Iran's Bold Move: US Base in Baghdad Attacked! #iraqnews

 

Read also: Gifted ZIM Holders, 800 Numbers, and Redemption Timeline Explained by Bruce

Iraq’s budget paralysis: How the 1/12 rule reduced state finances to salary payments

 For the second consecutive year, Iraq is operating under the so-called “1/12 financial management rule,” a stopgap mechanism that allows the government to spend only one-twelfth of the previous year’s operational expenditures each month. While the arrangement ensures the continued payment of salaries and pensions, it leaves the country without a general budget that sets spending priorities, funds investment projects, allocates provincial shares, or supports development across key sectors.

The budget vacuum comes at a time of sharp volatility in global oil prices —swinging in response to regional political developments— alongside a growing liquidity crunch inside Iraq. Together, these pressures have reduced the state’s financial system to what economists increasingly describe as little more than a mechanism for paying public-sector wages, with virtually no capacity to stimulate broader economic activity.

Economic specialists interviewed by Shafaq News warn that the situation amounts to a “major crisis” with wide-ranging consequences. While they acknowledge that declining revenues prevented the submission of a budget last year, they argue that the same conditions are now pushing the next government toward a similar deadlock.

Read also: Gifted ZIM Holders, 800 Numbers, and Redemption Timeline Explained by Bruce

Read more: Iraq’s private banks: Capital Growth and the structural credit gap

Operational spending —covering salaries, fuel, food rations, and basic ministry expenses— traditionally consumed the bulk of Iraq’s budget, while investment allocations have usually accounted for less than 30 percent. From that perspective, economist Nabil Jabbar al-Ali argues, Iraq has long functioned in practice under a 1/12-style system, even when budgets were formally approved.

Speaking to Shafaq News, al-Ali said the incoming government is likely to continue relying on the 1/12 rule because it guarantees operational spending at a time when oil revenues are insufficient to finance major projects. He added that the same revenue shortfall was behind the government’s failure to pass a budget last year.

Even if a budget is eventually submitted next year, al-Ali expects its primary focus to be clearing accumulated debts —particularly payments owed to contractors and companies— rather than launching new investment initiatives.

Under Iraq’s amended Financial Management Law of 2019, spending in the absence of an approved budget is capped at one-twelfth or less of the previous year’s actual current expenditures, excluding non-recurring expenses. This mechanism remains in force until the federal budget law is ratified. The law also stipulates that if a budget is not approved for a given fiscal year, the previous year’s final accounts become the basis for the new year’s financial data and must be submitted to parliament for approval.

Iraq has faced similar paralysis before. In 2015, the government did not submit the schedules of its planned three-year budget, reportedly to avoid political exploitation during an election period. More recently, the outgoing government approved a record-high three-year budget for 2023, 2024, and 2025, each exceeding 200 trillion Iraqi dinars (about $152.7 billion), with projected deficits of roughly 60 trillion dinars per year.

For economist Ali Karim Ithheib, the absence of a budget is far from a technical inconvenience. He warned that it effectively freezes the country, halting projects, public hiring, and development plans at a time when Iraq is already grappling with a financial and liquidity crisis.

Read more: Deficit soars, projects freeze: Iraq heads into 2026 with NO BUDGET

Ithheib said Iraq’s near-total dependence on oil revenues leaves it vulnerable to what he described as “financial chaos” whenever prices fall, exposing the absence of long-term fiscal planning. The consequences are felt directly by citizens through fewer job opportunities and deteriorating services, while investors, both local and foreign, are discouraged by the lack of a stable financial vision, threatening broader macroeconomic stability.

While the 1/12 rule may keep the state functioning at a basic level, Ithheib stressed that it is “a temporary lifeline, not a fiscal policy suitable for running a country the size of Iraq.”

Under this system, spending is effectively confined to salaries and routine operational costs, leaving no room to launch new projects or complete stalled ones. Contractors and companies are among the hardest hit, as delayed payments force some to suspend work or withdraw entirely, fueling unemployment and weakening the local market. Prolonged reliance on the 1/12 rule, Ithheib added, erodes confidence in Iraq’s economic environment and deepens investor hesitation.

Despite parliamentary elections held in October 2025, a new government has yet to form. Lawmakers remain locked in disputes over electing a president, who would then nominate a prime ministerial candidate from the largest bloc. Negotiations among political forces continue, but expectations are growing that the crisis could drag on, given constitutional timelines that allow a prime minister-designate up to 30 days to present a cabinet and seek parliamentary confidence.

Economist Mustafa al-Faraj painted an even bleaker picture, saying several companies and contractors have already declared bankruptcy and begun liquidating assets due to unpaid government dues stemming from the absence of a budget. The halt in public hiring and the slowdown in private-sector activity, he warned, are compounding unemployment and economic strain.

Based on current indicators, al-Faraj said, a new government is unlikely to be formed before mid-year, making it almost impossible to pass a budget for the current fiscal year and pushing the problem into the next one.

“No country can function without a budget and rely solely on operational spending…This approach shuts down projects, freezes promotions, and ultimately harms both citizens and public employees.”

As Iraq drifts deeper into another year without a comprehensive budget, the economists agree on one point: the 1/12 rule may keep salaries flowing, but it cannot substitute for a coherent fiscal strategy, nor can it sustain an economy already strained by oil dependence, political deadlock, and eroding confidence.

Written and edited by Shafaq News staff.

DINAR REVALUATION HIGHLIGHTS: Maliki Rejected 10–2 | Political Noise, IQD Timing & RV Signals Align

 Political developments in Iraq are accelerating, and according to Frank26, the recent 10–2 rejection of Nouri al-Maliki by the Coordination Framework is far more than routine politics. IMO, this is a calculated move tied directly to Iraq’s monetary reform and the timing of the Iraqi dinar (IQD).

What many see as chaos, Frank26 describes as strategic noise.

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U.S. & Trump Influence Intensifies in Iraqi Politics (IMO)

Frank26 highlights that the United States publicly rejecting Maliki as prime minister is a powerful signal:

• Washington is shaping the political landscape

• A different candidate is being supported

• Iraq is being pushed toward normalized governance

IMO, this is not spontaneous — it’s pre-planned political maneuvering.

Read also: Gifted ZIM Holders, 800 Numbers, and Redemption Timeline Explained by Bruce

Frank26 believes these moves align with broader U.S. strategic goals tied to economic reform, security, and currency stability.

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Political “Noise” vs. Economic Reality

Shifting narratives around:

• Maliki

• Prime Minister al-Sudani

• Election rumors and coalition drama

…are described by Frank26 as intentional distractions.

IMO, the louder the political noise, the closer Iraq is to resolution.

The real focus remains economic, not theatrical politics.

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The Anchor Point: Government Formation & the IQD (IMO)

Frank26 is very clear on one core principle:

The IQD exchange rate will NOT change until the government is fully formed and internationally recognized.

Political stability is the  anchor point for:

• Exchange rate movement

• Monetary reform implementation

• Global confidence in Iraq’s economy

No shortcuts. No exceptions.

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ARIEL: The Playbook Behind a Revaluation in the Making

Ariel adds another layer, outlining what he calls a strategic revaluation playbook.

Key Strategic Highlights (IMO)

• Approximately $80 billion in frozen assets targeted for repatriation

• Distribution of lower denomination notes tied to regulatory reform

• Green Zone meetings (since Jan 15) reportedly focus on:

  • IQD release timing

  • ISO-20022 crypto & banking compliance

  • Cracking down on illicit financial channels

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Basra: The Oil & IQD Connection (IMO)

Ariel identifies Basra as a potential hub for:

• Dinar-denominated oil trading

• Launch window discussed as early as April

• Reducing oil smuggling

• Shifting regional trade dynamics

This move could reposition Iraq as:

• A BRICS-aligned economic partner

• A counterweight to Iranian influence

• A player in reducing dollar-centric trade dominance

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Bruce (WiserNow): Why Redemption Centers Matter

Bruce from WiserNow focuses on the logistics of the RV.

Redemption Centers Explained (IMO)

• Redemption centers are where higher contract rates for currencies like IQD are expected

• Accessed via 800-number call centers

• Appointments set for private exchanges

Bruce reports that:

• System tests are complete

• Screens at redemption centers show multiple currencies:

  • IQD

  • Dong

  • ZIM (redeemable ONLY at redemption centers)

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Why the Silence Is a Powerful Signal (IMO)

Bruce emphasizes something many overlook:

Silence is not delay — silence is movement.

The lack of public announcements is interpreted as:

• Final coordination

• Security protocols

• Readiness without exposure

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Featured Snippet (Google Optimized)

Why is Maliki’s rejection important for the IQD?
According to Frank26, rejecting Maliki signals political stabilization aligned with U.S. strategy, which is required before Iraq’s exchange rate and monetary reform can move forward.

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Quick Q&A (SEO Boost)

Q: Why was Maliki rejected 10–2?

A: IMO, it reflects U.S. influence and a push to stabilize Iraq politically before economic reform.

Q: Can the IQD revalue without a government?

A: No. Frank26 stresses that a fully formed and recognized government is mandatory.

Q: What role do redemption centers play?

A: They are reportedly where higher contract exchange rates may be offered during the RV process.

Q: Why is there so much political noise right now?

A: IMO, it’s perception management — distraction while real economic work is completed.

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Final Thoughts (IMO)

Frank26 frames the moment clearly:

• Political rejection = alignment

• Noise = nearing resolution

• Silence = preparation

• Stability = currency movement

IMO, when politics settle, the economics will speak loudly.

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Disclaimer

⚠️ This post reflects opinions and analysis (IMO).
It is not financial advice. Always conduct your own research.

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FRAN26: 10 Out of 12 — Maliki Rejected by Coordination Framework

Key Political & IQD Impact Highlights
• Trump/US influence in Iraqi politics intensified — US publicly rejected Nouri al-Maliki as prime minister, signaling support for another candidate and shaping the political landscape. 

• Signals of pre-planned political maneuvering suggest that Washington is exerting pressure to normalize Iraq’s governance in line with its broader strategic goals. 

• The shifting narratives around Maliki, al-Sudani, and election outcomes are described as political “noise” designed to distract from the core economic process. 

• The Iraqi dinar (IQD) exchange rate is emphasized as not changing until the government is fully formed and recognized — political stability remains the anchor point for any currency movement. 

• The article frames US political messaging as strategic perception control rather than spontaneous upheaval, asserting that the louder the noise, the closer Iraq may be to resolution. 

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ARIEL: Brief IQD Update — The Playbook Behind a Revaluation in the Making

Top Strategic & Economic Highlights
• Ariel outlines a strategic “playbook” centered on accelerating Iraq’s currency revaluation by using geopolitical and financial levers. 

• The plan discussed includes repatriating roughly $80B in frozen assets for distribution of lower notes, tying IQD distribution to broader regulatory reforms. 

• Green Zone meetings since January 15 are reported to focus on synchronizing IQD release with crypto regulation (ISO-20022) and cracking down on illicit financial channels. 
• Basra is identified as a potential hub for dinar-denominated oil trading starting in April, aimed at cutting smuggling and shifting global trade dynamics. 

• The broader narrative ties Iraq’s revaluation to weakening Iran’s influence, repositioning Iraq as an alternative economic partner (BRICS focus), and altering dollar-centric global trade imbalances. 

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Bruce from WiserFRAN26: 10 Out of 12 — Maliki Rejected by Coordination Framework

Key Political & IQD Impact Highlights
• Trump/US influence in Iraqi politics intensified — US publicly rejected Nouri al-Maliki as prime minister, signaling support for another candidate and shaping the political landscape. 
• Signals of pre-planned political maneuvering suggest that Washington is exerting pressure to normalize Iraq’s governance in line with its broader strategic goals. 

• The shifting narratives around Maliki, al-Sudani, and election outcomes are described as political “noise” designed to distract from the core economic process. 

• The Iraqi dinar (IQD) exchange rate is emphasized as not changing until the government is fully formed and recognized — political stability remains the anchor point for any currency movement. 

• The article frames US political messaging as strategic perception control rather than spontaneous upheaval, asserting that the louder the noise, the closer Iraq may be to resolution. 

Bruce from WiserNow: Why Redemption Centers Matter & Why the Silence Is a Powerful Signal

Core Redemption & RV Logistics Highlights
• Recent WiserNow/Bruce updates emphasize that redemption centers are central to the anticipated currency revaluation/redemption process — they are where higher “contract rates” for currencies like the Iraqi Dinar will supposedly be offered. 
• Redemption centers are linked to 800-number call centers where holders will set appointments for currency exchange; the contract rate for IQD is said to be highest there. 
• Tests of 800-number systems and redemption center screens have reportedly been completed, suggesting operational readiness for appointments and exchanges. 
• The “silence” — a lack of public announcements — is interpreted by followers as a sign that things are moving forward behind the scenes, not delayed. Quiet signals, in this context, are taken as implicit progress. 

• Bruce’s intel also notes that multiple currencies (e.g., IQD, Dong, Zim) have been appearing on redemption center screens, and ZIM is only redeemable through these centers, underscoring their importance. Now: Why Redemption Centers Matter & Why the Silence Is a Powerful Signal

Core Redemption & RV Logistics Highlights

• Recent WiserNow/Bruce updates emphasize that redemption centers are central to the anticipated currency revaluation/redemption process — they are where higher “contract rates” for currencies like the Iraqi Dinar will supposedly be offered. 

• Redemption centers are linked to 800-number call centers where holders will set appointments for currency exchange; the contract rate for IQD is said to be highest there. 
• Tests of 800-number systems and redemption center screens have reportedly been completed, suggesting operational readiness for appointments and exchanges. 

• The “silence” — a lack of public announcements — is interpreted by followers as a sign that things are moving forward behind the scenes, not delayed. Quiet signals, in this context, are taken as implicit progress. 
• Bruce’s intel also notes that multiple currencies (e.g., IQD, Dong, Zim) have been appearing on redemption center screens, and ZIM is only redeemable through these centers, underscoring their importance.