Sunday, December 28, 2025
HANTOUSH: INTERNATIONAL FINANCING DIFFICULTIES AND EXCHANGE RATE CHALLENGES THREATEN THE STABILITY OF THE IRAQI ECONOMY
HANTOUSH: INTERNATIONAL FINANCING DIFFICULTIES AND EXCHANGE RATE CHALLENGES THREATEN THE STABILITY OF THE IRAQI ECONOMY
Economic and banking expert Mustafa Hantoush confirmed on Thursday that Iraqi companies and the private sector are facing significant difficulties in obtaining international loans to finance major projects due to Iraq’s low credit rating and the high costs of guarantees and interest rates on foreign loans.
Hantoush added, in a statement to Al-Maalouma, that “the Iraqi banking system is going through a difficult period, with the possibility of several banks exiting the market, which limits the ability of domestic financing to cover major projects.” He pointed out that “international financing depends heavily on sovereign guarantees provided by the state, which remain limited in Iraq.”
He noted that “the cost of external financing has risen significantly, with interest rates increasing from 5% to approximately 8-9% due to the risks associated with Iraq’s credit rating, placing additional burdens on Iraqi investors.”
Regarding the dollar exchange rate, which has reached 2,000 dinars, Hantoush affirmed that “Iraq is experiencing relative monetary stability, and the Central Bank has no intention of changing the exchange rate at present, despite speculation about the incoming government’s intentions in this regard.”
He warned that any “exchange rate adjustment without addressing the root causes of the country’s financial problems would be a half-measure, potentially leading to widespread negative consequences, including increased poverty rates and a decline in the value of salaries, thus exacerbating the suffering of large segments of the population.”
He explained that “Iraq possesses substantial resources in the form of government assets estimated at hundreds of billions of dollars, in addition to vast tracts of land and real estate, but the weakness in combating corruption and activating tax collection hinders the effective
utilization of these resources.”
He pointed out that “seriously confronting corruption and activating domestic revenues could reduce the need to adjust the exchange rate or resort to temporary solutions that could harm the economy and society.”
He also noted the existence of “huge amounts of cash held in homes, estimated at 70 to 80 trillion dinars, which have contributed to speculation in the real estate market and an unjustified rise in prices, necessitating a sound monetary policy to control the markets.” He concluded by emphasizing that “the continuation of the current situation without genuine reforms will lead to a deterioration of economic and social conditions, with increased poverty rates and greater pressure on salaries and market liquidity.”
CLARE: Iraq’s New Parliamentary Session Signals Political Momentum
Swearing-In and Speaker Election Take Center Stage
A new phase in Iraq’s political process officially begins as the Iraqi Parliament convenes its first session in the new legislative term.
According to an official statement from the Parliament’s Media Department, lawmakers have placed two critical items on the agenda for Monday’s opening session—steps that are widely viewed as foundational for governance, stability, and future reforms.
What’s on the Agenda for the First Session?
The article states that Iraq’s parliament has clearly defined priorities for its opening meeting.
1️⃣ Swearing-In of New Members of Parliament
The first item on the agenda is:
The constitutional swearing-in of newly elected members of the House of Representatives
This step is essential because:
It formally activates the new parliament
Members gain full legal authority
Parliamentary work can officially begin
Without this step, no legislative or executive actions can proceed.
2️⃣ Election of the Speaker and Deputies
The second agenda item includes:
Election of the Speaker of the House of Representatives
Election of the First and Second Deputy Speakers
This leadership structure is vital for:
Organizing parliamentary sessions
Managing legislative priorities
Coordinating with the executive branch
“The election of the Speaker of the House of Representatives and his two deputies.”
Why This Session Is So Important
The opening parliamentary session represents more than ceremony—it signals institutional readiness.
Key implications include:
Movement toward forming a full government
Greater political clarity and legitimacy
Unlocking stalled legislative and economic files
In Iraq’s system, a functioning parliament is a prerequisite for:
Government formation
Budget approval
Major national reforms
Political Stability and Reform Readiness
Many observers view this session as a gateway moment.
Once parliamentary leadership is elected:
Committees can be formed
Laws can be debated and passed
Coordination with the Prime Minister and cabinet accelerates
This structure is often seen as a foundation for economic and financial reform, as stable governance builds confidence domestically and internationally.
Featured Snippet: Key Summary
What happens in Iraq’s first parliamentary session?
Iraq’s parliament begins its new session by swearing in new members and electing the Speaker of the House and two deputies, officially launching the new legislative term.
Google Discover Highlight
Iraq’s political process moves forward as the new parliament convenes its first session. With lawmakers sworn in and leadership elections underway, the groundwork is being laid for governance, stability, and future reforms.
Q&A Section
❓ Why is the swearing-in important?
It legally authorizes members of parliament to begin legislative duties.
❓ Why must the Speaker be elected early?
The Speaker organizes parliamentary work and ensures sessions and voting can proceed.
❓ Does this mean Iraq has a full government?
Not yet, but it is a crucial step toward completing government formation.
❓ How does this affect reforms?
Political stability and leadership are necessary before major economic, fiscal, or monetary reforms can advance.
Final Thoughts
The new session of Iraq’s parliament marks a critical institutional milestone. By prioritizing the swearing-in of members and the election of parliamentary leadership, Iraq is taking necessary steps toward stability, governance, and forward momentum.
As history has shown, these foundational actions often precede significant national developments in legislation, budgeting, and reform.
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Clare
Article Quote: "Order 613 of 2025 were discussed, the most important of which are the new pricing and deduction of tax through the ASYCUDA system and the application of the prior customs declaration to all goods entering the country starting from 1/1/2026."
Article: "The Iraqi parliament, in its new session, has set two items on the agenda for its first session on Monday"
Quote "The first paragraph includes: the swearing-in of the new members of the House of Representatives, and the other includes: the election of the Speaker of the House of Representatives and his two deputies, according to a statement issued by the Parliament’s Media Department."
MY PERSPECTIVE ON THE DINAR AND ECONOMIC REFORM, BASED ON WHAT DR. NABIL AL-MARSOUMI WROTE ABOUT THEM
MY PERSPECTIVE ON THE DINAR AND ECONOMIC REFORM, BASED ON WHAT DR. NABIL AL-MARSOUMI WROTE ABOUT THEM
By Dr. Shawwan Zangana
12.14.25
With all due respect to you, my dear professor Dr. Nabil Al-Marsoumi, and with all due appreciation for your knowledge and expertise, from which I have always benefited, I hope you will allow me to present the following points to you, in response and commentary on what you wrote about economic reform a few days ago, as follows:
- The “White Paper” was never a reform paper, and it never will be. In it, the wrong measures and government corruption were imposed on the people, as they were exposed to inflation due to the reduction in the exchange rate of the dinar, and stagnation prevailed in the markets due to the contradictions in the economic measures, not to mention the exploitation of the economic crises by those in power and their entourages to make profits and accelerate the wheel of smuggling.
2- I agree with you, my dear professor, that the economic crises in developing countries are caused by errors in macroeconomic policies, and I also agree with you on the necessity of cooperating with the International Monetary Fund and the World Bank. However, I do not agree with you, nor with the pillars of the Iraqi government that approved the “White Paper” prepared by the World Bank, with nominal Iraqi participation, regarding many of the items and measures contained in the ill-fated White Paper.
I do not agree with placing the plans to address the Iraqi economic crises under the authority of the World Bank or others. Rather, I call for the solutions to be purely Iraqi, in cooperation with international financial institutions, as Iraq is full of good economic personnel, both inside and outside the government.
3- In my view, seeking to reduce the exchange rate of the Iraqi dinar is an economic crime that should only be resorted to in extreme emergency situations, when other means are exhausted. Iraq has multiple available means to address its economic crises, such as borrowing, rationalizing the budget, reforming food rations and social welfare, regulating salaries, limiting appointments, and eliminating underemployment, among others. These measures will be painful, as you mentioned, but they are certainly better than the effects of stagflation, which will burden the rich before the poor.
4- Floating the Iraqi dinar, in the current state of the Iraqi economy, contradicts the most basic rules of economics, not to mention its contradiction with reason and logic. Economically, floating occurs in a balanced free market where there is a real opportunity to achieve a fair exchange rate. This is impossible to achieve in the current Iraqi economy, as the only party that possesses dollars and hard currencies is the Central Bank of Iraq. As for the Iraqi market, it obtains hard currencies from the Central Bank, because Iraq is an importing country and not an exporting one, and most traders do not possess hard currency because they do not export, but rather they depend on the Central Bank to provide foreign currency liquidity. Consequently, there is no balanced market in which hard currency is available to everyone, and it is a market governed by what the Central Bank provides of hard currency, so competition becomes impossible, and achieving a fair exchange rate becomes impossible.
5- Promoting the idea of floating the dinar and reducing its exchange rate in the markets and among the general public is extremely dangerous. It is a preemptive move for possible future measures that may not happen, and if they do happen, they may not be soon. Occupying the markets with this type of idea presented as a solution is harmful and not beneficial. Therefore, I recommend staying away from it and leaving the idea of floating the dinar and reducing its exchange rate to the next government.
6- The economic reform process will be harsh and costly for the poor and those with limited and middle incomes, as you mentioned. The government must strive to alleviate the burden of this harshness and cost by improving economic, security, and social performance, and by formulating a national reform paper, with the participation of the concerned parties, the government, society, and markets, and with the assistance of local, international, and UN financial institutions.
6- Economic reform measures will not be effective unless they are accompanied by good intentions from those who take them. Corruption and mismanagement have brought Iraq to this state, and its continuation means the inevitable failure of reform measures. I think the time has come for the marginalized class of the national elite and entrepreneurs in the markets to take their place in the constructive and effective contribution to managing the course of the economy in Iraq, whether those in power accept it or not.
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