Iraq Economic News and Points To Ponder Sunday Morning 1-4-26
Iraqis Welcome Their New Year With Hopes For The Formation Of A Government That Meets Their Aspirations.
January 3, 2026 Baghdad – Qusay Munther
Iraqis bid farewell to 2025, a year fraught with challenges, and welcomed the new year with hopes for security and stability, and for the swift formation of a government capable of meeting citizens' needs and fulfilling their aspirations, free from political infighting. Citizens expressed their hopes for the new year, stating, "Our wish is for a government that meets the needs of the people and achieves our ambitions, one that is free from conflict and political maneuvering." They also emphasized the importance of strengthening the rule of law and ensuring development and essential services for all provinces.
Decent Life
They emphasized the necessity of providing a dignified and secure life for all Iraqis. President Abdul Latif Jamal Rashid expressed his hope that the new year would be filled with national achievements. In a post on the X platform yesterday, Rashid said, "On the occasion of the new year, we extend our sincerest congratulations to our people, wishing everyone greater security, stability, and progress."
He added, "We hope this year will be full of national achievements, continued progress on the path of construction and reform, strengthening the rule of law, and fulfilling the people's aspirations for a dignified and secure life, one characterized by peace and prosperity." For his part, caretaker Prime Minister Mohammed Shia' al-Sudani also congratulated the people on the new year.
In a statement yesterday, Al-Sudani said, “As we welcome a new year, I am pleased to extend my best wishes to all segments of our brotherly nation, that the new year will be a year of continued sincere work for the well-being and progress of our people, praying to God Almighty to protect Iraq and its people, a country as vast as the history of humanity, and a source of civilizations and contributions that have enriched humanity with its knowledge, sciences, and heritage.”
He added, “In the new year, we renew our determination to reaffirm to our people our commitment to serving our people everywhere, continuing our efforts in development, services, and reconstruction, and dedicating ourselves to providing all the aspirations of citizens and the requirements for their dignified lives.”
Consolidating Stability
Speaker of Parliament Haibat al-Halbousi also offered his congratulations on the New Year. In a post on the X platform yesterday, al-Halbousi said, “Our national responsibility compels us to work towards consolidating stability, strengthening confidence in constitutional institutions, and moving forward in a way that serves the Iraqi people and fulfills their hopes and aspirations.
May Iraq grow stronger each year through the unity of its people.” For his part, Deputy Speaker of Parliament Adnan Faihan expressed his hope that the New Year would bring tidings of goodness, progress, and stability.
In a statement yesterday, Faihan affirmed that “this occasion represents a unifying human milestone, transcending borders, geography, nationalities, and sects, and reinforcing the values of coexistence and tolerance among all peoples.
” He pointed out that “Iraq, with its rich civilizational and human history, is steadily moving towards consolidating stability and building a state of institutions,” calling for the New Year to be “an opportunity to strengthen national unity and support the paths of reform and development.”
Values Of Tolerance
Deputy Speaker of Parliament Farhad al-Atroushi also extended his New Year's greetings to the Iraqi people. In a statement yesterday, al-Atroushi said, "This occasion represents an opportunity to strengthen the values of tolerance, peaceful coexistence, and national unity," emphasizing "the importance of continuing efforts and joint cooperation to build a state of institutions and achieve the aspirations of citizens for security, prosperity, and social justice."
Meanwhile, Nouri al-Maliki, head of the State of Law Coalition, wished that the New Year would bring all goodness, peace, and stability.
In a statement yesterday, al-Maliki said, "We hope that peace will prevail in the world, alleviating the pain, fear, and poverty of our citizens, and opening doors of hope for our people, and for our Iraq, greater tranquility and prosperity." He added, "May the Iraqi people and their national forces continue to embrace and support the political, security, and economic processes until a prosperous and well-being-oriented Iraq is achieved." LINK
Iraq Takes Over UNAMI Sites Across The Country
Baratha News Agency1912026-01-03 The Ministry of Foreign Affairs announced on Saturday that it had taken over the sites of the UN mission "UNAMI" throughout the country after the end of its mission.
The ministry stated in a statement that “within the framework of the government’s decision to end the work of the United Nations Assistance Mission for Iraq (UNAMI), and based on Security Council Resolution No. 2732 (2024) stipulating the termination of the mission’s work on 12/31/2025, the Undersecretary of the Ministry of Foreign Affairs and Chairman of the Committee concerned with receiving the sites of the UN mission throughout the country, Mohammed Hussein Bahr Al-Uloom, signed with the Deputy Special Representative of the Secretary-General of the United Nations, Claudio Cordone, the minutes of the handover of the integrated United Nations compound in Baghdad.”
She added that "the signing ceremony included an inspection tour of the complex and its facilities, where Ambassador Bahr Al-Uloom praised the efforts made by the UNAMI mission over the past two decades, and the level of cooperation and fruitful partnership with Iraq, which has contributed effectively to supporting stability and development in various sectors, especially consolidating democracy and promoting human rights, women's rights and social justice."
Ambassador Bahr Al-Uloom recalled the sacrifices of the UNAMI mission, especially the mission members who lost their lives while performing their duties in 2003, most notably the first head of the mission, the late Sergio de Mello, expressing “Iraq’s thanks and appreciation to all the Special Representatives of the Secretary-General who have led the mission, up to the current Special Representative, Mohammed Al-Hassan.”
Both sides affirmed that “the termination of UNAMI’s mission does not represent the end of cooperation between Iraq and the United Nations, but rather constitutes the beginning of a new phase of development partnership, led by the United Nations Country Team in line with national priorities and enhancing the successes achieved.”
https://burathanews.com/arabic/news/469564
Government Advisor: The Complexities Of Oil And Gold Are Having Silent Repercussions On Iraq's Economy.
Time: 2026/01/03 16:16:43 Reading: 60 times {Economic: Al-Furat News} The economic advisor to the Prime Minister, Mazhar Muhammad Saleh, described the relationship between oil and gold as "complex," stressing that its repercussions are often silent but influential on the Iraqi economy.
Saleh told Al-Furat News Agency that “expectations of a decline in gold and silver gains with rising oil prices are not a fixed rule,” noting that “it is only true if the rise in oil prices is due to strong global demand and tight monetary policy, especially on the part of the US Federal Reserve.”
He added that "the picture is different if the rise in oil prices is driven by geopolitical tensions or supply-side shocks, in which case oil and gold could rise together as hedging tools in global markets."
Regarding the impact of these changes on Iraq, Saleh explained that "the direct impact remains limited; however, the indirect impact is significant," indicating that "the rise in oil prices in the absence of a general budget temporarily improves liquidity; but on the other hand, it exacerbates the limitations of spending planning and fuels imported inflationary pressures."
He pointed out that "the weakness of global gold prices may lead to additional pressure on the exchange rate due to its connection with the components of Iraq's foreign reserves, which currently constitute about 29% of total international reserves."
Saleh concluded by saying that "the rise in oil prices, even in the absence of a clear budgetary framework, transforms temporary gains into limited and short-term positive financial effects, regardless of the trends in gold and silver in global markets." LINK
Oil Prices Fluctuated In The First Days Of 2026 Due To Concerns About Oversupply And Political Tensions
Energy Economy News — Follow-up Oil prices fluctuated on the first trading day of 2026, as expectations of a supply surplus offset the impact of geopolitical risks on production in a number of OPEC+ member countries.
Brent crude futures settled below $61 a barrel in a relatively thin trading session, while West Texas Intermediate settled at $57. Middle Eastern markets, including derivatives such as the regional benchmark Dubai crude, stumbled amid heavy selling pressure during a key Asian trading window, according to traders familiar with the matter.
Amid a seasonal decline in consumption, OPEC is inclined to be cautious. Key members of the Saudi-led OPEC+ alliance are scheduled to hold an online meeting on January 4, where they are expected to confirm a decision to halt supply increases during the first quarter.
Selling pressure on oil amid expectations of a supply glut
Oil prices fell in 2025 as OPEC+ and other competitors, such as the United States and Guyana, increased production at a time when demand growth slowed. The International Energy Agency predicted a surplus of about 3.8 million barrels per day during the year.
Amid these expectations, advisors increased their short positions on Brent crude to 91% on Friday, up from 82%, according to data from Bridgeton Research Group, which was acquired by Kpler in December. Short positions on West Texas Intermediate crude stood at 73%. Expectations of a supply surplus act as a buffer against a range of potential supply disruptions.
Political Tensions
One such scenario could unfold in Iran, where US President Donald Trump has hinted that the United States is prepared to assist protesters if authorities intensify their crackdown on unrest, prompting a senior Iranian official to threaten retaliation against US forces in the region. Tehran and other cities have witnessed a wave of demonstrations following the collapse of the local currency to a record low. Iran was the world's ninth-largest producer of crude oil in 2023, according to the International Energy Agency.
Another threat is emerging in Venezuela, where the Trump administration has escalated its campaign against the country's oil exports by imposing a naval blockade and sanctions on companies in Hong Kong and mainland China, as well as on ships accused of circumventing restrictions. These measures are part of an effort to increase pressure on the regime of Nicolás Maduro.
Meanwhile, Russia’s war in Ukraine continues despite peace efforts by Europe and the United States. Moscow and Kyiv exchanged attacks on Black Sea ports during the New Year period, damaging oil infrastructure, including a refinery. The conflict has also affected energy flows from Kazakhstan, another member of the OPEC+ alliance. https://economy-news.net/content.php?id=64119
Precious Metals Enter 2026 On A High Note
Time: 2026/01/02 10:09:32 Reading: 150 times {Economic: Al-Furat News} Precious metals started the new year on a high note on Friday, with gold rising slightly from its lowest level in two weeks, which it reached in the previous session, while other metals recovered some of the losses they incurred during the week.
Gold rose 0.8% in spot trading to $4,346.69 an ounce by 0019 GMT, after hitting a record high of $4,549.71 on December 26. It had fallen to its lowest level in two weeks last Wednesday.
U.S. gold futures for February delivery rose 0.5% to $4,360.60 an ounce.
The precious metal achieved a huge rise during 2025, ending the year with annual gains of 64%, the largest since 1979.
Silver rose 2.1% in spot trading to $72.75 an ounce, after hitting an all-time high of $83.62 last Monday, and ended the year up 147%, significantly outperforming gold, making 2025 its best year ever.
Platinum rose 0.2% in spot trading to $2,057.74 an ounce, after hitting an all-time high of $2,478.50 on Monday, and posting its biggest ever annual gain after climbing 127%.
Palladium rose 2.4% to $1,642.90 an ounce, ending last year up 76%, its best performance in 15 years. LINK
Iraq Ranks Third In The Arab World In Foreign Currency Reserves With $112 Billion
Banks Economy News – Baghdad With the acceleration of economic crises and trade tensions globally, questions arise about financial resilience and a country's ability to withstand the volatility of global markets. One of the safety valves and first lines of defense is the foreign exchange reserves a country holds. World Bank data even measures these reserves by the number of months of import coverage.
Countries’ policies on building or relying on reserves vary to a degree that is related to their exposure to different risks, population size, imports, international relations, and the international standing of their currency.
What If Egypt Paid Off All Its Debts? An unprecedented scenario for a debt-free economy.
In the Arab world, the picture begins in Riyadh, where Saudi Arabia tops the list with a massive reserve of nearly $463 billion. This figure is not merely a financial indicator, but a reflection of a strong oil-based economy and a strategic vision that seeks to diversify income sources through mega-projects within the framework of "Vision 2030."
The UAE occupies second place, amid rapid growth and strong reserve coverage of up to about 7 months with a balanced asset management policy between return and risk.
Iraq pulls off a surprise
In October 2025, reserves reached $256.9 billion (AED 991.6 billion), according to central bank data.
The surprise comes from Baghdad. Despite years of turmoil, the Iraqi central bank has reserves of up to $112 billion, thanks to oil exports which remain the backbone of its economy.
In November 2025, Iraq's foreign currency reserves stood at approximately $112 billion, according to data from the Central Bank of Iraq. These reserves represent one of the highest levels in the region after Saudi Arabia and the UAE, covering more than 15 months of imports and providing Iraq with a significant safety net despite internal political and economic challenges.
Libya ranks fourth in the Arab world with large foreign currency reserves.
From the Gulf to the heart of Africa, despite political divisions, Libya maintains its fourth position in the Arab world with foreign currency reserves approaching $99 billion, covering about four years of imports.
Oil and gas exports define the features of economic power, as Arab countries' finances seize their windfall by increasing reserves and managing liquidity during periods of recession.
Qatar’s central bank’s foreign exchange reserves rose to $71.7 billion last November, covering 11 months of imports.
Egypt's Substantial Reserves Exceeded $50.2 Billion.
In Cairo, the most populous Arab country, foreign currency reserves stand at approximately $50.2 billion, a significant figure for supporting the Egyptian pound amidst import pressures and debt repayments. These reserves are now sufficient to cover more than six months of imports.
The figures at the Central Bank of Egypt improved during a year that witnessed an improvement in most indicators, and a rise in dollar revenues from exports, tourism and remittances from Egyptians abroad to more than $100 billion combined.
Reserves in Morocco and Algeria
Both Morocco and Algeria maintain similar levels of foreign exchange reserves, ranging between $39 billion and $41 billion.
These figures are not just data in central bank reports, but rather indicators of the strength of countries and their ability to withstand fluctuations in oil prices, the challenges of inflation, and to ensure the stability of local currencies.
The world's largest foreign exchange reserves
Globally, China has the largest foreign exchange reserves, exceeding $3.2 trillion, followed by Japan, which exceeds $1 trillion.
Ultimately, whoever holds the reserves holds the initiative, and in a world full of fluctuations, these treasuries are the first line of defense for the stability of Arab economies. https://economy-news.net/content.php?id=64092
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