Warnings about the cost of delaying the 2026 budget
Warnings are increasing about the economic repercussions of the delay in approving the (2026) budget, amid fears of continued losses and worsening uncertainty in the markets.
In response to these warnings, the Finance Committee in the House of Representatives believes that the state has limited options to address the crisis, most notably resorting to borrowing laws or enacting an emergency law similar to the Food Security Law, but activating these options remains contingent on an official request from the government.
The Prime Minister’s financial advisor, Mazhar Muhammad Salih, confirmed that the Iraqi economy, which relies heavily on government spending as a major driver of growth, is directly affected by any delay in approving the budget, explaining that this turns into a recession factor that affects both the public and private sectors and creates a prolonged state of instability.
He pointed out that the most prominent repercussions are the disruption of investment projects, especially new ones, as a result of the lack of financial allocations, which negatively affects the labor market through a decline in employment opportunities and an increase in unemployment rates. link
President Nizar Amidi emphasized to the Governor of the Central Bank of Iraq (CBI), Ali Al-Alaq, on Saturday the need to strengthen the Iraqi dinar and continue reforms.
A statement from the Presidency, received by the Iraqi News Agency (INA), indicated that "President Nizar Amidi received the Governor of CBI, Ali Al-Alaq, who offered his congratulations on assuming the presidency."
The President expressed his gratitude for the kind congratulations, emphasizing the importance of cooperation between monetary and financial institutions to support economic stability and achieve sustainable development.
The President stressed "the need to strengthen the Iraqi dinar and continue reforms," noting that "the Presidency supports the Bank's monetary policies that contribute to improving the standard of living of citizens and stimulating growth in the country."
THE US OVERTHROW OF BAATHIST SUNNI SADDAM HUSSEIN EFFECTIVELY HANDED THE COUNTRY OVER TO PRO-TEHRAN LEADERSHIP
— Al Mayadeen English (@MayadeenEnglish) April 22, 2026
Currently the Coordination Framework (CF), which is the largest Iran-aligned parliamentary bloc of Shia parties, is racing to pick a new prime minister for the country – but reportedly neither of the two main candidates are acceptable to Washington.
There’s a huge lasting irony to the Iraq war and the Bush-Cheney legacy.
The US overthrow of Baathist Sunni Saddam Hussein effectively handed the country over to pro-Tehran leadership. And the US has been dealing with the fallout in the region from the ‘Shia axis’ ever since.
(Mnt Goat:; Someone has to clean up this mess in the middle east left by Bush-Cheney and Obama legacies.)
OMAR: We see the Finance Minister talking about how our reserves are reaching the red line level...Everybody in Iraq knows there's no more dollar...
FRANK: The CBI is forced now to tap into your reserves or to make large loans for the GOI...The solution is to release the value of your currency. They know that...The CBI...has no choice but to lift the value of your currency.
Alaq knows he messed up. He knows he's in trouble and Alaq knows his days are numbered...
US BLOCKS REGULAR $500 MILLION CASH PALLETS FLOWN TO IRAQ, OVER PRO-IRAN MILITIAS
by Tyler Durden
Wednesday, Apr 22, 2026 – 08:55 PM
In confirmation of some early reporting we featured at the start of this week, The Wall Street Journal has verified something that Iraqi officials themselves were denying just days ago: the US is blocking Iraq’s regular dollar shipments in order to pressure it’s Iran-backed militias. “The Trump administration has suspended U.S. dollar shipments to Iraq and frozen security cooperation programs with its military, escalating the pressure on Baghdad to dismantle powerful Iranian-backed militias,” said Iraqi and US officials interviewed in the report.
Pallets of cash and the Middle East should ring familiar, stretching from the Bush-Cheney years to even the Obama years (and Iran sanctions relief as part of the original nuclear deal).
In this case, like with the Obama/Iran deal saga before, this is actually Iraq’s own oil revenue money.
Memory lane via CNBC: The New York Federal Reserve shipped billions of dollars in physical cash to Baghdad to pay for the reopening of the government & restoration of basic services. Much of it went missing.
In this latest case, a US military plane carrying a half-billion dollars has been delayed on its regularly scheduled delivery. “A cargo-plane delivery of nearly $500 million in U.S. banknotes, the proceeds from Iraqi oil sales from Federal Reserve Bank of New York accounts, was blocked recently by Treasury Department officials because of U.S. concerns about the militias,” WSJ continues, citing the officials.
The publication details, “It was the second scheduled shipment of dollars to the Central Bank of Iraq delayed by the U.S. since the start of the Iran war in late February, the U.S. and Iraqi officials said.”
During the height of the March fighting between Iran and Israel, several American facilities across Iraq came under attack, even including the US Embassy in Baghdad’s Green Zone. Typically, these were drones, or rocket fire, and Erbil and northern Iraq in particular came under heavy fire.
To review from the back grounder we previously featured: since 2003, a decision issued by Coalition Provisional Authority (CPA) head Paul Bremer has required that all Iraqi oil revenues be paid into an account at the US Federal Reserve Bank of New York, giving the US the ability to control how many US dollars are returned to the CBI. From that point until today, the Iraqi Ministry of Finance has had to submit funding requests to the US Treasury, which then approves or denies them based on its own criteria.
This monthly transfer of US dollars, flown into Baghdad in pallets of hard cash, determines Iraq’s ability to pay for basic needs such as salaries, food, and medicine. Whenever Washington believes that Iraq is not aligned with US regional goals, including enforcing economic sanctions on Iran, Baghdad’s major trading partner and a source of natural gas for electricity production, these fund transfers can be delayed or reduced. The US halted $13 billion in annual cash shipments to Iraq to pressure Baghdad to act against Resistance groups, the second such suspension since the start of the war on Iran.
All these banks are waiting...They all want the new exchange rate but this fool won't release it.
And why? It's because of his ties with Iran.
But those ties have come to an end and Trump isn't playing anymore...Everybody knows purchasing power is what is needed to make this country work, but [Alaq] refuses...
Alaq, raise the value and stick around or Alaq get the hell out of the way for the new exchange rate. That's where we're at...
KUJER: SALARIES ARE TEMPORARILY SECURED, AND IRAQ FACES AUSTERITY OR PRINTING MONEY
Former MP Jamal Kojar confirmed that salaries are temporarily secured, while indicating that Iraq may resort to austerity measures or printing currency in the next phase.
During his appearance on the program “On the Ruler” broadcast by Al-Furat satellite channel, Kujer said: “The dollar issue in Iraq is linked to two aspects: technical, administrative, and political.” He explained that “the currently influential aspect is the cessation of dollar shipments due to the war conditions and the disruption of air traffic, and not because of a problem with the US Federal Reserve,” noting that “no official US announcement has been issued to stop the transfer of shipments.”
He added that “the effects of the drop in oil prices will appear after three months, but the cash reserve is still better compared to previous periods,” stressing “conviction in the government’s ability to secure salaries during the next six months, given that oil revenues are received three months after the sale, with options including printing money despite the risks of inflation.”
He pointed out that “the United States is waging a solitary conflict that may have repercussions on the global economy,” indicating that “the rise in fuel prices in the American markets reflects the magnitude of the effects,” and suggesting that “it will be a limited military confrontation.”
Kujer said that “Iraq may be forced to adopt an austerity policy or resort to printing money, which requires a fully empowered government to manage the phase,” criticizing the three-year budget, describing it as “a backbreaker after it turned the planned deficit into an actual deficit that exceeded $133 billion.”
He predicted that “oil prices will continue to rise even if the war stops,” noting that “the 2026 budget may be presented in the form of a law with the possibility of adding a supplementary budget, or resorting to legislation similar to the food security law to cover emergency expenses and secure salaries.”
Regarding the National Service Law, Kujer noted that “the law is unlikely to be passed at the present time due to the lack of political consensus and clarity in its features, despite the importance of introducing it in the long term.”
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
Member: GM Mark mods and patriots! Happy Friday to you all
Member: Will this go by the end of May?
MZ: I think so…but again….no one has nailed the timing yet.
MZ: On bonds….they had expected things to go this week. I got one update this morning that said it had been an amazing week and they should get their full funding by Tuesday morning. But things went great. They also said there had been some slow delays dealing with Iraq. But now things are looking really good.
Member: Hi Mark, if Trump gets an agreement with Iran, including the end of sanctions, will this bring Iran into the RV
Member: Potentially. But do I think it could be in the first basket….no….not unless they delay the heck out of the first basket. Logistics could take time.
Member: What currencies will be in the first basket?
MZ: The currencies we expect the biggest changes in are Iraq, Vietnam, and Indonisia. I am told Venezuela and Zimbabwe will be handled differently then currencies because of “special situations” I count Zimbabwe more like a “Prosperity Program” .
Member: Venezuela says every citizen in the Country gets a pay raise May 1st ....I could care less about bonds or Iraq come on Venezuela...since the Sanctions have been removed
MZ: In Iraq: “ Kurdish dissident calls for release of detained journalists for exposing corruption of Barzani family” This could explain some of the drama we are seeing in Iraq?
MZ: “US Department of Justice files a complaint for confiscation of Mansour Barzani’s mansion in California” that was purchased renovated using proceeds from a fraudulent scheme that targeted the US Dept. of Defense. In other words some of the money going to Iraq was filtered through there. I think this is big.
MZ: To me it looks like they are doing whatever they can to get this RV off “stuck”
Member: Sounds like Iraq and Somolia are exchanging notes.
Member: Question is how much will the CBI drag their feet once the government is stable…
MZ: “ What does he choose? Al-Sudani faces Washington’s demands to cut the salaries of the Hastid and target the factions” These are Iranian factions attacking American factions and Iraqi people. He needs to choose…. Iraq or Iran?
MZ: “Is Trump threatening the government of Baghdad by closing Iraq’s only gate for foreign currency?” In other words they are talking about the cash that goes there from oil sales. I believe if the US stops this…they could collapse within two or three weeks. I think they are forcing them to move forward.
MZ: “The first deputy chairs a extensive meeting to follow up on the outcomes of the oil export session through the Cihan port and stresses the need for oil wealth to be a Federal Resource” Even though there is Iraq drama, Barzani drama and militia drama….they are still working on HCL . They are pounding out all the difference in “revenue sharing” . try to ignore the smoke and pay attention to the progress.
MZ: Think about all these pieces in Iraq and also what the bond folks said. To me its obvious there is a push to get this across the finish line.
MZ: And there is a constitutional requirement to have the vote to place the candidate for Prime Minister. They are saying that on Friday …..which is today ,they will pick that person.
Member: I keep hearing we need to pass Clarity act before RV , so as to make world banking go smoothly. Congress keeps kicking the can on looking at it.
Member: I wonder- how much the US Treasury owns of IQD?
Member: I have had my two weeks notice ready for years….Hope I get to use it soon
Member: Have a wonderful weekend everyone……Stay positive.
Mr. Cottrel and CBD Guru’s join the stream today. Please listen to the replay for their information and opinions.
