Iraq Economic News and Points To Ponder Sunday Afternoon 8-17-25

Al-Sudani's Advisor Identifies The Reasons For The Decline In The Dollar Exchange Rate.

Money and Business  Economy News – Baghdad  The Prime Minister's financial advisor, Mazhar Mohammed Saleh, outlined the reasons for the decline in the dollar exchange rate and its impact on the country's economic recovery on Sunday.

Saleh said, "The Iraqi parallel market has witnessed a significant decline in the dollar exchange rate against the dinar in recent months, reflecting shifts in demand and money supply, and raising questions about the extent to which this decline will impact economic activity and the balance of commodity prices."

He added, "Because the parallel (secondary) foreign exchange market is an information-based market, the efficiency of economic policy, with its financial, monetary, and commercial pillars, implemented in accordance with an integrated strategic framework, has contributed to transforming this market from a state of information noise with excessive price deviations, to a stable market that deals with clear and disciplined information (white noise), and in many cases, it has become led by the official market, not the other way around."

He pointed out that "the trend of the dollar's decline in the parallel market towards the official price can be attributed to the efficiency of coordination between government policies, through the following axes: (legally criminalizing the use of the dollar in local transactions, especially in the real estate market, which is one of the sectors with the highest demand for foreign currency, which strengthened the role of the dinar in daily trading, and the shift to an external financing system through international correspondent banks, instead of relying directly on the Central Bank window, a measure that reduced compliance risks and kept large traders away from relying on high-cost and high-risk parallel market financing)."

He added: "Integrating small importers into the official foreign currency financing network has enabled them to obtain dollars at the official exchange rate directly, without the need for intermediaries from currency companies.

This represents approximately 60% of import activity, thanks to administrative facilitations and the reduction of bureaucratic links.

This is in addition to the cultural shift in travelers' behavior towards using electronic payment cards in foreign currency, which has eased pressure on cash dollars, while maintaining the possibility of obtaining a specific cash share from airports on favorable terms and with strict compliance.

In addition, a smart defensive pricing policy has been adopted, represented by the spread of cooperative societies to distribute food commodities, construction goods, and others, with import financing based on the official rate of 1,320 dinars per dollar.

This has contributed to the stability of the commodity market and achieving a reasonable balance between supply and demand."

He pointed out that "the expected economic impacts can be monitored as follows:

First, on the economic movement, which is represented by: (a decrease in import costs and an increase in purchasing power, strengthening confidence in the Iraqi dinar and stimulating local investment, and a revival of domestic commercial activity as a result of lower operating costs, and

second, the economic impacts are directed at the prices of basic commodities, most notably (a decrease in the prices of imported food and medicine, and a reduction in inflation resulting from fluctuations in the exchange rate, as well as improving the purchasing power of citizens, and that the instability of the exchange markets has effects on the state of balance in the prices of basic commodities, and increases their fluctuations in such cases."

Saleh concluded by saying: “Efficiently controlling economic policy with its three pillars: fiscal, monetary, and trade, along with strong law enforcement, remains an important factor in providing a framework for stability, specifically: (maintaining the gradual unification of the official and parallel exchange rates, as well as increasing the supply of dollars through official channels, in addition to tightening controls on speculators and the black market, and stimulating local production to reduce dependence on imports within strong and stable supply policies that provide national producers with greater flexibility in supplying capital goods, raw materials, and production supplies.” https://economy-news.net/content.php?id=58891

Iraq's Oil Exports To The US Decline By More Than 130,000 Barrels Per Day.

Energy   Economy News – Baghdad The U.S. Energy Information Administration announced on Sunday that Iraqi oil exports to the United States fell by more than 130,000 barrels per day last week.

The administration said, "U.S. crude oil imports from nine major countries averaged 5.911 million barrels per day last week, up 322,000 barrels per day from the previous week's average of 5.589 million barrels per day."

She added, "Iraq's oil exports to the United States averaged 142,000 barrels per day, down 137,000 barrels per day from the previous week's average of 279,000 barrels per day."

The administration also indicated that "the largest US oil revenues during the past week came from Canada, at a rate of 4.045 million barrels per day, followed by Mexico, at a rate of 398,000 barrels per day, Brazil, at a rate of 344,000 barrels per day, and Colombia, at a rate of 343,000 barrels per day."

According to the table, "US crude oil imports from Saudi Arabia averaged 273,000 barrels per day, from Nigeria 213,000 barrels per day, from Libya 80,000 barrels per day, from Ecuador 65,000 barrels per day, and no imports from Venezuela."   https://economy-news.net/content.php?id=58871

Central Bank: Financing Guide Is A Step Towards Restructuring The Banking Sector And Enhancing Financial Inclusion.

Banks  Economy News – Baghdad   The Central Bank announced on Sunday that the Access to Finance Guide is an important step for financial institutions and the restructuring of the banking sector. It also noted that the National Lending Strategy and the National Financial Inclusion Strategy have facilitated access to finance.

In a speech during the launch of the Access to Finance Guide, the bank's Deputy Governor, Ammar Hamad Khalaf, said, "In cooperation with the German Agency for International Cooperation and the Association of Private Banks, the Access to Finance Guide was launched today to facilitate the financing situation, remove obstacles, and facilitate access to it with the aim of achieving development and increasing supply and demand."

He explained that "the facilities provided represent an important step for financial institutions and the restructuring of the banking sector, particularly for small and medium-sized enterprises," indicating that "the multiplicity of entities supporting these projects leads to the dispersion of efforts and a lack of focus on additional projects.

Therefore, the first recommendation of the committee supervising the implementation of the national strategy for the sector is to establish an independent national entity to oversee these projects and work to mobilize financial and technical support for them according to an integrated vision that ensures optimal investment of funding sources."

He added that "a large proportion of small businesses remain part of the informal economy, which prevents them from accessing formal financing," noting that "the Central Bank has launched financing initiatives since 2015 that have helped support thousands of small and medium-sized enterprises, in addition to large projects and housing loans."

He pointed out that "the Iraqi government has recognized the importance of entrepreneurial projects and launched the "Riyada" initiative, from which hundreds of projects have benefited to date, and the Central Bank has become a significant contributor to financing these projects."

He continued, "The recently launched National Lending Strategy and National Financial Inclusion Strategy have facilitated access to financing, given its importance. This guide, whose launch we are celebrating today, complements the measures taken by the renewal strategy and aims to achieve key objectives, including enabling entrepreneurs to identify official sources of financing and enhancing financial literacy to achieve continuous and sustainable growth across various sectors." https://economy-news.net/content.php?id=58888

Al-Sudani: Economic Development Must Proceed Through Optimal Investment Of Funds

Money and Business  Economy News – Baghdad   Prime Minister Mohammed Shia al-Sudani stressed on Sunday that economic development must proceed through optimal investment of funds in locations with the highest returns.

A statement from his media office, received by Al-Eqtisad News, stated that "Al-Sudani chaired a meeting devoted to discussing ways to maximize non-oil revenues and support and enhance the state's financial resources. The meeting was attended by the Minister of Finance, the Minister of Trade, the Mayor of Baghdad, the Governor of the Central Bank of Iraq, and a number of advisors and general managers."

He pointed out that "the meeting discussed the use of modern technologies, digital mechanisms, and automation to maximize revenues and promote projects with higher returns."

The Prime Minister emphasized that "economic development must proceed through optimal investment of funds in locations with the highest returns, and by developing plans to rationalize spending and reduce waste."

He explained that "the meeting discussed the Ministry of Trade's revenues and maximizing them, enhancing the quality of ration card items, the best economic ways to manage wheat purchasing and storage operations, the absorptive capacity for the coming seasons and spending in this regard, as well as discussing the organization of Baghdad Municipality's revenues, the optimal path for managing real estate resources, institutions and their projects and collection methods, in addition to presenting the implementation of collection in the electricity sector and the objective plans in this regard." https://economy-news.net/content.php?id=58890

The Withdrawal Of US Forces Raises Questions About Stability In Iraq.

Political |- 08/17/2025  Mawazine News - Baghdad -  In a move described as having intertwined political and security dimensions, US forces have begun reducing their military presence in some Iraqi bases. The timing raises widespread questions about its repercussions for the country's stability, especially with the escalation of threats emanating from the north.

Officials in Baghdad confirmed that the withdrawal is taking place in accordance with joint understandings with Washington and comes in response to repeated demands to end the foreign presence. However, analysts believe that the move carries deeper implications, as it may reflect a strategic repositioning rather than a final withdrawal.

The timing is sensitive, as the country faces complex security challenges in the north, where ISIS remnants are operating in some rugged areas, in parallel with Turkish military operations against the Kurdistan Workers' Party (PKK), as well as armed movements on the Syrian-Iraqi border.

This situation, according to observers, may present Iraq with a difficult test. While the public and political forces welcome the withdrawal as a reinforcement of national sovereignty, concerns are growing about the possibility of a security and intelligence vacuum that could be exploited by extremist groups or regional parties.

Others, however, believe the withdrawal could become an opportunity to strengthen the state's capabilities if it is accompanied by clear plans to fill the vacuum, activate cooperation between federal forces and the Peshmerga, and support intelligence and border control agencies.

Between concern and optimism, the most important question remains: Will Iraq be able to transform the US withdrawal into a platform for strengthening stability and sovereignty, or will the timing leave a vacuum that further destabilizes the security landscape? https://www.mawazin.net/Details.aspx?jimare=265233

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