Showing posts with label #GlobalFinance #CBI #CorrespondentBanking #AMLCompliance #FinancialIntegration. Show all posts
Showing posts with label #GlobalFinance #CBI #CorrespondentBanking #AMLCompliance #FinancialIntegration. Show all posts

Tuesday, May 19, 2026

SUDDEN ‘VETO’ FROM IRAN THWARTS GOVT FORMATION EFFORTS IN IRAQ with COMMENTS OF MNT GOAT

SUDDEN ‘VETO’ FROM IRAN THWARTS GOVT FORMATION EFFORTS IN IRAQ

(Mnt Goat: Am I missing something or what? Iran can interfere with Iraqi elections but the US should not? I don’t get the hypocritical attitude of Iranian leadership. Oh… but I do get it. They are corrupt and want Iraq as their puppet proxy state, especially now.)

From right to left: Prime Minister-designate Ali al-Zaidi, Coordination Framework member Hadi al-Amiri, and caretaker Prime Minister Mohammed Shia al-Sudani. (Coordination Framework)

Two Iraqi officials revealed on Sunday that a sudden “veto” from Iran has thwarted efforts to form a new Iraqi government. Iran has expressed its objection to keeping pro-Tehran armed factions out of the new government.

Tehran has demanded that the ruling Shiite Coordination Framework refrain from voting in favor of a cabinet lineup that “harms the influence of its allies” in the Iraqi state, the officials told Asharq Al-Awsat.

Amid these developments, reports said that Esmail Qaani, commander of Iran’s Quds Force, the foreign arm of the Iranian Revolutionary Guards Corps (IRGC), made a surprise visit to Baghdad as Prime Minister-designate Ali al-Zaidi had reportedly been making progress in the government formation process.

Significant throughout these developments is the United States’ pressure on al-Zaidi to keep the armed factions out of the new government, reflecting mounting tensions with Tehran that are playing out on a larger scale in the region over Hormuz and the war on Iran.

Sources said Qaani had arrived in Baghdad in recent hours with a message that “Tehran objects” to Iraq’s “complete subservience to Washington.”

An official compared to Asharq Al-Awsat the tensions in Iraq over the government to the tensions between Washington and Tehran over Hormuz.

‘Purely American government’

The two officials said Iran wants to prevent Iraq from forming a “purely American government,” amid US pressure on Baghdad to curb the activity of the pro-Iran armed factions.

Al-Zaidi was named PM-designate on April 27, receiving unprecedented American backing from President Donald Trump himself, who described his appointment as a victory for the Washington administration.

A PM-designate has no more than 30 days to present a cabinet lineup to parliament for a vote of confidence. Time is of the essence with several MPs travelling to Saudi Arabia for the Hajj, meaning the necessary quorum for the parliament session to be held may not be met.

American officials are expected to arrive in Baghdad within days. Sources said Washington not only wants the armed factions out of the government, but it wants to ensure that they will not seek “alternate arrangements” that would get them in the cabinet. This prompted Iran to resort to its “veto” and throttle the government negotiations.

The disagreements over the government in Iraq largely reflect the negotiations between the US and Iran in the region that have been ongoing for weeks without reaching a final settlement.

One of the Iraqi officials quoted a prominent member of the Framework as describing as “unprecedented” the US involvement in the formation of the government. He warned that the differences could turn into an “open conflict” between Washington and Tehran, concerns that were heightened with Qaani’s arrival in Baghdad ahead of American officials who are expected there soon too.

Should Iran resort to informing the Framework MPs to refrain from voting for al-Zaidi’s cabinet, Washington may in turn increase pressure on Baghdad, such as imposing sanctions and cutting off support, to get its way, a senior advisor in an influential Shiite party told Asharq Al-Awsat.

The ongoing dispute between Washington and Tehran may lead to al-Zaidi quitting as PM-designate, he warned.

The Iraqi officials, who are involved in the government formation efforts, revealed that al-Zaidi had received messages from several parties, including the US, over the need to from a cabinet that “does not have Iranian influence.”

Negotiators have said that Washington “is now interfering in the tiniest detail” in the formation process and it has “accurate information about how the factions operate to try to outmaneuver” American conditions.

The conditions are not only limited to the government, but also include restricting the factions’ economic and political connections with Tehran, especially issues related to water resources, oil, and independence of political decision-making, revealed political sources.

Al-Zaidi has tried to keep sovereign portfolios out of the hands of the armed factions and granting them “lesser” ministries. The move has angered Iran, which was hoping that it would retain influence over powerful ministries.

An informed source said noted the Asa’ib Ahl al-Haq movement, which boasts 27 MPs in parliament and has been demanding that its political weight be reflected in cabinet. It has been demanding that it be granted the Oil Ministry, putting it at great odds with Washington.

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Iraq’s 3-Month Plan to Peg the Dinar 1:1 with the US Dollar

 MAJEED

Here is the summary of this whole interview

Proposed Reforms: - Issuing a New Currency: Mazen Al-Ishiqir proposed replacing the current currency with a new one pegged directly to the US dollar (1 Dinar = 1 Dollar) to ensure long-term stability. -Digital Governance Dashboard: Mazen Al-Saad emphasized the need for a “dashboard” management system based on real-time data to monitor state resources and oversee administration, replacing outdated paper-based bureaucracy. -Reactivating the Reconstruction Council: Al-Ishiqir suggested allocating 30% of state revenue to an independent Reconstruction Council to ensure funds are directed toward strategic projects, mitigating corruption. -Fair Tax Laws: The guests highlighted the importance of a progressive tax law to regulate revenue from the private sector (hospitals, universities, housing complexes), which currently utilize state assets without significant returns. Pegging the Dinar to the Dollar: -Al-Ishiqir stated that he discussed the idea of pegging the Dinar to the Dollar with the US Treasury, who informed him that the process could be technically achieved within three months, contingent upon the political will and an agreement between the Federal Reserve and the Central Bank of Iraq. Implementation of Digital Currency and Governance: -Mazen Al-Saad argued that digital transformation and managing state operations through a data dashboard can be initiated with a single decision, asserting there are no technical obstacles to the transition.

📊 IRAQ REFORM PATH – BUILDING A STRONGER CURRENCY FUTURE 🇮🇶💱

📊 IRAQ REFORM PATH – BUILDING A STRONGER CURRENCY FUTURE 🇮🇶💱

  • Iraq’s ongoing financial and banking reforms can be viewed as a strategic effort to strengthen the dinar’s long-term value and international position.
  • The Central Bank of Iraq (CBI) appears to be advancing modernization measures aimed at:
    • 🏦 Improving banking sector efficiency and transparency
    • 🔐 Strengthening AML/KYC compliance with global standards
    • 🌍 Enhancing integration with international financial systems
    • 💳 Expanding digital and electronic payment infrastructure

  • These developments suggest a broader objective of increasing confidence in Iraq’s financial system, which is a key factor that typically supports currency strength over time.

  • From this perspective, structural reforms are not only administrative changes, but part of a long-term nation-building financial strategy designed to position Iraq within a more stable and globally connected economic framework.
  • If sustained successfully, such reforms could contribute to:
    • Greater foreign investment confidence
    • Stronger banking credibility
    • Reduced currency volatility
    • Improved macroeconomic stability
  • The underlying idea is that a stronger institutional and financial foundation often precedes stronger currency performance in global markets.

💡:
Iraq’s reform momentum reflects an ambition to build a more credible, stable, and internationally trusted financial system — which in turn could support a stronger valuation of its currency over time.

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#IraqEconomy #CBI #FinancialReforms #CurrencyStrength #BankingReform #EconomicStability #GlobalFinance #IraqDinar #MonetaryPolicy #EmergingMarkets

🌟 Al-Zaidi Puts Economic Stability First from Day One 🇮🇶💰

🌟 Al-Zaidi Puts Economic Stability First from Day One 🇮🇶💰 📊 Prime Minister Al-Zaidi began his term by meeting with the Minister of Fina...