Unregulated Digital Revenues Pose Financial Risks In Iraq, Expert Warns
2026-01-11 Shafaq News– Baghdad Iraq’s rapidly expanding digital content sector operates largely without regulation, allowing significant online revenues to move outside state oversight and increasing financial risk, a member of the Dijlah Center for Strategic Planning warned.
Speaking to Shafaq News on Sunday, Ali Karim Idhayib noted that the spread of social media, especially live streaming and paid content, has created parallel cash flows beyond existing controls, cautioning that the absence of clear rules on income disclosure, taxation, and supervision leaves the sector vulnerable to misuse, including tax evasion and the movement of funds with unclear origins under media or entertainment labels.
According to Chatham House, a London-based policy institute, Iraq’s digital economy is expanding faster than the state’s ability to monitor it, driven by a surge in online retail, ride-hailing platforms, and content monetization over the past five years. While these sectors have become a key opportunity for Iraq’s youth, who make up more than 60% of the population and face unemployment exceeding 35%, the think tank noted that weak infrastructure, unstable regulations, limited financing, and fragmented oversight are major constraints.
“The challenge is not technology itself, but how it is managed,” Idhayib stressed, pointing to international models that require transparency, integrate digital earnings into tax systems, and coordinate with major platforms. Iraq, he added, needs a similar framework adapted to local conditions.
According to a UN assessment cited by Mnt Goat, Iraq has become “remarkable and unrecognizable” compared to years ago, strengthening confidence in its institutions and moving steadily toward economic stability beyond oil dependency.
Mnt Goat Analysis: A Major UN Endorsement of Iraq’s Progress
In a powerful confirmation of long-term reform, Mnt Goat points to a recent United Nations assessment that validates what many observers have been watching unfold inside Iraq: the country is fundamentally changing—economically, institutionally, and strategically.
This is not speculation. This is international recognition.
UN Assessment: Iraq Is “Unrecognizable” Compared to the Past
UN Coordinator in Iraq, Ghulam Ishaq Zai, offered a striking evaluation of the nation’s progress:
“Iraq has strengthened confidence in its institutions and is moving steadily towards stability… the country has become remarkable and unrecognizable compared to what it was years ago.”
This statement alone carries enormous weight because it reflects:
Independent international observation
Long-term development benchmarks
Institutional and governance confidence
Why This Statement Is So Important
Mnt Goat highlights the real significance behind the UN’s words:
“This shows us the country is slowly moving away from oil as the sole source of revenue.”
For decades, Iraq’s economy—and its currency—were anchored almost entirely to oil. That model limited growth, increased vulnerability to sanctions, and stalled monetary reform.
That model is now changing.
Iraq’s Budget Is No Longer Oil-Centric
According to Mnt Goat, even Iraq’s budget framework is evolving:
“Now even the budget is no longer evolving around oil.”
Instead, Iraq is shifting toward:
Non-oil revenue streams
Trade and customs income
Domestic production
Service-sector growth
Tax and infrastructure-based revenues
This transition is essential for long-term currency stability.
From Oil Dependency to Overall Economic Stability
Mnt Goat emphasized the broader implication:
“They are moving to general terms of overall economic stability which means all revenue, including revenues from non-oil sources.”
This is the economic foundation required for:
Currency normalization
Exchange rate reform
Global financial integration
Reduced exposure to sanctions
“They are truly moving away from the sanctioned rules of everything evolving around oil.”
That point cannot be overstated.
Why This Matters for Iraq’s Currency Future
A diversified economy:
Supports a stronger currency
Reduces volatility
Improves investor confidence
Aligns with IMF and UN standards
This UN-backed assessment confirms Iraq is now meeting the prerequisites that were previously missing.
Q&A: Mnt Goat UN Assessment Explained
Q: Who issued this assessment of Iraq?
A: The United Nations, through its coordinator in Iraq, Ghulam Ishaq Zai.
Q: What does “unrecognizable” really mean?
A: Institutional trust, stability, and economic structure have fundamentally improved.
Q: Is Iraq still dependent on oil?
A: Oil remains important, but Iraq is actively diversifying revenue sources.
Q: Why is this important for monetary reform?
A: A diversified economy is a core requirement for sustainable currency value.
What to Watch Next
Continued UN and IMF commentary
Budget allocations beyond oil
Growth in non-oil sectors
Infrastructure and trade expansion
Currency reform groundwork
Final Thoughts
Mnt Goat’s reaction says it best:
WOW!
This is not hype. This is confirmation.
When the United Nations declares Iraq “remarkable and unrecognizable”, it signals that the country has crossed a threshold—from survival to stability, from dependency to diversification.
Article: "UN ASSESSMENT: IRAQ TODAY IS UNRECOGNIZABLE COMPARED TO YEARS AGO" Quote: "The UN coordinator in Iraq, Ghulam Ishaq Zai, gave an optimistic assessment of the situation in the country, stressing that Iraq has strengthened confidence in its institutions and is moving steadily towards stability, while noting that the country has become “remarkable and unrecognizable” compared to what it was years ago."
This shows us the country is slowly moving away from oil as the sole source of revenue and now even the budget is no longer evolving around oil.
WOW! They are moving to general terms of overall economic stability which means all revenue, including revenues from non-oil sources. WOW! They are truly moving away from the sanctioned rules of everything evolving around oil. WOW!
US Chargé d'Affaires: The United States emphasizes the need for immediate action to dismantle "militias" in Iraq
The US Embassy in Baghdad stated that the United States will continue to clearly emphasize the need for immediate action to dismantle militias in Iraq.
In a post on its X platform, the embassy said that Chargé d'Affaires Joshua Harris met with Ammar al-Hakim, leader of the Hikma Movement, to discuss shared interests in protecting Iraqi sovereignty, defeating terrorism, enhancing regional security, and strengthening economic ties that benefit both Americans and Iraqis.
Harris reiterated that "the inclusion of Iranian-backed terrorist militias in the Iraqi government, in any capacity, is incompatible with a strong US-Iraqi partnership."
He added that "the United States will continue to clearly emphasize the need for immediate action to dismantle terrorist militias that serve foreign agendas and threaten Iraq's sovereignty, stability, and economy." link
Jeff confirms that Iraq’s current official exchange rate remains at 1310 IQD per USD on the Central Bank website, calling recent claims about a 1300-based 2026 budget misleading while emphasizing that Iraq’s own actions make a future rate change unavoidable.
Jeff’s Iraq Monetary Reality Check
In a space often filled with speculation and confusion, Jeff delivers a grounded and direct clarification regarding Iraq’s exchange rate, the 2026 budget, and recent commentary circulating within the dinar community.
His message is clear: not everything being said is accurate—and context matters.
The Truth About the 2026 Budget and the 1300 Rate
Jeff addressed claims suggesting Iraq’s 2026 budget would be calculated using a 1300 IQD per USD exchange rate, stating plainly:
“They said the 2026 budget would be calculated off of currency valued at 1310 per US dollar.”
They said the 2026 budget would be calculated off of currency valued at 1310 per US dollar...Thursday's comments are misleading garbage...The rate right now on the central banks' website live...is still at 1310. They are misleading you guys. There isn't a '26 budget coming forward at 1300.
It's not happening...Based on Iraq's actions they have to change the rate. They absolutely have to change the rate based on their actions alone...You can't trust everything out of Iraq. Sometimes you have to dive in deeper...
An economic observatory reveals the Central Bank of Iraq's conditions for banks to trade in currencies other than the dollar.
An economic observatory announced the new conditions set by the Central Bank of Iraq for banks wishing to trade foreign currencies other than the dollar, such as the European "Euro" and the Chinese "Yuan," noting that among these conditions is that "the bank's capital must be 300 billion Iraqi dinars."
The Eco Iraq Observatory explained in a press statement on Saturday, January 10, 2026, that “the Central Bank circulated a document entitled (Guidelines and Models for Assessing Minimum Requirements) for banks prohibited from dealing in dollars and wishing to work in other foreign currencies such as the European Euro, the Chinese Yuan, the UAE Dirham, and others, indicating that “this document is part of the banking sector reform program implemented by the Central Bank.”
The observatory noted that “the document included conditions, most notably that the bank’s capital be 300 billion dinars with a plan to reach 400 billion dinars by the end of 2028,” as well as “the bank having sufficient and regular liquidity to cover its obligations and the obligations of customers, in accordance with international banking regulations (LCR and NSFR).”
"The document emphasized the disclosure of the bank's ownership, i.e., providing a complete and approved list of shareholders, with full disclosure of related parties," according to the statement.
The Economic Affairs Observatory “Eco Iraq” had previously revealed that 35 out of 72 banks operating in Iraq were subject to US sanctions, either due to sanctions by the Office of Foreign Assets Control (OFAC), i.e., the bank being placed on an international blacklist and its financial transactions being paralyzed or its dollar transactions being stopped, or as a “temporary regulatory measure” and not a penalty, to force the bank to comply with transparency. link