Iraq Economic News and Points To Ponder Wednesday Evening 2-4-26
Iraq’s $567 Monthly Wage Trails Living Costs Nearly Threefold
2026-02-04 Shafaq News- Baghdad Iraq recorded an average monthly wage of $567 over the past year, placing ninth among Arab countries, according to the global database Numbeo. The ranking marks a slight shift from 2023, when Numbeo estimated Iraq’s average net monthly salary at about $549, placing it eighth in the Arab world.
Despite the modest wage level, the data estimated that monthly living costs for a family of four in Iraq –excluding rent– stand at around $1,837.
Gulf states dominated the regional rankings, with Qatar topping the list at an average monthly salary of $3,804, followed by the United Arab Emirates at $3,231 and Kuwait at $2,940. Oman ranked fourth with $2,381, ahead of Bahrain at $2,244 and Saudi Arabia at $2,057.
Jordan placed seventh with an average monthly wage of $703, narrowly ahead of Lebanon at $568, while Iraq followed in ninth place.
Morocco ranked tenth at $487, followed by Tunisia at $343 and Algeria at $312. Egypt recorded the lowest average among the listed countries, at $153 per month. https://www.shafaq.com/en/Economy/Iraq-s-567-monthly-wage-trails-living-costs-nearly-threefold
Central Bank Denies Raising Traveler's Dollar Quota {Document}
{Economic: Al-Furat News} The Central Bank of Iraq denied reports about raising the traveler's share of dollars to 5,000 per month. The Central Bank had set the limit at $3,000 per traveler at the official rate of 1,320 dinars. LINK
The Central Bank Issues A Clarification Regarding Travelers' Dollar Allocation.
Economy News – Baghdad The Central Bank of Iraq issued a clarification on Wednesday regarding travelers' share of dollars. Central Bank Governor Ali Al-Alaq said, “The traveler’s monthly allowance is only $3,000, and the money is received only in person at authorized companies, and then the traveler receives the cash dollar at the airport on the day of the trip.” The governor called for "this notice to be widely disseminated so that some do not fall into the trap of fraud." https://economy-news.net/content.php?id=65323
Oil Prices Near $70 a Barrel
Reuters reported on Wednesday that oil prices rose to near $70 a barrel.
Reuters stated that "oil prices are approaching $70 a barrel."
Oil prices rose on Wednesday morning, continuing the gains made the previous day.
Brent crude futures climbed 65 cents, or 1.0%, to $67 a barrel at 01:11 GMT.
West Texas Intermediate (WTI) crude futures reached $63.90 a barrel, up 69 cents, or 1.1%.
Both benchmarks rose by approximately 2% on Tuesday. https://ina.iq/en/45265-oil-prices-near-70-a-barrel.html
Chevron To Manage Iraq’s West Qurna-2 Oilfield, Replacing Russia’s Lukoil
2026-02-04 Shafaq News- Basra The state-run Basra Oil Company said on Wednesday that US-based Chevron has entered negotiations to assume management of the West Qurna-2 oilfield in southern Iraq, following the Russian energy giant Lukoil stepping down as operator.
The Iraqi government decided yesterday to assign the Basra Oil Company to manage the oil field, contracting a consortium of Bonatti and Basra Crescent, as a measure to mitigate the impact of a force majeure declared by Lukoil.
Kazem Abdul Hassan Karim, the company’s deputy director for oilfields affairs, told Shafaq News that Chevron joined discussions to operate the field after the transitional phase, noting that the Iraqi company is prepared to take over direct management if talks do not result in an agreement.
Basra Oil Company had received an official notice from Lukoil declaring force majeure, prompting immediate precautionary measures to ensure operational continuity, he said, pointing out that the company moved to temporarily take over petroleum operations with the support of an Iraqi technical operator, aimed at maintaining production and securing salary payments for Iraqi staff contracted with Lukoil, pending formal approvals.
Karim added that the Basra Oil Company had requested renewal of the operating license, which expires on February 28, and confirmed that financial obligations between the Russian side remain under negotiation. “An outcome is expected within 24 days, and failure to settle could lead to the activation of force majeure clauses under the contract.”
The current output from the West Qurna-2 oilfield stands at about 489,000 barrels per day, including roughly 450,000 bpd from the Mishrif reservoir and 30,000 bpd from the Yamama reservoir. The Yamama reservoir, according to Karim, is undergoing preliminary development studies aimed at raising production to 150,000 bpd, with longer-term plans to increase total field output to 350,000 bpd by the end of 2029.
Lukoil announced last Thursday that it had begun selling its overseas assets, including oil projects in Iraq, to a group of US companies, citing restrictions imposed on the firm and its subsidiaries. The Russian energy giant has been under US sanctions linked to the war in Ukraine.
In late October 2025, the United States placed Lukoil and Rosneft, Russia’s two largest oil producers, on its sanctions blacklist as part of efforts to pressure Moscow to end the conflict. https://www.shafaq.com/en/Economy/Chevron-to-manage-Iraq-s-West-Qurna-2-oilfield-replacing-Russia-s-Lukoil
USD/IQD Exchange Rates Dip In Baghdad, Erbil
2026-02-04 Shafaq News– Baghdad/ Erbil The US dollar closed Wednesday’s trading lower in Baghdad and Erbil, retreating below the 150,000-dinar mark per 100 dollars.
A Shafaq News market survey showed the dollar trading in Baghdad’s Al-Kifah and Al-Harithiya central exchanges at 149,750 dinars per 100 dollars, after having exceeded 150,000 dinars earlier in the session.
In Baghdad, exchange shops sold the dollar at 150,250 dinars and bought it at 149,250 dinars, while in Erbil, selling prices stood at 149,700 dinars and buying prices at 149,600 dinars. https://www.shafaq.com/en/Economy/USD-IQD-exchange-rates-dip-in-Baghdad-Erbil-9
The Sudanese Government Directs The Resolution Of Tax Obstacles Facing The Private Sector Until The Budget Is Approved.
Money and Business Economy News – Baghdad Prime Minister Mohammed Shia al-Sudani directed on Wednesday the formation of a committee to communicate with the Kurdistan tax authorities to unify tax procedures.
The Prime Minister’s Media Office stated in a statement received by “Al-Eqtisad News” that “Prime Minister Mohammed Shia Al-Sudani chaired a meeting of the Supreme Committee for Tax Reform, in the presence of the Director General of the General Authority for Taxes and its senior staff, and a number of the Prime Minister’s advisors in the economic and financial field.”
According to the statement, the meeting discussed "the mechanism for unifying tax accounting procedures, the most prominent obstacles facing companies in the tax field, as well as a detailed discussion of the (tax accounting) law, which falls under the tax reform program adopted by the government."
The statement noted that "the meeting witnessed a discussion of the file of unifying tax procedures between the Kurdistan Region of Iraq and the Federal Ministry of Finance, and the issue of internal (double taxation), and finding legal solutions and effective procedures for addressing it."
According to the statement, the meeting discussed "the issue of (tax evasion) and presented legal proposals to address this problem, in order to help and encourage companies and investors to adapt their financial and legal status, in addition to discussing the legal solutions offered to resolve the tax problems faced by the private sector."
The Prime Minister affirmed the government's commitment to addressing this important issue within an integrated program to maximize non-oil revenues, directing the preparation of a draft resolution to be submitted to the Cabinet that addresses tax obstacles facing the private sector and Iraqi companies, pending the approval of the 2026 general budget law.
The Prime Minister directed the formation of a committee from the Ministry of Finance and the Tax Authority to communicate with the tax institution in the Kurdistan Region of Iraq in order to reach advanced stages in unifying tax procedures. https://economy-news.net/content.php?id=65326