Iraq Economic News and Points To Ponder Sunday Morning 7-12-26

Small Denominations Of The Iraqi Dinar Reveal A Negative Indicator Of The Money Supply... An Expert Explains With Figures.

Baghdad Today - Baghdad    An economic expert revealed on Friday (July 10, 2026) that there was a significant increase in the money supply during the period from April 2022 to April 2026, according to data from the Central Bank of Iraq.

Manar Al-Obaidi said in a post on his Facebook page, which was followed by “Baghdad Today”, that the monetary mass for the aforementioned period “recorded an increase of more than 38 percent, bringing the total from 81.5 trillion dinars to 113 trillion dinars.”

He explained that “the total number of banknotes issued increased from about 5.8 trillion banknotes in 2022 to 6.3 trillion banknotes in 2026, which led to an increase in the per capita share of banknotes from 120 banknotes to 141 banknotes, raising their total value per person from 1.8 million dinars to 2.51 million dinars.”

According to Al-Obaidi, the analyses showed “the distribution of the cash increase according to categories, as the 50,000 dinar category acquired the largest share, as the number of issued notes jumped from 319 million notes in 2022 to more than 941 million notes in 2026, so that the citizen’s share of it increased from 7.1 notes to 21 notes, while the 25,000 dinar category recorded a slight growth from 2 billion notes to 2.1 billion notes.”

He pointed out that “the middle denominations witnessed a decline in issuance, as the number of 10,000 dinar notes decreased from 935 million notes to 878 million notes, and the 5,000 dinar note recorded the largest decrease, declining from 954 million notes in 2022 to 691 million notes in 2026.”

As for the smaller denominations, Al-Obaidi pointed out that “the 1000 dinar denomination increased from 718 million notes to 775 million notes, and the 250 dinar denomination grew from 795 million notes to 818 million notes, while the 500 dinar denomination decreased slightly from 147 million notes to 145.4 million notes.”

He noted that this “uneven growth and the prominence of large groups is an economic indicator that most of this money is going towards hoarding outside the banking system instead of circulating in the economy,” stressing that “the failure of small groups to grow in proportion to the size of the total money supply reflects a slowdown in real economic activity and daily trade, which necessitates a comprehensive review of monetary policy and currency issuance mechanisms that take into account the real market need and encourage the integration of cash into the economic and banking system.”  https://baghdadtoday.news/303086-.html

The Central Bank Governor Under The Dome Of Parliament: Crucial Questions Awaiting Answers

July 10, 2026Last updated: July 10, 2026   The Independent - All eyes will be on the Iraqi Parliament in the coming days, after the Parliamentary Finance Committee announced its intention to host the Governor of the Central Bank to discuss a number of financial and monetary issues, most notably the mechanism for distributing dollars to travelers, and the repercussions of the recent measures related to the cash dollar quota.

The head of the parliamentary finance committee, Uday Awad, said that the committee will ask questions during the meeting about the reasons for reducing the traveler's share of dollars from $3,000 to $2,000, stressing that there are observations on the mechanism for distributing dollars to travelers, which he described as having problems related to complexity, corruption, extortion and favoritism.

This hosting comes at a time when the monetary file in Iraq is witnessing widespread discussion, especially with the continued debate about the mechanisms for selling dollars, the Central Bank’s procedures for regulating the market, and the impact of this on exchange rates, trade and import activity.

  Well-informed political sources indicated that the hosting session may witness the raising of sensitive issues related to the performance of the Central Bank during the past period, the mechanism for managing monetary policy, in addition to evaluating the measures taken to address the dollar market disturbances.

According to the sources, some parties within Parliament are considering the possibility of taking political steps if they are not convinced by the answers provided, amid talk of the possibility of raising the issue of changing the management of the Central Bank, but this remains linked to the results of the hosting and the political positions during the coming period.

Observers believe that the dollar issue has become one of the most prominent economic issues facing the government and parliament, as it is directly linked to prices, market activity, and citizens' confidence in the banking sector.

The next stage may reveal whether hosting the Central Bank Governor will be just an oversight session, or the beginning of larger moves that may affect the management of the monetary file in Iraq   LINK

Calls To End Oil's Dominance Of The Iraqi Economy... E-Governance Among The Solutions

Baghdad Today - Baghdad:   The heavy reliance on oil continues to pose challenges to the Iraqi economy, amid continued fluctuations in crude oil prices in global markets, which raises concerns about direct repercussions on the general budget and government spending.

At a time when calls for economic reforms are escalating, experts and politicians stress that diversifying sources of income has become a necessity to ensure financial stability and reduce the fragility of the economy in the face of external crises. MP Mohammed Al-Bayati, on Friday (July 10, 2026), identified the extent of the impact of oil on the general budget, while calling for a change in the direction of the Iraqi economy and a move towards a diversified economy to reduce financial risks.

Al-Bayati told Baghdad Today, “Oil sales contribute nearly 90% of Iraq’s treasury revenues, which demonstrates the extent of its direct impact on the national economy. Therefore, any decrease in its prices directly affects revenues, especially hard currency, which puts pressure on the state’s ability to cover expenses.”

He added that "Iraq is greatly affected by any decline in oil prices, because the general budget is based on an estimated price per barrel of oil, and in light of that, plans and projects are developed and annual spending categories are determined."

He pointed out that "the sharp decline in oil prices witnessed in global markets during the past years has had a significant impact on project management, and has led to the disruption of many of them, at a time when salaries remain a priority and a red line that cannot be crossed, which makes any decline in oil revenues a direct challenge to public finances."

Al-Bayati stressed that "the current stage requires the adoption of a clear strategy to diversify the Iraqi economy, by giving non-oil revenues a greater contribution to financing the budget, especially taxes, customs duties and other resources."

He explained that "these revenues can achieve significant leaps if they are dealt with according to a plan that adopts e-governance and combats corruption, which leads to raising state revenues and reducing dependence on oil."

Al-Bayati stressed in his speech the importance of emphasizing that “Iraq’s continued reliance on oil as the main source of revenue carries significant economic risks, and requires accelerating the implementation of real economic reforms that ensure the diversification of income sources and enhance financial stability in the long term.”

For decades, Iraq has relied on oil exports as its main source of funding for the general budget, with oil revenues constituting the largest share of the state's resources, making the economy highly vulnerable to fluctuations in crude oil prices in global markets.

Over the past years, sharp declines in oil prices have caused a decrease in government revenues, delayed the implementation of many investment and service projects, and put pressure on fiscal policy.  https://baghdadtoday.news/303021-.html

Ziad Al-Hashemi: The Iraqi Government Has Not Found An Alternative To Hormuz, And Any Escalation Will Lead To A Severe Economic And Financial Crisis.

Baghdad - One News   Economic expert Ziad al-Hashemi warned of the repercussions of Iraq’s continued reliance on the Strait of Hormuz for oil exports, criticizing what he described as the government’s slowness in finding alternative routes, at a time when Gulf states continue to strengthen their options to overcome any potential disruptions in the strait.

Al-Hashemi said in a post on his Facebook page that the UAE is proceeding with a plan to reduce dependence on the Strait of Hormuz by launching a new pipeline with a capacity of 1.8 million barrels per day outside the strait, while Saudi Arabia is working on operating a new pipeline towards the Red Sea with a capacity of two million barrels per day.

He explained that the Emirati project will raise the country’s export capacity to about 3.6 million barrels per day away from the Strait of Hormuz, while the capacity of the Saudi pipelines heading to the Red Sea will increase to about 7 million barrels per day.  https://1news-iq.net/زياد-الهاشمي-الحكومة-العراقية-لم-تجد-ب/