Iraq Economic News And Points To Ponder Thursday Afternoon 5-29-25
The Iraqi Dinar Is Recovering, While Markets Are Dying. An Economic Recession Is Hitting Kurdistan.
Baghdad Today – Kurdistan With markets hushed and shelves increasingly empty, the Kurdistan Region is experiencing economic stagnation despite signs of recovery in the rest of Iraq, with the dollar's exchange rate declining and the dinar's strength recovering.
While some provinces are breathing a sigh of relief, Kurdistan remains mired in a vicious cycle of mounting crises, with citizens seeing no sign of this apparent improvement.
The Kurdish street isn't asking about economic indicators, but about a missing salary, a lost job opportunity, and cash flow that has become as scarce as rain in a time of drought.
There's no dinar in hand, no dollar in pocket, just a long wait for a hope that may never come, and
suffering that deepens with every day that salaries are delayed and the circles of unemployment expand.
"The problem is not the exchange rate"
In this context, experts are increasingly warning that the crisis lies not in the exchange rate,
but rather in the absence of economic policies that ensure the benefits of the improvement reach citizens.
This was pointed out by economic expert Farman Hussein on Wednesday (May 28, 2025), who
asserted that the Kurdistan Region remains outside the circle of economic recovery,
despite all the positive changes in the currency exchange rate.
Hussein told Baghdad Today, "Despite the decline in the dollar exchange rate and the recovery of the Iraqi dinar, the markets in the Kurdistan Region have yet to benefit from this decline and are still suffering from stagnation."
He added, "The region's problem lies in the lack of financial liquidity.
Citizens do not have dollars or dinars due to the non-payment of salaries, the scarcity of job opportunities, the high unemployment rate, and the weakness of banking transactions.
All of these factors lead to a lack of financial liquidity."
Variation in the Iraqi economic scene
For months, Iraq has witnessed a significant improvement in the value of the dinar against the dollar,
as a result of a series of government and banking measures aimed at regulating the market and controlling the flow of foreign currencies.
This has had a positive impact on purchasing power in a number of governorates and has contributed to a relative easing of economic pressures on Iraqi citizens.
However, this improvement was not comprehensive, as the Kurdistan Region remained in a state of marked economic recession, despite the decline in the dollar's value.
The structural problems plaguing the region, most notably the crisis of delayed salaries, high unemployment rates, and weak liquidity in the markets, prevented any real recovery that could be felt by citizens. https://baghdadtoday.news/275159-.html
Sudan's Financial Advisor: Cooperative Hypermarkets Reduced Demand For The Parallel Dollar And Prevented A Rise In Inflation.
May 29, 2025 Baghdad/Iraq Observer The Prime Minister's financial advisor, Mazhar Saleh, confirmed that the hypermarket policy has effectively contributed to reducing demand for dollars on the parallel market, which has had a positive impact on price stability.
In a press statement, he explained that this policy helped prevent inflation rates from rising, keeping them within the 3% range, noting that the measures implemented have boosted market confidence.
He added that the proliferation of hypermarkets has encouraged merchants to shift toward importing through official dollars instead of parallel currencies, which has contributed to regulating market activity and financing foreign trade in a legal and stable manner. https://observeriraq.net/المستشار-المالي-للسوداني-هايبر-ماركت/
Association Of Private Banks: Most Of Our Banks Have Adhered To Transparency And Compliance Standards And Followed National And International Regulations.
Wednesday, May 28, 2025 | Economic Number of readings: 168 Baghdad / NINA / The Iraqi Private Banks Association confirmed the ability of Iraqi banks to overcome this stage and return confidently to the global economic system.
"Our second conference is of exceptional importance in light of the escalating challenges facing Arab banks, particularly Iraqi banks, amid a complex economic and security environment that directly impacts our relations with the global financial system," said Wadih Al-Handhal, head of the Association of Private Banks, during the opening of the second session of the Anti-Money Laundering and Combating the Financing of Terrorism Conference in Baghdad.
He added, "Despite the recent measures imposed on some Iraqi banks, we affirm that these decisions do not reflect the reality of the sector.
The majority of banks have demonstrated a high commitment to transparency and compliance standards and have followed approved national and international regulations.
Despite the challenges, they continue to play their role in supporting the national economy and enhancing financial stability."
He explained: "These measures have had a negative impact on the image of the Iraqi banking system as a whole and have diminished the confidence of international partners, even among institutions that are leaders in compliance and governance."
Al-Handhal stressed that "the Iraqi banking sector is witnessing major transformations, and the Central Bank of Iraq, with direct government support, is currently implementing an ambitious reform plan aimed at enhancing international confidence and raising the sector's efficiency,
particularly in the areas of compliance and combating money laundering." He continued,
"During the conference, we will discuss research papers and specialized opinions that seek to overcome challenges and consolidate compliance rules.
The conference topics include the
challenges of opening accounts with correspondent banks,
enhancing cooperation between Arab banks, the
role of technology and artificial intelligence in
supporting compliance, local and international legislation, and the
role of central banks in consolidating sustainable compliance." / https://ninanews.com/Website/News/Details?key=1229496
Parliamentary Finance: We Support Efforts To Develop The Iraqi Banking Sector And Are Following Up On The Required Legislation.
Wednesday, May 28, 2025 | Economic Number of readings: 296 Baghdad / NINA / The Parliamentary Finance Committee affirmed its full support for efforts aimed at developing the Iraqi banking sector and its keenness to follow up on the legislation required to enhance Iraq's compliance with international standards. It also stressed the need to balance strict compliance with achieving economic growth goals, supporting the private sector, and facilitating investment.
“International regulatory obligations imposed on financial institutions,
particularly those related to combating money laundering and terrorist financing,
have become among the most prominent requirements that affect the nature of the relationship between local banks and their global counterparts,”
said committee chairman MP Atwan Al-Atwani during the Anti-Money Laundering and Combating the Financing of Terrorism conference, which kicked off Wednesday in Baghdad.
“Fulfilling these requirements is a prerequisite for developing a safe and stable banking environment
capable of interacting positively with the global financial system.”
He added, "Iraq's engagement, represented by its national banks, in this international regulatory environment is not an option, but rather a national necessity to protect the financial system from cross-border risks and to ensure the continued flow of investments and capital,
which directly contributes to supporting economic and social development efforts and enhancing confidence in the national economy."
He continued, "Iraq has made significant progress on this path over the past few years, as the Iraqi banking system has witnessed major developments,
represented by the modernization of the legal and regulatory structure, the
issuance of instructions related to compliance and tightening oversight, and
work to build qualified banking cadres capable of dealing with these changes."
“We have seen the Central Bank of Iraq’s keenness to adopt a reform and development approach, by imposing precise and updated instructions in line with international best practices, as well as its relentless efforts to enhance transparency and strengthen the system for combating money laundering and terrorist financing,” he added, noting
the importance of this conference, which constitutes an important platform for exchanging experiences and reviewing the latest developments in international legislation, and highlighting the experiences of other countries in this field, especially with regard to modern compliance techniques, best methods of internal control, and risk management. https://ninanews.com/Website/News/Details?key=1229562
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