Wed. Iraq News Posted by Tishwash at TNT 6-17-2026
TNT:
Tishwash: The government announces the purpose of al-Zaidi's visit to Washington
Government spokesman Haider Al-Aboudi confirmed on Tuesday that Prime Minister Ali Faleh Al-Zaidi's visit to Washington aims to strengthen the Iraqi-American partnership, noting that economic, trade and investment issues will be at the forefront of the visit's agenda.
Al-Aboudi said in a press statement: “The Prime Minister, Ali Faleh Al-Zaidi, will pay an official visit to Washington in mid-July with the aim of establishing the necessary momentum to strengthen the Iraqi-American partnership and elevate it to an effective level within the framework of the strategic relationship between the two countries, in accordance with the principle of common interests of the two friendly peoples.”
He added, “Based on the priorities of the Iraqi government and its ministerial program, which has gained the confidence of the House of Representatives, economic, trade and investment files will be at the forefront of the axes of the anticipated visit as the cornerstone of the path of bilateral cooperation,” noting that “the government seeks to expand the horizons of strategic partnership with international companies and stimulate the investment environment in a way that contributes to achieving direct benefits for the Iraqi economy and enhances internal stability.”
Al-Aboudi continued, “Within the framework of this stability, which is based on economic foundations and flexible management of the variables of the current stage, the Iraqi government is proceeding with addressing the issue of unregulated weapons and working to restrict their possession and use to the state and its competent institutions, as they are constitutionally authorized to make the sovereign decision in this field.”
Prime Minister Ali Faleh al-Zaidi received in his office the US President’s Special Envoy, Tom Barrack, and discussed with him the Iraqi government’s shared commitment to establishing a strong and mutually beneficial US-Iraqi partnership capable of fulfilling the aspirations of Iraqis for a future of sovereignty, security and prosperity, and providing tangible benefits to both the Iraqi and American peoples. link
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Tishwash: Ending the "militias" and the relationship between Erbil and Baghdad are on the table for Masoud Barzani and Tom Barrack
Kurdish leader Masoud Barzani discussed with US President’s Special Envoy for Iraq and Syria, Tom Barak, on Tuesday, ways to enhance stability in Iraq and the Kurdistan Region. While Barak stressed the need for Baghdad to restrict weapons to the state and end the influence of “militias,” Barzani pointed to the importance of the federal government’s commitment to the principles of partnership, balance, and consensus within the framework of the constitution.
A statement from Barzani’s headquarters, received by Shafaq News Agency, stated that Masoud Barzani received Ambassador Tom Barrack at the Salahaddin resort. During the meeting, Barrack emphasized that Iraq and the region need stability, and that the Kurdistan Region plays an important and essential role in the present and future, while expressing his admiration for the development and progress witnessed in the Kurdistan Region, describing it as exemplary.
For his part, Barzani stressed that the Kurdistan Region has always been a stabilizing factor, and that it supports dialogue and diplomatic solutions to all of Iraq’s and the region’s problems, noting that the Kurdistan Region has never been part of the problems, but has always been unfairly harmed by the consequences of wars and conflicts in the region.
Barzani also stressed the need for the Middle East to move towards a stable situation that brings prosperity to the region's inhabitants.
In another part of the meeting, the importance of joint work and coordination between the Kurdistan Region and the new Iraqi government was highlighted.
The US envoy spoke about the need for stability in the Iraqi political system and the protection of the state’s role in controlling unofficial armed forces, reiterating his country’s support for the Iraqi federal prime minister in the process of restricting weapons to the state and ending the influence of militias, as stated in the statement.
Regarding the new Iraqi government, Barzani affirmed his support for Prime Minister Ali al-Zubaidi, stressing the need for everyone to learn from the mistakes of the past and to work on the basis of the principles of partnership, balance, and consensus, and within the framework of the constitution.
In another part of the meeting, views were exchanged on the situation in the region and its equations, and the two sides agreed to work together according to common priorities to enhance the stability of Iraq and the Kurdistan Region, and to build a long-term strategic friendship in economic aspects and to encourage investment. link
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Tishwash: The fluctuation in the dollar's exchange rate is linked to the mechanisms of the central bank and has no relation to political agreements.
A currency exchanger in Erbil markets revealed that the main reason behind the recent rise in the dollar exchange rate is due to the scarcity of hard currency offered in the markets, denying that the matter has any connection to political understandings or agreements.
Money exchanger Mam Sayed explained in an exclusive statement to Kurdistan 24 on Tuesday, June 16, 2026, that the decline in the amount of dollars offered by the Central Bank of Iraq has directly impacted prices. He pointed out that the scarcity of foreign currency in the markets is linked to the Central Bank's sales mechanism in Baghdad. He also noted the existence of unconfirmed rumors about the Central Bank's intention to adjust the official exchange rate to 142,000 dinars per 100 dollars, which has contributed to increased volatility and instability in the parallel market.
Regarding the role of Erbil markets in price movements, Mam Sayed stressed that "this situation is not related to Erbil markets, but rather the procedures followed in Baghdad are the main cause of the current state of confusion."
Regarding price levels, Al-Sarraf explained that the trading of the past 24 hours witnessed sharp fluctuations; as the exchange rate yesterday morning reached 154,000 dinars per 100 dollars, while the price currently ranges between 155,700 and 156,000 dinars.
He also revealed that commercial activity and market demand are currently concentrated almost entirely on the Iranian Toman, while trading in other currencies such as the Euro, the British Pound, and the Chinese Yuan has witnessed a significant decline and near-total stagnation.
The money changer pointed out the difficulty of predicting the course of exchange rates in the coming days, given the continued scarcity of dollars and the uncertainty regarding the duration of this situation.
For his part, Mazhar Muhammad Salih, the Iraqi Prime Minister's economic advisor, had previously told Kurdistan 24 that the current financial difficulties are directly linked to regional tensions and the closure of the Strait of Hormuz. He explained that approximately 85% of Iraq's oil was exported daily through this strait, meaning that the disruption of this vital waterway has severely limited the government's financial capabilities.
Ali al-Zidi’s advisor denied rumors that spoke of a government intention to reduce the value of the local currency, stressing: “The Iraqi government has no plans at the moment to raise the exchange rate of the dollar, but rather all efforts are focused on finding alternative mechanisms and overcoming the current financial crisis.”
The clarifications from Mazhar Muhammad Salih come in response to what local media outlets have been reporting in recent days regarding the federal government's intention to raise the exchange rate of the dollar against the dinar to confront the current economic and financial challenges. link
Tishwash: Speculation and Scarcity Drive Iraqi Dinar Lower as Baghdad Rejects Devaluation Fears
While the closure of the Strait of Hormuz chokes oil revenue, currency markets in Erbil and Baghdad grapple with a dollar shortage and a wave of disruptive rumors.
In the bustling corridors of Erbil's currency bazaar, the rhythmic exchange of notes has taken on a frantic pace as the U.S. dollar climbs sharply against the Iraqi dinar. On Tuesday, the local market was defined by a volatile mix of genuine scarcity and a feverish wave of speculation, leaving traders and citizens alike struggling to find firm footing in an increasingly unstable financial landscape.
The immediate source of the tremor appears to be a sudden tightening of dollar liquidity originating in Baghdad. Mam Sayid, a prominent currency exchanger in Erbil's bazaar, told Kurdistan24 on Tuesday that the primary driver behind the dollar's surge is a physical shortage of the currency.
While the Central Bank of Iraq (CBI) continues to sell dollars, Sayid noted that the pace is depleting national reserves at a concerning rate.
The resulting anxiety is manifesting in sharp price fluctuations.
According to Sayid's 24-hour market update, the exchange rate moved from approximately 154,000 IQD per $100 on Monday morning to as high as 156,000 IQD by Tuesday.
This rapid depreciation has been further fueled by a persistent rumor that the Central Bank intends to raise the official exchange rate to 142,000 IQD, a move that would effectively codify a devaluation of the national currency.
Sayid was emphatic that the disruption is a product of policy uncertainty in the capital rather than local conditions in the Kurdistan Region.
The fiscal squeeze is undeniable, and its roots are deeply anchored in the region's geopolitical volatility. Iraq's financial health is inextricably tied to its oil exports, and the recent conflict has dealt a staggering blow to the state's revenue streams.
Mazhar Mohammed Salih, a senior economic advisor to Iraqi Prime Minister Ali al-Zaidi, recently provided Kurdistan24 with a stark assessment of the crisis.
He explained that the ongoing closure of the Strait of Hormuz, the maritime chokepoint through which 85 percent of Iraq's oil once flowed daily, has severely restricted the government's financial capacity.
However, Salih moved decisively to quell the market's worst fears. In an interview with Kurdistan24, he categorically denied reports that the government plans to officially devalue the dinar to offset the revenue shortfall.
"At this stage, the Iraqi government has no plans to raise the value of the dollar," Salih stated, characterizing reports of an impending hike as baseless.
He noted that the administration is instead aggressively pursuing alternative economic mechanisms to navigate the current fiscal crunch without resorting to a policy-led increase in exchange rates.
Despite these official reassurances, the psychology of the bazaar often moves faster than the directives from the Prime Minister's office.
In a highly dollarized economy like Iraq's, rumors of a pending rate change often become self-fulfilling prophecies.
Traders, anticipating a more expensive dollar tomorrow, hoard their current holdings today, thereby strangling supply and driving prices up in a classic speculative loop.
The shift in market demand also reflects broader regional alignments. Mam Sayid revealed that while the dollar dominates the conversation, demand among traders has become concentrated on the Iranian toman.
Meanwhile, traditional trading in other major international currencies, such as the euro, the British pound, and the Chinese yuan, has effectively stalled. This stagnation in non-dollar trading highlights the unique, almost singular importance of the U.S. currency to Iraq's domestic stability and its ability to pay for essential imports.
The implications for the average Iraqi are significant.
A rising dollar translates directly into higher costs for imported goods, from basic foodstuffs to electronics and medicine, eroding the purchasing power of families already strained by the wider regional conflict.
For the al-Zaidi government, the challenge is twofold: they must manage a genuine liquidity crisis born of suppressed oil exports while simultaneously conducting a war of words against the rumors that threaten to unanchor the currency.
As the markets wait for a definitive sign of stability, predicting the dinar's trajectory remains a difficult task for even the most seasoned observers.
For Mam Sayid and his fellow traders in Erbil, the immediate future is a waiting game. Until the underlying scarcity is resolved and the "142,000" rumor is fully exorcised from the public consciousness, the Iraqi dinar will likely remain at the mercy of the prevailing winds blowing from Baghdad and the volatile waters of the Gulf. link