Iraq Economic News and Points To Ponder Tuesday Afternoon 1-20-26
The Banking Sector And The New Public
The past year, 2025, witnessed tireless activity at various levels in the pursuit of achieving the desired banking reform in Iraq. On the one hand, the outgoing government made strenuous efforts to reform the state-owned banks, which included merging some banks and making the decision to split Al-Rafidain Bank into two banks. These measures were described as being part of the reform of the state-owned banking sector.
On the other hand, the Central Bank of Iraq, as the supervisory and regulatory body for the work of private (national) banks, played a pivotal role in advancing the reform of this sector, by taking important steps during 2025, the most prominent of which was bringing in the global company “Oliver Wyman”, which is one of the consulting companies specializing in the development of banking and financial systems.
This contract aims to elevate the private banking sector to meet international standards, especially since Iraq is about to enter a phase of developmental and reconstruction renaissance that requires a robust banking sector capable of meeting the needs of international companies wishing to invest in Iraq, after the wars and crises that the country has gone through that have deeply affected its economic structure.
Oliver Wyman established strict conditions and clear requirements for achieving banking reform, obligating banks to comply and emphasizing that those lagging behind or failing to comply could be forced out of the banking sector. These conditions included: increasing bank capital, encouraging bank mergers, and adhering to international standards for governance, solvency, and risk management.
According to the available data, most banks have responded to these requirements and agreed to bear the costs of consultations and repairs.
This raises a fundamental question commensurate with the scale of this response:
After the banks have fulfilled their obligations, what rights and facilities should they receive to enable them to provide banking services that meet the standards of international banks?
Banking experts believe that successful banking reform is a reciprocal process. After banks commit to the new standards, there is an urgent need for an incentive package to help them conduct their banking activities efficiently, especially since a large portion of banks are still subject to various sanctions.
These stimulus packages include financial and funding support, technical assistance and institutional capacity building, regulatory flexibility and a phased approach to implementing requirements, infrastructure and technological system reforms, and opportunities for growth and regional and international partnerships.
The success of banking reform depends not only on enforcement but also on integrating obligations with rights and building a banking environment capable of supporting comprehensive economic development in Iraq.
Finally, reforming the banking sector in Iraq cannot be measured solely by the number of regulations or the stringency of the conditions, but rather by its ability to become a genuine engine for economic development.
Banks that have responded to the reform requirements and complied with international standards, in turn, need a supportive regulatory environment and practical incentives that enable them to fulfill their natural role in financing, investment, and driving economic growth.
Successful banking reform is a balanced partnership between the regulatory authority and the banks, based on the exchange of obligations and rights, a phased implementation, and addressing structural challenges, foremost among them sanctions, weak infrastructure, and limited financing tools. Without this, reform could transform from an opportunity for advancement into a burden that hinders the sector's effectiveness.
With the start of a new year, the opportunity remains to build a modern, robust Iraqi banking sector that is integrated into the global financial system and capable of meeting the requirements of reconstruction and sustainable development, provided that the reform process is completed with a comprehensive vision that balances discipline and empowerment, and oversight and incentives, in a way that serves the national economy and enhances confidence in the banking system https://alsabaah.iq/126635-.html
The Caretaker Government Issues Several Decisions, Including The Establishment Of Water Treatment Plants.
Today 20:08 The caretaker cabinet issued several decisions on Tuesday, including the establishment of water treatment plants in Basra. A statement from the cabinet's media office ,
received by Al-Maalomah News Agency, indicated that "the cabinet directed the Ministry of Planning to prepare detailed reports on the size and costs of projects included in the plan, whether self-funded or through loans, from 2005 to 2025. The results will be presented to the cabinet for evaluation of public spending." The statement
added that "the cabinet approved setting the price of surplus wheat intended for export at between 415,000 and 420,000 Iraqi dinars per ton, taking into account global market prices. Sales will be conducted from the General Company for Grain's warehouses in Nineveh and Salah al-Din governorates. The cabinet also approved financing the outstanding payments owed to seed producers for 2024 by supplying them with available seeds from the warehouses in lieu of their debts, thus ensuring the continuation of the 2025 agricultural plan."
He noted that "the Council granted the authority to disburse funds for contracts with the Korean company Daewoo related to the infrastructure of the Grand Faw Port, directing the Ministry of Transport to prepare a detailed technical study and cost estimate in coordination with the Air Force before awarding the contract. In Basra, the Council approved the establishment of water treatment plants on the Shatt al-Arab to secure drinking water for the residents of the Al-Baradhiya area, with their costs to be included within the recovered petroleum expenditures for the development of the Zubair field."
He continued, "The Council corrected the gas calculation process to be in dry cubic meters instead of cubic feet, and amended previous decisions related to obligating the Ministry of Oil to purchase refined petroleum products, leaving the determination of investment periods to future technical discussions."
The statement concluded, "The Council approved the continuation of spending by the Ministries of Finance and Planning on completed investment projects according to available liquidity, while allowing the issuance of necessary spare parts orders not exceeding 25% of the contract value, to ensure that vital projects do not stop until the federal budget is approved." LINK
US Official: We Are In An "Active War" With Venezuela For Control Of Its Oil.
January 19, 2:25 PM Information/Follow-up… US Senator Rand of Kentucky asserted that the United States is in an active war with Venezuela to control its oil.
Paul told NBC: "This is an act of war... aimed at continuing to get their oil. It's an ongoing war for the distribution of that oil... I still hope the crisis will be resolved, but we are still in an active war with Venezuela."
Rand added that "the United States has imposed a complete naval blockade on the Venezuelan coast and deployed hundreds of warships off its shores." End/25 LINK
Moscow: The US "Peace Council" Will Not Replace The United Nations
January 19, 21:00 Information/Follow-up...Vladimir Dzhabarov, head of the Russian Federation Council's Committee on the Protection of State Sovereignty, said that the "Peace Council" proposed by US President Donald Trump regarding Gaza would not be able to replace the United Nations.
In a post on Telegram, Japarov stressed that the United Nations is indispensable despite its flaws, asserting that any new council operating according to the principles of a semi-closed club will not be able to address the root causes of conflicts.
He noted that Trump had repeatedly criticized the United Nations and recently signed a memorandum withdrawing the United States from 31 UN agencies, but stressed that the UN had maintained a balance between the two superpowers, the Soviet Union and the United States, throughout the 40 years of the Cold War, and remained the most effective tool the international community possessed thanks to the veto mechanism in the Security Council.
Japarov ruled out the possibility of Trump withdrawing from the UN Security Council, explaining that Washington benefits from the location of the UN headquarters on its territory to achieve its political goals, and that the success of the "Peace Council" depends on the results of the Republicans in the midterm congressional elections scheduled for next November.
He revealed that the US administration expects the role of the "Peace Council" to expand from the reconstruction of the Gaza Strip after the conflict between Hamas and Israel to later include the settlement in Ukraine and Venezuela, and perhaps become an alternative to the United Nations in other hotspots.
He explained that the council included high-level figures to give it weight, including Russian President Putin, Brazilian President Lula da Silva, Kazakh President Kassym-Jomart Tokayev, and Hungarian Prime Minister Viktor Orban, along with leaders from Pakistan, India, Turkey, and other European countries.
Japarov urged caution regarding the idea of a "Peace Council," warning against the inclusion of controversial figures on its executive committee, such as former British Prime Minister Tony Blair, who supported the 2003 US-led invasion of Iraq under the pretext of its possession of weapons of mass destruction. (End of 25) LINK
Al-Sudani To The SDF Commander: The Need To Consolidate Dialogue And Prevent Terrorists From Tampering With The Security Of Syria And Iraq
Time: 2026/01/20 23:25:0 Politics:Al-Furat News} Prime Minister Mohammed Shia Al-Sudani made a phone call this evening, Tuesday, to Mazloum Abdi, the commander of the Syrian Democratic Forces.
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The Prime Minister's Media Office stated in a statement, a copy of which was received by Al-Furat News, that: "During the call, developments in Syria were discussed, in light of the latest security developments and events, and their repercussions on regional security and stability and the situation in Iraq."
Al-Sudani stressed "the need to consolidate dialogue at this critical stage, in a way that guarantees the rights of all Syrian components, preserves the unity and security of the country, and prevents terrorists from escaping from prisons and tampering with the security and stability of Syria and Iraq and the general security in the region." LINK
Gold Prices Climb In Baghdad, Erbil Markets
Economy & Business 2026-01-20 04:25 Shafaq News– Baghdad/ Erbil On Tuesday, gold prices edged higher in Baghdad and Erbil markets, according to a survey by Shafaq News Agency.
Gold prices on Baghdad's Al-Nahr Street recorded a selling price of 982,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 978,000 IQD. The same gold had soldfor 965,000 dinars on Monday.
The selling price for 21-carat Iraqi gold was 952,000 IQD, with a buying price of 948,000 IQD.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 980,000 and 990,000 IQD, while Iraqi gold sold for between 950,000 and 960,000 IQD.
In Erbil, 22-carat gold was sold at 1.034 million IQD per mithqal, 21-carat gold at 987,000 IQD, and 18-carat gold at 846,000 IQD. https://www.shafaq.com/en/Economy/Gold-prices-climb-in-Baghdad-Erbil-markets-8-6