Iraq Economic News and Points To Ponder Sunday Morning 6-21-26
Parliamentarian: The Government May Move To Raise The Dollar Exchange Rate To 165,000 Next September
Money and Business Economy News – Baghdad Member of Parliament, Ahmed Salim Al-Kinani, revealed an anticipated government plan to raise the exchange rate of the US dollar to between 160,000 and 165,000 Iraqi dinars per 100 dollars, instead of the current rate of 132,000 dinars.
Al-Kanabi said that this measure, which is expected to be implemented in September of this year (2026), comes as a necessary step that the government resorts to in order to secure operational expenses, foremost among them the salaries of state employees and allocations for the social welfare network.
In contrast to this measure, which represents a solution for the operational budget, Al-Kinani warned of the direct negative repercussions of this decision on the living conditions of citizens, especially those with limited income.
The MP pointed out that this trend will coincide with an increase in the financial burden on traders through the imposition of additional customs duties of (15%), as well as a sales tax of (3%), indicating that these duties and taxes will be fully borne by imported goods and materials, which will negatively and directly affect the purchasing power of the Iraqi citizen as a result of the expected sharp rise in prices. https://www.economy-news.net/content.php?id=70507
The first round of the four-way negotiations in Switzerland has ended.
Arabic and international Iran's Fars News Agency reported Sunday evening that the first round of quadrilateral negotiations in Switzerland had concluded.
The agency quoted a source within the Iranian negotiating team as saying, "The first round of quadrilateral negotiations has now ended."
Earlier in the day, media sources revealed details of the initial moments of the US-Iranian talks in the Swiss city of Burgenstock.
The sources stated that the Iranian delegation refused to take a joint photo with the American delegation at the beginning of the meeting. https://www.economy-news.net/content.php?id=70524
Iraq Has Lost Nearly $38 Billion Since The Closure Of The Strait Of Hormuz.
Money and Business Economy News – Baghdad The Economic Affairs Observatory “Eco Iraq” announced that Iraq has lost about 350 million barrels of oil exports since the closure of the Strait of Hormuz, equivalent to about $37.7 billion, calling for accelerating the implementation of the “New Levant” project as a strategic option to secure alternative export outlets and reduce dependence on maritime outlets.
The observatory stated that prior to the closure of the Strait of Hormuz on February 28, Iraq was exporting between 103 and 107 million barrels of crude oil per month.
He explained that the closure of the strait due to the war in the region led to a decline in exports, with losses amounting to 84,395,049 barrels in March, 93,115,870 barrels in April, 92,801,000 barrels in May, while the current month of June recorded about 79,600,000 barrels.
According to "Eco Iraq", the gap in Iraqi exports during the aforementioned period is estimated at about 350 million barrels, representing lost export opportunities valued at about $37.7 billion based on average oil prices during the period.
He concluded his statement by noting that the "New Levant" project represents an urgent strategic necessity to ensure the stability of Iraqi oil exports and to secure vital alternatives away from the geopolitical risks that threaten maritime routes, especially since the Iraqi economy depends on oil revenues by nearly 90%.
Iraq Receives Notification From The International Transport Federation Confirming Significant Progress In Implementing The TIR System.
Money and Business Economy News – Baghdad The Ministry of Transport announced on Friday that Iraq has received notification from the International Transport Federation confirming that it has made significant progress in implementing the TIR system.
The Director of the Land Transport Department of the Technical Department at the Ministry of Transport, Israa Hanoun, stated that “a notification from the International Road Transport Union (IRU) reached the TIR Convention contact point at the Iraqi Ministry of Transport bearing the phrase (Iraq is stealing the offer) in a clear message confirming that Iraq has made high progress in implementing the TIR system during the year 2025.”
Hanoon explained that "the system has been fully operational and seven new international routes have been opened across Iraqi territory within eight months, and more than (1000) international transport operations have been carried out," noting that "the notification also confirms the continued adoption of the TIR system for the movement of goods in transit by land across Iraqi territory, which contributes to enhancing the efficiency and security of international trade and consolidating Iraq's position as an important regional logistics corridor." https://www.economy-news.net/content.php?id=70423
The Minister Of Industry Confirms Work Is Underway To Prepare A Comprehensive Investment Map Across Various Industrial Sectors.
Money and Business Economy News – Baghdad Minister of Industry and Minerals, Mohammed Nouri, confirmed on Saturday that work is underway to prepare an integrated investment map in various industrial fields.
The media office of the Minister of Industry and Minerals stated that "Minister of Industry and Minerals Mohammed Nouri received the Australian Ambassador to Iraq, Glenn Miles, and the meeting discussed ways to enhance joint cooperation in the industrial and investment fields."
The minister stressed the work on "preparing an integrated investment map that includes many promising opportunities in various industrial fields, in order to support development plans and the government's directions in revitalizing the industrial sector."
https://www.economy-news.net/content.php?id=70464
Al-Zaidi Oversees The Handover Ceremony For The Central Bank Of Iraq
Localities Prime Minister Ali Faleh al-Zaidi presided over the handover ceremony on Sunday between the new Central Bank Governor, Nizar Nasser Hussein, and the outgoing Governor, Ali Mohsen al-Alaq.
According to a statement from his office, al-Zaidi emphasized "the importance of proceeding with banking reform programs, which contribute to achieving financial stability and providing a suitable economic and investment environment to promote development."
He also stressed "the necessity of keeping pace with the digital transformation the world is witnessing and applying international standards in implementing financial policies."
The Prime Minister commended al-Alaq's efforts during his tenure and directed that he be appointed as the Prime Minister's Advisor for Economic Affairs. He further emphasized the importance of completing strategic programs that enhance institutional performance and support financial and banking stability in Iraq. https://www.economy-news.net/content.php?id=70522
The Iranian Delegation Refused To Shake Hands And Pose For A Group Photo With The American Delegation.
Arabic and international Media reports indicate that the Iranian delegation refused to participate in a planned handshake and group photo with the American delegation on the sidelines of the ongoing talks between the two sides.
According to observers, this move reflects the continued tension and mistrust between Tehran and Washington despite ongoing diplomatic contacts.
The Iranian position comes amid sensitive negotiations dealing with complex security and political issues, as Tehran has been careful to avoid any protocol-driven scene that might be interpreted as a show of political rapprochement with the United States, stressing its commitment to separating the negotiation process from the accompanying political and media messages.
https://www.economy-news.net/content.php?id=70521
Banias Is On The Iraqi Oil Pipeline... Baghdad Is Looking For An Alternative Outlet Away From Hormuz
Reports Economy News – Baghdad Iraq is moving towards a new phase in managing its oil exports by expanding export outlets towards Syrian territory, in a move that reflects a strategic governmental direction to reduce dependence on traditional routes in the Arabian Gulf and enhance energy security and exports in light of the geopolitical changes taking place in the region.
This trend comes at a time when Iraq is preparing to begin exporting about 50,000 barrels per day of crude oil through Syrian territory starting next July, in addition to exporting naphtha, as part of a broader plan to diversify export outlets and ensure the continued flow of Iraqi oil to global markets under all circumstances.
Earlier, Syrian Energy Minister Mohammed al-Bashir discussed with former Iraqi Oil Minister Hayyan Abdul Ghani ways to enhance joint cooperation in the energy sector. Both sides praised the efforts made to begin exporting Iraqi oil through Syrian territory. They also discussed the possibility of supplying domestic gas to Syria and rehabilitating oil pipelines, most notably the Kirkuk-Banias pipeline.
During the call, the Iraqi side emphasized that oil cooperation with Syria represents a long-term strategic option and not a temporary measure related to the current situation, while Damascus continues to work on developing its oil infrastructure and restoring its role as a regional energy transit corridor.
These steps reinforce what was discussed during the recent meeting between Prime Minister Ali al-Zaidi and the US envoy to Iraq, Tom Barrack, in Baghdad, where the two sides discussed enabling the American companies HKN, Western Zagros and Hunt to resume their work in Iraq with the provision of the necessary security guarantees, as well as proceeding with the memorandum of understanding signed with TI Capital to rehabilitate and develop the oil export route via the Kirkuk-Banias pipeline, which is one of the most important strategic projects proposed to diversify Iraq’s export outlets.
According to Reuters, citing Iraqi and Syrian officials and energy sector sources, Baghdad views the Syrian route as a long-term strategic option, not a temporary solution tied to current regional tensions or risks to shipping in the Strait of Hormuz. Officials at the Iraqi Ministry of Oil confirmed that plans to diversify crude oil and fuel export routes will continue even after shipping traffic returns to normal, as part of a policy aimed at reducing reliance on a single export outlet.
In this context, Oil Ministry spokesman Salim al-Rikabi said that the Iraqi government and the Oil Ministry attach paramount importance to the issue of diversifying export outlets, particularly through Syrian territory, noting that the Iraqi Oil Marketing Company (SOMO) continues its discussions and cooperation with the Syrian side to expand export operations through this route.
Current data indicates that Syria is working in parallel to increase its operational capacity to receive the increasing Iraqi quantities, as the Syrian Ministry of Energy announced its intention to open two additional oil unloading areas in the port of Banias, along with new service facilities, while Syrian officials confirmed that the port is currently able to receive and unload up to 900 tanker trucks per day.
During the past months, the Syrian Petroleum Company also increased the operational capacity for unloading Iraqi tankers at the Banias refinery by 30% after operating new unloading yards and improving direct pumping routes to the tanks, which raised the number of tankers unloaded daily to about 500 tankers, equivalent to about 120,000 barrels per day.
Despite the importance of these steps, the path to building a sustainable export route through Syria is not without its challenges. The land infrastructure continues to face significant logistical pressures due to the damage inflicted on road networks during the years of war, in addition to the long traffic jams on the roads leading to the port of Banias, as well as some accidents that have occurred during transport operations and fuel spills in various areas.
On the other hand, energy experts believe that these challenges remain less costly than the risks that may result from relying entirely on the southern ports and the Strait of Hormuz as the sole passage for Iraqi oil exports.
Energy expert Kovand Shirwani confirms that recent events have demonstrated the importance of having alternative export outlets, explaining that Iraq lost up to 3.3 million barrels per day after exports through Basra ports stopped, an amount that represents about 94% of its total oil exports.
Shirwani told Al-Eqtisad News that the only remaining secure outlet is the pipeline to the Turkish port of Ceyhan, but the quantities transported through it do not exceed about 250,000 barrels per day, which is equivalent to only 7% of total exports, even though its design capacity can reach one million barrels per day if the necessary technical requirements are completed.
He added that developing the northern pipeline and linking it to the production coming from the southern provinces could contribute to transporting a large part of Basra's oil to the port of Ceyhan and then to European markets, but at the same time he stressed the importance of finding an additional outlet through Syria.
Shirwani pointed out that the importance of the Banias project lies not only in reviving the historic Kirkuk-Banias pipeline, but also in establishing any new oil pipeline that reaches the Syrian coast and gives Iraq greater flexibility in managing its exports.
He noted that the old pipeline is now completely out of service, but there is a possibility of creating a new route starting from the Haditha area in Anbar province as part of a proposed project to extend a pipeline from Basra to Haditha, then connect it towards Syria, Jordan, or even the northern network.
He indicated that the cost of establishing the Syrian part of the project may range between 6 and 8 billion dollars, while implementation requires a period of no less than two years, but he considered that the strategic returns of the project exceed its financial cost due to what it provides in terms of protection for Iraqi oil exports in the future.
Iraq typically exports around 3.6 million barrels of crude oil per day, making the diversification of export outlets one of the most important strategic issues related to the security of the Iraqi economy, especially since oil revenues represent the main source of funding for the general budget.
Therefore, experts view the expansion of the use of the Syrian route, along with the development of the Turkish Ceyhan pipeline and future pipeline projects, as part of a broader vision to build a more flexible export system capable of confronting geopolitical crises and regional turmoil that may threaten the flow of Iraqi oil to global markets.