Iraq Economic News and Points To Ponder Thursday Evening 5-7-26
An Economist Warns Of A Severe Financial Crisis And Suggests Adjusting The Dollar Exchange Rate.
Time: 2026/05/04 {Economic: Al-Furat News} Economic expert, Nabil Al-Marsoumi, warned of the seriousness of the financial situation in Iraq, pointing to a large financial gap and escalating challenges that threaten economic stability in the coming period.
Al-Marsoumi said, during his appearance on the “On the Ruler” program broadcast by Al-Furat satellite channel, that “Iraq’s balance at the Central Bank is likely to decrease by up to $5 billion per month,” considering that “the continuation of this decline in the medium term represents a great danger.”
He pointed out that "the new government may be forced to make a decision to adjust the dollar exchange rate, despite it being one of the worst means of financing the budget, in addition to raising fuel prices."
Al-Marsoumi added that “the recent statements by the Undersecretary of the Ministry of Oil regarding the export of between 160,000 and 200,000 barrels per day through the Kurdistan Region pipeline were disappointing, as exports were supposed to reach about 300,000 barrels per day,” noting “the slowness in the procedures of the Ministry of Oil for exporting crude.”
He explained that "export operations through the south are facing challenges, with the absence of clear figures and the possibility of a decline in oil exports during April compared to March, which will negatively affect the Iraqi economy."
Al-Marsoumi explained that "Iraq is one of the countries most affected in the oil production file as a result of the closure of giant fields for long periods, which leads to complex technical damage, especially in fields that depend on water injection, which makes it difficult to restore their production capacity later."
Regarding the truth about the arrival of the dollar shipment to Iraq, Al-Marsoumi explained that "the American embassy announced that no dollar shipment was sent to the country, denying the narrative that attributes its delay to air traffic or the atmosphere of war, and confirming that this came by an American decision, which is a dangerous indicator."
He added that "the market responded to this development with a slight increase in the dollar exchange rate, considering this a clear message to the Iraqi government, indicating that the Central Bank's cash dollar balance currently stands at only about $612 million.
Al-Marsoumi stressed that “Iraq cannot sell its oil in anything other than dollars at present and that alternatives will take years,” warning that “delaying the release of cash shipments will lead to higher exchange rates,” calling on the government to “act quickly to address the crisis,” noting that “the current economic challenges require realistic solutions that are commensurate with the size of the crisis.” Wafaa Al-Fatlawi https://alforatnews.iq/news/خبير-اقتصادي-يحذر-من-أزمة-مالية-حادة-ويرجح-تعديل-سعر-صرف-الدولار
The US Treasury Imposes Sanctions On The Iraqi Deputy Oil Minister And Leaders Of Pro-Iranian Factions
Baghdad – One News 5/07/2026 The US Treasury Department announced on Thursday new sanctions against Iraqi Deputy Oil Minister Ali Ma’araj al-Bahadli and a number of figures and entities linked to armed factions loyal to Iran, as part of what Washington described as a “maximum pressure” campaign against Tehran and its financial networks in Iraq.
The ministry said in a statement issued by the Office of Foreign Assets Control (OFAC) that al-Bahadli “exploited his official position to facilitate the diversion of Iraqi oil and its sale to the benefit of the Iranian regime and its affiliated armed factions,”accusing him of providing facilities to oil smuggling networks and issuing forged documents to conceal the origin of Iranian oil and sell it as Iraqi oil.
The US Treasury confirmed that the sanctions also included prominent leaders of the “Asaib Ahl al-Haq” and “Kataib Sayyid al-Shuhada” factions, along with four Iraqi companies operating in the oil sector, accusing them of financing the activities of armed factions and coordinating with the “Iranian Revolutionary Guard”.
US Treasury Secretary Scott Bessent said, “The Iranian regime is plundering resources belonging to the Iraqi people and using oil revenues to fund terrorism against the United States and its partners.”
According to the statement, the sanctions include freezing all assets and property belonging to the individuals and entities covered within the United States, in addition to prohibiting financial transactions with them, while threatening to impose “secondary sanctions” on any foreign financial institutions that cooperate with them or facilitate their activities.
The US Treasury Department also stressed that the US administration will continue to target Iranian oil smuggling networks and cut off funding sources for armed factions supported by Tehran in Iraq and the region
https://1news-iq.net/الخزانة-الأميركية-تفرض-عقوبات-على-نائ/
The Ministry Of Oil Announces An Oil Discovery In Najaf Within The "Al-Qarnayn" Exploration Area With Reserves Of 8.8 Billion Barrels
Baghdad – One News 5/07/2026 The Iraqi Ministry of Oil announced a new oil discovery within the “Qarnayn” exploration block, with reserves estimated at about 8.8 billion barrels, in a move that supports Iraq’s plans to increase its oil production capacity in the coming years.
The announcement came during Oil Minister Hayyan Abdul Ghani’s reception of a delegation from the Chinese company Zhenhua, where the two sides discussed developments in the work in the “Al-Qarnayn” exploration block, in addition to the East Baghdad South field.
Abdul-Ghani confirmed that the discovery was made within the Al-Qarnayn block, which was awarded to the Chinese company as part of the fifth supplementary and sixth licensing rounds in 2024. He stressed the importance of accelerating work to complete oil projects and maximize the utilization of associated gas, thus ensuring the sustainability of crude oil production.
He added that the Al-Qarnayn block is the first exploration block to record an oil discovery within the blocks offered in the fifth supplementary and sixth licensing rounds, reflecting the significant potential of undeveloped areas in Iraq, particularly border regions. https://1news-iq.net/وزارة-النفط-تعلن-عن-اكتشاف-نفطي-بالنجف/
Iraq’s PM-Designate Unveils 14-Point Program Before Confidence Vote
2026-05-07 / Shafaq News- Baghdad Iraqi Prime Minister-designate Ali Al-Zaidi on Thursday unveiled a 14-point ministerial program detailing the incoming government’s priorities ahead of a planned parliamentary confidence vote.
According to a copy obtained by Shafaq News, the program focuses on state sovereignty and national security, foreign policy, economic and financial reform, energy, industry, agriculture and water resources, governance and anti-corruption measures, education, healthcare, social protection and poverty reduction, telecommunications and information technology, human rights, women and children’s affairs, youth and sports, as well as culture, tourism, and antiquities.
Al-Zaidi had formally submitted the program to Parliament Speaker Haibet Al-Halbousi for circulation among lawmakers before next week’s vote.
Negotiations over ministerial portfolios continue under a points-based system tied to parliamentary representation, with blocs generally requiring at least 10 seats to secure service ministries and more than 15 seats for sovereign portfolios. Cabinet positions in Iraq are traditionally allocated through political agreements under the muhasasa system, a post-2003 power-sharing arrangement among the country’s main political and ethnic groups.
Read more: Al-Zaidi named prime minister: Easy nomination, harder road ahead1778179509989_�المنهاج النهائي 5-5-2026.pdf (it's in Arabic)
https://www.shafaq.com/en/Iraq/Iraq-s-PM-designate-unveils-14-point-program-before-confidence-vote