Tuesday, February 17, 2026

Iraqi Army after US-led Coalition withdrawal: Can Baghdad achieve full military sovereignty?

 Shafaq News 

The Iraqi Armed Forces face significant responsibility in securing the country’s borders and protecting the state from internal and external threats following the withdrawal of Global Coalition forces from Iraq. This transition represents an opportunity to demonstrate the Iraqi Army’s ability to assume full responsibility without relying on external support, while focusing on building a professional national army trained and equipped with the latest weapons and military technologies.


The history of the Iraqi Army spans more than a century, during which it was, for decades, among the most prominent armies in the region and the world. It fought internal and external battles, from the harsh war with Iran and the invasion of Kuwait to confronting the US invasion and later battling ISIS.


Professionalism Under Pressure

The spokesperson for the Commander-in-Chief of the Iraqi Armed Forces, Sabah Al-Numan, affirmed that Iraq is moving steadily toward building “a professional military system based on accumulated field experience from battles resolved in favor of the state,” noting that this vision “is grounded in a unified national doctrine and exclusive loyalty to the state and constitution.” 


Regarding armament, Al-Numan told Shafaq News that the Iraqi Army also seeks to achieve technical self-sufficiency by reviving domestic military manufacturing and localizing military technology, while developing air power, preparing for cyber warfare, and utilizing the army’s expertise in urban warfare and combating terrorist groups, “to become among the leading armies in the region in terms of equipment and manpower.”


There remains, however, a path full of obstacles to strengthening the Iraqi Army. Although Iraq’s 2008 Strategic Framework 

Agreement with the United States established a formal security partnership —centered on training, equipping, and supporting Iraqi Security Forces— it fell short of addressing the country’s full military and security requirements. The gap became more apparent as Washington attached complex conditions to arms deals with Baghdad, limiting Iraq’s ability to procure and deploy critical capabilities.


To be sure, US support did not disappear. Between 2015 and 2024, Washington has provided Iraq with $1.25 billion in Foreign Military Financing to bolster its security forces, logistics, and counterterrorism efforts, in addition to more than $590 million allocated to weapons destruction programs. Yet this assistance, while significant, focused largely on stabilization and counterterrorism rather than on building a fully autonomous, strategically equipped army capable of regional deterrence.


Compounding the challenge, the United States faced pressure from regional allies, including Israel and several Gulf states, which opposed supplying Iraq with advanced weaponry that could shift the regional balance of power. These governments feared that expanding Iraq’s military capacity might indirectly strengthen Iran’s influence. As a result, Iraq endured prolonged security vulnerabilities —not only in negotiating arms contracts with Washington, but also in fully operating and deploying certain advanced weapons systems and equipment.


During the 1980s, the Iraqi Army ranked among the world’s strongest forces at the height of the war with Iran. That institutional power collapsed after the 2003 US invasion, when the head of the US-led CoalitionProvisional Authority, Paul Bremer, issued a decision dissolving the force, forcing Iraq to rebuild its military from scratch.


Over decades, the army had fought regional wars —including in 1948 following the declaration of “the State of Israel” in Palestine and the October 1973 war between Syria, Egypt, and Israel— and suppressed internal uprisings, most notably in the Kurdistan Region, which extended over many years, shaping both its operational doctrine and its political entanglements. 


Today, Iraq ranks sixth in the Middle East according to the 2026 Global Firepower Index, but restoring strategic autonomy requires more than ranking positions; it demands functional independence.


Reform, Leadership, and Structural Weaknesses


The new Iraqi Army established after 2003 adopted a voluntary recruitment approach to build a professional military institution whose members choose military life willingly. However, one of the weaknesses negatively affecting the army’s efficiency, according to experts who spoke to Shafaq News, lies in “integration officers,” individuals affiliated with political entities who were incorporated into the army after the change of regime.


Military expert Alaa Al-Nashou believes that establishing a professional national army requires substantial resources, beginning with the formation of military schools, institutes, and academies to train officers and fighters, and extending to preparing divisions and corps capable of leading operations domestically and externally.


Al-Nashou told Shafaq News that preparing a professional soldier is not limited to physical training alone but includes physical and psychological preparation and tactical maneuvers enabling him to handle all military scenarios, from offensive and defensive operations to retreat combat. He stressed the need to establish mechanisms to ensure professionalism within the army, “most notably distancing the military institution from partisan and political conflicts, combating corruption and favoritism within it, and removing unqualified officers and ranks, especially integration officers.”

“Iraq needs to grant military formations direct authority to confront any border threat without interference from “armed factions,” he added, calling for the establishment of a military council composed of former commanders and officers to supervise the development of combat, organizational, and morale capabilities, in addition to sending military personnel to training courses both inside Iraq and abroad, particularly in countries with advanced military expertise such as the United States, Europe, and Russia.


Read more: US strategy 2026: Containment or military strike for Iraqi armed factions


Air Defense Gaps and the Sovereignty Question

The two experts agree that developing air power has become a decisive element in protecting Iraq. Between August 2024 and October 2025, the Iraqi Army received 15 US-made Bell 505 training aircraft, along with French Caracal helicopters designated for search and rescue, air transport, and ground support missions.


They noted that these aircraft represent a qualitative leap in military training and pilot qualification, while also contributing to providing fire support for ground forces and enhancing their flexibility. Iraq is also preparing to receive the South Korean M-SAM air defense system during the current month of February to ensure border protection from any potential airspace violations.

However, this is not sufficient, according to many experts who spoke to our agency. Iraq currently lacks comprehensive air defense weapons, advanced missile systems, early warning and air surveillance systems, and ground-based air defense capabilities, which are all crucial military capacities to address external threats. The Iraqi military institution also requires greater functional integration at the operational level. This shortcoming was evident in recent regional wars, where Iraq was unable to enforce its political position prohibiting the use of its airspace for attacks on Iran, a situation that could recur if a new round of US-Israeli confrontation with Tehran erupts.


Military expert Adnan Al-Kinani affirmed that Iraq now possesses advanced air capabilities, including fighter aircraft, drones, short, medium, and long-range ballistic missiles, and air defense systems to protect borders from violations, adding that Iraq has domestic military manufacturing to supply weapons and equipment in the event of aggression or import difficulties, diversified ground forces including special forces, infantry, mechanized infantry, armor, and artillery, as well as electronic warfare capabilities to counter modern threats. 

He also stressed the importance of qualified national leadership to guide training, oversee armament, and execute operations, warning that “the presence of unqualified leaders poses a threat to the army’s ability to protect the state.”


There appears to be an urgent need to establish an Iraqi national security strategy that takes into account Iraq’s security requirements in the coming phase. The threat of ISIS remains present, while Israeli military dominance in the region, including its use of Iraqi airspace, raises alarm. The military advancements achieved by neighboring countries such as Turkiye, Iran, and Saudi Arabia necessitate rapid military development to safeguard Iraq’s political position.

This Iraqi reality and need are not hidden from Washington. However, the major challenge lies in convincing it to assist in meeting these needs and strengthening Iraq’s military structure amid USconstraints and reservations, which are unlikely to retreat from ensuring Israel’s dominance on one hand and weakening Tehran and its allies on the other, a dilemma that continues to exhaust Iraq and its attempts to advance on multiple levels.

Written and edited by Shafaq News staff.

MILTIAMAN: 🚀 Iraq 2026: Execution Phase Underway? Reserves, Digital Readiness & the Real Effective Exchange Rate

 As Iraq steps into 2026, a growing number of analysts argue that the country has moved beyond preparation — and into execution.

The narrative centers around four pillars:

  • Political clarity

  • Strong foreign reserves

  • Low inflation

  • Digital financial readiness

Let’s analyze whether Iraq is truly positioned for sustained growth and deeper integration into the global financial system.


🇮🇶 Iraq’s Position Entering 2026

According to recent commentary, Iraq is entering 2026 with stronger macroeconomic fundamentals than in previous years.

Key Indicators Frequently Cited:

✔ Increased foreign reserves
✔ Inflation under control
✔ Coordinated fiscal and monetary reforms
✔ Expansion of digital payment systems
✔ Modernized trade and banking frameworks

These are not random developments — they align with long-term structural reform plans supported by international institutions.


🏦 Strong Reserves & Inflation Control

Foreign reserves are the backbone of currency stability.

The Central Bank of Iraq has worked to:

  • Stabilize the official exchange rate

  • Narrow the parallel market gap

  • Increase compliance in dollar auctions

  • Strengthen reserve buffers

Low inflation is equally critical.

A currency cannot sustainably appreciate if inflation is out of control. Stabilized prices increase domestic purchasing power and investor confidence.


💻 Digital Readiness & Trade Banking Reform

Iraq’s shift toward:

  • Electronic payments

  • Banking sector modernization

  • International trade compliance

  • SWIFT integration improvements

…suggests alignment with global financial standards.

Digital infrastructure reduces:

  • Corruption

  • Cash leakage

  • Black-market dependency

  • Informal transaction risks

This modernization is essential for full participation in the international financial system.


🌍 “Gatekeeper Support” & Global Integration

Iraq does not operate in isolation.

Global financial “gatekeepers” include institutions such as:

  • The International Monetary Fund

  • The World Bank

  • International correspondent banking networks

Support from these institutions typically signals:

  • Compliance with global standards

  • Progress in anti-money laundering reforms

  • Transparency in fiscal reporting

  • Alignment with international monetary norms

That backing strengthens credibility — which is foundational for exchange rate reform.


📊 The Real Effective Exchange Rate (REER): What Does It Mean?

The Real Effective Exchange Rate (REER) measures a currency’s value relative to a basket of other currencies, adjusted for inflation.

When analysts say:

“The preparation phase for the real effective exchange rate is complete.”

They are suggesting:

  • Structural reforms have been implemented

  • Inflation is aligned

  • Trade balances are improving

  • Currency distortion gaps are narrowing

However, REER adjustments usually occur gradually — not explosively.


📌 Featured Snippet: What Is the Real Effective Exchange Rate?

The Real Effective Exchange Rate (REER) measures a country’s currency value against a basket of other currencies, adjusted for inflation. It reflects true competitiveness in global trade and is often used to guide monetary reform decisions.


🔄 Preparation vs. Execution Phase

The argument now is that Iraq has transitioned from preparation into execution.

Preparation included:

  • Banking reform

  • Digital transition

  • Fiscal restructuring

  • Anti-corruption enforcement

  • Reserve accumulation

Execution would mean:

  • Implementing exchange rate adjustments

  • Expanding international currency acceptance

  • Strengthening cross-border trade settlement

  • Increasing private sector participation

Execution tends to move “bit by bit” — not overnight.


🧠 Is This Speculation or Structural Progress?

There is documented evidence of:

  • Banking digitization

  • Reserve growth

  • Reduced inflation volatility

  • Stronger trade compliance

What remains uncertain is timing and magnitude of any exchange rate movement.

Confidence-building measures are visible.
Whether that culminates in a dramatic revaluation or gradual adjustment remains to be seen.


❓ Q&A: Iraq 2026 Monetary Reform

Q1: Is Iraq fully integrated into the global financial system?

Not fully — but integration has significantly improved through digital banking and compliance reforms.


Q2: Does strong reserve growth guarantee a higher exchange rate?

No. It supports stability, but exchange rates reflect multiple macroeconomic variables.


Q3: What does “execution phase” likely mean?

It suggests reforms are being implemented in real-time rather than simply planned.


Q4: Are we near the end of reforms?

Major structural reforms appear advanced. However, monetary transitions often unfold in stages.


📈 The Trajectory Going Forward

If Iraq maintains:

✔ Fiscal discipline
✔ Monetary coordination
✔ Digital transparency
✔ Political stability
✔ International compliance

Then sustained economic growth becomes increasingly plausible.

Currency reform, if it occurs, would likely be rooted in these fundamentals — not speculation alone.


🔥 Hashtags 

#Iraq2026 #IraqDinar #DinarRevaluation #REER #CentralBankOfIraq #DigitalBanking #ForexNews #CurrencyReform #GlobalFinance #MiddleEastEconomy #IQDUpdate #EconomicGrowth #MonetaryPolicy


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Militia Man

  Iraq enters 2026 with political clarity, strong reserves, low inflation and digital readiness, coordinated reforms and trade banking, private sector, digital systems combined with gatekeeper support positions [Iraq] for sustained growth and full participation in the global financial system...So execution phase is underway.  I think the trajectory is clear...They fired the shot.

The preparation phase for the real effective exchange rate...I think it's complete.  The execution of that process is obviously underway.  I don't think anything I'm talking about is speculation...Bit by bit.

..they're bringing confidence to people...We're coming towards the end.

DINAR REVALUATION UPDATE: Bank Exchanges, ZIM Bond Appointments & Redemption Center News #iqd

 

Iraqi Parliament approves amended bylaws, confirms Army Chief and Baghdad Mayor

 Shafaq News- Baghdad

Iraq’s Council of Representatives voted on Tuesday to approve the amended internal bylaws related to parliamentary committees, and confirmed the continuation of Baghdad Mayor Ammar Musa Kazem and Iraqi Army Chief of Staff Lieutenant General Abdul Amir Rashid Yarallah in their posts.


Hamam Al-Tamimi, a lawmaker from the Badr bloc led by Hadi Al-Ameri, said during a press conference after the session that his bloc gathered the signatures required to confirm the Army Chief of Staff, adding that the bloc “takes responsibility for correcting the course of security leaders.” He noted that this step “is the first by the Council of Representatives to confirm a commander of the Iraqi Army, with the institution managed in an official capacity rather than by proxy.”


Earlier, the Council of Representatives issued a parliamentary order to form a temporary committee comprising 19 lawmakers to amend Internal Regulation No. (1) of 2022, specifically regarding permanent parliamentary committees. The order stipulated that the committee would be chaired by the First Deputy Speaker of Parliament and include a number of male and female lawmakers. The committee is tasked with amending provisions related to the permanent parliamentary committees.

Later, the Speakership of the Council announced the permanent parliamentary committees for the current legislative term, which are:

1- 

Legal Committee.

2- Finance Committee.

3- Security and Defense Committee.

4- Integrity Committee.

5- Oil, Gas and Natural Resources Committee.

6- Foreign Relations Committee.

7- Services and Reconstruction Committee.

8- Electricity and Energy Committee.

9- Economy, Industry and Trade Committee.

10- Investment and Development Committee.

11- Health and Narcotics Control Committee.

12- Regions and Governorates Not Organized in a Region, Planning and Government Program, and Endowments Committee.

13- Transport, Communications and Governance Committee.

14- Culture, Media, Tourism and Antiquities Committee.

15- Education Committee.

16- Higher Education Committee.

17- Agriculture, Water Resources and Environment Committee.

18- Labor, Civil Society Organizations, Federal Public Service, Youth and Sports Committee.

19- Migration, Displacement, Community Reconciliation and Tribes Committee.

20- Martyrs, Victims and Political Prisoners Committee.

21- Human Rights, Women, Family and Childhood Committee.

22- Border Crossings and Protection of National Product Committee.

FRANK26: 🚨 Iraq Dinar Revaluation: IMF Pressure, Maliki Blocked & the 1:1 Rate Speculation Explained

 New commentary circulating in the dinar investment community suggests major geopolitical and monetary shifts are underway in Iraq.

Claims include:

  • U.S. involvement to block Nouri al-Maliki

  • Security stabilization as a prerequisite for a new exchange rate

  • The International Monetary Fund (IMF) pushing Iraq to float its currency

  • A potential 1:1 rate with the U.S. dollar

Let’s break this down carefully and separate confirmed monetary policy from investor interpretation.


🏛️ Political Stability & Currency Reform

It is true that political stability directly impacts currency strength.

Security improvements lead to:

  • Increased foreign investment

  • Higher oil production stability

  • Reduced capital flight

  • Improved sovereign credit perception

However, claims that foreign forces are “there for one purpose” to remove a specific political figure are speculative interpretations — not officially confirmed policy statements.

What is documented:

  • Iraq continues to navigate internal political coalition dynamics.

  • Leadership alignment impacts economic reform implementation.

  • Stability is necessary for long-term currency appreciation.

But currency valuation decisions remain institutional, not political revenge-driven.


🌍 Does the IMF Want Iraq to Float Its Currency?

The International Monetary Fund (IMF) typically encourages:

  • Exchange rate flexibility

  • Reduced currency distortions

  • Market-based pricing mechanisms

  • Gradual liberalization

However, a free float is very different from a sudden large revaluation.

What Does “Float” Actually Mean?

A floating currency:

  • Moves based on supply and demand

  • Adjusts gradually

  • Reflects macroeconomic fundamentals

  • Can appreciate or depreciate

If Iraq were to float the dinar, appreciation would depend on:

  • Foreign direct investment

  • Oil revenue strength

  • Inflation control

  • Reserve backing

  • Confidence in governance

A float does not automatically produce a dramatic overnight rate jump.


💵 The 1:1 Rate with the U.S. Dollar – Is It Realistic?

The speculation suggests Iraq is “already set internally” to be at least 1:1 with the United States dollar once lower denomination notes are released.

Let’s examine the economic mechanics.

Exchange Rates Reflect:

  • GDP size

  • Money supply

  • Foreign reserves

  • Trade balance

  • Productivity

  • Inflation

Iraq currently maintains a managed exchange rate system.

For a 1:1 valuation to occur organically:

  • Money supply would need restructuring

  • Inflation must remain controlled

  • Foreign reserves must strongly support circulation

  • Market confidence must justify parity

It would require structural monetary reform — not just a policy announcement.


🏦 Lower Denominations & “Release of the New Rate”

The concept of releasing lower denomination notes is tied to Iraq’s long-discussed “delete the zeros” project.

This involves:

  • Redenomination

  • Simplifying transactions

  • Modernizing the cash economy

  • Reducing reliance on large nominal bills

However, redenomination alone does not automatically create external purchasing power parity.


📌 Featured Snippet: Does the IMF Control Iraq’s Exchange Rate?

No. The IMF provides guidance and reform frameworks, but Iraq’s exchange rate is controlled exclusively by the Central Bank of Iraq. Any move toward floating or revaluing the dinar would be executed by Iraq’s monetary authority.


🔎 Is Security Required Before a Rate Change?

Yes — security stability matters.

Currency strength requires:

  • Predictable governance

  • Stable banking systems

  • Investor protection

  • Rule of law

Security reform supports monetary reform. But it does not guarantee a specific exchange rate target.


❓ Q&A: Iraq Dinar Revaluation & IMF Policy

Q1: Is Iraq being forced to float the dinar?

There is no public confirmation of a forced float. The IMF generally supports gradual exchange flexibility.


Q2: Can the dinar suddenly go to 1:1 with the USD?

A sudden jump to parity would require significant macroeconomic restructuring and reserve support. There is no official confirmation of such a plan.


Q3: Does removing political figures automatically trigger an RV?

No. Exchange rates are determined by monetary authorities based on economic conditions — not solely political changes.


Q4: Could the dinar appreciate over time?

Yes. If Iraq strengthens reserves, reduces corruption, modernizes banking, and stabilizes security, gradual appreciation is economically plausible.


📊 What Would Actually Support a Stronger Dinar?

✔ Sustained oil revenue growth
✔ Controlled inflation
✔ Reduced parallel market gap
✔ Digital banking modernization
✔ Increased foreign investment
✔ Political stability

These fundamentals — not rumors — ultimately determine currency valuation.


🧠 Final Analysis

There are three separate themes being blended together:

  1. Political stabilization

  2. IMF reform guidance

  3. Speculation of a dramatic exchange rate reset

While stability and reform are real and ongoing, claims of a guaranteed 1:1 rate remain speculative without official confirmation.

The path forward is likely tied to:

  • Managed monetary reform

  • Gradual exchange flexibility

  • Continued institutional strengthening

Investors should track confirmed Central Bank policy, not just commentary narratives.


🔥 Hashtags 

#IraqDinar #DinarRevaluation #IQD #IMF #CurrencyFloat #Maliki #IraqEconomy #ForexNews #MiddleEastPolitics #RVUpdate #ExchangeRate #GlobalFinance #EconomicReform


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Frank26  

  We are there in Iraq for one purpose and that is to remove Maliki and to remove the terrorism so that [Iraq] can have security and stability to bring forth a new exchange rate...We are in the process of blocking Maliki.  It's going to be very devastating when it comes.

 The IMF wants you to go international.  They want you to float your currency.  

They want the dinar to gain value outside of your country because they know you are already set inside your country.  You are already set to at least be 1 to 1 with the American dollar when they finally release the new rate the lower notes.  

FIREFLY: Saleh back on TV today...talked about how a fixed rate is better than a floating rate #iqd

 

No turning back on the ASYCUDA... The government calls on traders to accept the new reality

 No turning back on the ASYCUDA... The government calls on traders to accept the new reality

 The Iraqi government called on Sunday (February 15, 2026) for those objecting to the implementation of the ASYCUDA system and customs tariffs to accept the new reality and comply with the law. Speaking on behalf of the government, spokesperson Bassem Al-Awadi explained that this system, which is implemented in more than 100 countries, will be applied in Iraq under international and UN supervision. He added that part of the ASYCUDA implementation is linked to Iraq's international obligations in the areas of combating money laundering, currency and goods smuggling, and international trade. He further stated that after 2003, Iraq relied on a process he termed "arbitrary" in managing customs and taxes, and that the time has come to change this process.

Al-Awadi stated in an interview with the official channel, which was followed by 964 Network , that “during the past few days with the beginnings of the implementation of the ASYCUDA system, there was some delay in the ports and many goods were delayed. According to the government’s estimates, some of them were delayed normally and others were delayed abnormally. When the government implemented the ASYCUDA system, this does not mean that there is a problem between it and the traders, but this step is an organizational process.”

Al-Awadi added, “In order to facilitate the movement of goods and make things easier for the private sector and Iraqi traders, the Iraqi government decided to zero out the government’s percentage of goods in warehouses - these warehouses are a joint facility between the ports and maritime transport, and also in cooperation with the private sector - so the government’s fees were zeroed out, and also 50% of the fees of the investing partner were zeroed out.”

Al-Awadi pointed out that “in light of the recent atmosphere that we all experienced, and the many rumors that try to make the government and the Iraqi state in general seem like something poised to harm the private sector or harm the people, and this is something that does not exist,” indicating that “the private sector and the merchant class are witnesses to the level of interaction that the government has undertaken, and in the end, only the truth will prevail.”

Al-Awadi pointed out that “trade from 2003 until today, especially with regard to taxes and customs, was more like arbitrariness. In simple terms, things were done in the form of a small container with 3 million and a large container with 4 million, regardless of what was inside the container. This was an old method that was imposed by the reality of the change after 2003, and it continued due to the repercussions and recent events.”

Al-Awadi stressed that “the ASYCUDA system is a United Nations system and was not brought by the Iraqi government. It is implemented in 102 countries around the world and is linked to the United Nations Convention against Torture (UNCTAD). Part of the implementation of ASYCUDA is linked to Iraq’s international obligations in the areas of combating money laundering, smuggling of currency and goods, and international trade.”

The government spokesman stressed that “this system is not targeting a specific class, and the rumors that speak of a lack of liquidity in the Iraqi state and that is why it went towards this system are untrue. All of this is incorrect, because the process of trade, accounting and customs since 2003 was an arbitrary emergency process, and in the end, now this year or next year or after 3 years, everyone knows that these temporary matters must end and we must move towards the right things.”

Al-Awadi explained that “this new system (ASYCUDA) has been implemented, and we do not have (Quranic texts nor angels). It is an electronic automation system, operated by Iraqi teams under international and UN supervision.” He pointed out that “over time and after implementation, if there is any kind of injustice that may befall an economic class, group, or a specific type of goods, there are unions and federations of the Iraqi private sector and spokespeople for them, and the door of the Prime Minister and the Iraqi government is open to them, and it is possible to address any injustice that may affect merchants or other classes.”  link