Thursday, June 26, 2025
The Central Bank Sponsors The Launch Of The Al-Fursan Entrepreneurship Program
The Central Bank Sponsors The Launch Of The Al-Fursan Entrepreneurship Program
June 25, 2025 The Central Bank of Iraq hosted a celebration announcing the launch of the "Fursan" program, an Iraqi-inspired initiative under the direct sponsorship of His Excellency the Governor of the Central Bank of Iraq.
The program serves as a realistic investment program for entrepreneurs, aiming to create real opportunities for youth and enhance the role of the private sector in developing the national economy.
In his speech at the ceremony, His Excellency the Governor of the Central Bank of Iraq, Mr.
Ali Mohsen Al-Alaq, emphasized that the Central Bank of Iraq has prioritized supporting projects related to the youth segment, which contributes to the local economy with products and services that contribute to raising the gross domestic product, ensuring an effective role in this regard.
In light of the recent reforms, the Iraqi banking sector can also focus on supporting income-generating small and medium-sized enterprises that directly support the private sector.
The "Fursan" program helps participants access investment opportunities and obtain soft loans for those who qualify. The program also provides a safety net that ensures the continuity of promising projects and prevents their failure.
These projects serve as incentives for innovative youth and create new job opportunities
that contribute to sustainable economic and social development in Iraq.
A group of young people presented their projects, highlighting the products they offer and their assessment of market demand and available potential, with the hope that other entrepreneurs will join them in the future. Central Bank of Iraq Media Office June 25, 2025 https://cbi.iq/news/view/2917
FIREFLY: Skies are full of fire here in the northern Iraq where those bases were
Frank26
[Iraq boots-on-the-ground report]
FIREFLY:Television says Iran says they have no intentions of closing the Straits of Hormuz.
FIREFLY:We have bases here right now inside of Iraq. We took cover. We are being hit hard tonight from Iranian militants. We heard they blew up a big radar installation and drones are hitting bases here. All hell has broke out inside Iraq...
FRANK: Don't worry about it.
Take cover for now. Protect your family...
FIREFLY: We see in our skies here, bases are blown up. We can see it from the distance...Skies are full of fire here in the northern Iraq where those bases were.
FRANK: It was no big deal. They didn't do much of any damage.
FIREFLY: Television is saying some of the rockets missed their mark...It was the Iranian backed militants here that did it with Iran's help.
The IMF Mission Commends The Central Bank Of Iraq
The IMF Mission Commends The Central Bank Of Iraq
June 25, 2025 The International Monetary Fund (IMF) mission, led by Jean-Guillaume Poulain, which met with the Central Bank of Iraq (CBI) from May 4 to 13, 2025, commended the CBI's work in several areas. It confirmed that the CBI has made progress in absorbing excess liquidity by increasing the issuance of short-term debt instruments (CBI drafts and Islamic certificates of deposit), adjusting subscription limits for banks in CBI auctions, and improving liquidity forecasting tools and practices.
The statement issued by the International Monetary Fund stated that the mission commended the efforts of the Central Bank of Iraq to successfully transition to the new trade finance system, indicating that commercial banks now process trade finance transactions entirely through their relationships with correspondent banks.
The Central Bank of Iraq has achieved significant progress by transitioning to the new system for financing foreign trade through correspondent banking channels, instead of relying on the daily dollar auction.
This development has contributed to enhancing banks
' compliance with international transparency requirements, such as
OFAC regulations and others, and improving their relationships with global correspondent banks.
This step has resulted in
narrowing the gap between the official dollar price and its parallel price, indicating relative success in
curbing illegal speculation and
reducing currency leakage.
The foreign exchange management methodology has become more effective compared to the past,
especially with the Central Bank of Iraq continuing to take complementary measures, such as requiring traders to submit genuine import invoices and simplifying procedures for obtaining hard currency for legitimate importers.
In parallel, the mission welcomed the progress made in the use of digital technology and the Iraqi authorities' intention to implement a comprehensive reform of the banking sector, calling for its completion to be accelerated without delay.
The Iraqi government, with technical support from the International Monetary Fund and other international bodies, has begun implementing initial steps to reform government banks, including
auditing the quality of assets,
estimating the size of non-performing loans, and
developing a draft plan to restructure the two largest government banks (Rafidain and Rashid) financially and administratively.
The Iraqi financial sector has also witnessed an increasing trend towards digitization and the adoption of modern financial technology, whether in electronic payment services or the launch of banking platforms via the Internet and mobile phones.
The International Monetary Fund believes that these
technical improvements, along with
steps to enhance cybersecurity in banks,
promote financial inclusion,
expand private banking activity, and
restructure government banks,
will
enhance the efficiency of financial services and
increase foreign correspondents' confidence in the Iraqi banking sector.
The report also noted the
expansion of private banks' activity in trade finance and small business financing, with expectations of
further increases if obstacles are removed.
Initiatives to
enhance financial inclusion,
modernize electronic payment systems, and
reduce reliance on cash in the economy
are also crucial to strengthening banking depth.
The Central Bank of Iraq launched a national financial inclusion strategy during the first half of 2025.
The report also included important recommendations to enhance financial stability and facilitate the transfer of monetary policy effects to the real sector, including: reducing the phenomenon of dollarization, in which Iraq has made significant progress over the past two years;
the importance of accelerating the completion of the
comprehensive restructuring plan for banks to enhance their solvency; the importance of
strengthening corporate governance for banks,
developing digital infrastructure and cybersecurity for the financial sector;
strengthening the role of private banks in financing economic development; and
continuing to improve anti-money laundering and counter-terrorism financing procedures.
It is also important for the Central Bank of Iraq to continue increasing the issuance of short-term securities to ensure better management of excess liquidity. Central Bank of Iraq Media Office https://cbi.iq/news/view/2916
AJ 📢The Parallel Market dropped again intarday in Iraq
AJ
The Parallel Market dropped again intarday in Iraq.
I created a table for you showing the Parallel Market in Iraq.
The 1st and 2nd columns display the opening and closing prices.
The 3rd column shows the intraday price change, and the 4th column reflects the daily rate of change from the previous day's closing price.
Example
Intraday Al-Harithiya stock exchanges in Baghdad: Down -3 dinar
Daily Al-Harithiya stock exchanges in Baghdad: Down -4 dinar See attached Table
The recent prices confirm that the Iraqi Dinar is gaining strength against the US Dollar across multiple regions in Iraq.
I also noticed a narrowing gap between buying and selling rates, which indicates stable market conditions and growing confidence in the Dinar.
This suggests that reduced speculation and a tighter supply of Dinars are driving this movement. Traders appear more confident in the local currency, particularly as regional tensions with Iran are easing.
The recent ceasefire between Iran and Israel may have indirectly bolstered this optimism by reducing pressure on regional markets. This likely contributed to yesterday’s significant drop of 21 Dinars in the parallel market...a rare occurrence.
Additionally, the Central Bank of Iraq (CBI) continues to manage liquidity effectively. Its regular interventions in the dollar auction system help stabilize exchange rates and reduce volatility.
The CBI has announced plans to unify the parallel market rate across Iraq with the official rate of 1,320 IQD per USD in the second half of 2025. This alignment is a critical step 1st for a currency revaluation.
The CBI is collaborating closely with exchange shops to monitor currency flows and ensure fair pricing. It has stated that the parallel market rate will gradually align with the official rate to avoid shocking the markets.
As the Dinar strengthens, importers benefit from more favorable rates when purchasing goods abroad. This leads to lower retail prices and reduced inflationary pressure for Iraqi citizens.
The data also shows that demand for the US Dollar remains relatively stable, but the increase in Dinar strength suggests a growing preference for holding the local currency.
As the Dinar gains against the Dollar in key markets like Baghdad and Erbil, I believe the next few weeks will reveal a trend of the pace of declining rates to gauge how long this may take.
By the way, tomorrow is a holiday in Iraq. You can put questions in comments
AJ
AJ
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