Iraq Economic News and Points To Ponder Wednesday Evening 10-21-26

CBI Foreign Reserves Rise To $81.5B In August

2026-10-21 06:18  Shafaq News- Baghdad  Iraq's foreign reserves rose to $81.538 billion at the end of August 2026, up from $80.633 billion a month earlier, according to Central Bank of Iraq (CBI) data released on Wednesday.  The gain of about $905 million followed four straight monthly declines from April through July, according to the data reviewed by Shafaq News. Reserves are still $15.894 billion below the $97.432 billion recorded at the end of 2025, a drop of about 16.3% over the first eight months of the year.

At the end of January, reserves stood at $101.082 billion. The CBI data puts them at $100.341 billion in March and $97.809 billion in April. They then fell to $93.673 billion in May, $86.175 billion in June and $80.633 billion in July.

Gold rose sharply in August even as CBI investments declined. Its value rose to 32.655 trillion dinars (about $25.1 billion) from 29.665 trillion dinars (about $22.8 billion) at the end of July, putting gold holdings above the $24.2 billion recorded at the end of 2025. CBI investments fell over the same month to 72.926 trillion dinars (about $56.1 billion) from 75.034 trillion dinars (about $57.7 billion).

The dollar equivalents in the data are based on an exchange rate of 1,300 dinars per dollar. The figures predate the government's decision to raise the official rate to 1,520 dinars per dollar, which took effect on Oct. 7.

Read more: CBI pledges unrestricted dollar supply after devaluation

https://shafaq.com/en/Economy/CBI-foreign-reserves-rise-to-81-5B-in-August

Iraq 2026 Domestic Debt Jumps 25%

2026-10-21 07:01   Shafaq News- Baghdad  Iraq's domestic public debt climbed to 113.485 trillion dinars ($74.66B) at the end of August, up 25.4% from the end of 2025, according to data released by the Central Bank of Iraq (CBI).

Domestic debt rose by 3.969 trillion dinars ($2.61B) in August alone, from 109.516 trillion dinars ($72.05B) at the end of July. The total was 22.97 trillion dinars ($15.11B) higher than the 90.515 trillion dinars ($59.55B) recorded at the end of last year.

Claims by the Ministry of Finance in favor of the CBI accounted for the largest share of domestic debt, reaching 76.499 trillion dinars ($50.33B) at the end of August, up from 72.499 trillion dinars ($47.70B) a month earlier.

Treasury bills totaled 8.711 trillion dinars ($5.73B), while loans stood at 18.945 trillion dinars ($12.46B) and bonds reached 9.330 trillion dinars ($6.14B). https://shafaq.com/en/Economy/Iraq-2026-domestic-debt-jumps-25

Iraq Budget Deficit Records $30B Through August 2026

2026-10-21 08:07   Shafaq News- Baghdad  Iraq recorded approximately 45.355 trillion dinars ($29.84 billion) in federal budget revenues through the end of August 2026, with oil accounting for around 77% of total state revenue, according to Finance Ministry data.

Reviewed by Shafaq News, the figures show that oil revenues reached approximately 34.726 trillion dinars ($22.85 billion), while non-oil revenues totaled around 10.629 trillion dinars ($6.99 billion), representing about 23% of the total.

Total expenditure, meanwhile, reached approximately 75.787 trillion dinars ($49.86 billion), leaving a budget deficit of around 30.432 trillion dinars ($20.02 billion) during the first eight months of the year.

Employee compensation accounted for the largest share of current spending, at approximately 40.994 trillion dinars ($26.97 billion), followed by social welfare expenditure at around 18.443 trillion dinars ($12.13 billion). Grants, subsidies, interest payments, and other expenses totaled approximately 6.011 trillion dinars ($3.95 billion).

Spending on commodity supplies reached around 2.454 trillion dinars ($1.61 billion), while expenditure on services totaled approximately 156 billion dinars ($102.6 million). Maintenance of assets accounted for about 48.5 billion dinars ($31.9 million).

Debt servicing totaled approximately 7.561 trillion dinars ($4.97 billion) through the end of August, while capital expenditure stood at around 30.1 billion dinars ($19.8 million), according to the ministry’s economic classification of spending.

Read more: $45B deficit looms over Iraq’s draft 2027 budget 

 https://shafaq.com/en/Economy/Iraq-records-20-billion-budget-deficit-through-August-2026

Rafidain Bank Recovers Over $15M In Overdue Debts

2026-10-21 11:22   Shafaq News- Baghdad   Iraq's state-owned Rafidain Bank collected more than 23.3 billion dinars (about $15.3 million) and nearly $280,000 in overdue credit repayments during the third quarter of 2026, the bank said on Wednesday.

From July 1 to Sept. 30, the bank recovered 23,325,910,931 dinars and $279,862, according to a statement. The bank said the funds would strengthen its financial resources and support its banking and financing activities.

Rafidain said it would keep pursuing outstanding debts under its existing rules. Borrowers can visit its branches to confirm what they owe and arrange settlements within the law.

The announcement came two days after Finance Minister Falih Al-Sari directed the bank to resume lending to public-sector employees and expand financing for private businesses. Most state banks had halted loans and salary advances by September because of liquidity shortages.

Read more: Iraq’s private banks: Capital Growth and the structural credit gap

https://shafaq.com/en/Economy/Rafidain-Bank-recovers-over-15M-in-overdue-debts

USD/IQD Climbs In Baghdad And Erbil Markets

2026-10-21 03:38   Shafaq News- Baghdad/ Erbil  The US dollar opened higher in Iraq on Wednesday, trading around 170,000 dinars per $100.

According to a Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 168,900 dinars per 100 dollars, up from Tuesday's 168,250 dinars.

In the Iraqi capital, exchange shops sold the dollar at 169,500 dinars and bought it at 168,500 dinars, while in Erbil, selling prices stood at 168,900 dinars and buying prices at 168,800 dinars.

https://shafaq.com/en/Economy/USD-IQD-climbs-in-Baghdad-and-Erbil-markets-1-2

Gold Prices Fall In Baghdad And Erbil

2026-10-21 04:31    Shafaq News- Baghdad/ Erbil   On Wednesday, gold prices hovered around 950,000 IQD per mithqal in Baghdad and Erbil markets, according to a Shafaq News market survey.

At Baghdad's Al-Nahr Street wholesale market, 21-carat Gulf, Turkish and European gold sold for 965,000 IQD per mithqal (equivalent to five grams) and was bought at 961,000 IQD, down from Tuesday's 974,000 IQD.

Iraqi 21-carat gold sold for 935,000 IQD per mithqal and was bought at 931,000 IQD.

At jewelry stores, 21-carat Gulf gold sold for between 965,000 and 975,000 IQD per mithqal, while Iraqi gold sold for between 935,000 and 945,000 IQD.

In Erbil, prices also fell. 22-carat gold sold for about 1.034 million IQD per mithqal, 21-carat for 988,000 IQD, and 18-carat for 846,000 IQD. https://shafaq.com/en/Economy/Gold-prices-fall-in-Baghdad-and-Erbil-1-1-7

Oil Prices Jump Amid Rising Middle East Threats

2026-10-21 01:15   Shafaq News   Oil prices gained over $1 on Wednesday as escalating Middle East tensions fuelled fears of supply disruptions, while falling US crude and product inventories lent support to the market.

Brent crude futures rose $1.59, or 1.5%, to $110.38 per barrel as of 0350 GMT. US West ​Texas Intermediate (WTI) crude gained $1.36, or 1.4%, to $99.18 per barrel.

Prices fell in the previous trading session after ​Iran's president discussed mediation efforts in a meeting with Pakistan's army chief in Tehran, though ⁠Brent hit a five-month high before easing.

"Oil prices have been having a bit of wild ride in ​the last couple of sessions," said Suvro Sarkar, head of energy research at DBS.

"We believe this is a mix ​of profit taking and optimistic hopes of a Qatar- or Pakistan-brokered deal, countered by the realisation that any deal is still very distant and compounded further by inventory data from the American Petroleum Institute (API), which shows drawdowns continuing in the US ​for both crude and products."

Iran told Pakistan's army chief there would be no talks with Washington until its ​demands were met, Iranian media outlet Nournews reported on Tuesday, adding that a Qatari delegation had arrived in Tehran. There was ‌no official ⁠confirmation of the reports.

Maritime security risks are also escalating. Shiptracker Kpler said on Monday that at least 18 vessel attacks were recorded over the past two weeks, while LSEG analysts warned Iran was targeting tankers well beyond the Strait of Hormuz, reaching into the Gulf of Oman and jeopardising Gulf crude loadings and the ​ship-to-ship transfers supporting regional loadings.

In Saudi ​Arabia, the Houthis on Monday ⁠claimed responsibility for attacks on a Saudi Aramco site in Yanbu, the Shaybah oilfield and Saudi Arabia's Riyadh and Abha airports.

The death toll from a Houthi attack on ​Yemeni government forces on Monday rose to 73 as fighting intensified.

Iranian Foreign Minister Abbas ​Araqchi said in ⁠a television interview aired on Tuesday that Iran has not received a response from Saudi Arabia or Yemen's Houthis to its offer to help broker peace talks.

In the US, two Energy Department officials said on Tuesday they ⁠were working ​with refiners around the world to boost fuel output as a diesel ​shortage has raised prices.

According to market sources citing API data, US crude stocks fell by 4.9 million barrels in the week ended October ​16.   (REUTERS) https://shafaq.com/en/Economy/Oil-prices-jump-amid-rising-Middle-East-threats