Iraq Economic News and Points To Ponder Tuesday Afternoon 9-2-25
Us Warning: The Federal Reserve Is Considering Cutting Off The Dollar To Iraq!
September 1, 2025 Last updated: September 1, 2025 Al-Mustaqilla/- Exclusive sources revealed to Al-Mustaqilla on Monday that the US Federal Reserve is studying imposing economic sanctions on Iraq,which could include cutting off the dollar from the country, if what it described as "the smuggling of hard currency to Iran" continues.
Sources confirmed that US warnings were communicated to the Iraqi government and central bank some time ago, demanding an end to dollar smuggling.
However, according to the sources, "the government has not yet taken any practical steps to comply with US directives, and smuggling has continued unabated."
Sources indicate that previous meetings were held between Iraqi officials and American parties,
where the danger posed by continued currency smuggling to the Iraqi economy was highlighted.
However, "the issue has not been resolved, and no signals of compliance have been sent by the current government."
Economic analysts view these developments as a direct blow to the government and the Central Bank of Iraq, warning that continued smuggling could lead to a major economic crisis, weaken the country's ability to secure basic needs in hard currency,
and increase pressure on the dollar price in the local market.
The question now arises:
Will the Iraqi government take urgent action before US threats turn into actual sanctions that cut off Iraq's dollar lifeline, or will the smuggling issue continue to fuel the country's economic crisis?
https://mustaqila.com/تحذير-أمريكي-البنك-الفيدرالي-يدرس-قرا/
Monetary Stability And Exchange Rate Liberalization.
Economic 2025/08/31 Mohammed Sharif Abu Maysam In economic feasibility studies, the
financial, marketing, and technical studies cannot be prepared in an investment environment unless that environment enjoys monetary stability, paving the way for stable exchange rates for the local currency against foreign currencies.
This allows the economic feasibility researcher
—particularly the foreign investor
—to calculate costs, returns, and profits over the time periods within the project's lifetime.
This means that monetary instability can be a deterrent to investment capital,even if the investment environment is promising.
Therefore, monetary authorities, through their available tools, seek to achieve the goal of monetary stability and reassure investors and those preparing economic feasibility studies, with stability that makes the margin of error in forecasts very small.
This leaves it to the executive, legislative, and judicial authorities to establish ttractive security, legal, and social environments through security stability and social acceptance, along with the presence of a legal system and judicial institutions that regulate and protect market relations on the one hand, and the relations of business owners with institutional and social formations on the other, in a manner that ensures integrity and integration with societal customs and traditions.
Based on this and other factors related to the inflationary situation and its extension to the areas of growth rates and development, the local currency exchange rate and monetary stability have been among the priorities of the monetary authority in our country over the years of economic adaptation to the phase of the macroeconomic transition to a market economy in light of structural imbalances, the inability of productive sectors to finance domestic demand due to the disruptions of the transition phase and the internal influences related to financing foreign trade, and the growth of the black market for currency exchange.
After the country witnessed security stability, an increase in the level of services and sectoral growth rates, with a clear reduction in the circles of administrative slackness due to the introduction of technologies and electronic payment systems, in conjunction with measures to tighten control over border crossings, and transfer the mechanisms of foreign currency flow to finance foreign trade through the banking system, the rates of the dollar mass flow outward to the local market decreased, which was reflected positively in favor of the Iraqi dinar, and which bodes well for thelity under the conditions of economic reform,which include the liberalization of the exchange rate,does not mean a decline in the black market exchange rate in favor of the official exchange rate.
Rather, it means price stability in a market capable of financing aggregate demand at a point close to or identical to the official rate,with the possibility of maintaining this stability in the face of the many variables and transformations witnessed by the country and the region.
In other words, achieving stability is conditional on the liberalization of the exchange rate,
which favors the adoption of a managed float method,via a free market in which minor fluctuations in the exchange rate are permitted, while the monetary authorities intervene when necessary to support price stability in cooperation with the executive and legal authorities. https://alsabaah.iq/119768-.html
Launch Of The Samuel Campaign To Educate About Electronic Payment
September 01, 2025 The Central Bank of Iraq announces the launch of the "Al-Samawal" campaign, starting September 1, 2025, in cooperation with banking financial institutions and electronic payment service providers, as part of the National Financial Inclusion Strategy (2025–2029).
This campaign aims to enhance financial culture, open bank accounts free of charge for merchants and citizens, distribute and operate point of sale (POS) devices, and issue electronic cards,
which came with the participation of more than (50) banks and (15) electronic payment companies and the implementation of the Financial Inclusion Department at the Central Bank of Iraq and the “Our Awareness” organization for the culture of electronic payment, and this came to reduce reliance on cash and stimulate digital transformation in the commercial financial sector.
The Central Bank's media office explained in a statement that the campaign targets vital commercial areas in Baghdad, such as Rashid Street, Bab al-Sharqi, Shorja, Saray Market, and Mutanabbi Street.
Activities will continue for an entire month, with broad participation from banking and non-banking financial institutions.
The statement affirms that, through this initiative, the Central Bank of Iraq is taking an important step in its efforts to promote a more inclusive and digital economy, and its commitment to its role in developing the Iraqi financial system to enhance the desired stability.
Launch Of The Samuel Campaign To Educate About Electronic Payment
September 01, 2025 The Central Bank of Iraq announces the launch of the "Al-Samawal" campaign, starting September 1, 2025, in cooperation with banking financial institutions and electronic payment service providers, as part of the National Financial Inclusion Strategy (2025–2029).
This campaign aims to enhance financial culture, open bank accounts free of charge for merchants and citizens, distribute and operate point of sale (POS) devices, and issue electronic cards,
which came with the participation of more than (50) banks and (15) electronic payment companies and the implementation of the Financial Inclusion Department at the Central Bank of Iraq and the “Our Awareness” organization for the culture of electronic payment, and this came to reduce reliance on cash and stimulate digital transformation in the commercial financial sector.
The Central Bank's media office explained in a statement that the campaign targets vital commercial areas in Baghdad, such as Rashid Street, Bab al-Sharqi, Shorja, Saray Market, and Mutanabbi Street.
Activities will continue for an entire month, with broad participation from banking and non-banking financial institutions.
The statement affirms that, through this initiative, the Central Bank of Iraq is taking an important step in its efforts to promote a more inclusive and digital economy, and its commitment to its role in developing the Iraqi financial system to enhance the desired stability. Central Bank of Iraq Media Office September 1, 2025 https://cbi.iq/news/view/2967
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