The Iraqi Cabinet, headed by Prime Minister Mohammed Shia Al-Sudani, held an emergency session on Thursday and issued a series of binding decisions regarding oil production and financial coordination with the Kurdistan Regional Government (KRG).
In a major development, the Cabinet approved the immediate transfer of all oil produced in the Kurdistan Region to Iraq's State Oil Marketing Organization (SOMO)for export. The federal government will provide the KRG with an advance of $16 per barrel (in-kind or in cash), based on a minimum delivery of 230,000 barrels per day (bpd), with any additional production to be included under the same mechanism.
Current production stands at 280,000 bpd, of which 50,000 bpd is reserved for local consumption within the Region. The remaining 230,000 bpd, along with any future increases, will be delivered to SOMO. Should exports stop for any reason, the KRG must deliver the full quantity to the Federal Ministry of Oil instead.
The KRG will also be responsible for the production and transport costs of the 50,000 bpd used locally, while revenues from sales of refined products will be transferred to the federal treasury after deducting those costs.
Additional financial decisions included:
The KRG must deliver 120 billion Iraqi dinars as a preliminary estimate of May's non-oil revenue share.
A joint auditing team will verify and classify non-oil revenues from May 2025 onward.
A new joint committee will oversee the localisation of salaries in the Region within three months, as required by a federal court ruling.
A separate team will assess any excess in actual spending relative to the KRG's budget share for 2023-2025.
May salaries for KRG employees will be disbursed after SOMO confirms receipt of the 230,000 bpd via the Ceyhan terminal.
All timelines specified in this resolution are effective from the date of the Cabinet's approval.
DINAR REVALUATION REPORT: 🚨 Iraqi Dinar RV Momentum Is Building – And XRP Could Be Next! 💥
Excitement is rising as signs point to an imminent revaluation (RV) of the Iraqi Dinar (IQD). Iraq's economy is booming:
The Central Bank now holds 162 tons of gold, a major sign of financial strength.
Full digital payment systems (24/7 RTGS, ISO-ready) show Iraq is integrating globally.
The IMF praises Iraq for strong growth (3.1%), low inflation (2.9%), and lifting exchange restrictions — a green light for full currency convertibility.
Oil revenues are surging, especially
Basra crude outperforming global benchmarks.
Meanwhile, anti-corruption efforts are accelerating and Iran’s influence is fading, clearing the way for economic reform.
🔥 Speculation is growing that the new rate could be $4–$6 per IQD, with banks allegedly preparing for payouts. Some believe the RV could happen within days or weeks.
And after the RV? Many expect XRP to surge, thanks to its alignment with Iraq’s digital financial future. XRP could benefit from the post-RV liquidity and help enable fast, cheap cross-border payments.
2025 is shaping up to be massive for IQD and XRP holders. Stay ready!
Iraq's Accession To International Financial Institutions Enhances Economic Development Opportunities.
Economic 07/20/2025 Baghdad: Economic Morning As part of its efforts to strengthen its financial presence on the international stage and diversify funding sources for its service and construction projects, Iraq has taken a significant step by joining two of the most prominent multilateral financial institutions: the European Bank for Reconstruction and Development and the Asian Infrastructure Investment Bank.
Although the direct repercussions of this step are still in the developmental stage,economists see it as a prelude to attracting long-term financing, bolstering development efforts in vital sectors such as energy, infrastructure, and transportation, and opening the doors to international partnerships for Iraq in the post-crisis phase.
Projects And Bridges
Economic expert Dr. Majid Al-Baydani explained to Al-Sabah regarding Iraq’s accession to the Asian Development Bank:
“The projects currently underway in Baghdad, such as bridges and others, have no connection to the Asian Development Bank’s projects, as their funds are allocated by the state in the project budget according to the investment portion of the budget.
The Asian Development Bank has no role in implementing or establishing the aforementioned projects, as the contractor may be Chinese, the implementing company may be Chinese, or another international nationality.”
He added, "The implementation of projects by the Asian Development Bank is subject to certain conditions, including that the bank selects the implementing companies, along with their own mechanisms and engineering efforts, unlike what some might imagine.
Furthermore, the bank's projects are implemented through loans from the bank and on its own terms."
Long Term
Economic expert Ahmed Makalaf believes that “there has not yet been any direct benefit from Iraq’s joining the Asian Infrastructure Investment Bank.
Rather, the benefit is long-term, not immediate.
The real benefit is in giving Iraq an international standing and a good reputation from an economic perspective.”
“The development road will be a gateway for the Asian Development Bank to enter Iraq with projects,” the official added in an interview with Al-Sabah.
“It is likely that the country will borrow from the bank to implement projects related to the road, and will likely build cooperation through this bank in financing parts of the activity for major projects related to the development road, contributing to strengthening the economy within the international environment and building strong international relations in the future.”
Membership Shares
For his part, Dr. Mazhar Mohammed Saleh, Advisor to the Prime Minister, stated that as far as the distribution of capital among the participating countries in the Asian Infrastructure Investment Bank is concerned, the bank's total capital amounts to $100 billion, with 20% allocated as paid-in capital and the remainder as callable capital.
Each country is obligated to contribute its share of the paid-in capital upon joining. He added:
Sustainable Development
"The Asian Infrastructure Investment Bank (AIIB) is an international institution that aims to support infrastructure projects and sustainable development in Asia and beyond.
The bank, headquartered in Beijing, provides concessional loans to finance infrastructure projects for member countries. This accession is a strategic step for Iraq to advance its development projects in areas such as transportation, energy, and water."
European Bank
Regarding the benefits of Iraq joining the European Bank, Saleh said:
“There is a positive correlation between building a development strategy, which is embodied today by the government’s philosophy of launching a development initiative with comprehensive sectoral economic links, called the “Development Road” project, which is the corridor and strategic project that links the European Union countries with Asia via Iraq and the Gulf maritime corridors and vice versa, on the one hand,
and the requirements for implementing the various stages of the development road through the role that Iraq’s membership in the European Bank for Reconstruction and Development occupies, on the other hand, especially in terms of the advantages of obtaining European technology and ensuring the role of companies from European Union countries in implementing the development road in all its aspects, whether in infrastructure, industrial production projects, or various logistical services.” https://alsabaah.iq/117657-.html
SANDY INGRAM: How One System Controls Global Money Including the IQD
There are ongoing financial tensions between Iraq and the U.S. Treasury Department, particularly involving the Iraqi Dinar (IQD). Recent developments shed light on why Iraq has implemented certain financial and regulatory measures in response to increasing scrutiny and restrictions from the United States.
These actions carry significant implications—not only for Iraq’s national economy but also for individuals who hold or invest in the IQD.
One growing concern is the heightened surveillance and recording of personal financial transactions, raising questions about privacy and the future of personal finance management on a global scale.
Understanding the geopolitical and economic dynamics behind Iraq’s financial strategies is essential.
These policies are shaped by external pressure, internal goals for economic reform, and efforts to stabilize the currency.
This situation highlights the importance of evaluating political, economic, and privacy-related factors when considering investments in foreign currencies and navigating global financial systems.
IMF: Iraq Has Maintained Stability And Inflation Is Low
July 19, 2025 Baghdad/Iraq Observer The International Monetary Fund confirmed on Saturday that Iraq has succeeded in maintaining its internal stability despite regional tensions, while noting that the inflation rate in Iraq has remained low.
The IMF stated in a report reviewed by Iraq Observer that “Iraq has succeeded in maintaining its internal stability despite regional tensions and unstable global conditions,” noting that “the inflation rate has remainedlow in Iraq,” stressing “the need to implement fundamental reforms to increase non-oil revenues and control the public wage bill,” indicating that “current and investment spending plans for 2025 should be reviewed.” He stressed that
"it is necessary and urgent to reform the public pension system by raising the retirement age and reducing the accumulation and replacement rates," praising "the
Central Bank of Iraq's success in fully transitioning to the new trade finance system and its contribution to narrowing the gap between the official and parallelexchange rates."
The Fund stated that "the Central Bank of Iraq has begun studying reform options to strengthen theprivate banking sector," stressing, "We encourage Iraq to accelerate its efforts to improve the issuance and collection of electricity bills."
He explained that "progress has been made in implementing the National Anti-Corruption strategy and improving the Corruption Perceptions Index," adding that "it is essential to focus on bridging the most pressing statistical gaps and integrating pilot initiatives." https://observeriraq.net/صندوق-النقد-العراق-حافظ-على-استقراره-و/
