Wednesday, July 16, 2025
News reveals details of the new agreement between Baghdad and Kurdistan
News reveals details of the new agreement between Baghdad and Kurdistan
An informed source revealed details on Wednesday of a new financial agreement concluded between the federal government in Baghdad and the Kurdistan Regional Government (KRG), aimed at settling salaries, oil exports, and unifying revenues.
The source told Shafaq News Agency that the agreement stipulates that the Kurdistan Regional Government will receive 240 billion dinars in revenues for May and June, at a rate of 120 billion dinars per month, in addition to delivering 230,000 barrels of oil per day to Baghdad, in exchange for the latter sending the salaries of the region's employees for those two months.
He indicated that the regional government will begin the process of disbursing local revenues from border crossings, along with the agreed-upon amount of crude oil, as part of the implementation of the terms of the new agreement.
The source added that the next phase will witness meetings between joint technical committees to review and audit figures and statistics related to oil exports and imports, as well as to discuss the region's share of the federal budget.
For his part, an Iraqi government source said that the federal cabinet is awaiting the implementation of the Kurdistan Regional Government's pledges to resolve the current crisis.
He explained that the federal government is awaiting an official letter from the Kurdistan Regional Government to begin implementing the agreement by the relevant committees.
The Kurdistan Regional Government's Council of Ministers approved the new understandings with Baghdad during its session held this morning.
The roots of the recent salary crisis between the federal government in Baghdad and the Kurdistan Regional Government (KRG) lie in ongoing disagreements over oil export mechanisms and the unification of public revenues. This is a long-standing crisis that resurfaces from time to time, but it has significantly worsened since May 2025, when the federal government refused to send salaries to KRG employees.
Baghdad justified the delay in disbursement by Erbil's failure to deliver the agreed-upon quantities of crude oil (230,000 barrels per day) and its failure to transfer non-oil revenues from internal ports to the state treasury, which the federal government considered a violation of previous agreements included in the three-year federal budget law (2023-2025).
For its part, the regional government confirmed that it is facing technical and political difficulties in delivering the full amount of oil, especially given the ongoing suspension of oil exports via the Turkish Ceyhan pipeline since March 2023. This suspension stems from an international arbitration ruling against Turkey in the oil export dispute with Iraq. This has forced Erbil to rely on domestic exports to meet its financial needs. link
NADER FROM MID EAST: Iraq’s Exchange Rate and IMF Update
NADER FROM MID EAST: Iraq’s Exchange Rate and IMF Update
Summary
The International Monetary Fund (IMF) recently provided an update on Iraq’s exchange rate arrangement as part of its ongoing assessment of the country’s economic situation.
Iraq’s currency, the Iraqi Dinar (ID), is officially pegged under a conventional peg arrangement, with the Central Bank of Iraq (CBI) holding the authority to manage exchange rate policies. Since February 8, 2023, the official exchange rate has been fixed at ID 1,320 per US dollar.
The IMF highlighted changes in Iraq’s exchange rate system since the last Article IV consultation, noting that while Iraq still uses transitional arrangements under Article 14, Section 2, it no longer enforces any restrictions associated with that provision.
Importantly, Iraq does not impose any current account exchange restrictions or multiple currency practices (MCPs), signaling a more open exchange regime. Starting January 2025, all international transactions will be processed through commercial banks via their correspondent banking relationships, which the CBI supports by replenishing foreign currency balances weekly and auditing for compliance with Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) regulations.
The CBI also encourages private banks to expand their correspondent banking relationships, especially with non-US financial institutions, to improve the robustness of the foreign exchange market. This update reflects Iraq’s ongoing efforts to modernize and stabilize its exchange rate system while enhancing transparency and regulatory compliance.
- 💱 Iraq’s exchange rate arrangement is a conventional peg with the Dinar fixed at ID 1,320 per USD since February 2023.
- 🏦 The Central Bank of Iraq has full authority to determine exchange rate policies under Iraqi law.
- 🔄 Iraq no longer maintains restrictions under transitional Article 14, Section 2 arrangements.
- 🚫 There are no current account exchange restrictions or multiple currency practices in Iraq.
- 🌐 From January 2025, all international transactions will be routed through commercial banks’ correspondent banking networks.
- ✅ The CBI replenishes foreign currency balances weekly and enforces AML/CFT compliance through audits.
- 🤝 Private banks are encouraged to expand correspondent relationships, particularly with non-US financial institutions.
Key Insights
💹 Conventional Peg Arrangement Provides Stability: Iraq’s decision to maintain a conventional peg arrangement, fixing the Dinar at 1,320 per USD, reflects a commitment to exchange rate stability amid ongoing economic challenges. By pegging the currency, Iraq aims to curb excessive volatility, which is critical given its reliance on oil revenues and foreign trade. This approach also facilitates predictability for investors and traders, which can foster economic confidence.
🏛 Central Bank’s Role is Crucial in Exchange Rate Policy: The Central Bank of Iraq’s board is empowered by law to set exchange rate policy, underscoring the institutional framework that supports monetary policy autonomy. This legal mandate ensures that exchange rate decisions are centralized and regulated, which can help maintain policy consistency and prevent ad hoc interventions.
🔓 Removal of Restrictions Enhances Market Openness: The IMF notes that Iraq no longer maintains restrictions under transitional Article 14 arrangements and has removed current account exchange controls and MCPs. This liberalization signifies progress toward a more open and market-driven foreign exchange regime, which can improve capital flow efficiency and integration with global financial markets. It also reduces the risk of distortions and black-market currency trading.
🏦 Shift to Correspondent Banking Networks Modernizes FX Transactions: By routing all international transactions through commercial banks’ correspondent banking relationships starting in January 2025, Iraq is modernizing its foreign exchange infrastructure. This shift promotes transparency, traceability, and efficiency in cross-border transactions, which are essential for compliance with international financial standards and for attracting foreign investment.
🔍 AML/CFT Compliance is a Priority: The Central Bank’s weekly replenishment of foreign currency balances combined with audits to ensure AML/CFT compliance indicates a strong regulatory focus. This is vital for reducing illicit financial flows and aligning Iraq’s banking sector with global anti-money laundering standards, which is a prerequisite for deeper integration into the international financial system.
🌍 Diversification Beyond US Financial Institutions: Encouraging private banks to broaden correspondent banking relationships, particularly with non-US financial institutions, reflects an effort to diversify foreign exchange channels. This can mitigate risks tied to geopolitical or regulatory pressures from a single jurisdiction and enhance Iraq’s resilience to external shocks. It also potentially expands Iraq’s access to a wider range of global financial services.
📈 Potential Impact on Iraq’s Economic Stability: Together, these measures suggest Iraq’s intent to strengthen economic governance and financial sector stability. A stable exchange rate regime combined with transparent, AML/CFT-compliant banking operations creates a foundation for sustainable economic growth, improved investor confidence, and better integration with global markets. However, successful implementation will require ongoing institutional capacity building and vigilance against financial risks.
Overall, the IMF’s update highlights Iraq’s gradual progress in exchange rate policy reform, financial regulatory compliance, and modernization of its international transaction systems, all of which are key steps in enhancing economic stability and integration with the global economy.
The Minister of Finance reveals the reason for the delay in approving the budget.
The Minister of Finance reveals the reason for the delay in approving the budget.
Finance Minister Taif Sami revealed the reason for the federal government's failure to approve the budget and the delay in submitting it to parliament, according to a statement by MP Rashid Al-Maliki on Wednesday.
Al-Maliki said in a statement today, "Finance Minister Taif Sami informed us today during her meeting at the ministry's headquarters that a committee in the Council of Ministers is working to complete the budget schedules."
Sami was also quoted as saying: "The reason for the delay is due to efforts to maximize non-oil revenues and find financial sources to cover the budget deficit from fees, taxes, service charges, etc., and that the government is committed to submitting the budget schedules." link
FIREFLY: "Iraq Breaks Free: Path Cleared for Reform"
Frank26
[Iraq boots-on-the-ground report]
FIREFLY:Economist on TV, he was talking all day and he was talking about how Iran is losing its grip on Iraq.
FRANK: That's the security and stability we have all dreamed about...He's telling you the truth about your monetary reform.
It can be born with a new exchange rate because Iran is no longer in control...Sudani is in control. Donald Trump is in control. Iran knows that.
Status of the Iraqi Dinar Revaluation (RV) : "Iraqi Dinar RV Delayed Again? Truth Behind the Hold-Up Revealed!" #DinarRevaluation #DinaresgurusBlog #DinarGuru #IQDUpdate
🇮🇶 Status of the Iraqi Dinar Revaluation (RV) – Summary
🔁 Based on insights from the #DinarRevaluation blog and discussions circulating on #DinaresGurus and #Dinaresgurus Twitter.
The latest newsletter dives deep into the ongoing delays around the Iraqi Dinar RV, linking economic reform, U.S. foreign policy, spiritual warfare, and misinformation in the community.
🔹 1. Not Just About Money
The RV is more than a financial event. The author stresses it’s tied to U.S.–Iraq politics, spiritual opposition, and global power struggles. There are no secret four-letter agencies behind it—just complex geopolitics.
🔹 2. Trump’s Strategy & the Development Road
President Trump is using tariffs and pressure to pull Iraq away from Iran and into Western partnerships—particularly with the Development Road Project, potentially worth trillions in trade.
#DinarNews #TrumpForeignPolicy
🔹 3. Spiritual Warfare Behind Delays
The author claims spiritual forces stopped a potential RV in 2012–2013, using corrupt actors to block wealth transfer. These same dark influences remain in both U.S. and Iraqi politics today.
🔹 4. Iraq’s Economic Tools Are in Place
Over $106B in reserves (3rd in Arab world)
New local payment card system launched
ASYCUDA customs system being implemented
Push for Oil & Gas Law
Investment & economic growth initiatives expanding
#IraqEconomy #CBI #RVReady
🔹 5. Kurdistan Disputes Still Ongoing
KRG continues to resist full revenue transparency and legally binding agreements. This is holding back critical reforms and delaying progress.
#KRG #OilLaw
🔹 6. 2026 Elections – A Political Wild Card
With elections ahead, influence from Najaf, Tehran, and Washington could decide Iraq’s leadership more than the actual vote count. Al-Sudani’s re-election would keep reform momentum strong.
#IraqElections #Sudani2026
🔹 7. Warning About Fake Intel Gurus
The post slams #TNT and other intel providers for false RV claims and “ambassador” fantasies. The RV won’t be leaked through private calls or secret meetings. Trust official news only.
#DinarScams #RVIntel
🧠 Final Thought:
Iraq is moving in the right direction. But full currency reinstatement may depend on U.S. policy shifts and a continued push for transparency inside Iraq. The CBI appears ready. The question now: is the world ready to allow it?
📌 Stay informed, stay grounded.
🔁 Share and discuss with others tracking the #DinarRevaluation
📰 Source: #DinaresgurusBlog | Follow updates on #DinaresGurus
SOURCE: : https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/
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