SALEH’S STATEMENT: THERE IS NO LIQUIDITY CRISIS, AND THE GOVERNMENT IS PROCEEDING WITH PREPARING THE 2026 BUDGET
The Prime Minister’s financial advisor, Mazhar Muhammad Saleh, confirmed on Wednesday that there is no severe liquidity crisis in the short term, while indicating that the government is proceeding with the preparation of the 2026 budget within the medium-term framework of fiscal policy.
The Prime Minister’s financial advisor, Mazhar Muhammad Saleh, said in a press statement that “governments usually resort to spending cuts when faced with pressures resulting from fluctuations in revenues or high current obligations, especially in rentier economies dependent on a single resource such as oil.”
He explained that “these measures come in light of fluctuating oil prices and increasing spending requirements, which necessitates discipline in managing liquidity.”
Regarding the possibility of liquidity problems in the coming period, Saleh stressed that “the government is not expected to face a severe liquidity crisis in the short term, as long as oil revenues remain at their current levels and coordination between fiscal and monetary policies continues,” indicating that “continued pressure on operational spending may lead to a relative widening of the 2026 budget deficit, unless it is accompanied by controlling expenditures and strengthening non-oil revenues, especially tax and customs revenues.”
Regarding the preparation of the draft federal general budget law for 2026, he indicated that “the financial authority and the government have made significant progress in preparing it within the medium-term framework of fiscal policy,” expecting that “the draft will focus on achieving a balance between fiscal sustainability and development requirements.”
He added that “initial indicators suggest that investment and service projects will remain at the forefront of priorities, especially those related to infrastructure, energy and basic services, which will enhance economic growth and alleviate social pressures, while simultaneously striving to rationalize operational spending and improve its efficiency.”
He stressed that “the real challenge lies not in the size of the spending itself, but in its quality and efficiency, and in the ability of public finances to gradually move from the logic of crisis management to the logic of sustainable development planning.”
Iraqi Dinar Update: Devaluation Warnings, Fiscal Pressure & a Major Shift in US–Iraq Relations
New articles shared by Clare highlight two very different but deeply connected narratives coming out of Iraq right now. One focuses on economic pressure and currency risk, while the other signals a historic geopolitical shift that strengthens Iraq’s sovereignty on the global stage.
Together, these stories reveal the tension between short-term fiscal challenges and long-term national transformation.
⚠️ Disclaimer
This report reflects opinions, interpretations, and publicly available articles. It is for informational purposes only and should not be considered financial advice. Always consult a qualified professional before making financial decisions.
📉 Iraqi Economist Warns of Possible Dinar Devaluation
🧠 What the Economist Is Saying
In the article titled “Iraqi Economist Warns of Possible Dinar Devaluation Amid Fiscal Pressures,” economist Al-Mashhadani raises concerns about Iraq’s financial outlook.
“Growing discussion within financial and government circles points toward a potential devaluation of the Iraqi dinar against the U.S. dollar, despite its serious social consequences.”
According to the article, key pressures include:
Falling global oil prices
Heavy reliance on oil revenues
Rising government obligations, including:
Salaries
Wages
Operating expenses
Forecasts such as JPMorgan’s outlook on future oil markets are cited as contributing to these concerns.
💰 Why Devaluation Is Being Discussed
Al-Mashhadani suggests that the next government may face limited fiscal options:
“The next government may find no financial exit except changing the exchange rate in order to pay salaries, wages, and operating expenses.”
From a traditional economic perspective, currency devaluation is often discussed as a tool to:
Increase local currency liquidity
Offset revenue shortfalls
Temporarily ease budget stress
However, the article also acknowledges the serious social consequences, especially for Iraqi citizens.
⚖️ Counterbalance: Why This Is Not the Whole Story
While devaluation talk exists, it contrasts sharply with:
Ongoing White Paper reforms
Massive investment in banking modernization
Long-term goals to increase purchasing power, not reduce it
This creates a dual narrative:
Short-term fiscal anxiety
Long-term structural reform
Both can exist at the same time.
🌍 Iraq Welcomes Historic US Congressional Vote
The second article, “Iraq welcomes the cancellation of the two US authorizations for the use of military force against it,” marks a major geopolitical milestone.
🏛️ What Happened?
The US Congress, both House and Senate, voted to:
Repeal the 1991 and 2002 Authorizations for Use of Military Force (AUMF) against Iraq
This repeal is included in the 2026 National Defense Authorization Act
Iraq officially welcomed the decision
“The Iraqi Ministry of Foreign Affairs expressed its welcome for the historic vote…”
🕊️ Why This Matters for Iraq’s Future
The repeal of these authorizations:
Symbolically ends decades-old war mandates
Strengthens Iraq’s sovereign standing
Improves diplomatic and economic confidence
Supports Iraq’s transition from conflict state to normal international partner
Iraq also expressed hope for President Donald Trump’s ratification of the bill.
🔗 Connecting Economics & Sovereignty
These two articles may seem unrelated—but they are not.
A country’s currency strength depends on:
Political stability
Sovereignty
International trust
Institutional credibility
Ending outdated war authorizations:
Reduces geopolitical risk
Encourages foreign investment
Supports long-term currency confidence
❓ Q&A – Featured Snippets
Is Iraq planning to devalue the dinar?
There is discussion among some economists, but no official decision has been announced by the Central Bank of Iraq.
Why would devaluation be considered?
To address budget pressure caused by oil price fluctuations and government expenses.
Does devaluation contradict monetary reform?
Short-term discussions do not cancel long-term reform goals; they reflect competing fiscal realities.
Why is the repeal of US military authorizations important?
It strengthens Iraq’s sovereignty and improves its international political and economic standing.
📌 Featured Insight
While some Iraqi economists warn of potential dinar devaluation due to fiscal pressure, Iraq simultaneously strengthens its sovereignty through historic US legislative actions, signaling long-term structural change.
🧭 Final Thoughts
Iraq stands at a crossroads. Economic pressure fuels debate about short-term solutions, while geopolitical victories and institutional reforms point toward long-term normalization and strength.
Understanding both narratives is essential. One explains the fear. The other explains the future.
Article: "Iraqi Economist Warns of Possible Dinar Devaluation Amid Fiscal Pressures "
Quote: "Al-Mashhadani said growing discussion within financial and government circles points toward a potential devaluation of the Iraqi dinar against the U.S. dollar, despite its serious social consequences...With falling oil prices and forecasts such as JPMorgan’s outlook on future oil markets, the next government may find no financial exit except changing the exchange rate in order to pay salaries, wages, and operating expenses"
Article: "Iraq welcomes the cancellation of the two US authorizations for the use of military force against it"
Quote: "The Iraqi Ministry of Foreign Affairs expressed its welcome for the historic vote by the US Congress, in both the House of Representatives and the Senate, to repeal the 1991 and 2002 authorizations for the use of military force against Iraq, within the 2026 National Defense Authorization Act, stressing its hope for President Donald Trump’s ratification of the bill."
THE CENTRAL BANK OF IRAQ ACKNOWLEDGES THE CRISIS: OIL PRICES AND LIQUIDITY WITHDRAWALS HAVE AFFECTED “CASH RESERVES”.
The Central Bank of Iraq confirmed on Wednesday that the decline in oil prices and the withdrawal of liquidity from the markets are two factors that negatively affect Iraq’s hard currency reserves.
The bank said in a report, which was received by Shafaq News Agency, that “Iraq’s reserves are closely linked to the size of oil revenues, which makes them vulnerable to fluctuations in global oil prices.
Also, the monetary sterilization carried out by the Central Bank to withdraw liquidity from the market has a negative impact, due to the need to utilize foreign reserves.”
The bank added that “oil prices fell from $81 for the second quarter of 2024 to $69 for the same quarter of 2025, and consequently reserves decreased from 142.69 trillion dinars to 126.16 trillion dinars for the same period.”
He pointed out that “the Central Bank’s withdrawal of cash liquidity from the market in order to maintain monetary stability led to an increase in cash receipts (i.e., the bank’s acquisition of dinars in exchange for selling dollars), from 18.37 trillion dinars to 21.66 trillion dinars for the same period (i.e., an increase in dollar sales), in addition to the practice of the general budget deficit, which has an impact on net foreign reserves.”
Iraqi Dinar Update: CBI Confirms End of the 1310 Framework – What Frank26 Says It Really Means
New boots-on-the-ground information from Iraq, shared by Firefly and Frank26, provides important clarification from the Central Bank of Iraq (CBI) regarding the 1310 exchange rate, its expiration, and what may come next.
While mainstream messaging emphasizes stability, Frank26 believes Iraq is witnessing a carefully managed monetary reform education campaign, designed to prepare Iraqi citizens for what lies ahead—without violating constitutional limits.
⚠️ Frank26 Disclaimer
All statements are opinions and interpretations based on information shared publicly and boots-on-the-ground sources. This content is for informational purposes only. Always consult a qualified financial professional before making any financial decisions.
According to Firefly, the CBI recently addressed concerns on Iraqi television regarding the expiration of the 1310 exchange rate:
1310 is locked in through the end of the year
Its expiration does NOT automatically mean a new rate on January 1, 2026
The expiration signals the end of the current exchange rate framework
Any changes will be reviewed and reassessed after December
This messaging is deliberate and cautious, emphasizing stability and control.
🎯 Frank26’s Interpretation: “It Doesn’t Mean It Won’t Either”
Frank26 immediately highlighted an important nuance:
“It doesn’t mean that you’re not going to either…”
In other words, while the CBI avoids promising a new rate on a specific date, they are not denying it. The door remains open.
Frank26 believes this is strategic communication, not contradiction.
🧠 “Good Guy vs Bad Guy” Monetary Reform Education
Frank26 describes what is happening now as a dual messaging strategy:
One side reassures citizens that nothing sudden is happening
The other side slowly educates, hints, and prepares the population
“I find this tactic to be brilliant…to hide the truth and at the same time give you the truth.”
This approach:
Prevents panic
Reduces shock
Maintains confidence in the banking system
🎙️ Sudani Speaks: Who Really Controls the Exchange Rate?
Firefly reported that Prime Minister Sudani appeared on television and made a key statement:
The government does NOT control the exchange rate
Only the Central Bank of Iraq has the authority to change it
The government’s role has been to reduce the gap between:
Official rate
Parallel (street) market rate
This distinction is critical and constitutionally required.
📜 Constitutional Limits & Subtle Signals
Frank26 emphasized that Iraqi officials cannot openly announce:
“We are about to raise the value.”
Doing so would violate constitutional boundaries.
However, they can:
Discuss removing the three zeros
Talk about adding value
Use examples, illustrations, and explanations
Gradually soften the public’s reaction
“They can suggest it… hint it… exemplify it… illustrate it… Hell, they can draw it on a map.”
🕰️ Why This Messaging Matters Now
Frank26 believes Sudani’s recent appearance signals a new phase:
The population is being mentally prepared
The monetary reform is being “massaged”
Expectations are being managed without triggering instability
This is not delay—it is conditioning.
❓ Q&A – Featured Snippets
Does the expiration of 1310 mean no RV is coming?
No. The CBI states it does not automatically mean a new rate, but it also does not rule one out.
Who has the authority to change the Iraqi dinar rate?
Only the Central Bank of Iraq, not the government.
Why doesn’t Iraq openly announce a rate increase?
Because it would violate constitutional rules. Officials must communicate indirectly.
What does “ending the framework” mean?
It means the current system governing the 1310 rate concludes, allowing reassessment and possible change.
📌 Featured Insight
The Central Bank of Iraq confirms the 1310 exchange rate framework ends after December, signaling a reassessment phase while officials cautiously prepare citizens for monetary reform.
🧭 Final Thoughts
The message from the CBI, Sudani, and Iraqi media is carefully controlled—but not accidental. According to Frank26, Iraq is not delaying reform—it is preparing its people.
The end of the 1310 framework is not the end of the story. It may be the final chapter before change.
FIREFLY: The CBI is saying the expiration of 1310 does not mean a new rate automatically announced on January 1, 2026. The CBI says it signals the end of the current framework. FRANK: It doesn't mean that you're not going to either...
FIREFLY: The Central Bank of Iraq is saying they have set the exchange rate at 1310 dinar through the end of the year and then they will review and reassess the rate as they had into the new year...1310 is locked in for now and any changes will be considered after December ends. This was answered to the guy on TV news from the CBI.
FRANK: What we're witnessing right now is what I call 'good guy versus bad guy' in the monetary reform education to you Iraqi citizens...I find this tactic to be brilliant in order to hide the truth and in order to give you the truth.
FIREFLY: Sudani was on TV yesterday...talking about it's the responsibility solely of the CBI to change the exchange rate. He said he government has...lowered the gap between the official rate and the parallel market rate. But to actually change the rate is the responsibility of the CBI.
FRANK: It looks like it's Sudani's turn to come out and massage the monetary reform for the Iraqi citizens so they can become nice and tender about receiving it...It's Sudani's turn to say the obvious without directly saying it because it is against the constitution to tell you, 'we're about to raise the value.' But they can tell you, 'We can raise the 3 zeros to add value.' They can suggest it...hint it...exemplify it...illustrate it. Hell, they can draw it on a map...so that it softens the shock of introduction...
Al-Waeli Meets With A UN Delegation And Confirms: Border Crossings Are Undergoing A Broad Digital Transformation Through The Introduction Of Modern Technologies
Thursday, December 18, 2025 | Politics Number of views: 242 Baghdad / NINA / The Head of the Border Ports Authority, Omar Adnan Al-Waeli, received an official delegation from the International Trade Centre (ITC), a United Nations agency based in Switzerland. The delegation was headed by Pierre Bonthoneau, Director of the Trade and Investment Facilitation Division, and included the Director of Trade Facilitation and Digital Transformation Programs and a Trade Policy Advisor. The meeting aimed to enhance cooperation and facilitate international trade.
Al-Waeli provided a detailed explanation of the Authority's work and efforts to maximize non-oil revenues and combat smuggling in all its forms. He emphasized that the Authority is undergoing a significant digital transformation through the introduction of modern technologies, data exchange among relevant stakeholders, the networking of sonar systems at all border crossings, and the activation of cross-border trade according to the TIR system.
Al-Waeli stressed the continued commitment to strengthening security and stability at border crossings, which will positively impact the volume of trade in Iraq and facilitate international trade.
For their part, the delegation members commended the Authority's measures in the areas of governance and electronic oversight, and expressed their admiration for the efforts exerted in combating smuggling and reconstructing border crossings. They affirmed their readiness to provide technical and training support to enhance the Authority's technical capabilities.
This visit reflects the International Trade Centre's interest in strengthening cooperation with the Border Ports Authority, with the aim of improving operational efficiency and promoting stability and economic development. /End https://ninanews.com/Website/News/Details?Key=1267327