Tuesday, December 16, 2025

Iraq begins the countdown... 90 complex days to form the three branches of government

  Iraq begins the countdown... 90 complex days to form the three branches of government

Following the ratification by the Supreme Federal Court, the highest judicial authority in Iraq, of the final results of the parliamentary elections for the sixth session, the Iraqi political scene has entered a new and sensitive phase, representing the official transition from the electoral process to the formation of the three constitutional authorities: the legislative, the executive, and the presidency of the republic.

Observers confirm that the Federal Court’s ratification yesterday, Sunday, is not merely a formal or procedural step, but rather the decisive constitutional condition that makes the election results effective and binding, and practically announces the readiness to launch a new parliamentary session with all its political entitlements, potential conflicts, and hopes for a different administration than the previous sessions, which were marked by delay and deadlock.

Constitutional legitimacy

Legal expert Nawfal Al-Hayani affirms that the Federal Supreme Court’s ratification of the final election results represents the full constitutional legitimacy of those results, based on the text of Article (93/Seventh) of the Constitution of the Republic of Iraq for the year 2005.

Al-Hayani explains in an interview with Shafaq News Agency that the House of Representatives is not considered constitutionally valid and the parliamentary session does not come into effect except from the date of this ratification, stressing that any parliamentary procedure that precedes the ratification is considered to have no constitutional effect by virtue of the constitution, as it is the highest and supreme law in the country.

According to Al-Hayani, the next step immediately after ratification is for the President of the Republic to invite the members of the House of Representatives to convene for their first session, in accordance with the provisions of Article (54) of the Constitution.

If the President of the Republic does not make this invitation, the Council shall automatically convene on the sixteenth day from the date of ratification, and the session shall be chaired by the oldest member.

The first session of the House of Representatives constitutes the cornerstone in building constitutional authorities, as its agenda is constitutionally limited to taking the constitutional oath and electing the Speaker of the House of Representatives and his two deputies.

Al-Hayani points out that completing this step means completing the formation of the legislative authority, and then moving on to the second entitlement, which is the election of the President of the Republic within a period not exceeding thirty days from the date of holding the first session, in accordance with the provisions of Article (70) of the Constitution.

legal deadlines

For his part, legal expert Abbas Al-Aqabi explains that the Iraqi constitution drew a clear timeline for the formation of authorities, starting with Article (54), which obligated the current president of the republic to call the new parliament to convene within 15 days of the date of ratification.

Al-Aqabi confirms to Shafaq News Agency that the first session, which is held at the invitation of the President of the Republic, witnesses the election of the Speaker of Parliament, the First Deputy Speaker and the Second Deputy Speaker, after which the door is opened for nomination to elect the President of the Republic, as the House of Representatives is obligated to elect him within 30 days from the date of the first session, by a two-thirds majority (i.e., 220 deputies) out of a total of 329.

Al-Aqabi adds that the election of the President of the Republic opens the door to the most important stage, which is the appointment of the Prime Minister, as the President of the Republic, within 15 days, appoints the candidate of the largest parliamentary bloc to form the government.

As for the designated candidate, he has a deadline of 30 days to present the ministerial cabinet and the ministerial program to the House of Representatives to obtain confidence by an absolute majority, (half plus one), i.e., 165 deputies or more.

Al-Aqabi concludes that the sum of these periods constitutes a maximum time ceiling of 90 days, which – theoretically – can be reduced but cannot be increased, because the constitutional text explicitly defined them.

Constitution and reality

Despite the clarity of these timelines, the Iraqi political experience since 2003 reveals a significant gap between the constitutional text and practical application. The issue of delaying the formation of governments and the election of presidencies has become a recurring phenomenon, due to political disputes and sectarian and ethnic balances.

After the March 2010 elections, it took about seven months and 18 days to form a government, due to the dispute over the largest bloc and the right to nominate the prime minister.

In 2020, Mohammed Tawfiq Allawi was tasked with forming the government following the resignation of Adel Abdul Mahdi, but he later apologized for the task, in a clear example that obstruction can occur even after the official assignment.

After the October 2021 elections, Iraq entered one of its longest periods of political vacuum, with the formation of the government delayed for more than nine months, and was not resolved until October 2022, with the formation of the government of Mohammed Shia al-Sudani.

The three presidencies

Therefore, Ghazi Faisal, head of the Iraqi Center for Strategic Studies, believes that the Federal Court’s ratification and the parliament’s approval of the sixth session represents a pivotal step, but it does not mean the end of the complications.

Faisal explains to Shafaq News Agency that, according to the constitution, the President of the Republic will call on Parliament to convene within 15 days to elect the oldest member and manage the first session, then elect the Speaker of Parliament and his two deputies, and thus the legislative authority will be formed.

Then the parliament moves to the second stage, which is the election of the president of the republic, a stage that is often the most complicated, especially in light of the disputes within the Kurdish house.

According to Faisal, the presidency, according to previous political norms, goes to the Patriotic Union of Kurdistan, but the Kurdistan Democratic Party believes that it has the right to compete for the position.

If both parties nominate two people, one from the Union and the other from the Democrats, the decision will be made through a vote in the House of Representatives. However, the two-thirds quorum requirement opens the door to what is known as the "blocking third," which may lead to prolonging the sessions to elect the president, as happened in the 2021 session.

Faisal points out that the election of the president will not be completed politically until there is agreement within the coordinating framework (which brings together the ruling Shiite political forces in the country) on the personality of the prime minister, under the system of political and sectarian power-sharing.

After the candidate is appointed, the stage of distributing ministerial portfolios begins according to the points system and the parliamentary weight of the parties, a stage that is no less complex than its predecessors, and often witnesses objections and difficult negotiations before granting confidence.

Sunni choice

On the Sunni component, Nawaf al-Ghurairi, a leader in the Sovereignty Party headed by Khamis al-Khanjar, affirms that the formation of the government is governed by constitutional timelines that cannot be exceeded, calling on all blocs and representatives to adhere to them in order to form the government as quickly as possible.

Al-Ghurairi reveals to Shafaq News Agency that the choice of the Speaker of Parliament "has been decided within the Sunni component to be Muhammad al-Halbousi," but this proposal is not without objections.

Meanwhile, former MP Bassem Khashan continues to raise the possibility of excluding the head of the "Progress" party, Mohammed al-Halbousi, based on a previous decision by the Federal Court to dismiss him from the presidency of Parliament, and accusations related to the forgery of official documents, which he describes as a "crime of dishonor."

In contrast, the Sunni arena is witnessing intense activity within the National Political Council (which includes the Sunni forces that won the elections), which held an expanded meeting in the capital, Baghdad, on Sunday evening, to discuss the names of candidates for the presidency of Parliament.

According to various sources in the council who spoke to Shaq News Agency, the number of candidates for the presidency of parliament has decreased from six to three, with talk of a "near consensus" on Muthanna al-Samarrai, in addition to the continued inclusion of the names of al-Halbousi and Thabit al-Abbasi.

Coordination framework

In parallel, the leaders of the Coordination Framework held their meeting last Monday, which witnessed an important discussion about choosing a candidate for the premiership. According to sources from Shafaq News Agency, specific dates were agreed upon to resolve the entitlements, with three prominent names being discussed, including outgoing Prime Minister Mohammed Shia al-Sudani, former Prime Minister Haider al-Abadi, and a third "surprise" figure.

The Coordination Framework had previously set conditions and criteria that must be met by candidates for the position of head of the new government, most notably that he should not be the leader of a political bloc, then it softened them, which opened the door for most of the forces within the framework to submit their candidates for the position, according to what a political source told Shafaq News Agency earlier.

Imran al-Karkoushi, a member of the State of Law Coalition led by Nouri al-Maliki, confirms that completing the election of the three presidencies according to their constitutional timetable depends mainly on political agreements between the different blocs.

Al-Karkoushi, speaking to Shafaq News Agency, indicated that this session is expected to proceed in an organized manner and without exceeding the specified legal deadlines, unlike what happened in previous sessions, which witnessed long delays due to political disputes.

Kurdish commitment

For his part, Wafaa Muhammad Karim, a leader in the Kurdistan Democratic Party, believes that the constitutional deadlines were not respected in previous sessions, especially in the election of the president and the formation of the government.

Karim, speaking to Shaq News Agency, points out that an agreement between the two Kurdish parties (the Union and the Democratic) on a single candidate for the presidency could speed up the process, while going with two candidates would mean entering into alliances with other forces and prolonging the entitlement.

According to the political balance that emerged after 2003, the distribution of sovereign positions in Iraq became influenced by sectarian and political quotas; where political custom dictates that the position of Prime Minister is allocated to the Shiite component, while the position of President of the Republic is allocated to the Kurdish component, while the Sunni component assumes the presidency of the House of Representatives  link

FRANK26: Iraqi Dinar Reforms & Potential Revaluation Dec 20, 2025 – Jan 8, 2026

 Iraq Economic & Monetary Update: CBI Reforms, Currency Changes, and Regional Developments 

Introduction: Key Monetary and Economic Shifts in Iraq

On December 15, 2025, Iraq experienced significant updates in monetary policy, currency reforms, and regional economic cooperation.

 The Central Bank of Iraq (CBI) announced changes that mark a pivotal moment for Iraq’s economy:

  • Suspension of the electronic currency conversion platform

  • Preparation for lower denomination dinar notes (LDS)

  • Expansion of regional border crossings for trade and tourism

  • Digital modernization of banking and currency systems

These developments indicate Iraq is moving toward a more stable, sovereign, and modern financial system.

Featured Snippet:
“The CBI suspension of its currency conversion platform is part of a major monetary reform aimed at modernizing Iraq’s financial system and introducing lower denomination dinar notes.”


Central Bank of Iraq (CBI) Currency Reforms

Suspension of Currency Conversion Platform

  • The CBI auctions, previously used to regulate foreign currency exchanges, have been suspended.

  • Official statements assure the suspension will not impact exchange rates, aiming to reduce public panic.

  • Analysts predict a short-term spike in US dollar demand, particularly in parallel markets, due to limited official supply channels.

Lower Denomination Notes (LDS)

  • LDS introduction prepares citizens, especially younger generations, for new currency handling.

  • Part of broader monetary reforms expected between Dec 20, 2025, and Jan 8, 2026.

  • Signals cessation of devalued dinar usage, strengthening the Iraqi currency.


Monetary Policy & Currency Valuation

  • The 2020 devaluation of the dinar was a temporary measure to address inflation.

  • Since then, Iraq has diversified economically and improved financial indicators.

  • New reforms aim to modernize currency management, increase stability, and reduce corruption.

Featured Snippet:
“The cessation of devalued dinar usage and introduction of lower denomination notes mark Iraq’s path toward a more stable and modern currency system.”


Regional Economic & Political Developments

Border Crossings

  • Saudi Arabia: Two new land crossings opening, facilitating trade and economic growth.

  • Iran: Al Shabib crossing now open to civilian traffic, supporting trade and religious tourism.

Economic Diversification

  • Border openings and free zones encourage jobs, tourism, and trade.

  • Iraq is moving away from oil dependence, promoting broader economic growth.


International & Financial Context

  • Fitch Ratings: Iraq’s credit rating affirmed at B-, highlighting internal stability and banking reforms.

  • UN Oversight: Extended until the end of 2025, contingent on security and stability achievements.

  • Digital Banking: Modern systems align Iraq with regional financial trends, including potential partnerships similar to Syria’s Visa initiatives.


Timeline of Key Developments

DateEventImpact/Notes
2020Dinar devaluationTemporary inflation fix; economy stabilized afterward
Dec 14, 2025CBI suspends currency conversion platformModernization step; impacts dollar supply and market dynamics
Dec 15, 2025New border crossings openedBoosts trade, tourism, economic diversification
Dec 19, 2025Speculated exchange rate updatesHistorical precedent around Dec 20
Dec 20–31, 2025Monetary reforms, LDS rolloutIntroduction of lower denomination notes; end of devalued dinar usage
Jan 1, 2026New monetary system rolloutPotential exchange rate stabilization and reforms
End 2025End of UN oversightConditional on stability; full Iraqi sovereignty expected

Q&A: Key Insights

Q: Will the suspension of CBI auctions affect the exchange rate?
A: Officially, no, but analysts predict a short-term spike in dollar demand.

Q: What are LDS?
A: Lower Denomination Notes, part of Iraq’s currency modernization.

Q: How do border openings impact the economy?
A: Facilitate trade, tourism, job creation, and economic diversification.

Q: When will major reforms take effect?
A: Key period is Dec 20, 2025 – Jan 8, 2026, including new notes and cessation of devalued dinar.


Conclusions & Outlook

  • Iraq is actively modernizing its monetary system and strengthening economic sovereignty.

  • Short-term dollar volatility is expected due to reduced official supply.

  • Regional cooperation and border openings will diversify the economy beyond oil.

  • LDS and cessation of devalued dinar usage mark pivotal steps toward stability.

  • Dec 20–early Jan 2026 is a critical window for currency reforms and economic restructuring.


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FRANK26: “Could $4.81 Be the Opening Price?” #iraqidinar #iraq

Al-Rafidain: 2,495 savings accounts, 136 current accounts, and 27 deposits opened for customers last month

 Al-Rafidain: 2,495 savings accounts, 136 current accounts, and 27 deposits opened for customers last month

Al-Rafidain Bank announced on Sunday that it had opened 2,495 savings accounts, 136 current accounts, and 27 deposits for customers during the past month.

 A statement received by Al-Rabaa said: "In a clear sign of growing public confidence and an accelerated shift towards international standards, Rafidain Bank recorded remarkable banking activity during November, culminating in the opening of thousands of new accounts in its branches across Baghdad and the provinces."

 It added that "the number of savings accounts opened for citizens reached 2,495 in local and foreign currencies, in addition to 136 current accounts and 27 deposits, directly reflecting the diversity of banking products offered by the bank and its ability to meet the needs of different segments of customers."

 He emphasized that "this advanced performance confirms the position of Al-Rafidain Bank as a leading national banking institution, combining geographical reach, quality of services, and commitment to international professional standards, with a focus on providing a secure and flexible banking experience that meets the expectations of individuals and institutions alike."

 The bank noted that it "continues to develop account opening and deposit services in accordance with sound regulatory controls, thereby promoting a culture of savings and investment and supporting financial inclusion and economic development in Iraq, calling on citizens to visit its branches to learn about the details of the banking services and benefits available."

 He added that "this activity is part of Al-Rafidain Bank's vision to consolidate its role as a state bank with international standards, leading the banking transformation, embodying trust, and placing the customer at the heart of the banking process."    link

MILITIAMAN & FRANK26: Iraq Market Sparks: Digital Rails, Dollar Demand, and Preparing Citizens for the RV

Introduction: A Thrilling Time in Iraq’s Financial Markets

Over the last two to three weeks, the news coming out of Iraq has been exceptionally dynamic. Analysts and market watchers like Militia Man are describing a spark in activity, marking a shift from anticipation to tangible progress.

Key observations include:

  • Younger generations entering the market

  • Introduction of digital terminology such as “rails” and “stacks”

  • Market movements that indicate real changes, not hype

“For those of you that are significantly younger…it's a thrilling time that we're in,” says Militia Man.


Digital Transformation: Rails, Stacks, and the New Financial Language

Iraq’s move toward digital financial systems is changing how transactions and markets operate:

These tools are setting the stage for a modernized financial environment, enabling faster, more secure exchanges, and preparing the population for large-scale currency updates.


Dollar Demand in Iraq: Frank26 Explains the CBI Action Window

Frank26 provides insight into why the American dollar may see a temporary spike in value inside Iraq:

  • The CBI action conversion window—the last funnel for American dollars leaving Iraq to Iran—has closed

  • This closure will create a sudden surge in demand for dollars

  • Citizens may panic-buy dollars, causing an apparent spike in value

Featured Snippet:
“The CBI is preparing Iraqi citizens for the spike in dollar demand and the arrival of lower denomination notes, ensuring a smooth transition during the RV process.”


CBI Preparations for Citizens

The Central Bank of Iraq (CBI) is actively preparing the population for these upcoming changes:

  • Introducing lower denomination notes

  • Educating citizens on currency handling and market behavior

  • Preventing panic through controlled information and market adjustments

These measures indicate careful planning and strategic execution, ensuring the public adapts without economic shock.


Q&A: Key Takeaways from Militia Man & Frank26

Q: Is the recent market activity hype?
A: No. The spark represents real progress in Iraq’s financial systems.

Q: What does “rails and stacks” mean?
A: These are digital financial terms indicating infrastructure for money movement and layered technology.

Q: Why will the dollar value increase in Iraq?
A: The CBI action window closing stops illegal dollar outflows, creating a temporary surge in demand.

Q: How is Iraq preparing citizens for this?
A: Through information campaigns, new note introductions, and controlled market adjustments.

Q: Is this part of the RV/GCR process?
A: Yes, these steps are aligned with currency revaluation and modernization efforts.


Final Thoughts: Reality Over Hype

The combination of digital infrastructure, careful CBI planning, and increased dollar activity suggests Iraq is entering a new financial era.

  • Market watchers should pay attention to real signals rather than rumors

  • Citizens and investors alike will experience a more structured transition

  • The younger generation and tech-savvy individuals are now key players in this transformation

“We’re not talking about hype. We’re talking about reality,” says Militia Man.


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Militia Man 

 The last week, two weeks, three weeks, the news has been phenomenal...We're starting to get some folks that are the younger generation, 25...Some of the language out there speaks of different terminology because we're going into a digital technology world and they're using words like "rails" and "stacks" and all these different things.

  What we've seen of late is a little bit of a spark...We're not talking about hype.  We're talking about reality...For those of you that are significantly younger than I am and closer to my age who've watched Iraq's markets mature...it's a thrilling time that we're in.

Frank26  

 There will be a slight increase in the value of the American dollar inside of [Iraq] only because the CBI action conversion window has come to an end.  That was the last place where the American dollar and dinar were being funneled out...illegally...to Iran.  

Therefore, when this auction window shuts down, there will be a gigantic panic...because the demand for the American dollar will explode...People in Iraq will panic and desperately look for it in any way possible, causing the value and the demand...to increase...But it's a false supply and demand.  

I believe the CBI is preparing the Iraqi citizens so they are not shocked by this event just like they are preparing them to receive the lower denomination notes.


FRANK26: Insights from a Private Banker #iraqidinarinvestor

Iraq and the United States discuss strengthening political, security, and economic cooperation

   Iraq and the United States discuss strengthening political, security, and economic cooperation

Iraqi Foreign Minister Fuad Hussein discussed on Monday with the US Chargé d'Affaires in Baghdad, Ambassador Joshua Harris, ways to enhance cooperation in various political, economic and security fields.

A statement from the ministry, received by “Dijlah News”, stated that “Deputy Prime Minister and Minister of Foreign Affairs, Fuad Hussein, received on Monday, December 15, 2025, the Chargé d’Affaires of the US Embassy in Baghdad, Ambassador Joshua Harris.”

He added that “the meeting discussed bilateral relations between Iraq and the United States, and ways to strengthen them in a manner that serves the common interests of the two countries and enhances cooperation in various political, economic and security fields.”

According to the statement, the minister pointed to the ongoing political movement in Iraq and the constructive discussions between the political blocs to form the new government, stressing “the importance of consolidating political stability and strengthening national understanding in a way that positively impacts the course of the democratic process.”

He explained that “the two sides discussed regional and international developments, and exchanged views on issues of common interest, stressing the importance of coordination and consultation regarding current challenges.”

He noted that “both sides stressed the need for calm in the region and to work to reduce tensions in a way that contributes to supporting regional security and stability.”  link

🏛️💱 Leadership Transitions in Iraq: A Path Toward Stronger Monetary Foundations and Future Currency Potential 🇮🇶🚀📊

🏛️💱 Leadership Transitions in Iraq: A Path Toward Stronger Monetary Foundations and Future Currency Potential 🇮🇶🚀📊 Political change in...