Saturday Iraq News Posted by Tishwash at TNT 8-22-2026
TNT:
Tishwash: The governor of Kirkuk clarifies the implications of his statements regarding Article 140 and affirms: The relationship between Kurds and Turkmen is historical.
Kirkuk Governor Mohammed Samaan clarified the implications of his recent statements regarding Article 140 of the Iraqi Constitution, stressing that his remarks did not target any specific group, but rather highlighted the legal obstacles surrounding land ownership in the province, most of which is owned by Kurdish and Turkmen citizens.
Samaan explained that the ongoing legal disputes over the ownership of those lands are hindering the governorate's efforts to distribute residential plots to employees, noting that Article 140 has not yet succeeded in finding radical solutions to this issue.
At the same time, he emphasized the depth of the historical relations between the Kurds and the Turkmen, noting that Article 140 represents a constitutional text that is respected and agreed upon by all parties.
In another matter related to the financial file, the governor of Kirkuk revealed that there are outstanding financial obligations owed to contractors by the governorate, estimated at about 250 billion dinars, explaining that he took over his duties in light of accumulated financial debts and previous debts.
He confirmed that communication and efforts are continuing with the federal government in Baghdad to secure a portion of these entitlements and disburse them to those who are entitled. link
Tishwash: Government spokesperson: We are preparing to complete the sovereignty process on September 30th.
Government spokesman Haider al-Aboudi confirmed on Friday that the first 100 days of Prime Minister Ali Faleh al-Zaidi’s government represent a launch towards a clearer path to consolidate state sovereignty, noting that the government has been working since gaining the confidence of the House of Representatives on May 14, 2026, to translate its sovereign priorities through executive plans.
Al-Aboudi said in statements followed by Kalima News, “The government held 15 cabinet sessions during the past 100 days, and the standard of its performance was based on taking responsibility for the decision, strengthening sovereignty, protecting national independence, and building foreign relations based on common interests.”
He added that "the government is moving forward towards a state that protects its citizens, addresses emerging and inherited challenges, and continues institutional and economic reform to ensure a decent living and prevent risks that threaten public revenues."
He pointed out that "September 30th represents a crucial milestone for completing the path to sovereignty, so that Iraq will be 'fully sovereign' in its decisions, security, and land, free from any external dictates, and without the presence of any force outside the authority of the state."
He explained that "this path is based on constitutional and legal powers, and adheres to the government's program to restrict weapons to the authorized military and security institutions, stressing that the choice is sovereign and constitutional to complete the building of a state of law capable of protecting its territory and national decision."
Al-Aboudi stressed that “Iraq’s sovereignty is not ‘divisible,’ but that does not prevent Iraq from opening up to its regional and international environment based on mutual respect and common interests, from the position of an independent state.”
He concluded by saying: "The first hundred days are the beginning of a clearer path, in which the state advances with its institutions, and Iraq advances with its confidence and ability to protect its security, interests, and national decision." link
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Tishwash: A crisis of confidence and a cash economy: Around 97 trillion Iraqi dinars are outside the banking system.
Cash held outside the banking system constitutes one of the most prominent challenges facing the Iraqi economy, given the continued reliance of a large segment of citizens and merchants on cash transactions and keeping part of their money outside banks.
While money outside the banking system does not necessarily mean that it is entirely hoarded, its sheer size raises questions about the weakness of banking transactions and the ability of banks to attract savings and convert them into loans and financing for projects and investments.
This reality reopens the file on the relationship between citizens and banks, the reasons for the continued preference for cash, and the repercussions of a cash economy on the movement of money and economic activity, especially with the presence of dozens of banks operating in the country.
Money outside banks
The Prime Minister's financial advisor, Mazhar Muhammad Saleh, told Shafaq News Agency that "the fact that some cash remains outside the banking system represents one of the challenges facing the Iraqi economy, given the limited benefit the banking sector derives from these funds in deposit and credit operations, and in financing projects and investments."
Saleh explains that “money hoarded in cash, whether by households or companies, remains outside the scope of financial intermediation, which limits the ability of banks to employ savings in financing economic activity, and increases reliance on cash and the informal economy, in addition to the high cost of cash transactions and weak financial transparency.”
He emphasizes that "the problem does not lie in the use of cash itself, but rather in its transformation into a means of hoarding savings instead of directing them through financial channels towards investment and production."
He points out that “returning these funds to the economic cycle requires building trust in banks and providing real incentives for saving, through developing savings products, offering competitive returns on deposits, enhancing depositor protection, improving banking services, reducing the cost and procedures for opening accounts and transfers, and expanding electronic payments, digital wallets, and points of sale.”
Saleh concludes that "the process should not stop at the transfer of money from homes to banks, but should move from deposits to credit, from credit to investment, and ultimately to production and job creation."
The amount of money outside banks
In contrast, financial expert and former Director General of the Central Bank, Mahmoud Dagher, offers a different interpretation of the nature of funds outside banks, stressing that they do not all represent hoarded funds.
Dagher told Shafaq News Agency that "the amount of cash issued is about 105 trillion dinars, of which about 8 trillion dinars are inside the banking system, while about 97 trillion dinars are outside it."
He explains that “about two-thirds of the money outside the banking system is used to settle cash payments between merchants, real estate sales and purchases, and pay salaries and wages, while hoarding may represent about a quarter of the money outside banks.”
Dagher links the continued reliance on cash to “insufficient trust in banks, along with prevailing customs in Iraqi society and the slow transition to electronic payment,” noting that “the transition to a broad electronic payment system requires a long period of time, with the continued development of banks and payment tools.”
The figures for monetary issuance highlight the importance of the discussion regarding the amount of money circulating outside banks. However, monetary issuance does not necessarily mean that the entire amount represents money hoarded by citizens, nor does its increase automatically mean the printing of new money.
According to Dagher's reading, the majority of money outside banks enters the market and settles cash payments, which makes distinguishing between circulating cash and hoarded money essential when assessing the size of the problem.
Cash presence
Despite the presence of a large number of banks, cash transactions still occupy a large part of economic activity in Iraq.
The number of operating banks reached 72, including 7 government banks and 65 private banks. However, the large number of banks does not necessarily mean a high level of banking transactions, as the main challenge remains the extent to which citizens and companies use banks for saving, payment and financing.
The Central Bank is working to promote financial inclusion and expand the customer base of the banking system, in addition to expanding electronic payment methods and spreading financial literacy.
First choice for Iraqis
Economic expert and professor of political science at Dhi Qar University, Najm Abdul Tarish, told Shafaq News Agency that "the continuation of the cash economy is linked to a set of overlapping factors, including weak confidence in banks, deeply rooted habits of dealing in cash, the expansion of the informal economy, as well as the limited use of electronic payment in some activities."
He adds that "the problem does not lie in the existence of cash within the economy, as it is a natural part of any financial system, but rather in cash becoming the primary means of settling transactions and holding savings, which reduces the money that passes through banks and limits their ability to create credit and finance economic activity."
Available data indicates that the number of payment cards in Iraq has exceeded 20 million, but their actual use is still less than their widespread use, while a number of cardholders primarily use the accounts to withdraw salaries rather than use them for daily purchases and payments.
Possible solutions
Addressing the problem does not stop at returning the funds to the banks, as the ultimate goal is to bring them back into the economic cycle more efficiently.
When money is converted into deposits, it can give banks greater ability to provide credit, and when credit is converted into investment and productive projects, this can be reflected in growth, job creation, and increased economic activity.
Therefore, the challenge facing Iraq is not only the amount of money outside the banks, but also building a banking system that makes the citizen and the merchant find in the bank a safer, more useful and easier way than keeping money and dealing with it in cash.
Ultimately, the large amount of cash outside the banking system reveals the continued dependence of the Iraqi economy on cash transactions, at a time when the banking sector is seeking to increase its role in savings, credit, and financing the economy.
While Mazhar Muhammad Saleh believes that returning funds to the banking system requires restoring confidence and stimulating savings, Mahmoud Dagher points out that the largest portion of funds outside banks actually moves in the market and does not represent complete hoarding, while Najm Abdul Tarish links the continuation of the cash economy to weak confidence, prevailing habits, and the limited use of electronic payment.
The transition from a cash-based economy to one more reliant on banks and electronic payments remains linked to the banking sector’s ability to restore confidence, provide more efficient services, and transform funds from mere cash transactions into deposits, credit, investment, and production. link
Tishwash: Al-Aboudi: September 30th is a milestone for consolidating state authority and limiting power.
Government spokesman Haider al-Aboudi affirmed that the first 100 days of Prime Minister Ali Faleh al-Zaidi’s government represent the beginning of a clearer path to consolidate state sovereignty, noting that the government has been working since gaining the confidence of the House of Representatives on May 14, 2026, to address national issues according to “state logic.”
Al-Aboudi said, in a statement followed by (Al-Mada), that the government, after one hundred days and holding 15 cabinet sessions, has been keen since its first day to ensure that the standard of its performance is “bearing responsibility in decision-making, consolidating state sovereignty, and protecting national decisions from dictates,” in addition to strengthening Iraq’s foreign relations on the basis of mutual interests.
He added that the government is moving towards building a state that protects its citizens and addresses inherited and emerging challenges, in parallel with continuing institutional and economic reform in a way that ensures a decent life and reduces the risks that threaten public treasury revenues.
Al-Aboudi pointed out that the government views September 30 as a pivotal moment in completing the path of national sovereignty, until Iraq is fully sovereign in its decisions, security, and land, and no will is imposed on it from outside its institutions, nor do the instruments of power remain outside the authority of the state.
He explained that implementing this path is based on the constitutional and legal powers of the government and its program to consolidate state authority and confine the instruments of power to the legally authorized military and security institutions, stressing that the issue represents a “state choice and constitutional commitment,” and is not a separate procedure from the project of building state institutions.
The government spokesman stressed that all instruments of power should be under the command of the state, and that sovereign decisions should be issued exclusively by its constitutional institutions, in order to ensure the rule of law and the protection of Iraqi lands and national decision-making.
He added that “Iraq’s sovereignty is not subject to division,” while stressing that Baghdad continues to be open to its regional and international surroundings and to establish its foreign relations on the basis of mutual respect and common interests, starting from the position of an independent state capable of making its own decisions.
Al-Aboudi concluded that the first hundred days are just the beginning of a path through which the government seeks to strengthen the authority of state institutions and their ability to protect security, interests and national decision-making, considering that the next stage will witness greater clarity in the implementation of these directions. link