Iraq Economic News and Points To Ponder Thursday Morning 8-28-25
Central Bank: Gold Enhances Stability, Debt Constrains Budget
Baghdad Today – Baghdad In a country where crises alternate between politics and finance, the structure of the Central Bank of Iraq's assets reveals a deeper picture than mere ratios and numbers.
The assets, which alternate between gold, securities, and government receivables, are not simply bank accounts; they reflect the trajectory of a state seeking stability amid internal and external storms, according to experts.
Manar Al-Obaidi, an economic expert, explained in a post on his Facebook page, followed by Baghdad Today, that securities, despite maintaining their leading position at 27% in 2025, declined from their previous share of 37% in 2022.
This decline is interpreted by analysts as a loss of one of the liquidity tools that gives banks immediate flexibility in the face of pressures.
In contrast, gold jumps from 6% to 12.6%, representing a shift towards "solid security,"a move that observers see as reflecting deep concern about the fragility of markets and a desire to seek refuge in the indestructible metal.
But the picture is not complete without mentioning the deposits of other banks, which have risen to 26%, giving the Central Bank greater maneuverability at a time when the Ministry of Finance's dues still account for nearly a quarter of assets.
These dues have not actually decreased, but have remained virtually constant, which analysts see as a continuation of the intertwining of monetary policy and public finances,sometimes turning the Central Bank into a larger creditor of the state itself.
The historical background reveals that this connection is not new.
Since 2003, the Central Bank has found itself at the heart of the equation for financing budget deficits, through the purchase of treasury transfers and lending to the Ministry of Finance.
The Central Bank Law, which grants it formal independence, has not prevented practical interference,
making government receivables a structural gap that is difficult to fill.
Not far from this, loans to finance small and medium enterprises increased from 5% to 7%,
which experts see as a glimmer of hope for a development trend that requires monitoring and
guarantees,
for fear that it could become a new burden on assets if these projects are unable to repay.
Foreign investments and deposits in foreign banks declined from 62% to 53%, revealing a reallocation inward through gold and quidity, but also a loss of a portion of the regular returns previously provided by foreign markets.
A gradual reading of these figures suggests that the Central Bank is attempting to balance financial security with investment, but it is encountering a fundamental obstacle: more than a third of its assets are made up of loans and liabilities, making the sustainability of its monetary structure
dependent on the obligations of other parties, most notably the Ministry of Finance.
In conclusion, it is clear that the central bank's structure remains captive to the weight of government debt, despite diversification attempts.
Gold and liquidity provide an additional margin of safety, but this is insufficient unless these transformations are accompanied by a clear strategy that decouples the structural link between monetary and fiscal policy and restores the flexibility of the monetary institution as a guardian of stability.
Source: Economic expert Manar Al-Obaidi's Facebook page + Baghdad Today + Agencies
https://baghdadtoday.news/281891-.html
International Development Bank Launches Iraq’s First Smart Branch
Business Iraq Jawad Al-Samarraie August 27, 2025 An interior shot of a modern, technology-focused bank branch Baghdad (IraqiNews.com) – The International Development Bank (IDB), one of Iraq’s largest and leading private banks, announced today, Wednesday (August 27, 2025), the launch of the country’s first smart branch.
The new branch will allow customers to complete all banking transactions without needing staff, 24/7,
a move that highlights the bank’s commitment to digital transformation and innovation in Iraq’s banking sector.
According to a statement from the bank, the new smart branch is located
within the IDB’s general administration building on Abu Nuwas Street in Baghdad.
It offers a fully integrated digital banking experience, enabling individuals, companies, investors, and content creators to conduct a wide range of transactions in minutes.
Services include opening accounts, deposits, withdrawals, issuing checkbooks and banking cards, and transferring funds.
The branch also provides innovative services like buying gold ounces, printing account statements,
settling loans, and receiving payments for content creators.
In addition to self-service options, customers can speak directly with customer service representatives via audio and video to ensure a more interactive and flexible banking experience.
Wissam Al-Ameri, the head of the marketing department at the IDB, stated that the launch of the smart branch reflects the bank’s commitment to prioritizing customers by providing innovative and easy-to-use solutions.
He believes this step is a qualitative leap in banking services in Iraq and reinforces the bank’s position as a leader in digital innovation. https://www.iraqinews.com/business/international-development-bank-smart-branch-iraq/
Consensus On The Inevitability Of Strategic Planning And Digitization Of Financial Operations
Economic 08/28/2025 Baghdad: Hussein Thaghab Participants in the forum, organized by Bayt Al-Hikma Consulting in cooperation with the German GIZ organization, emphasized the importance of strategic planning and digitization in enhancing government and economic performance.
They emphasized that these elements represent essential pillars for Iraq's advancement and transition to a new phase in line with global developments in various service and production sectors.
Participants explained that the government is currently working to implement serious initiatives aimed at achieving a qualitative leap in the level of public services and improving economic performance,
while leveraging advanced technology to enhance the exploitation of the country's natural and human resources, enabling comprehensive and sustainable development across all sectors.
In his speech at the forum, Chairman of the Securities Commission, Faisal Al-Haimus,emphasized that
strategic planning, informed leadership, and digitization are not an option, but rather an urgent necessity.
He pointed out that planning provides the foundation for a promising future and enables ambitious leadership to achieve positive results that enhance the work reality and contribute to propelling the country toward safety.
Al-Haimus emphasized that digitization is a national project that enhances performance efficiency, supports transparency, and opens broader horizons for financial inclusion that serves all segments of society.
He pointed out that building institutions, creating a ladder for development, and achieving general renaissance are based on sound planning and ambitious leadership, which makes digitization a vital tool for advancing Iraq's economic and administrative reality.
For his part, Undersecretary of the Ministry of Commerce, Sattar Al-Jabri, praised the forum, stressing that its content combined key themes that represent a priority for the government: leadership, strategic planning, and digitizing financial operations.
Speaking to Al-Sabah, Al-Jabri explained that the complementary work between these themes contributed to significant achievements in terms of simplifying procedures and improving performance.
He pointed out that digital transformation has become an absolute necessity to keep pace with global developments, and that the
Ministry of Commerce's next goal is to build an integrated financial and administrative system that
supports the national economy and raises the level of services to significant levels, while
emphasizing the importance of cooperation between the public and private sectors to achieve sustainable development.
In her speech, delivered on behalf of Dr. Ahmed Al-Dahlaki, the Minister of Finance considered the forum to be an important contribution to financial and administrative reform, noting that
the focus on building an integrated digital economy represents a key pillar of financial stability and
enhancing integration with global economies and the rapid digital transformations they are witnessing.
Al-Dahlaki explained that strategic planning must place human capital at the heart of development, and that leveraging advanced technology is essential to raising the level of performance in various institutions,whether in the public or business sectors.
He emphasized the role of digitization in raising efficiency, achieving transparency, and
facilitating financial and administrative workflows.
In turn, Hisham Khaled, CEO of Bayt Al-Hikma, told Al-Sabah that strategic planning, leading digital transformation, and expanding the base of financial inclusion are crucial to achieving a qualitative shift in the country's reality.
He pointed out that leveraging the best international experiences in this field has demonstrated the ability of strategic planning and digitization to bring about a clear renaissance in various countries, facilitate performance paths, and achieve tangible results on the ground.
Khaled explained that strategic planning represents the compass that determines the right direction and provides a solid foundation for implementing digital transformation in an integrated manner, emphasizing that
integrating modern technology at all levels of work ensures enhanced efficiency and transparency, and has a broad positive impact on government performance and services provided to citizens.
Participants noted that the government's commitment to strategic planning and digitization goes beyond improving financial and administrative performance,
but also extends to enhancing public services and creating a sustainable and resilient economic environment capable of responding to global and local challenges.
This focus is placed on building an integrated, technology-driven system that optimally utilizes human capital to achieve sustainable development goals, enhance financial inclusion, and promote economic and social stability.
The speakers emphasized that these efforts align with global trends in institutional development,
improving service efficiency, and creating a more transparent and fair work environment.
This, they said, contributes to strengthening trust between citizens and the state, laying the groundwork for economic growth, and achieving a comprehensive renaissance.
At the conclusion of the forum, everyone emphasized that strategic planning, conscious leadership, and the digitization of financial operations are not merely regulatory tools, but rather constitute the foundation for sustainable economic and social development.
They pointed out that the success in implementing these principles will bring Iraq closer to the levels reached by leading countries in the field of digital management, financial transparency, and economic inclusion, while creating an environment capable of making the most of human and natural resources, and achieving a qualitative leap in all economic sectors. And service. https://alsabaah.iq/119692-.html
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