Iraq Economic News and Points To Ponder Wednesday Morning 6-10-26

Economic Expert: The Priority Is Not The Strength Of The Dinar, But Securing Financial Liquidity.

 Baghdad Today – Baghdad     On Saturday (June 6, 2026), economist Ziad Al-Hashemi commented on the statements of the Prime Minister’s advisors regarding the government’s measures to stabilize the value of the Iraqi dinar and maintain its purchasing power, considering that the current timing is not appropriate for this economic discourse.

Al-Hashemi said in a post on social media, which was followed by “Baghdad Today”, that “the Iraqi Prime Minister’s office is talking about the government’s work to stabilize (the value of the Iraqi dinar) and maintain its purchasing power,” indicating that “in general this approach is good and required in principle, but now is not the time to talk about the value of the dinar or its purchasing power.”

He added that "the critical problem now is not the value or strength of the dinar, but rather the availability of the dinar. The government is clearly suffering from a lack of sufficient dinars to sustain its work and pay salaries on time, as a result of the decline in oil revenues to their lowest level."

He pointed out that "the government was required to speak transparently and to tell the people the extent of the problem, what its emergency plan is to deal with the shortage of dinar liquidity in its treasury, and what its procedures are to provide the liquidity required to feed public finances during this month and the coming months."

The economist explained: “As for talking about the value of the dinar, its purchasing power, and the inflation rate, this can be postponed to the future and after overcoming the current suffocating financial crisis that complicates the work of the Iraqi government and prevents it from performing its financial duties as it should,” stressing that “such statements about the value of the dinar are appropriate for normal conditions and not in an exceptional emergency situation in which the government is suffering from a shortage of dinars.”   https://baghdadtoday.news/300815-.html

Iraq Is Moving Towards Balancing Programs With US Support And In Coordination With The World Bank.

Money and Business    Economy News – Baghdad   Finance Minister Faleh Sari discussed on Wednesday with the US Chargé d'Affaires to Iraq, Joshua Harris, prospects for economic cooperation between Baghdad and Washington and ways to strengthen the partnership with US financial institutions, while both sides affirmed their support for the path of economic and financial reforms.

The Ministry of Finance said in a statement received by "Al-Eqtisad News" that the minister stressed that the government has given the economic file high priority within its program, noting that the next stage will witness reforms aimed at addressing economic and financial challenges in a radical way, and in cooperation with international partners.

The minister revealed a government trend towards preparing a program budget and gradually moving away from the traditional budget system, with the aim of raising the efficiency of spending and linking financial allocations to goals and results, in line with the requirements of financial and administrative reform.

For his part, the US Chargé d'Affaires affirmed his country's support for the Iraqi government and its readiness to enhance economic and financial cooperation, in a way that contributes to supporting stability and achieving sustainable economic growth in Iraq.

This trend coincides with what the government spokesman, Haider al-Aboudi, announced, that the Council of Ministers approved a directive to proceed with drafting a "program budget" in coordination with the World Bank and the Parliamentary Finance Committee, within the framework of economic reform. https://www.economy-news.net/content.php?id=70077

The Prime Minister's Spokesperson: Salaries For Employees And Retirees Are Secured And There Is No Printing Of Currency.

Money and Business   Economy News – Baghdad   The spokesperson for the Prime Minister, Haider al-Aboudi, confirmed on Wednesday that the Prime Minister's upcoming visit to the United States will include important files and initiatives.

Speaking at a press conference held at the Council of Ministers and covered by "Al-Eqtisad News," al-Aboudi stated, "Based on the directives of Prime Minister Ali al-Zaidi, the government has decided to adopt a program-based budget in coordination with the World Bank and the Parliamentary Finance Committee to gradually enhance economic reforms."

He added, "The Prime Minister has adopted the Development Fund project through effective international contributions, with an initial target of $100 billion, which could reach $250 billion." He pointed out that "the Development Fund is an investment vehicle funded by international contributions from Iraq's friends, and these contributions will cover the requirements of the development situation."

Al-Aboudi explained that "the government is adopting a program-based budget, but the Prime Minister has reservations about the current budget approach, believing it does not meet aspirations. He considers a program-based budget to be the best option at this stage." He reiterated that "the Prime Minister's upcoming visit to the United States will include important files and initiatives." https://www.economy-news.net/content.php?id=70076

2027 knocks on the government's doors early... Time constraints and crises push Baghdad to exceed the 2026 budget.

 Baghdad Today – Baghdad    A government official revealed on Monday (June 8, 2026) that the government is moving towards preparing the draft general budget for 2027, in light of technical and financial difficulties that make preparing and approving an independent budget for 2026 a very complicated matter, after more than half of the current fiscal year has passed.

The official told Baghdad Today that "the remaining time in this year is no longer sufficient to prepare and approve a new budget for 2026, which prompted the government to focus on laying the foundations and estimates for the 2027 budget in line with the current economic reality."

He explained that this trend comes in light of increasing economic and financial challenges facing Iraq, as a result of rapid regional developments and their direct impact on energy markets and international trade.

He added that "the halt in oil exports due to the closure of the Strait of Hormuz against the backdrop of the ongoing war in the region has imposed additional pressure on public revenues and the government's financing capacity," noting that the relevant authorities are monitoring economic developments on a daily basis to assess the extent of the potential repercussions.

The official stressed that the government is working on preparing realistic financial estimates for the upcoming budget, taking into account current economic variables, in order to ensure the sustainability of public spending and secure the state’s basic obligations, foremost among them salaries, services and vital projects.

Iraq faces increasing financial challenges due to its heavy reliance on oil revenues, which constitute the largest share of its general budget. With escalating regional tensions and disruptions to oil exports, concerns are growing about the impact on government spending and development plans, prompting authorities to reassess their financial priorities and develop more flexible scenarios for the coming years.  https://baghdadtoday.news/300859-2027-2026.html

Zaidi’s Government Adapt Long-Term Plan To Revive Iraqi Dinar

Iraq   Jawad Al-Samarraie    The new headquarters of the Central bank of Iraq (CBI). Photo: Zaha Hadid Architects

Baghdad (IraqiNews.com) – The financial advisor to the Prime Minister, Mudher Mohammad Saleh, announced on Saturday, June 6, 2026, that the government of Ali Falih al-Zaidi has adopted a comprehensive package of long-term reformative measures designed to shield the purchasing power of the Iraqi dinar and curb inflation.

Saleh explicitly ruled out any possibility of raising the national currency’s value through abrupt, short-term administrative decrees, stating that sustainable monetary strength relies on deep structural overhauls rather than quick political fixes.

According to Saleh, the current government strategy has successfully stabilized market prices for consumer goods by channeling import financing through official banking systems, backed heavily by the state’s foreign currency reserves. This monetary control has been further reinforced by the physical expansion of modern, state-backed cooperative grocery networks and advanced marketing frameworks.

These parallel commercial steps have significantly diminished the influence of the informal shadow exchange market on the domestic pricing system, helping cap inflationary pressures.

However, the financial advisor issued a stark warning regarding active macroeconomic variables putting downward pressure on the dinar. Chief among these threats are rigid geopolitical constraints imposed on global energy markets, escalating regional conflicts, and the resulting volatility in foreign currency inflows and overall economic confidence. Saleh noted that an over-reliance on volatile crude oil revenues, unchecked monetary expansion, and any future drops in official reserves pose direct risks to the country’s fiscal health.

To permanently secure the currency, Saleh emphasized that the government is actively working on a long-term economic transition plan. This framework focuses on aggressively building up foreign exchange reserves, diversifying national income streams away from oil dependence, and stabilizing the country’s balance of payments.

Furthermore, the administration’s roadmap relies heavily on accelerating commercial banking sector reforms, rapidly expanding digital and electronic payment tools, and widening national financial inclusion to systematically dismantle the parallel market’s leverage over the national economy.

https://www.iraqinews.com/iraq/iraq-dinar-purchasing-power-monetary-policy-reforms-2026/