Iraq Economic News and Points To Ponder Thursday Morning 9-3-26
Reforming The Iraqi Economy
Economic 2026/09/03 Zuhair Kazem Aboud The Iraqi state is constitutionally obligated to reform the Iraqi economy according to modern economic principles, ensuring the full utilization of resources, diversification of income sources, and the encouragement and development of the private sector.
This obligation is stipulated in Article (25) of the Constitution. If this obligation rests with the state, what is the role of the people in supporting the government to improve the Iraqi economy and expedite overcoming the crisis inherited from the previous era?
The Iraqi economy is currently experiencing a multifaceted crisis. Its reliance on oil revenues makes the government vulnerable to fluctuations in global prices, compounded by US restrictions on dollar transactions and the damage inflicted on the Iraqi treasury by the expansion of sanctions on commercial and financial networks.
The difficulties are most evident in managing public spending and ensuring the continued payment of salaries to employees and retirees. The government also faces obstacles that discourage investment across all sectors, in addition to the volatile exchange rates used to import food.
The government is facing debts that are burdening the treasury, and it is trying, as much as it can, through plans and foundations that are capable of reducing or controlling those debts. It warns against relying on loans and borrowing, given the existence of a parasitic economic class that has benefited and continues to benefit from the fragile financial situation that the country is going through.
In light of all this, it is incumbent upon any group that takes responsibility for the course of executive power to exert all efforts to repair and reform the foundations of the Iraqi economy, and to elevate it in a way that enables it to control and monitor the economic and financial affairs of the country.
However, the government's confrontation with this dilemma, which concerns the lives and future of Iraqis, requires support and national stances from all sectors of the Iraqi people.
The confrontation cannot be completed through mere wishes and solidarity, nor by finding ways to impose taxes that burden citizens or hinder investment. Everyone here is responsible for playing a positive role in curbing the corruption that is draining the state's vast resources.
This is what the government has begun to do, supported by the judiciary, to shoulder the burden of a national stance that supports Iraqi agriculture and industry.
It is also crucial to navigate the critical phase Iraq is going through without resorting to disrupting stability or security, sabotage, or road blockades.
Furthermore, it is essential to contribute to diversifying the structure of the Iraqi economy by engaging in the productive private sector as an alternative to reliance on public sector jobs.
This includes expanding savings, restoring confidence in Iraqi banks, and promoting digital transactions as much as possible instead of cash transactions. It also involves controlling tax revenues, border crossings, and customs.
Simply put, the problem is not merely a passing liquidity crisis or a lack of confidence in Iraqi banks among Iraqi citizens, but rather the anxiety they experience as a result of rumors and news spread by biased media outlets.
Iraq is a productive and economically capable country whose governments have inherited a legacy of destruction and violations. Economically, he has further distorted his economy, which requires interaction between government reform and popular support.
We do not suffer from a lack of resources, but rather from poor management of these resources and their conversion into production and job opportunities.
In addition, oil should not be relied upon and treated as a source of funding for salaries and current expenses, but rather it should be considered as capital for building a diversified economy that contributes to raising growth potential.
https://alsabaah.iq/137631-.html
85% Of Iraqis' Money Is Outside Banks... TBI Reveals The Sector's Challenges And Its Upcoming Transformation Plan.
Last updated: September 2, 2026 The Independent - The Iraqi banking sector is facing one of its most complex problems, with more than 85% of the cash mass remaining outside the banking system, at a time when pressures related to compliance, sanctions, digital transformation and rebuilding citizens’ trust in financial institutions are increasing.
Ali Abdul-Ridha Alwan, director of the Trade Bank of Iraq (TBI), revealed that the large percentage of funds outside banks poses a real challenge to the economy, because it reduces the banking sector’s ability to circulate liquidity, finance projects, and expand lending and investment operations.
Alwan explained, during a dialogue session with a number of media professionals, that a large part of Iraqi funds is still being held outside official banking channels, including the liquidity that citizens have in their homes, which limits the effectiveness of banks in supporting economic activity.
According to Alwan, this reality is linked to a long accumulation of political and economic crises that have affected citizens’ confidence in banking institutions, making the restoration of this confidence one of the basic priorities of any real financial reform process.
Dealing With Iran Under Multiple Oversights
Regarding the financial and commercial transactions with Iran, Alwan stressed that this file is not subject to a single banking decision, but is managed through several governmental and regulatory bodies, including financial authorities, the Ministry of Foreign Affairs, the Central Bank of Iraq, and the Iraqi Trade Bank.
He explained that TBI plays a supporting role in implementing the approved procedures and clarifying their nature to banks and global financial institutions, stressing that these procedures are not directed against customers, but rather come within the framework of compliance with international rules and requirements for financial control and supervision.
This issue is becoming increasingly sensitive as international financial institutions tighten their control over the movement of funds and transfers, especially those related to countries and entities subject to sanctions.
International Tests For Iraqi Banks
Alwan pointed out that a number of international banks have conducted tests and surveys of Iraqi banking institutions in recent years to measure the level of compliance and adherence to international standards.
He indicated that the results showed the need for further development in the Iraqi banking sector, whether in control systems, compliance, or risk management, in order to strengthen its relationships with international banks and financial institutions.
Regarding the US sanctions on some Iraqi banks, Alwan ruled out that media coverage alone was the reason for taking these decisions, stressing that the US authorities rely on a wide system of information and sources before imposing any measures.
Battle to Restore Trust
The statements of the director of “TBI” indicate that the most prominent challenge facing the banking sector is not only related to sanctions or external measures, but also to convincing Iraqi citizens to deposit their money in banks.
The more money there is outside the banking system, the less able banks are to use it for lending, financing and investment, which directly impacts market activity and economic growth opportunities.
Therefore, addressing the problem of cash outside banks requires, in addition to regulatory reforms, improving services and transaction speeds, providing more advanced digital tools, and ensuring higher levels of security and trust.
Debts And A Plan To Recover Funds
On another note, Alwan confirmed that the Iraqi Trade Bank continues to work on recovering debts and amounts owed to it through legal frameworks.
He explained that the goal is to protect the bank’s funds, public funds, and the funds of customers and merchants, while maintaining a balance between TBI’s role in supporting the private sector and the government and protecting its financial position.
Roadmap Until The End Of The Year
Al-Alwan revealed the existence of a roadmap to develop the bank’s work and address its strengths and weaknesses, expecting its results to begin appearing within the next three months and its implementation to continue until the end of the year.
The plan includes developing a range of banking products, including remittances, cards, advances and loans, along with expanding the scope of electronic services and internet banking.
This comes at a time when the use of digital banking services in Iraq is still limited compared to other countries in the region, making digital transformation one of the most prominent reform issues in the coming phase.
Infrastructure Is An Additional Obstacle
Al-Alwan stressed that the expansion of digital services does not depend on banks alone, but requires an integrated infrastructure, modern systems and programs, and greater flexibility in contracting and purchasing procedures.
He pointed out that some government procedures for purchasing systems and software sometimes limit the speed of banking institutions in implementing development projects, which represents an additional challenge to digital transformation.
In conclusion, the statements of the Director of TBI reveal that reforming the Iraqi banking sector involves four main issues: bringing funds back into the banking system, enhancing international compliance, restoring citizens’ confidence, and accelerating digital transformation.
The success of these initiatives appears to be a crucial factor in determining the ability of Iraqi banks to play a larger role in financing the economy and reducing reliance on traditional cash transactions in the coming period.
https://mustaqila.com/85-من-أموال-العراقيين-خارج-المصارف-tbi-يك/