confidence. Banks also need greater transparency, stronger depositor protections, clear deposit safeguards, faster complaint handling and the ability to protect customers’ money, according to the advisor.
He called for banks to shift from traditional services and liquidity management toward financing the real economy, particularly small and medium-sized enterprises and productive agricultural, industrial and service sectors.
“A bank that does not finance productive economic activity remains a financial intermediary with limited impact,” he said, adding that institutions capable of mobilizing savings, managing risks and financing production and investment can become partners in development.
From Cash to Credit
International economics professor Nawar Al-Saadi told Shafaq News that banking reform had become essential for moving Iraq from a cash-based economy toward one driven by financing. He said the Central Bank of Iraq’s (CBI) program offers banks several paths, including remaining in business, merging or leaving the market, alongside tougher governance, compliance and risk-management requirements.
Rebuilding confidence requires sound governance, solvency and transparency rather than campaigns to attract deposits, Al-Saadi said. He called for resolving the status of banks unable to continue operating, strengthening the capital of viable institutions, improving disclosure and independent auditing, and holding boards and executives accountable for violations.
Depositors should find banks “safer and easier to use” than keeping cash, he added. This would also require greater lending to small and medium-sized businesses and productive sectors, as well as effective credit-scoring systems instead of excessive reliance on traditional collateral.
Protecting Deposits
Economic expert Ahmed Al-Janabi said reform required a comprehensive package beginning with restoring confidence and protecting depositors’ money, noting that many Iraqis remain reluctant to place their savings in banks.
He noted that the reform program involving global consultancy Oliver Wyman was developed against the backdrop of restrictions on several Iraqi banks. Seven institutions subsequently entered an initial phase allowing them to resume transactions and transfers in foreign currencies other than the dollar, while further reforms remain underway.
Al-Janabi estimated that currency issued by the CBI totals around 103 trillion dinars, while about 20 trillion dinars remain outside the banking system, much of it “hoarded in homes.”
Economic expert Ahmed Abdul Rabbo said the reforms undertaken with Oliver Wyman were important for rebuilding the banking sector, improving its efficiency and strengthening its links to the global financial system, calling for faster implementation.
He welcomed the decision allowing seven banks to conduct foreign transfers in currencies other than the dollar but said the priority should be enabling them to gradually resume broader operations. Reform should also extend beyond those institutions, he said, with other banks assessed and allowed to conduct foreign transfers once they meet the required standards.
The Central Bank has been working with international firms to overhaul the banking sector and address compliance problems that had cut several Iraqi banks off from dollar transactions.
On July 18, the CBI reached an agreement with the US Treasury Department allowing seven eligible banks to resume foreign correspondent banking in currencies other than the dollar. Access to dollar transactions remains subject to further compliance, governance and relicensing requirements.
https://shafaq.com/en/Economy/Banking-sector-faces-turning-point-in-Iraq-s-reform-drive
Al-Zaydi: We Directed The Exposure Of Corrupt Individuals And The Activation Of The Law Rewarding Informants.
2026-08-29 Shafaq News - Baghdad During his visit on Saturday to the headquarters of the Federal Integrity Commission, Prime Minister Ali al-Zaidi directed the activation of the law rewarding informants about corruption cases, the strengthening of monitoring border crossings, and the exposure of corrupt individuals, stressing the need to submit monthly and quarterly reports on the progress of combating corruption and the level of achievement.
During the field visit, Al-Zaydi met with the head of the commission and its senior staff, and was briefed on its working mechanisms and efforts in combating corruption and protecting public funds, according to a statement issued by his media office.
The statement quoted Al-Zaydi as saying that "the Integrity Commission is a monument that cannot be measured by its walls, but rather by its scales, and by its two pans, which are integrity and the preservation of public funds," stressing that the battle against corruption is great, and that the commission represents the first line of defense in it.
The Prime Minister stressed that the role of the commission should not be limited to the oversight aspect, but should also include the preventive aspect, stressing the need to work on eradicating the corruption system completely, and to follow up on the governorates’ projects in the same way as the ministries’ projects.
He directed that projects be monitored according to three levels that correspond to the size and cost of the project, starting with high-cost projects, then medium-cost projects, and then small projects, in order to ensure that the supervisory effort is directed more effectively.
For his part, the head of the commission confirmed the formation of field teams to audit contracts in state institutions. The audit of contracts for eight ministries has been completed, while work continues to complete the rest of the institutions.
He pointed out the completion of the National Strategy for Integrity and Combating Corruption, which extends until 2030, and stressed the commission’s readiness to move forward in combating corruption and preserving public funds.
https://www.shafaq.com/ar/سیاسة/الزيدي-وج-هنا-بفضح-الفاسدين-وتفعيل-قانون-مكاف-ة-المخبرين