Iraq’s political landscape faces pressure as key laws are delayed, while financial reforms aim to stimulate the economy and address exchange rate issues.
Highlights
🇮🇶 Iraq’s Prime Minister directs contracts in Euro, indicating a significant shift in currency use.
📜 Parliamentary legal committee discusses four key laws aimed at citizen needs.
🔄 Interest rates reduced from 7.5% to 5.5% to promote economic growth.
📉 Iraq reportedly lost $23 billion in project value in a month, raising concerns.
💼 New hybrid monetary policy introduced by the Central Bank for economic stimulation.
💵 Analysts expect the Iraqi dinar to become a base currency, shifting international dynamics.
📈 Focus on local investments and job creation to combat inflation and revitalize the economy.
Key Insights
🌍 Currency Shift: Iraq’s acceptance of Euro for contracts marks a significant move towards diversifying its economic relationships, potentially stabilizing its currency amid ongoing pressures.
📊 Legislative Challenges: The delay in passing crucial laws reflects the ongoing political struggles, which could hinder economic reforms and public trust in governance.
💰 Interest Rate Strategy: The Central Bank’s decision to lower interest rates aims to encourage borrowing for investment, addressing unemployment and stimulating economic activity.
⚠️ Financial Losses: The reported $23 billion loss in project value underscores the urgent need for effective governance and swift action in infrastructure development.
🔄 Hybrid Monetary Policy: The introduction of a hybrid monetary policy signals a proactive approach by the Central Bank to manage liquidity and inflation, aiming for economic stability.
📈 Iraqi Dinar as Base Currency: The expectation of the dinar becoming a base currency suggests a potential shift in international trade dynamics, enhancing Iraq’s economic sovereignty.
🏗️ Investment Focus: The emphasis on local investments and job creation is crucial for long-term economic health, fostering resilience against external financial pressures.
A Dangerous Game: Iraq's ambitious plan to reintegrate ISIS-linked families
hafaq News/ Iraq's ambitious initiative to reintegrate families of ISIS militants from the al-Hol camp in Syria has drawn sharp criticism, with detractors labeling these families as "the biggest ticking time bomb in the Middle East." As the Iraqi government pushes forward with what it describes as the "largest social integration operation," calls to halt the program are intensifying, reflecting deep concerns about the potential rise of a new generation of extremists amid a backdrop of ongoing security challenges.
A Breeding Ground for Extremism
Al-Hol camp in northeastern Syria houses tens of thousands of wives, children, and suspected supporters of ISIS fighters. Iraq, seeking to mitigate the threat of cross-border extremism, has expressed its intention to close the camp and repatriate its citizens.
The al-Hol camp, heavily guarded and supervised by Syrian Kurdish-led forces with US support, was once home to 73,000 people, primarily Syrians and Iraqis. Over the years, the population decreased to just over 48,000, with approximately 4,000 released since May 2023. Those remaining in the camp include individuals from around 60 other countries who had joined ISIS, making closing al-Hol a broader international challenge.
The camp currently holds about 23,000 Iraqis, 17,000 Syrians, and 7,000 individuals of various nationalities, with non-Syrian or Iraqi nationals residing in a section referred to as the Annex, known for hosting the most committed IS supporters.
Amid ongoing security assessments and integration programs, Iraqi officials emphasize the importance of community cohesion and international cooperation.
Iraq’s Security and Compassion in Repatriation
To date, over 2,000 families have been returned from the Camp to their original regions, with 600 families currently undergoing rehabilitation in preparation for reintegration and the opportunity for a fresh start.
Earlier this week, Iraq’s National Security Advisor, Qasim al-Araji, noted that the government is implementing "the largest community integration operation" for those coming from the al-Hol camp in Syria.
During a conference held by His office to evaluate and update Iraq's counter-terrorism strategy for 2012-2025, in collaboration with the Counter-Terrorism Service and the European Union mission in Iraq, al-Araji affirmed that all individuals arriving from the al-Hol camp are subjected to psychological rehabilitation at the al-Jad'a camp, supervised by the Ministry of Migration and Displacement alongside other agencies.
Al-Araji emphasized that "Iraq today is free from terrorism and is working to sustain security and ensure its success," advocating for a citizenship-based approach that transcends ethnic and sectarian lines. He asserted that Iraq encompasses all its people, urging a departure from feelings of marginalization and adherence to the law to prevent impunity, while also encouraging citizens to trust the state and its judicial institutions.
He highlighted that there are no first- or second-class Iraqis; all citizens are equal. “The government and state institutions are strong and committed to fostering community cohesion.”
A day later, al-Araji announced that individuals returning from the al-Hol camp would undergo a psychological rehabilitation program before being reintegrated into society.
Speaking to Shafaq News Agency, al-Araji said, "The returnees from the al-Hol camp have undergone thorough security screenings by a specialized team. They are received and transferred to al-Jada'a camp in Mosul, where they participate in a psychological rehabilitation and social reintegration program."
Al-Araji added that the al-Jada'a camp is overseen by the Ministry of Migration and Displacement, working alongside a specialized team that includes representatives from several ministries, universities, and expert scholars.
“The assessment of these individuals is conducted after the rehabilitation period, in coordination with local administrations, tribal leaders, and community figures,” al-Araji said. “Their return to their former areas is voluntary, under the voluntary return program.”
Repatriation of family members of suspected ISIS members has stirred controversy in Iraq, where the extremist group had seized large swathes of land before being defeated in late 2017.
Some Iraqis have resisted the repatriation efforts, saying they do not want ISIS families among them. Despite the criticism, the Iraqi government regularly repatriates its citizens, a policy commended by the UN and US.
A Fine Line Between Hope and Danger
In this context, security and strategic expert Mokhlad Hazim al-Darb views the integration of individuals from the al-Hol camp as an important step for Iraq.
Speaking to Shafaq News Agency, he notes that these individuals fall into two categories: “Some fled from ISIS due to military operations, while others were coerced into joining the terrorist organization, leaving their families behind after the deaths of their parents.”
Al-Darb explains that the integration process follows strict security protocols, including high-level vetting of those in the al-Hol camp.
He points out, “Families without ties to ISIS, who were displaced during military operations in Mosul or western Iraq, are being repatriated through collaboration between the National Security Advisor's office, the Ministry of Migration, and security agencies,” adding that the number of displaced individuals eligible for return exceeds 30,000, although only a limited number have been repatriated thus far.
“The return of these families necessitates rehabilitation and integration efforts. Therefore, relevant ministries must establish mechanisms and workshops on how to incorporate these individuals into Iraqi society, ensuring they feel like citizens with a haven.”
Security researcher Sarmad al-Bayati notes that families arriving from the al-Hol camp undergo three layers of security screening before entering the al-Jad'a 1 and al-Jad'a 2 camps for psychological rehabilitation and community integration. He mentions that community organizations are actively involved in this process.
During an interview with Shafaq News, al-Bayati acknowledges that “while the risk is not entirely absent, the danger increases if these individuals do not receive proper psychological support…they will undergo several stages of assessment before being integrated into society,” highlighting the importance of community understanding of how to engage with these families, particularly in light of past issues, including violence and conflict.
“Efforts are underway to resolve these matters before relocating them to their original areas.”
Despite the Iraqi authorities' efforts to manage the repatriation, lawmakers and security experts voice serious concerns about the potential dangers posed by integrating families of ISIS members into Iraqi society.
A Ticking Time Bomb Or A Second Chance?
Iraqi Yazidi lawmaker Mahma Khalil criticizes the government's integration efforts, labeling them “a mistake” and asserting that the arrival of ISIS families supports the emergence of a new generation of extremists.
Khalil describes these families as "future ticking time bombs," stating, “They are rejected both tribally and socially due to their role in the genocide of the Yazidi community and atrocities such as the Spiker massacre.” He argues that integrating these families constitutes an affront to the bloodshed endured during Iraq’s liberation efforts.
Khalil further suggests that the program seems to hint at “a conspiracy against Iraq and its people, whether from the government or external pressures, insisting that it must be halted for the sake of Iraq, the region, and the families of victims.”
On the other hand, security expert Ali al-Maamari labels Al-Hol camp as a strategic asset in the Middle East, noting that many developed nations have refused to repatriate their citizens from this facility.
Regarding the necessary steps to mitigate the risks these families pose to Iraqi society, al-Maamari stresses that repatriating them requires “extensive measures to protect the Iraqi population from the threats posed by ISIS-aligned groups.”
He proposes distributing these individuals across geographical areas that “lack fertile ground for extremist ideologies and allocating substantial financial resources for awareness, education, health, and social programs.”
Al-Maamari also stresses the importance of not integrating these families with the broader community until it is confirmed they are rehabilitated, advocating for sustained security monitoring for an extended period, warning that immediate integration would be “a grave mistake with potentially severe consequences.”
Iraq’s transport ministry has suspended all flights due to regional tensions following Israeli strikes on Iranian targets, impacting air travel indefinitely.
Highlights
✈️ Flight Suspension: Iraq’s transport ministry halts all airport flights until further notice.
🌍 Regional Tensions: The suspension follows Israeli military action against Iranian sites in Syria and Iraq.
💥 Explosions Reported: Initial reports of explosions in Basra were denied by Iraqi officials, attributing them to Iran.
🇺🇸 U.S. Troops Presence: U.S. troops remain stationed in Iraq amidst rising tensions, providing some hope for stability.
💱 Dinar Stability: Despite the turmoil, the Iraqi dinar exchange rate remains stable for now.
📺 Ongoing Updates: The channel commits to providing continuous updates on Iraq’s situation and economy.
🌟 Hope for Safety: There is cautious optimism regarding the safety of the Iraqi people during this crisis.
Key Insights
🚫 Impact on Travel: The indefinite suspension of flights signifies a severe impact on both domestic and international travel, affecting business and tourism.
⚔️ Escalating Conflicts: The Israeli strikes illustrate the escalating conflict between Israel and Iran, with Iraq caught in the middle, raising concerns about regional stability.
🔍 Misinformation Concerns: The quick denial of the Basra explosions highlights the volatile nature of information in conflict zones, where misinformation can exacerbate tensions.
🛡️ Military Presence Significance: The presence of U.S. troops is a double-edged sword; while it may deter further aggression, it also complicates Iraq’s sovereignty and internal politics.
💹 Economic Resilience: The stability of the Iraqi dinar amidst chaos suggests a degree of economic resilience, though the long-term outlook remains uncertain.
📢 Public Awareness: Continuous updates are crucial for public awareness, ensuring that citizens stay informed about the evolving situation.
🤝 Community Safety: The hope for the safety of the Iraqi people emphasizes the human aspect of geopolitical conflicts, reminding us of the real lives affected by these events.
CBI imposes +$190M in fines on banks, exchange firms
Shafaq News/ The Central Bank of Iraq (CBI) announced, on Sunday, that it imposed more than 249 billion IQD (about $190 million) in fines on banks and non-banking institutions, such as exchange companies, over the past nine months.
Official data showed that penalties on financial institutions from January to the end of September reached 249,889,756,016 IQD. Additionally, 221 administrative sanctions—including warnings, notifications, and grace periods—were issued to various banks and non-banking firms.
The data indicated that January saw the highest level of fines, totaling 98,277,722,062 IQD ($74,997,180), alongside 17 administrative penalties. In contrast, September recorded the lowest, with fines reaching 2,331,465,048 IQD ($1,779,175) and 13 sanctions.
The list did not disclose the names of the fined institutions.
Furthermore, the Association of Investors in the Iraq Stock Exchange recently criticized CBI’s increased penalties, noting potential impacts on the profitability of investors in the affected banks' stocks.