Iraq Economic News and Points To Ponder Sunday Morning 10-4-26
An Economist Accuses "Influential Parties" Of Fabricating The Dollar Crisis And Calls On The Central Bank To Intervene Urgently
Information / Baghdad... On Saturday, economist Abdul Rahman Al-Mashhadani accused influential parties of fabricating the current rise in dollar exchange rates in local markets, explaining that the goal of this rise is to achieve exorbitant profits for specific banks that are not subject to sanctions.
Al-Mashhadani told Al-Maalouma that "the local market is witnessing clear confusion due to the unjustified rise in exchange rates," calling on the Central Bank of Iraq to "conduct a real and urgent review of the monetary policy mechanisms currently in place."
He added that "it has become necessary for the Central Bank to intervene immediately and inject sufficient quantities of foreign currency (dollars) to save the market and curb speculators," while warning of "the continued rise in exchange rates and the worsening of the crisis if the situation remains as it is without radical solutions."
Economist Dirgham Muhammad Ali had previously confirmed to Al-Maalomah that the main reason behind the rise in the dollar exchange rate was related to the withdrawal of Al-Taif Bank, which is a major official gateway for dollars entering the country through the Western Union network. End/25
After Months Of Deadlock, A Breakthrough Appears On The Horizon For The Cabinet
The issue of completing the cabinet remains unresolved in the halls of parliament, with political disagreements persisting over several ministerial portfolios. This has delayed the finalization of this crucial matter, which continues to pose a significant challenge for the government. In this regard, Maysar al-
Shammari, a leader in the Hikma Movement, confirmed to Al-Maalomah that “an agreement has been reached between the Coordination Framework and the State Administration Coalition to complete the cabinet.
This agreement also addresses the reservations held by some political forces within the Framework, which had previously prevented their participation in the government. These reservations have now been resolved.”
He added that "the previous reservations concerned certain individuals and names nominated for ministerial positions, and these have been overcome through understandings reached within the Coordination Framework."
Al-Shammari indicated that "the cabinet will be completed in the near future, and amendments will be made to the voting mechanism for the cabinet to facilitate its formation."
He pointed out that "the Iraqi public is watching and awaiting the completion of the cabinet, coinciding with steps to strengthen national autonomy, particularly with the withdrawal of US forces, as well as the completion of the political and governmental process, which will contribute to enhancing reassurance and stability among citizens."
For his part, MP Faleh al-Khazali confirmed to Al-Maalomah that “the political forces have finalized their choices regarding the names that will be submitted to Parliament for a vote next week, thus ending the cabinet formation crisis and allowing ministries to perform their duties and provide services to citizens.”
He added that "completing the cabinet is essential to achieving integration between the legislative and executive branches and to address the stalled service-related issues that citizens are waiting for," noting that "the completion of the government formation will contribute to strengthening the institutions' ability to implement their programs."
Al-Khazali explained that “completing the cabinet will help the government complete its work, allowing for a clearer evaluation of the performance of government institutions, highlighting strengths and weaknesses and addressing them,” emphasizing that “resolving the cabinet issue represents an important step in stabilizing government operations.”
All eyes remain on the parliament and political forces to see whether recent developments will contribute to resolving the cabinet formation issue and ending the delays,or whether disagreements will continue to hinder the completion of the government. (End of report 25)
The Dollar In Iraq... Al-Marsoumi Expects The Dinar To Remain Within A Narrow Range Until The Budget Is Finalized
October 2, 2026Last updated: October 2, 2026
Independent/- Economic expert Nabil Al-Marsoumi said that the exchange rate of the Iraqi dinar against the dollar in the parallel market may remain within a limited range of fluctuation during the next stage, in the absence of major financial or economic variables capable of reducing the gap with the official rate or pushing it to further widen.
Al-Marsoumi wrote on his Facebook account under the title “The Dinar in the Tunnel”, that the exchange rate in the black market seems likely to remain at levels he described as “sticky”, expecting that the fluctuation movement will not exceed about 2% up or down.
Al-Marsoumi links the continuation of this situation to the course of the upcoming budget, considering that the market may remain in a state of waiting until the trends in spending and fiscal policy become clear, or an exceptional development appears that changes the calculations of supply and demand for the dollar.
This reading reflects a state of relative stability in the parallel market, but it does not necessarily mean the end of the pressures that caused the widening gap between the official dollar price and the price traded by exchange companies and unofficial markets.
The movement of the dollar in Iraq is affected by several factors, including commercial demand for foreign currency, the volume of liquidity in dinars, import financing mechanisms and foreign transfers, in addition to the measures taken by the Central Bank to regulate access to dollars through official banking channels.
Conversely, increased public spending or changes in foreign trade and remittances could put renewed pressure on the parallel market, while improved access to dollars through the banking system could narrow the gap with the official rate.
The description of the price as “sticky” indicates the possibility that the market will remain within a relatively stable price range for a period, without a clear trend towards a sharp rise or fall, unless a strong economic or financial factor emerges that breaks the current state of equilibrium.
The Iraqi markets are watching closely in the coming period the course of the budget and the financial and monetary policies associated with it, as they are among the most prominent factors capable of affecting the volume of liquidity and demand for the dollar.
According to Al-Marsoumi’s reading, the next phase may remain governed by limited fluctuations, but any major development in fiscal policy, dollar flows, or foreign trade mechanisms could quickly move the market into a new price range.
The most prominent question facing the market remains: Will the next phase succeed in narrowing the gap between the official and parallel prices, or will the dinar continue inside what Al-Marsoumi described as the “tunnel”?
https://mustaqila.com/الدولار-في-العراق-المرسومي-يتوقع-بقاء/
Al-Zubaidi On American Dominance Over The Financial File: “It Preoccupies Political Forces And The Iraqi Public.”
The spokesperson for the Victory Coalition, Salam al-Zubaidi, confirmed on Saturday that the issue of American influence in Iraq's financial and oil sectors, particularly concerning the US Federal Reserve, has become a major concern for political forces, the government, and the Iraqi public. He called for diversifying revenue sources and reducing reliance on a single financial channel.
Al-Zubaidi told Al-Maalomah that “American dominance over Iraqi oil and the economy is a major concern for the Iraqi public and political forces, as the Iraqi economy has become heavily tied to the US Federal Reserve, which has caused numerous crises and economic contraction.”
He added that "linking Iraq's resources to a single entity, especially the US Federal Reserve, is unsound, particularly since Iraq relies primarily on oil. The funds sent to the Federal Reserve and then returned to Iraq undermine the Iraqi economy and place the government under significant pressure."
Al-Zubaidi explained that “American pressure regarding the transfer of dollars is linked to American interests and could significantly hinder the state’s general budget,” calling for the exploration of economic and financial alternatives to mitigate the impact of this pressure.
He stated that "Iraq needs to rid itself of American hegemony and seek new revenue streams and diversify its sources by building partnerships with other countries," noting funds that this path requires strategic steps and well-considered actions. (End 25)