Iraq Economic News and Points To Ponder Thursday Evening 2-19-26
Kujer: Iraq's Gold And Currency Reserves Are "Good" And Ensure Economic Stability
Time: 2026/02/18 {Economic: Al-Furat News} MP Jamal Kojar confirmed that the fluctuation of gold prices towards an upward trend does not directly affect the government's economic and financial situation, noting that the impact falls directly on citizens.
Kujer told Al-Furat News Agency that the speculation carried out by traders who deal in gold directly affects the individual, indicating that the Iraqi bank's gold reserves are positive and can contribute to supporting economic stability.
He added that "the bank's foreign currency reserves are very good, which puts the country's financial situation in safe hands from fluctuations."
Gold prices in Iraq have witnessed a significant increase over the past several months, particularly since the beginning of 2026, driven by a global surge that pushed the precious metal above one million dinars per mithqal in local markets. Despite some recent slight declines due to momentary fluctuations, the overall trend remains one of sustained upward movement, fueled by global and local economic and geopolitical factors.
According to economic experts, the main reasons for the rise are due to several factors, including global ones, where the rise is mainly due to increased demand for gold as a safe haven in light of economic uncertainty and global geopolitical tensions.
The continued strengthening of gold reserves by central banks, including the Central Bank of Iraq, as Iraq has repeatedly increased its holdings to support the stability of the national currency, in addition to the contribution of the weakness of the US dollar and expectations of interest rate cuts by the Federal Reserve, has increased the global attractiveness of gold, which has been directly reflected in the Iraqi market.
Locally, gold prices have been affected by the rising cost of living and the fluctuating exchange rate of the dollar against the dinar, which has prompted citizens to acquire gold as a financial hedge.
https://alforatnews.iq/news/كوجر-الاحتياطي-العراقي-من-الذهب-والعملة-جيد-ويؤمن-الاستقرار-الاقتصادي
US Scales Back Iraq Missions As Tensions With Iran Rise
2026-02-19 Shafaq News- Baghdad/ Washington/ Erbil The United States reduced diplomatic personnel at its missions in Iraq and parts of the Gulf as regional tensions intensify, Iraqi and American officials told Shafaq News on Thursday, declining to specify the size of the drawdown.
The reduction affected staff across several locations, while remaining facilities continue operating with leaner teams and suspended non-essential activities, the officials said.
A US Embassy official, speaking on background, said, “US Embassy Baghdad and US Consulate General Erbil are open and our operations remain normal.” A defense official at United States Central Command (CENTCOM) declined to comment on personnel movements or force posture, citing operational security and the safety of service members.
The adjustments come amid mounting warnings over Iran. Donald Trump said this week that the Diego Garcia base could be required in the event of a potential Iranian attack. Several governments have urged their citizens to leave Iran, while Washington reiterated its call for Americans to “leave Iran now.”
Indirect nuclear talks in Geneva, mediated by Oman, have ended without a breakthrough. Western reports indicate US forces are preparing contingency plans for operations that could extend for weeks if ordered, with officials anticipating a potential Iranian response.
Separately, Germany temporarily relocated dozens of its troops from Erbil. A spokesperson for the German Defense Ministry told AFP that only essential personnel remain to maintain operational capacity, and that the decision was coordinated with international partners. German forces are stationed in Erbil as part of an international mission training Iraqi security forces.
Read more: US, Israel, and Iran step up military readiness as regional tensions grow
https://www.shafaq.com/en/Iraq/US-scales-back-Iraq-missions-as-tensions-with-Iran-rise
Dollar Rates Climb In Baghdad And Erbil At Closure
2026-02-19 Shafaq News- Baghdad/ Erbil The US dollar closed Thursday’s trading higher in Iraq, recording 153,100 dinars per 100 dollars. According to a Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 153,100 dinars per 100 dollars, up from the previous session’s 152,300 dinars.
In Baghdad, exchange shops sold the dollar at 153,500 dinars and bought it at 152,500 dinars, while in Erbil, selling prices stood at 153,000 dinars and buying prices at 152,900 dinars.
https://www.shafaq.com/en/Economy/Dollar-rates-climb-in-Baghdad-and-Erbil-at-closure
Controversial Ambassadors Expose Flaws In Appointment Criteria, Embarrassing Iraq’s Diplomacy
2026-02-19 Shafaq News Iraq’s criteria for appointing ambassadors continue to generate wide political and media debate, amid recurring objections to the selection process and the qualifications of candidates chosen to represent the country abroad.
The latest controversy centers on Iraq’s ambassador to Saudi Arabia, Safia Al-Suhail, after a video circulated online showing her receiving a Saudi delegation at the Iraqi embassy in Riyadh. The footage, which appeared to show members of the Iraqi delegation standing while a Saudi official remained seated during introductions, sparked criticism and prompted Iraq’s Parliament to request her summons for questioning.
Power-Sharing And Diplomatic Posts
Lawmakers and political experts told Shafaq News that the incident reflects deeper structural problems tied to Iraq’s post-2003 political system, which is based on sectarian and ethnic power-sharing.
They argue that al-Suhail’s conduct amounted to a protocol misstep toward an official delegation, but they stress that the episode goes beyond an individual error. They say the dominance of political quotas over professional standards means that personal mistakes can escalate into diplomatic incidents affecting Iraq’s international image.
For 23 years, ambassadorial appointment lists have repeatedly faced debate. Lawmakers often receive finalized lists from the government and vote on them quickly, sometimes without a full quorum or detailed review of candidates’ résumés.
Diplomatic positions, including ambassadorships, are often distributed among political blocs as part of informal agreements. Parties nominate individuals close to them, whether party members, relatives, or loyalists, as part of what critics describe as a “division of influence” across state institutions.
The number of Iraqi ambassadors has risen from 26 several years ago to more than 100 today. Positions carry substantial financial benefits, with overseas salaries reaching up to $12,000 per month, in addition to official vehicles, security protection, housing, and health coverage.
Repeated Diplomatic Controversies
Speaking to Shafaq News, MP Mukhtar al-Moussawi said the ambassadorial appointments are “based on quotas, not diplomacy,” claiming that some appointees are relatives of officials and lack formal diplomatic training. He added that the quota system extends beyond embassies to ministers and other government institutions.
“If previous appointees had five percent diplomatic experience, the new ones have none at all,” al-Moussawi noted.
On August 26, 2025, Iraq’s Parliament approved a list of new ambassadors submitted by caretaker Prime Minister Mohammed Shia al-Sudani after parliamentary debate. The list included several individuals identified as sons or close relatives of influential political figures, some in their early thirties, without notable diplomatic backgrounds.
The controversy surrounding al-Suhail is not isolated. On October 10, 2025, an official document from Iraq’s embassy in Jordan revealed a complaint filed by the Fairmont Amman hotel against Iraqi diplomat Zainab Akla Abd following an incident during her departure from the hotel.
According to the document, an alarm was triggered by two bags belonging to the diplomat, leading to a dispute and disruption inside the hotel. Iraq’s Foreign Ministry later formed a specialized investigative committee to examine allegations that a staff member at its mission in Jordan had taken hotel property.
On August 20, 2022, the Foreign Ministry said it had taken “appropriate measures” regarding Iraq’s ambassador to Jordan after photos of his wife circulated online. The images were published by Lebanese singer Ragheb Alama, showing him with the Iraqi ambassador to Jordan and his spouse in an “inappropriate situation.”
Structural Crisis
Political researcher Mujashaa al-Tamimi told our agency that recurring disputes involving Iraqi diplomatic missions cannot be separated from the structure of appointments. “The issue is not an isolated incident but a structural flaw,” he explained, adding, “The quota system prioritizes political loyalty over professionalism, and appointments from outside the diplomatic corps sometimes lack protocol and legal training.”
Al-Tamimi emphasized that managing embassies with a party-based mindset rather than a state-centered approach turns personal errors into national reputation crises. However, he cautioned against portraying the entire diplomatic corps as unqualified, noting that “many professional diplomats perform their duties effectively.”
The core problem, he said, lies in the absence of transparent selection criteria, weak accountability mechanisms, and politicization of sensitive positions, arguing that “reform would require strengthening the Foreign Ministry institutionally, implementing periodic performance evaluations, and linking appointments to experience rather than political balance.”
In an interview with Shafaq News, legal expert Mohammed Jomaa said that the ambassador's file consistently places Iraq in an “embarrassing position internationally.”
He criticized the “use of diplomatic posts as rewards for political figures or their relatives,” arguing that the position of ambassador should remain outside partisan and political consensus arrangements, since it represents Iraq’s reputation abroad.”
Written and edited by Shafaq News staff.
Baghdad Confirms US Warning Of Sanctions Over Al-Maliki Premiership Bid
2026-02-19 Shafaq News- Baghdad Iraq’s Foreign Ministry confirmed on Thursday that an oral message conveyed by the United States included a “clear and explicit hint” at the possibility of sanctions if the Shiite Coordination Framework (CF), the country’s largest parliamentary bloc, proceeds with its nomination of Nouri al-Maliki for prime minister.
The clarification followed remarks by Deputy Prime Minister and Foreign Minister Fuad Hussein in an interview with Al-Sharqiya TV, after some media outlets reported that no reference to sanctions had been made.
In a formal statement, the ministry explained that the message was delivered by the US side in Washington and consisted of two main components: the first contained an indication that sanctions could target certain individuals and institutions, while the second set out standards governing the nature of cooperation and joint work with the United States, particularly in relation to the formation of the next government and its operating mechanisms.
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In the context of the interview conducted by the Deputy Prime Minister of the Cabinet and the Minister of Foreign Affairs, Mr. Fouad Hussein, with the Al-Sharqiya channel in the "Confrontation" program presented by the journalist Hisham Ali, some explanations and information circulated by the media out of context were received, especially regarding the absence of any wave of imposing sanctions on Iraq.
Meanwhile, the Ministry of Foreign Affairs would like to clarify what is coming:
First up: The oral letter received from the US side in Washington, in case the larger bloc holds its current candidate, included two major paragraphs:
1- The first paragraph included a clear and explicit hint at the possibility of imposing sanctions on some individuals and institutions.
2- The second paragraph included a set of criteria related to the nature of cooperation and joint work with the United States of America, namely with regard to the formation of any incoming government and its mechanisms of operation.
The Ministry confirms that the Minister's speech during the interview was based on the standards in the second paragraph, and did not touch the guarantor of the first paragraph on hinting at sanctions, which led to a malfunction in some media coverage.
Ministry of Foreign Affairs of the Republic of Iraq
February 18, 2026
The ministry stressed that Hussein’s televised remarks addressed only the criteria outlined in the second component and did not cover the portion referring to sanctions, describing this distinction as the source of confusion in some media coverage.
Under Iraq’s post-2003 power-sharing arrangement, the presidency is traditionally held by a Kurd, the premiership by a Shiite Muslim, and the speakership by a Sunni Arab.
On Wednesday, a US State Department spokesperson reaffirmed Washington’s opposition to al-Maliki’s return to office, warning that advancing the nomination could carry serious diplomatic consequences. He outlined three priorities guiding the US position: ending the alleged dominance of Iran-backed groups in Iraqi politics, reducing Tehran’s influence over state institutions, and strengthening economic partnerships aligned with US objectives.
Sources previously told Shafaq News that the nominee, who heads the State of Law Coalition and served as prime minister from 2006 to 2014, denied reports suggesting he might withdraw from the race, while the Coordination Framework continues to reassess the nomination in light of mounting domestic challenges, regional instability, and external pressure.
Read more: Nouri Al-Maliki’s new doctrine for power: Pragmatism over defiance?