Iraq Economic News and Points To Ponder Thursday Morning 2-19-26
Today, The Rejection Of Al-Maliki's Nomination Will Be Announced
Bassim Alkhazraj Translated from Arabic #Iraq Today, the rejection of Al-Maliki's nomination will be announced:
Statement from the U.S. Embassy: If they think about nominating Al-Maliki, the United States will confront Iran's destabilizing activities in Iraq The U.S. Embassy: We want a completely independent Iraq not subject to Iran
The Coordination Framework will hold a meeting within hours before the American deadline expires today, Thursday
The decision of the meeting will be to withdraw Al-Maliki's nomination Only Al-Amiri and Abu Alaa are supporting Al-Maliki's nomination. https://x.com/AlKhazraji_75/status/2024434899587936458
US Warns Of Diplomatic Rupture Over Al-Maliki PM Candidacy
2026-02-18 Shafaq News- Washington The United States on Wednesday reaffirmed its opposition to former Prime Minister Nouri Al-Maliki’s bid to return as Iraq’s premier, warning that advancing his candidacy could trigger serious diplomatic repercussions.
Asked by Shafaq News correspondent about reports of a US “deadline” for withdrawing Al-Maliki and whether American policy had shifted, a State Department spokesperson stressed that President Donald Trump’s position remains firm: selecting Al-Maliki would force the US to reassess its relationship with Iraq.
He outlined three key priorities guiding the stance: “ending the dominance of Iran-backed militias in Iraqi politics,” reducing Tehran’s hold over state institutions, and building economic partnerships with allies aligned with Washington’s objectives.
The Shiite Coordination Framework (CF), representing more than 185 of Iraq’s 329 parliamentary seats, nominated Al-Maliki as its candidate for prime minister; he previously led two governments from 2006 to 2014.
Earlier, a source informed Shafaq News that Al-Maliki rejects reports of a potential withdrawal from the race for Iraq’s premiership, noting that no CF meeting was scheduled to reassess his nomination.
Trump has publicly opposed Al-Maliki’s potential return to office, asserting that Iraq would have “zero chance of success, prosperity, or freedom” under his administration and warning that Washington “will no longer help Iraq” if he is chosen.
For Shafaq News, Mostafa Hashem, Washington D.C.
Read more: Nouri Al-Maliki’s return rekindles Iraq’s divisions as Iran and the US pull apart
https://www.shafaq.com/en/Iraq/US-warns-of-diplomatic-rupture-over-Al-Maliki-PM-candidacy
The Iraqi Banking Sector Faces An Existential Test Between Local Tightening And International Oversight.
February 18, 2026Last updated: February 18, 2026 The Independent / Report / - The Iraqi banking sector is entering a phase described as the most sensitive and complex since 2003, amid a long accumulation of internal crises, increasing international scrutiny of money movements, and mounting pressure on the Central Bank of Iraq to restructure the banking system in accordance with compliance standards and combating money laundering and terrorist financing.
According to information obtained by Al-Mustaqila from informed sources within the financial sector, the current developments are unlike previous stages, not only because of the multitude of open files, but also because the margin for maneuver has shrunk with the tightening of requirements for foreign transactions, and the increased sensitivity of correspondent banks and international institutions to any gaps in compliance.
Sanctions That Have An Impact Beyond Banks
Over the past few months, Iraqi banks have faced punitive measures due to concerns regarding their foreign transfer mechanisms and compliance with regulations. According to sources, these measures were not merely "procedural," as they quickly impacted the ability of some banks to perform their core functions related to trade and transfers.
Sources say the impact of the sanctions has manifested in the restriction or disruption of external transfer channels for some entities, the disruption of banking relationships with foreign parties, and a decline in confidence among international partners who are increasingly cautious in their dealings with the Iraqi market. As a result, banks have found themselves in a difficult operational position, threatening their traditional business models and placing them under accelerated corrective pressure.
Unprecedented Regulatory Tightening By The Central Bank
In parallel with external pressures, the Central Bank of Iraq expanded its supervisory tools, according to banking sources, to the “highest level” since the establishment of the new banking system after 2003. The sources indicate that the auditing procedures have moved towards reviewing compliance systems, auditing sources of funds and transfers, examining electronic systems and risk management, as well as evaluating the roles of senior management in some banks.
The sources add that the central bank is now focusing on the gap between “paper compliance” and actual compliance in daily operations, especially in files related to the movement of funds outside the country, which is a crucial criterion in the evaluation of financial institutions by international parties.
"Out Of Service" Despite Licenses Remaining Valid
According to available information, a number of banks are now practically out of service, either as a result of restricted access to currency and transfer channels, or due to difficulties in maintaining stable relationships with correspondent banks, or as a result of failing to meet updated compliance requirements.
Sources indicate that some of these banks still have an official license, but they do not provide banking services “at a normal pace,” creating a significant disparity within the market between institutions able to continue operating and others that operate with limited capabilities and under increasing operational restrictions.
Signs Of Liquidity Pressure Within Specific Institutions
Sources from “Al-Mustaqila” confirm that the market witnessed signs of weakness within a number of banks, most notably challenges related to meeting some customer obligations, especially those related to large withdrawals, company obligations, and financing commercial operations.
Although there has been no official declaration of a comprehensive liquidity crisis, sources believe that continued operational pressures on small and medium-sized banks may exacerbate their financial fragility, especially with the decline in quick sources of income that some institutions relied on in recent years.
Is Iraq Moving Towards Reducing The Number Of Banks?
The most sensitive issue at this stage is the growing discussion about restructuring the banking market and reducing the number of operating banks. According to private sources, the central bank is considering a scenario for a "smaller but more efficient sector," through merging some banks, revoking the licenses of those unable to comply, or gradually removing institutions from the market.
The sources point out that the stated goal of this approach is to strengthen the sector and raise the level of confidence, but its success depends on the implementation mechanisms, how to protect depositors, and ensuring that there is no gap in banking services, especially in the governorates and markets that rely on a wide network of private banks.
Reforms Supervised By An External Consultant
As part of the reform process, Iraqi banks have submitted restructuring plans under a program led by the Central Bank and overseen by an American consulting firm specializing in banking system reform, according to sources. These plans include restructuring governance, addressing compliance risks, modernizing transfer systems, and separating higher-risk activities.
However, sources confirm that a number of banks have not completed the “correction” requirements, or have not submitted complete plans, which puts them in the circle of stricter procedures during the coming period, especially if these institutions are deemed unable to keep up with the new supervisory requirements.
International Oversight Not Limited To Banks
Informed sources indicate that international oversight is not limited to banks alone, but extends to the Central Bank of Iraq itself, in terms of assessing its level of compliance with international standards, the effectiveness of its oversight tools, and its ability to control foreign transfers and reduce the risks associated with using the banking system in highly sensitive operations.
Sources describe this stage as a “testing phase” for the robustness of the regulatory framework, because any gap in controlling the system will not only be reflected locally, but may also affect Iraq’s relationship with external financial networks, and the ability of its banks to operate normally through international channels.
The Roots Of The Crisis: An Old Model Colliding With A New Environment
Observers believe that what the sector is going through today is not an emergency crisis, but rather the result of long-standing accumulations, most notably weak governance in a number of banks, the reliance of some of them on narrow sources of income linked to specific channels, the delay in investment in technical systems and compliance, in addition to a previous expansion in granting licenses without building solid banking capabilities, and the fragility of relationships with correspondent banks.
With the changing international environment for financial transactions, this model is no longer as sustainable and flexible, especially with the rising cost of risk for external partners.
What Is The Most Dangerous Thing In The Next Stage?
According to sources, the risk is not limited to restricting a bank here or there, but also includes the possibility of shrinking the channels available for foreign trade, increasing the cost of transfers, and further tightening the screws on companies and individuals, which may put pressure on economic activity and increase the burden of financial operations on the market.
The sources add that the coming months may witness an acceleration of procedures for classifying banks and sorting viable ones from unviable ones, with decisions to merge or suspend the activity of specific institutions, and additional tightening of external transfers for individuals and companies, in light of international pressure that is likely to escalate unless the banking system proves its ability to reduce risks and improve compliance. https://mustaqila.com/القطاع-المصرفي-العراقي/
Taif Sami: We Are Continuing With The Financial Reform Package To Enhance Economic Stability.
Time: 2026/02/18 {Politics: Al-Furat News} The Minister of Finance confirmed on Wednesday that the Iraqi government is paying great attention to creating an attractive investment environment for reputable international companies, explaining that the ministry is continuing to implement the package of financial reforms aimed at strengthening Iraqi economic stability.
The Ministry's media office stated in a statement received by Al-Furat News that: "Taif Sami discussed with the Ambassador of the Republic of South Korea to Baghdad ways to strengthen bilateral relations between the two friendly countries and develop prospects for cooperation in the financial and economic fields in a way that serves common interests."
He added, "During the meeting held at the Ministry's headquarters, the two sides reviewed the nature of the existing strategic partnership and the importance of activating the exchange of expertise in the areas of automating banking and financial systems."
During the meeting, Sami emphasized that "the Iraqi government is paying great attention to creating an attractive investment environment for reputable international companies," noting that "South Korean companies possess extensive experience that makes them a key partner in implementing major development, reconstruction and infrastructure projects."
She also explained that "the ministry is continuing to implement the package of financial reforms aimed at enhancing economic stability and developing the efficiency of the state's financial management in accordance with modern international standards."
For his part, the Korean ambassador expressed his appreciation for the efforts of the Ministry of Finance in overcoming the challenges facing foreign investments, stressing Seoul's keenness to consolidate its relations with Iraq and support the government's directions aimed at achieving a comprehensive economic revival by increasing the volume of trade exchange and expanding the presence of Korean companies in various vital sectors.
https://alforatnews.iq/news/طيف-سامي-مستمرون-بحزمة-الإصلاحات-لتعزيز-الاستقرار-الاقتصادي-وتطوير-