▼
Friday, January 30, 2026
Monetary And Financial Measures To Control The Market And Protect The Iraqi Dinar
Monetary And Financial Measures To Control The Market And Protect The Iraqi Dinar
Baghdad: Shukran Al-Fatlawi Saja Al-Gharawi
Iraqi Dinar blog
As part of the government’s efforts to regulate the market and enhance monetary stability, the relevant financial institutions continue to implement a package of integrated policies aimed at protecting the exchange rate of the Iraqi dinar and reducing the impact of emerging changes on the national economy, especially with regard to the price gap between the official and unofficial markets for foreign currencies.
For the past two days, Iraqi markets have witnessed fluctuations in the exchange rate of the US dollar, which has exceeded 150,000 dinars.
Jassim Al-Aradi, a member of the Baghdad Economic Forum, said that the recent increases in exchange rates within the local markets came as a result of the overlap of a group of factors, most notably the application of the “Askoda” system, which prompted some traders to look for quick alternatives to secure the requirements of their foreign trade.
Dinar investment tips
Procedural Paths
He added to “Al-Sabah” that some traders turned to the parallel market to obtain dollars, due to the delays or procedural paths that accompanied the first stages of implementing the system, which led to an increase in the unregulated demand for foreign currency, and directly affected the movement of the market and price levels.
Real Demand
Al-Aradi stated that the Central Bank of Iraq continues to play its role in meeting the real demand for dollars for foreign trade purposes, through official channels, and in accordance with compliance controls and international standards.
He pointed out that addressing these increases requires giving the market a period of time.
Sufficient to adapt to the new mechanisms, along with simplifying procedures and intensifying coordination between the concerned parties, which contributes to reducing recourse to the parallel market, restoring balance to the exchange market, and maintaining the stability of the dinar and the confidence of dealers in the adopted monetary policies.
The Prime Minister’s financial advisor, Dr. Mazhar Muhammad Saleh, told Al-Sabah: “Reducing the gap between the official exchange rate in the organized market and its counterpart in the unorganized market is not a single monetary decision, but rather a conscious coordination between fiscal and monetary policy, supported by financial reforms that contribute to strengthening confidence and reducing risks.”
Major currency analysis
Economic Behavior
Saleh pointed out that this coordination aims to redirect economic behavior from hedging and speculation to stability, through the continuation of financial and trade policies and in full cooperation with the Central Bank of Iraq, in a way that enhances monetary stability and preserves the purchasing power of the citizen.
He stressed that controlling public spending and directing it towards development priorities, along with regulating the demand for foreign currency through official banking channels, represent two fundamental pillars in reducing the artificial pressures on the parallel market and narrowing the gap between the official and parallel prices, in line with the objectives of monetary stability stipulated in the Central Bank of Iraq Law No. (56) of 2004.
Boosting Confidence In The Dinar
Saleh explained that the monetary authorities' continued adoption of a policy to defend the exchange rate, supported by strong foreign reserves, in conjunction with liquidity management and bolstering confidence in the national currency, has contributed to maintaining stable prices for basic commodities and citizens' living standards within safe inflation ranges.
He pointed out that these measures are part of a broader reform path aimed at enhancing the transparency of public finances, improving compliance with the global financial system, and supporting the resilience of the banking sector, thereby consolidating economic stability and strengthening the confidence of citizens and stakeholders in the national economy.
Market Regulation
For his part, economist Ziad al-Hashemi told Al-Sabah that regulatory and control measures in local markets directly contribute to reducing speculation, which in turn reduces artificial demand for dollars in the parallel market, even if it doesn't eliminate it entirely. Al-Hashemi explained that factors contributing to high exchange rates remain, especially with the implementation of new systems such as the unified customs system (ASYCUDA), which was accompanied by uncontrolled demand for dollars, leading to additional pressure on the exchange rate in the recent period.
Cash Reserve
For his part, Dr. Sadiq Al-Rikabi, Director of Economic Research at the Global Center for Development Studies in the United Kingdom, pointed out that the Central Bank of Iraq's reserves represent the first line of defense for the dinar. He explained that the reserves' ability to meet the demand for dollars during any significant increases contributes to strengthening public and commercial confidence in the national currency.
Al-Rikabi also addressed the issue of inflation, clarifying that the rise in prices is not related to monetary inflation, but rather to structural inflation stemming from Iraq's heavy reliance on imports to meet its needs. This creates a continuous demand for dollars and affects the exchange rate. https://alsabaah.iq/127173-.html
🚨 Paul Gold Eagle Claims: Redemption Centers “Activating” Feb 1, 2026 as QFS Narrative Spreads Online
⚠️ Disclaimer (Must Read)
The following article analyzes claims circulating online attributed to Paul Gold Eagle and related channels.
These statements are opinions and narratives, not verified facts. Readers should not make financial decisions based on unconfirmed information and should consult qualified professionals.
🔎 What Is Being Claimed?
Content circulating under the name Paul Gold Eagle asserts that:
“Redemption Centers” would activate on February 1, 2026
A Quantum Financial System (QFS) would replace the fiat system
Gold‑backed instruments would allegedly be introduced
Traditional banking would allegedly be shut down or disconnected
Military protection and global operations would enforce the transition
These claims are presented by their promoters as inevitable and imminent, though no official confirmation exists.
🧭 The QFS Narrative Explained (As Presented by Proponents)
According to the narrative:
The fiat monetary system is in its “final phase”
A new financial architecture would allegedly use gold‑backed settlement
Legacy systems such as SWIFT would be replaced
CBDCs would fail while select digital assets would remain
⚠️ Important: These are claims, not verified policy announcements from central banks, governments, or international institutions.
🏦 Claims About Redemption Centers
Promoters describe Redemption Centers as locations where individuals would:
Be verified and approved
Exchange assets into a gold‑backed system
Access sovereign or restitution‑based payments
🔍 Reality check:
No government, central bank, or financial regulator has confirmed the existence, locations, or activation of such centers.
💰 Allegations About Gold, Vaults, and Military Operations
The narrative further claims:
Hidden gold reserves exist outside traditional banking systems
Military units would seize these assets
Funds would be redirected into a new system
📌 These assertions lack independent verification and are commonly associated with alternative financial narratives rather than documented policy actions.
🪙 Digital Assets Mentioned in the Narrative
Supporters of the theory often reference:
XRP as a “bridge asset”
RLUSD as a gold‑backed stable mechanism
🧠 Context:
While digital assets and blockchain technology are real, no official announcement confirms exclusive approval or military enforcement of specific tokens under a global financial reset.
🌐 Why These Narratives Gain Attention
Such narratives often spread during periods of:
Economic uncertainty
Inflation concerns
Geopolitical tension
Distrust in institutions
They combine real issues (debt, inflation, digital finance) with unverified conclusions, making them emotionally powerful and widely shared.
⭐ Featured Snippet (Google‑Optimized)
Are Redemption Centers officially confirmed for February 1, 2026?
No. Claims about Redemption Centers activating on February 1, 2026 are circulating online but have not been confirmed by any official financial or government authority.
❓ Q&A – Clarifying Common Questions
❓ Is the QFS officially live or announced?
No. There is no official confirmation from governments or central banks.
❓ Are banks scheduled to shut down en masse?
No verified sources support claims of widespread permanent bank closures.
❓ Are gold‑backed USTNs or payouts confirmed?
No. These claims remain unsubstantiated.
❓ Why do people believe this?
Because it aligns with frustration toward fiat systems and a desire for accountability and reform.
⚖️ Balanced Perspective
While global finance is evolving (digital payments, faster settlements, regulatory reform), sweeping claims of a sudden military‑run gold system replacing all banks remain unverified.
Responsible analysis requires separating:
✔️ Documented reforms
❌ Speculative or ideological narratives
🧠 Final Thoughts
Claims attributed to Paul Gold Eagle reflect a broader online narrative about financial collapse and rebirth.
Until official confirmations emerge, these ideas should be approached with critical thinking, caution, and verification.
Staying informed means questioning both optimism and fear‑based messaging.
🔗 Stay Connected for Analysis & Updates
🌐 BLOG
👉 https://dinarevaluation.blogspot.com/
📢 TELEGRAM
👉 https://t.me/DINAREVALUATION
📘 FACEBOOK
👉 https://www.facebook.com/profile.php?id=100064023274131
🐦 X / Twitter
👉 https://x.com/DinaresGurus
📺 YOUTUBE
👉 https://www.youtube.com/@DINARREVALUATION
🔥 Hashtags
#PaulGoldEagle #QFSClaims #RedemptionCenters #FinancialNarratives #AlternativeFinance #GlobalResetClaims #EconomicUncertainty #CriticalThinking #FinancialAnalysis
Paul Gold Eagle: Redemption Centers Activate on February 1, 2026
QFS GOES LIVE SOON. THE FIAT SYSTEM’S FINAL DAYS HAVE BEGUN. REDEMPTION CENTERS TO ACTIVATE ON FEBRUARY 1, 2026
The countdown has started. The fiat system is crumbling no matter how much they lie. Starting February 1, 2026, Redemption Centers will go fully live under military protection and begin processing gold-backed transactions through the Quantum Financial System. This won’t be theory. It will be reality. The old financial system will collapse before the eyes of the world and the C***l won’t be able to stop it.
Global military units led by Trump’s Alliance will soon begin massive raids targeting elite-controlled vaults. Stolen gold. Off-ledger assets. R****l finance archives. All of it will be seized and redirected into the QFS using advanced Light Intelligence Tech. These hidden reserves are not inside banks. They lie beneath mountains, Vatican catacombs, and abandoned NATO bases. The illusion of elite financial control is about to be destroyed.
If you still have funds in traditional banks, prepare. Over 12,000 branches are expected to shut down in the weeks ahead. Not “restructured.” Not “downsized.” Fully disconnected from the QFS grid. The dollar you know will soon be worthless. Your only access to sovereign wealth will be through Redemption Centers where you must be verified, scanned, and approved to receive gold-backed USTNs.
Justice is coming. Social Security systems are being rebuilt, decoupled from surveillance networks and restructured for sovereign use. You will no longer be treated as a product. Your biometric data will be protected. Behavioral monetization will be banned. Under Trump’s Patriot Wealth Directive, Restitution & Reparation (R&R) payouts will begin mid-February — direct gold-backed compensation for IRS fraud, v*****e injury, banking theft, and more.
The planned control grid? It won’t happen. CBDCs will collapse. SWIFT will be replaced. The only approved digital assets under QFS will be RLUSD and XRP, both engineered for sovereign, secure exchange. RLUSD will be backed by gold recovered from NATO vaults. XRP will serve as the bridge to eliminate fiat entirely. Every transaction will be tracked, encrypted, and protected by military-grade quantum tech.
This is not speculation.
This is what’s coming.
Their world ends. Ours begins. February 1, 2026.
Gesara_QFS News
Trump's envoy to Iraq responds to rumors of his dismissal: They are fueled by militia networks
Trump's envoy to Iraq responds to rumors of his dismissal: They are fueled by militia networks.
1/30/2026
Mark Savaya, the US president’s special envoy to Iraq, strongly denied rumors of his dismissal, according to a report published Friday by Amberin Zaman, senior correspondent for the US website “Al-Monitor”.
Website development services
Zaman quoted Savaya in a post on the “X-Twitter” platform (formerly) as saying, “There is a circulation of misinformation, and it appears to be driven by Iranian-backed militia networks.”
Last October, US President Donald Trump decided to appoint Mark Savaya as special envoy to Iraq.
Mark Savaya is the third US envoy to Iraq since Paul Bremer in 2003, and after Brett McGurk, during the war against ISIS in 2014.
Savaya stirred controversy through his writings, in which he explicitly called for ending the issue of armed factions and preventing them from participating in the government, as well as issuing warnings to Iraq and cautioning against a return to a "cycle of complexity".
It is worth noting that Savaya, an American businessman of Iraqi (Chaldean/Assyrian) origin from Michigan, has risen to prominence in recent years through his support for Trump's election campaign and his activities within Middle Eastern communities in the United States.
He had not held previous diplomatic posts, which made his appointment surprising in political circles, but he received confirmation from Trump that he "has a deep understanding of Iraq and influential contacts in the region." LINK
🌟 MilitiaMan: Iraq’s Monetary Reforms, Dinar Stability, and Global Financial Integration
📊 Introduction: Iraq’s Path to Economic Stability
MilitiaMan emphasizes the importance of ongoing economic reforms, coordinated fiscal and monetary policies, and international partnerships. These efforts aim to stabilize the Iraqi dinar, reduce reliance on oil, and integrate Iraq into the global financial system.
This analysis highlights the key measures, challenges, and strategies shaping Iraq’s financial future.
💱 Monetary and Financial Measures
The Iraqi government and financial institutions are implementing integrated policies to:
Stabilize the Iraqi dinar exchange rate
Reduce the negative impact of parallel (unofficial) currency markets
Address the price gap between official and unofficial foreign currency markets
The Central Bank of Iraq (CBI) remains committed to meeting legitimate foreign currency demand through official channels.
⚠️ Parallel Market Challenges
The parallel market is illegal and exploits citizens, especially vulnerable populations.
Exchange rate fluctuations often occur due to traders circumventing regulatory systems (e.g., the Escata system)
Temporary spikes in demand in unregulated markets are actively monitored by CBI
Citizens are encouraged to use official channels to protect economic stability
🏦 Confidence Building and Financial Stability
Confidence is central to Iraq’s reforms:
Strong foreign reserves ($115-120B)
Effective liquidity management
Low inflation (0.8% quarterly; projected 1.5% in 2025)
Transparent public financial governance
This confidence is essential to attract investors, traders, and citizens to the Iraqi dinar.
📈 Fixed Exchange Rate System
The fixed peg, introduced in 2023, served as a stabilization bridge:
Controlled inflation
Allowed accumulation of reserves
Supported digital infrastructure development
Not intended to be permanent, but prepares the economy for future managed adjustments
🌐 International Financial Cooperation
IFC (International Finance Corporation)
Supports Iraq’s private sector and development projects
Facilitates syndicated bank loans for long-term infrastructure and energy projects
World Bank Presence
Opening a dedicated Baghdad office
Signals confidence in Iraq’s governance and reforms
Promotes foreign investment and compliance with international standards
🏢 Private Sector and Governance Development
Permanent Council for Private Sector Development under PM Al Sudani
Over 200 members and committees updating legislation and proposing reforms
Focus on economic diversification beyond oil
Governance improvements in 2025 include:
Transparency
Rule of law
Administrative efficiency
Institutional performance
These reforms enhance credit ratings, attract FDI, and ensure compliance with WTO, FATF, Basel standards.
💡 Implications for Iraq’s Financial Integration
Reduces oil dependency
Enhances revenue transparency
Builds investor trust
Lays the foundation for managed realignment of the dinar exchange rate
📅 Timeline of Key Events
| Timeframe | Event / Development |
|---|---|
| 2019-2020 | American strike force involvement highlights security during dollar auctions |
| 2023 | Fixed exchange rate system introduced |
| Past 3 yrs | Accumulated $115-120B reserves, 170+ tons of gold; digital infrastructure developed |
| 2024 | IFC expands financing; World Bank office opening in Baghdad |
| 2025 | Inflation projected ~1.5%; governance improvements second highest globally |
| 2023-2026 | Tripartite budgets under benchmark 1300 IQD/USD; 2026 budget preparation underway |
📚 Key Terms Explained
Escata System – Regulatory framework impacting currency trade, affecting parallel markets
Parallel Market – Illegal currency market causing price discrepancies
Sukuk (Islamic Bonds) – Sharia-compliant instruments for infrastructure funding
IFC – Private sector arm of World Bank supporting investment
FATF – Global standards for anti-money laundering; Iraq moved from gray to white list
Tripartite Budget – Multi-year fiscal planning (2023-2025) for stability
🧠 Core Concepts
Coordinated Fiscal & Monetary Policy – Needed to close the official-unofficial exchange rate gap
Confidence as a Foundation – Essential for stability and investor attraction
Quiet but Effective Reform – Low-profile, steady transitions over hype
International Cooperation – Deepening engagement with IFC & World Bank
Private Sector & Governance – Pillars for sustainable economic diversification
⭐ Featured Snippet (Google Optimized)
Why is Iraq’s fixed exchange rate system important?
The fixed peg stabilizes the economy, reduces inflation, allows foreign reserve accumulation, and sets the stage for future managed adjustments while reforms are implemented.
❓ Q&A – Common Questions
❓ Why does Iraq use a fixed exchange rate system?
To stabilize the economy, control inflation, and accumulate reserves for future managed currency adjustments.
❓ What is the role of the parallel market?
It is illegal, exploits citizens, and creates discrepancies between official and unofficial exchange rates.
❓ How do international institutions help Iraq?
IFC and World Bank support private sector development, infrastructure financing, and global financial integration.
❓ How do governance improvements affect Iraq?
They improve credit ratings, attract foreign investment, and align Iraq with international standards.
⚠️ Final Thoughts
MilitiaMan highlights a comprehensive strategy by Iraq to stabilize the economy, protect the dinar, and integrate globally.
Strong reserves and governance
Effective monetary and fiscal policies
Support from World Bank & IFC
Ongoing private sector development
All of this sets the stage for future managed adjustments to the Iraqi dinar, ensuring long-term economic growth and stability.
🔗 Stay Connected for Real-Time Updates
🌐 BLOG
👉 https://dinarevaluation.blogspot.com/
📢 TELEGRAM
👉 https://t.me/DINAREVALUATION
📘 FACEBOOK
👉 https://www.facebook.com/profile.php?id=100064023274131
🐦 X / Twitter
👉 https://x.com/DinaresGurus
📺 YOUTUBE
👉 https://www.youtube.com/@DINARREVALUATION
🔥Hashtags
#MilitiaMan #IraqiDinar #DinarStability #EconomicReforms #MonetaryPolicy #CentralBank #IFC #WorldBank #PrivateSectorDevelopment #Governance #InflationControl #ParallelMarket #GlobalFinance #DinarUpdate
MILITIAMAN
This video presents an in-depth analysis of recent developments regarding Iraq’s monetary policy, economic reforms, and international financial integration, focusing primarily on the Iraqi dinar and broader economic stability. The speaker, associated with the Militia Man and Crew community, emphasizes the importance of ongoing reforms, coordinated fiscal and monetary policies, and international partnerships that underpin Iraq’s economic trajectory.
Key Insights
Monetary and Financial Measures:
The Iraqi government and related financial institutions are actively implementing integrated policies aimed at stabilizing the Iraqi dinar exchange rate and protecting the national economy from the negative effects of parallel (unofficial) currency markets. These efforts address the persistent issue of a significant price gap between official and unofficial foreign currency markets.Parallel Market Challenges:
The parallel market is illegal and exploits citizens, especially the poor. Recent exchange rate fluctuations are linked to traders circumventing new regulatory systems (like the escata system), which has temporarily increased demand in unregulated markets. However, the Central Bank of Iraq (CBI) is committed to meeting legitimate foreign currency demand through official, compliant channels.Confidence Building and Stability:
A recurring theme is the focus on building confidence among citizens, traders, and investors in the Iraqi dinar and the broader financial system. Confidence is supported by strong foreign reserves, liquidity management, low inflation, and transparent public financial governance.Inflation and Economic Stability:
Iraq’s inflation rate has been controlled effectively, with quarterly inflation around 0.8% and projections of 1.5% for 2025. This is attributed to deliberate policy design and the fixed exchange rate system introduced in 2023, which acted as a stabilization bridge while reforms were implemented.Fixed Exchange Rate System:
The fixed peg was never intended to be permanent but served to stabilize the economy and reduce inflationary pressures over three years. It allowed time for reserve accumulation (over 115-120 billion USD) and digital infrastructure development, setting the stage for future managed adjustments.International Financial Cooperation:
The International Finance Corporation (IFC), an arm of the World Bank, is actively supporting Iraq’s private sector by facilitating financing for development projects, especially in energy and infrastructure. The IFC is promoting the creation of syndicated bank loan markets to overcome local banks’ limitations in financing long-term projects.World Bank Presence in Iraq:
The World Bank is proceeding with the opening of a dedicated office in Baghdad, signaling strong support for Iraq’s reform agenda and economic development. This move reflects confidence in Iraq’s political stability, governance improvements, and reform progress.Private Sector Development:
Iraq has established a Permanent Council for Private Sector Development under Prime Minister Al Sudani, actively implementing strategies from 2016 to 2030. Over 200 members and specialized committees are renewing legislation and proposing reforms to stimulate private sector growth and diversification beyond oil.Governance Improvements:
Iraq achieved the second highest global improvement in international governance indicators in 2025, including transparency, rule of law, administrative efficiency, and institutional performance. These gains are critical for improving credit ratings, attracting foreign direct investment (FDI), and compliance with international standards such as WTO, FATF, and Basel.Implications for Iraq’s Financial Integration:
These reforms and developments reduce Iraq’s oil dependency, enhance revenue transparency, and build investor trust. They collectively lay the foundation for a managed realignment of the dinar exchange rate when deemed optimal by the Central Bank of Iraq and other gatekeepers.
Timeline of Key Events and Developments
| Timeframe | Event / Development |
|---|---|
| 2019-2020 | American strike force involved during dollar auction timeframe, highlighting security and stability issues. |
| 2023 | Fixed exchange rate system introduced to stabilize the economy and reduce inflationary pressures. |
| Past 3 years | Accumulation of over $115-120 billion in foreign reserves and over 170 tons of gold; digital infrastructure developed. |
| 2025 (Projected) | Inflation expected to be around 1.5%; governance improvements reach second highest globally. |
| Current (2024) | IFC expands financing for development projects; World Bank proceeding with opening a dedicated Baghdad office. |
| 2023-2026 Budgets | Tripartite budget plans under benchmark rate 1300 IQD/USD; preparation for 2026 budget underway. |
Definitions and Concepts
| Term | Definition / Explanation |
|---|---|
| Escata system | New regulatory framework impacting currency trade, leading to procedural delays and parallel market activity. |
| Parallel Market | Illegal foreign currency market that causes price discrepancies and exploits citizens. |
| Sukuk (Islamic Bonds) | Sharia-compliant financial instruments growing rapidly, used for funding infrastructure and development projects. |
| IFC (International Finance Corporation) | The private sector arm of the World Bank, facilitating investment and financing in developing countries. |
| FATF (Financial Action Task Force) | International body setting standards for combating money laundering and terrorist financing; Iraq recently moved from gray to white list. |
| Tripartite Budget | Multi-year budget planning (2023-2025) aimed at fiscal stability and reform execution. |
Core Concepts
- Coordinated Fiscal and Monetary Policy: Monetary decisions alone won’t close the official and unofficial exchange rate gap; it requires cooperation across government sectors and financial reforms.
- Confidence as a Foundation: Confidence in the currency and financial system is repeatedly emphasized as essential for stability and investment attraction.
- Quiet but Effective Reform: The government prefers a low-profile, steady transition rather than public hype, focusing on building resilience and digital readiness.
- International Cooperation: Engagement with World Bank and IFC is deepening, reflecting trust in Iraq’s reform trajectory and economic potential.
- Private Sector and Governance: Strengthening governance and private sector development are pillars for sustainable economic diversification beyond oil dependency.
Conclusion
This report outlines a comprehensive and deliberate strategy by Iraq’s government and financial institutions to stabilize the economy, protect the Iraqi dinar, and integrate more fully into the global financial system. The combination of strong reserves, improved governance, international financial partnerships, and private sector reforms reinforce a trajectory toward economic stability and growth. The fixed exchange rate system and associated reforms have been effective, and a managed adjustment of the dinar is anticipated when conditions are optimal. The opening of a World Bank office in Baghdad and increased IFC activity underscore international confidence in Iraq’s economic future.
Keywords
- Iraqi dinar
- Exchange rate stability
- Parallel market
- Monetary policy
- Fiscal reforms
- Foreign reserves
- Inflation control
- International Finance Corporation (IFC)
- World Bank
- Private sector development
- Governance improvements
- FATF compliance
- Digital infrastructure
- Tripartite budget
- Managed realignment
This summary is strictly based on the provided transcript content and does not include any unsupported or speculative information.
The Iraqi economy: US pressure and a liquidity crisis threaten financial stability
The Iraqi economy: US pressure and a liquidity crisis threaten financial stability.
Worrying indicators show the fragility of the Iraqi economy, with escalating external pressures and fluctuating oil prices, in parallel with an internal liquidity crisis that has begun to affect salaries and markets.
At a time when Iraq faces complex political and economic challenges, alarming indicators of a fragile financial situation are mounting, amidst ongoing US pressure, sharp fluctuations in oil prices, and a domestic liquidity crisis that is beginning to directly impact the lives of citizens and local markets. These factors combined are putting the Iraqi economy to a difficult test and raising serious questions about the government's ability to contain the repercussions and maintain economic stability in the coming period.
In this context, economist Bassem Anton stressed that Iraq is subjected to multi-dimensional pressures, in which political and economic considerations are intertwined, noting that these pressures are used to achieve gains related to sensitive regional issues, most notably the Palestinian issue, the Iranian file, and the power struggles in the region.
Anton explained that the United States adopts an approach of pressure, threats, and then gradual retreat as part of managing its political interests, indicating that Iraq is still unable to draw clear paths to deal with these pressures in a way that protects its economy.
He added that a drop in oil prices to levels that could reach $45 a barrel, in the event that the markets are flooded with Venezuelan oil, will directly affect the Iraqi economy, noting that the general budget depends on oil revenues by nearly 90%, which means a possible deficit in the implementation of projects, disruption of reconstruction plans, and exacerbation of service problems.
Employee salaries
In parallel, economist Mustafa Al-Faraj warned that the continued delay in paying the salaries of employees and retirees is a dangerous indicator of a severe liquidity crisis that could lead to a gradual paralysis of local markets.
Al-Faraj explained that more than 60% of consumer activity in Iraq depends on a fixed monthly income, stressing that any delay in salaries immediately affects purchasing power and leads to a recession that begins with non-essential goods before extending to food items.
He pointed out that the repercussions of the crisis are not limited to citizens , but also put pressure on traders and small business owners, and lead to a slowdown in the cash cycle, which negatively affects tax revenues and commercial activity in general.
Al-Faraj linked the salary delay crisis to the increasing financial deficit, explaining that internal debts exceeded 80 trillion dinars, and warning of a monthly liquidity crisis if the structural imbalance in public finances is not addressed.
He stressed that the solution lies in real reforms that include reducing unnecessary expenditures, reviewing the salaries and allowances of senior officials, and controlling public spending, in order to ensure the sustainability of salaries and market stability.
Between external pressures controlling oil prices and an internal liquidity crisis threatening the regularity of salary payments, the Iraqi economy faces complex challenges that require bold decisions and urgent reforms. Continued over-reliance on oil and the postponement of financial solutions portend deeper repercussions that could affect economic and social stability, compelling the government to act swiftly to avert a recession that will be difficult to contain in the future. link