Sunday, February 15, 2026

Three months of parliament paralysis: Divisions and pressure expose Iraq’s fragile system

 Three months after Iraq’s parliamentary elections, the country remains unable to elect a president. This constitutional step is the gateway to appointing a new prime minister and forming a fully empowered government. The situation started with a dispute among political blocs and has evolved into a broader test of Iraq’s post-2003 power-sharing system, exposing institutional weaknesses and renewed regional pressures.

Under Iraq’s constitution, parliament must elect a president by a two-thirds quorum. Only after that vote can the president task the largest parliamentary bloc, currently the Shiite Coordination Framework, with forming a government. In practice, the quorum requirement has repeatedly enabled political factions to block sessions by withholding attendance —a tactic that now defines the current impasse.


The International Crisis Group has described Iraq’s post-2003 political order as an ethno-sectarian power-sharing system in which elite bargaining often overrides institutional functionality. The current deadlock appears to reflect precisely that dynamic.


Raad al-Dahlaki, a member of the Al-Azm Alliance, led by Muthanna Al-Samarrai told Shafaq News that the failure to hold a presidential election session is not tied to agreement or disagreement between Kurdish parties, but rather to political conflicts among the blocs that are obstructing the session. He added that disputes within the Coordination Framework and with other blocs over the prime ministerial nominee have effectively “led to political blockage and a breach of the constitution.”

Although tensions between the Kurdistan Democratic Party and the Patriotic Union of Kurdistan have drawn attention, many observers point to divisions within the Shiite-led Framework as the primary obstacle.


The group, which holds a parliamentary majority of about 185 seats, remains internally divided over the nomination of former Prime Minister Nouri al-Maliki. While some factions support his candidacy including his State of Law Coalition and Badr Organization led by Hadi Al-Ameri and the Reconstruction and Development headed by Mohammad Shia Al-Sudani, others such as Qais al-Khazali and Ammar al-Hakim fear it could deepen domestic polarization and provoke external backlash.


Read more: Iraq slips into constitutional vacuum as presidential deadlock drags on


Political analyst Muhannad al-Rawi told Shafaq News that early elections would not resolve this crisis. “Even if new elections were held, the l Framework —numerically dominant yet internally divided— would remain as it is. The faces and blocs would not fundamentally change,” he said. “The problem is not in the ballot boxes, but in the mentality governing the political process, one driven by partisan interests and competition over high-revenue ministries.”


The crisis has also reignited debate over parliamentary discipline. Former lawmaker Rahim al-Darraji warned that absenteeism has become a chronic problem, describing the lack of attendance controls as “one of the biggest flaws in the Council of Representatives.”

Both sessions to elect a president on January 27 and February 1 failed due to a lack of quorum and disagreements.

Political science professor Mohammed Daham echoed that concern, arguing that even legitimate absences effectively obstruct constitutional procedures, and “the failure to attend sessions constitutes a breach of national responsibility.”


Ahmad Ali, another member of parliament, urged the legislature’s leadership to resolve the presidential file and resume committees formation, noting that “the parliament is completely stalled, and the responsibility lies with the presidency of the Council.”


The normalization of such delays raises deeper questions about the durability of Iraq’s institutional framework. The two-thirds quorum rule, intended to ensure broad consensus, has instead become a leverage tool in zero-sum bargaining.


The domestic stalemate unfolds amid renewed regional sensitivities. Washington has signaled opposition to backing any government led by al-Maliki, reflecting lingering concerns over his previous tenure, which ended in 2014 amid security collapse and political fragmentation. While no formal sanctions have been imposed in this context, US policymakers have consistently framed Iraq’s stability as linked to inclusive governance and balanced foreign policy.


Tehran, meanwhile, has emphasized maintaining unity within Shiite ranks. Iran’s strategic interest lies in preserving a cohesive Shiite political front capable of sustaining Iraq’s alignment within the so-called “Axis of Resistance,” while avoiding overt fragmentation that could weaken its influence.


This dual pressure places Iraqi factions in a delicate position. Any prime ministerial nominee must navigate domestic coalition arithmetic while avoiding confrontation with either Washington or Tehran.


Several Iraqi analysts who spoke to Shafaq News argue that calls for early elections amount to a procedural reset without structural reform. Iraq’s proportional representation system, revised in recent years, continues to favor established blocs with entrenched networks.

Without changes in political behavior or coalition-building logic, a new vote could reproduce similar parliamentary fragmentation. The fundamental issue, as Daham suggested, lies not in electoral mechanics but in “institutional maturity and political commitment.”


If the impasse continues, Iraq risks operating under an extended caretaker government with limited authority. Such a scenario could delay budgetary reforms, stall economic planning, and complicate security coordination at a time when Iraq faces fluctuating oil revenues and evolving regional security dynamics.


Read more: Nouri Al-Maliki’s return rekindles Iraq’s divisions as Iran and the US pull apart

Written and edited by Shafaq News staff.

MNT GOAT: Iraq’s Huge Plan to Transform the Banking Sector: CBI Breaks the Parallel Market “For Good”

  The financial landscape of Iraq is undergoing one of the most significant transformations in its modern history. According to recent developments and commentary from Mnt Goat, the independent Central Bank of Iraq (CBI) is aggressively advancing reforms—even amid political deadlock and election tensions.

Two powerful headlines signal a turning point:

  • “IRAQ HAS ‘HUGE PLAN’ TO TRANSFORM BANKING SECTOR, SAYS CBI GOVERNOR”

  • “MASROUR BARZANI PRAISES AL-ALAQ’S MEASURES TO IMPROVE THE BANKING SYSTEM IN IRAQ”

Let’s break down what this means for Iraq’s economy, the dinar, and the long-term monetary reform plan.


Political Deadlock vs. Financial Reform: Two Separate Tracks

While Iraq’s political scene has faced ongoing gridlock, the CBI has remained structurally independent. This independence is critical.

Even during election disputes and government formation challenges, the CBI has:

  • Continued restructuring banking compliance

  • Tightened anti-money laundering enforcement

  • Implemented global trade validation systems

  • Reduced reliance on the old currency auction mechanism

The reforms are moving forward in the background—quietly but strategically.


The “Huge Plan” to Transform Iraq’s Banking Sector

CBI Governor Ali Mohsen Al-Alaq has outlined a comprehensive modernization roadmap designed to:

1. Digitize and Formalize the Banking System

Iraq is shifting from cash-heavy practices to regulated, traceable, and internationally compliant banking operations.

2. End Abuse of the Currency Auction System

For years, the currency auction allowed certain merchants to manipulate paperwork—claiming fake imports to extract U.S. dollars from the CBI.

This created:

  • A massive parallel (black) market

  • Artificial dollar shortages

  • Capital flight

  • Funds flowing illegally across borders

That era is ending.


ASYCUDA: The Game-Changer Crushing the Parallel Market

The full implementation of ASYCUDA (Automated System for Customs Data)

 marks a turning point.

This system:

  • Verifies legitimate trade transactions

  • Digitally tracks imports and exports

  • Cross-checks documentation in real time

  • Blocks fraudulent dollar requests

Under the old auction model, importers could falsify invoices. With ASYCUDA fully operational, that loophole has effectively been sealed.

Why This Matters

  • Fake import claims are being rejected

  • Illegitimate dollar demand is collapsing

  • Money changers operating in the parallel market are shutting down

  • Dollar outflows—especially to sanctioned destinations—are drying up

This isn’t a temporary measure. The tightening is structural and systemic.


Breaking the Parallel Market — “This Time For Good”

The parallel market has long distorted Iraq’s exchange rate environment. But now:

  • Real trade must be documented

  • Dollar access requires verification

  • Compliance standards match global norms

  • Informal operators are being pushed out

For the first time, the CBI appears positioned to break the black-market cycle permanently.


Masrour Barzani Backs the Reforms

Prime Minister of the Kurdistan Region, Masrour Barzani, publicly praised Al-Alaq’s measures to strengthen the banking system.

This is significant because:

  • It signals federal-regional alignment

  • It reinforces confidence in the reform path

  • It shows political recognition of financial modernization

When regional and federal leaders align on banking reform, investor confidence rises.


Drying Up Illicit Dollar Flows

One of the most important developments is the reported reduction of dollar flows leaving Iraq through unofficial channels.

As compliance tightens:

  • Illicit cross-border transfers shrink

  • Sanctions exposure risk decreases

  • International credibility improves

  • Iraq’s integration into global banking strengthens

This supports long-term monetary stability and potential exchange rate reform.


What This Means for the Iraqi Dinar

While exchange rate changes are speculative and timing remains unknown, the structural pieces are falling into place:

✔️ Controlled dollar supply
✔️ Reduced black market spread
✔️ Verified trade flows
✔️ Stronger compliance
✔️ Digital oversight

These are prerequisites for any serious monetary reform.

The CBI is building the foundation before making any major currency moves.


Key Takeaways (Featured Snippet Ready)

What is Iraq’s banking reform plan?
Iraq’s Central Bank is implementing a large-scale modernization strategy that includes digital trade verification (ASYCUDA), anti-money laundering enforcement, and the dismantling of the parallel dollar market.

How does ASYCUDA impact the currency market?
ASYCUDA prevents fraudulent import documentation, blocks fake dollar requests, and significantly reduces black-market currency activity.

Is the parallel market ending?
Current reforms suggest the CBI is structurally eliminating the mechanisms that allowed the parallel market to thrive.


Q&A Section

Q1: What is ASYCUDA?

ASYCUDA (Automated System for Customs Data) is a digital customs management platform that verifies trade transactions and prevents fraudulent import claims.

Q2: Why was the currency auction system problematic?

It allowed certain merchants to falsify documents to obtain U.S. dollars, fueling the parallel market and capital flight.

Q3: Is the CBI independent from political disputes?

Yes. The Central Bank of Iraq operates independently and continues reforms despite political instability.

Q4: Are funds to Iran being affected?

Reports suggest illicit dollar flows are significantly reduced due to tighter compliance and trade verification.

Q5: Does this guarantee a dinar revaluation?

No timeline or guarantee exists. However, structural reforms are necessary groundwork for any future currency adjustment.


Final Thoughts

The reforms underway are not cosmetic. They are foundational.

Despite political uncertainty, the CBI is executing a coordinated strategy to:

  • Clean up the banking sector

  • End manipulation of the dollar system

  • Strengthen international compliance

  • Stabilize the monetary environment

If sustained, these measures could represent the most serious financial restructuring Iraq has seen in decades.

The parallel market may finally be facing its true end.


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#Iraq #IraqiDinar #CBI #BankingReform #ForexNews #MiddleEastEconomy #DinarRevaluation #FinancialReform #GlobalMarkets #CurrencyUpdate

Mnt Goat  

 Articles: “IRAQ HAS ‘HUGE PLAN’ TO TRANSFORM BANKING SECTOR, SAYS CBI GOVERNOR”;  “

MASROUR BARZANI PRAISES AL-ALAQ’S MEASURES TO IMPROVE THE BANKING SYSTEM IN IRAQ”  

...We all should know that even during the election deadlock and amidst all the ongoing saga associated with it,the independent Central Bank is still moving forward with reforms in the background.

The CBI is finally breaking the parallel market and this time ‘for good’. As we all know the “ASYCUDA” system was implemented in full swing recently. This system forces legitimacy of trade transactions. Remember that under the currency auctions merchants could lie and falsify papers of purchasing fake goods in order to get dollars out of the CBI. With ASYCUDA this just tightened the noose even more on the parallel market to the point where these money changes are going out of business. Funds going to Iran are also drying up.

FRANK26: Why Stability Comes Before Monetary Reform!! #iqd #iqdrate #iqdupdate #dinaresgurus

 

Read also: Gifted ZIM Holders, 800 Numbers, and Redemption Timeline Explained by Bruce

Washington warns: Any Iraqi government must remain completely independent

Washington warns: Any Iraqi government must remain completely independent.

The acting US ambassador to Baghdad, Joe Harris, discussed with the head of the National Approach Alliance, Abdul Hussein al-Moussawi, on Thursday, ways to strengthen the partnership between the United States and Iraq, in order to achieve “tangible benefits” for both countries, stressing Washington’s readiness to use all available tools to confront Iranian “destabilizing” activities in Iraq, and emphasizing that any Iraqi government should be completely independent.

Read also: Gifted ZIM Holders, 800 Numbers, and Redemption Timeline Explained by Bruce The embassy stated in a statement, which was followed by Network 964 , that “in his meeting with Dr. Al-Moussawi, Chargé d’Affaires Harris discussed the importance of a strong partnership between the United States and Iraq, which brings tangible benefits to Americans and Iraqis, within the framework of working to enhance our common interests, which are represented in preserving Iraqi sovereignty, promoting regional stability, and strengthening economic ties.”

Harris affirmed the United States' readiness "to use the full range of tools at its disposal to counter Iran's destabilizing activities in Iraq," stressing that "any Iraqi government should remain fully independent and focused on promoting the national interests of all Iraqis."  link


 

JEFF & KAPERONI: Trump, Iraq & The Dinar Debate: Is There Really an RV Coming?

Trump’s Comments on Iraq’s Prime Minister and the Iraqi Dinar RV Debate

Recent remarks by Donald Trump have sparked renewed debate across the Iraqi dinar investment community. During a press exchange, Trump was asked:

Press Question: “Do you still have a veto on who becomes the Iraqi Prime Minister?”
Trump’s Response: “We're looking at a prime minister. We're going to see what's going to happen. We've got some ideas on it. But in the end, everybody needs the US. Everybody needs us.”

These comments quickly circulated among dinar followers, reigniting speculation about U.S. influence in Iraq and whether political shifts could impact the value of the Iraqi currency.

At the same time, prominent dinar commentator Kaperoni reiterated a familiar position in response to the community claim that “The RV is coming”:

“There is no RV. If the dinar ever was going to go up in value it will be gradually over time based on the growth of the economy.

Read also: Gifted ZIM Holders, 800 Numbers, and Redemption Timeline Explained by Bruce It could take several more months or years to see it begin to rise. But there is no RV. Iraq's currency is not a lottery ticket!”

Let’s break this down.


Understanding the Political Context in Iraq

Iraq’s political landscape has historically been complex, with influence from multiple global players, including the United States. Since the 2003 Iraq War, U.S.–Iraq relations have shaped defense, economic policy, and monetary reform discussions.

The selection of Iraq’s Prime Minister often carries geopolitical weight. U.S. diplomatic influence may exist, but Iraq operates as a sovereign nation with its own parliamentary processes.

While Trump’s remarks suggest ongoing U.S. interest in Iraq’s leadership, they do not confirm direct control over Iraqi political decisions.


What Does This Mean for the Iraqi Dinar?

The central question remains:

Is a sudden RV (Revaluation) realistic?

The RV Narrative

For years, some investors have anticipated a dramatic overnight revaluation of the Iraqi dinar — a sudden increase in exchange rate that would yield substantial profits.

However, currency revaluations of that magnitude are historically rare. Major economies adjust exchange rates gradually, typically in response to:

  • GDP growth

  • Foreign reserves

  • Trade balance improvements

  • Monetary policy reforms

  • Stability and investor confidence


The Gradual Appreciation Argument

Kaperoni’s position reflects mainstream economic thinking:

  • Currency value is tied to economic fundamentals.

  • Sustainable appreciation requires long-term growth.

  • There is no evidence of a planned overnight RV event.

Iraq continues to work on economic diversification, oil revenue stabilization, and banking reforms. Any upward movement in the dinar would likely occur progressively rather than through a sudden “reset.”


Featured Snippet: Is the Iraqi Dinar RV Real?

No confirmed evidence supports an overnight Iraqi dinar RV. Economic experts argue that any increase in value would likely occur gradually, based on Iraq’s economic growth, foreign reserves, and financial reforms.


Q&A Section

❓ Does the U.S. control who becomes Iraq’s Prime Minister?

No official policy grants the U.S. a veto over Iraq’s Prime Minister. While the United States may exert diplomatic influence, Iraq remains a sovereign nation with its own parliamentary system.


❓ Can political changes in Iraq affect the dinar?

Yes, indirectly. Political stability can strengthen investor confidence, which may positively impact currency value over time. However, political shifts alone do not cause overnight currency revaluations.


❓ Is the Iraqi dinar a “lottery ticket”?

Most economists say no. Currency appreciation is typically gradual and tied to economic fundamentals rather than sudden windfalls.


❓ Could the dinar increase in value eventually?

It’s possible over the long term if Iraq experiences sustained economic growth, structural reforms, and improved fiscal stability. However, timing and magnitude are unpredictable.


Google Discover Highlight

Trump signals ongoing U.S. interest in Iraq’s leadership while dinar analysts debate the long-promised RV. Experts emphasize economic fundamentals over speculation.


Key Takeaways

  • Trump’s comments highlight geopolitical interest, not currency reform.

  • There is no verified evidence of a sudden Iraqi dinar RV.

  • Gradual appreciation remains the more realistic economic scenario.

  • Investors should approach speculative currency plays with caution.


Final Thoughts

The Iraqi dinar discussion continues to divide the community between speculation and economic realism. Political developments, including remarks from figures like Donald Trump, may influence sentiment — but sustainable currency appreciation depends on long-term economic performance, not headlines.

As always, informed research and risk awareness are essential when evaluating any foreign currency investment.


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Stay informed. Stay analytical. Stay prepared.

— Jeff


Hashtags

#IraqiDinar #DinarRV #IraqEconomy #TrumpNews #CurrencyRevaluation #ForexNews #MiddleEastPolitics #DinarCommunity #GlobalEconomy #BreakingNews

Jeff   

 Press Question to President Trump: "Do you still have a veto on who becomes the Iraqi Prime Minister?"   "We're looking at a prime minister.  We're going to see what's going to happen.  We've got some ideas on it.  But in the end, everybody needs the US.  Everybody needs us."

Kaperoni 

 Community comment:  "The RV is coming

 There is no RV.  If the dinar ever was going to go up in value it will be gradually over time based on the growth of the economy it could take several more months or years to see it begin to rise. But there is no RV. Iraq's currency is not a lottery ticket!

Saturday, February 14, 2026

FRANK26: The Big Question: What Is Still Missing for a New Exchange Rate?

The Iraqi street is paying the price for bureaucratic delays, political inaction, and rising price

 The Iraqi street is paying the price for bureaucratic delays, political inaction, and rising prices.

The political vacuum represents one of the most serious challenges facing the stability of countries emerging from accumulated crises, as the absence of central decision-making becomes a daily reality affecting every aspect of citizens' lives. The Iraqi scene stands as a prime example, where the impact of political paralysis extends beyond the ruling elites to the public, the economy, the market, and the currency.

The delay in forming a government exacerbates the complexities of the economic and social crises, disrupting support programs, slowing investments, and eroding market confidence. Prices are rising faster than salaries, while demands for services are mounting in major cities. Observers note that local markets have begun to treat political timing as an economic indicator, as financial stability is now practically linked to the clarity of executive authority.

On the other hand, disagreements persist between the major blocs and lists, exceeding the constitutional deadlines for determining the president and prime minister, reflecting a structural flaw in the consensus-building mechanism. Negotiations have devolved into an open-ended tug-of-war, with each faction attempting to secure its position within the future power structure before even agreeing on the government itself.

The government formation crisis then takes on a form that is more a struggle over the nature of the next executive system than a mere competition for positions.

The parties are torn between a broad consensus government model and a political majority model, which is hindering any quick settlement, because the agreement is no longer just on names but on the rules of governance.

In parallel, the political vacuum has entered a critical phase after the constitutional deadlines for voting on senior positions were missed, leaving institutions in a state of administrative limbo. Ministries are hesitant to make long-term decisions for fear of political challenges or a sudden government reshuffle.

This reality is directly reflected in the economic and social fabric of the state, with the salary crisis and rising prices emerging as the first indicators of its impact. Economic anxiety transforms into a general mood that puts pressure on the political process, as citizens feel that the political crisis has shifted from the halls of parliament to the very means of sustenance.

The caretaker government headed by “Mohammed Shia Al-Sudani” operates within limited powers, so it cannot launch infrastructure projects, pass budgets, control the market and monetary policy, or confront the financial deficit. The state becomes a temporary administration, while the heavy economic files require full sovereign decisions. link


🚨 IRAQ DINAR HIGHLIGHTS – JEFF’S TAKE 🚨: REALISTIC TARGET FOR THE IQD IS AROUND $3.80+

  🚨  IRAQ DINAR HIGHLIGHTS – JEFF’S TAKE  🚨 💰  Budget Depends on New Rate Jeff says Iraq’s budget cannot be fully approved until the ne...