Iraq’s CF Grants PM-Designate Full Authority To Form Cabinet
2026-04-28 Shafaq News- Baghdad The Coordination Framework (CF) agreed Tuesday to give Prime Minister-designate Ali al-Zaidi full authority to form his cabinet, following a meeting attended by caretaker Prime Minister Mohammed Shia al-Sudani. According to a statement,
participants discussed cabinet formation and mechanisms for resolving political entitlements, emphasizing adherence to constitutional timelines.
Leaders called for appointments based on integrity, competence, and national responsibility, and stressed the need for cohesion within the incoming government. The bloc had nominated al-Zaidi yesterday after al-Sudani and former Prime Minister Nouri al-Maliki withdrew from the race.
Daily Iraqi dinar updates with insights from popular dinar gurus.
Subscribe for more updates and breaking news.
We are not a registered investment adviser, broker-dealer, or bank.
🔗 Blog: https://dinarevaluation.blogspot.com/
🔗 Facebook: https://www.facebook.com/profile.php?id=100064023274131
🔗 Threads: https://www.threads.com/@dinaresguru
🔗 Telegram: https://t.me/DINAREVALUATION
OMAR:Zaidi is the candidate for the prime minister picked by the Coordinated Framework.
Turns out he is a compromise...USA seem to be ok because he doesn't have any direct ties to Iran...
Everybody can tolerate didn't actually everybody love.
He has 30 days to pick his cabinet...and only then the parliament vote on the whole team as a package...
FRANK: Next thing is your government will be formed. Everything else should follow in place after those 30 days which leads to a new exchange rate..
Subscribe for more updates and breaking news.
We are not a registered investment adviser, broker-dealer, or bank.
🔗 Blog: https://dinarevaluation.blogspot.com/
🔗 Facebook: https://www.facebook.com/profile.php?id=100064023274131
🔗 Threads: https://www.threads.com/@dinaresguru
🔗 Telegram: https://t.me/DINAREVALUATION
Government options to address the 2026 budget delay: borrowing or an emergency law similar to the food security law
The Parliamentary Finance Committee revealed several options available to the government to address the delay in approving the 2026 budget, primarily resorting to borrowing laws or enacting an emergency law similar to the Food Security Law.
Committee member Jamal Kojar told the official newspaper, “There are several alternatives if the budget is delayed, including resorting to borrowing as happened in 2021, or enacting a law similar to the Food Security Law. However, this depends on the government’s needs and the level of coordination between it and the Parliament.”
He explained that “the current government is operating in a caretaker capacity and does not have the authority to submit major financial bills independently, which necessitates direct coordination with Parliament if borrowing or enacting exceptional laws is required.”
Kojar indicated that “the government can continue spending according to the (1/12) rule of the operational budget, which ensures the continued payment of employee salaries without the need for new legislation, except in some special cases such as including new contracts after 2025.”
He pointed out that “the option of borrowing is also linked to the speed with which the new government is formed. If this matter is resolved within the constitutional timeframe, the House of Representatives should exert pressure on the government to submit the draft budget law as quickly as possible, given its importance in regulating the state’s financial management, including appointments, transfers, and the allocation of spending.”
He emphasized that “the House of Representatives cannot legislate laws of a financial nature without coordination with the government, and the previous food security law was enacted at the request and with the approval of the executive branch.” He noted that “Parliament is capable of supporting the government by passing emergency laws when necessary, whether through a borrowing law or a law similar to the food security law, but there has been no official request in this regard so far.”
Kujer stressed that “there is no intention to adopt a three-year budget again, and the country will return to the usual annual budget system,” affirming that “any future steps will remain contingent on the government’s request and its actual needs.” link
🇮🇶💰 Iraq’s Petro-Dinar Transition, REER Strategy & the Logic of Currency Appreciation
A deeper way to understand Iraq’s monetary direction is not through the lens of a single “RV event,” but through a broader framework of currency strategy, sovereign policy, and structural demand creation.
🛢️ Why Oil Sales in IQD Matter
If Iraq expands settlement of oil sales in Iraqi dinars (IQD)—even partially—it introduces a powerful monetary dynamic:
Foreign buyers, energy traders, and institutions may need access to dinars for settlement and liquidity purposes. That creates external transactional demand for IQD beyond Iraq’s domestic economy.
And that changes the conversation.
When a currency becomes tied more directly to strategic commodities like oil, it can begin functioning less as a local currency and more as a resource-linked monetary asset.
📈 Demand Creation Can Support Currency Value
This is where Petro-Dinar logic intersects with economics.
If more participants need IQD:
Central banks may need to hold dinar liquidity
Trade counterparties may accumulate dinars
Settlement demand can increase currency relevance
Supply-demand pressures can support valuation over time
This isn’t necessarily about an overnight repricing.
It can be about gradual support for stronger currency value through structural demand.
🏦 Why Would Iraq Pursue These Moves If Its Currency Didn’t Matter?
This is the key logical question:
Why would a country pursue monetary reforms, de-dollarization efforts, banking modernization, reserve management, and potential non-dollar trade channels if it did not care about strengthening the role of its currency?
Countries indifferent to currency strength don’t usually focus on:
Exchange-rate management
Payments modernization
Reserve accumulation
Trade settlement reform
Monetary sovereignty initiatives
Global financial integration
Yet Iraq has pursued many of these.
That strongly suggests Iraq cares about:
Currency credibility
Monetary sovereignty
Long-term dinar utility
Potential value support—even if gradual
💡 Strong currencies are often policy-built.
They do not emerge by accident.
📊 The REER Connection: Where This Gets Interesting
Rumors are putting pressure on the currency market and disrupting prices
The exchange rate of the dollar against the Iraqi dinar continues to rise, despite recent developments in the Middle East region. Economic experts attribute this to a set of overlapping internal and external factors, most notably increased demand and speculation in the market, in addition to regional tensions and regulatory measures.
Economic expert Walid Al-Agili said that the rise in the dollar is mainly due to increased demand for it, explaining that “speculation and rumors in the market play a major role in raising the price, as some traders and money changers stockpile dollars with the aim of selling them later at a higher price.”
He added that the spread of unconfirmed news about regional situations, such as talk of continued tensions or the closure of some trade routes, is driving individuals and traders to buy dollars as a hedge, exacerbating pressure on the market. Al-Agili pointed out that restrictions on foreign transfers and tightened financial procedures have also contributed to reducing the official supply of dollars, pushing some of the demand into the parallel market and thus driving up prices.
For his part, Professor of International Economics Nawar Al-Saadi explained that the political fluctuations in Iraq and the region are directly reflected in the exchange market, indicating that “the recent regional tensions have brought back a state of uncertainty to the markets, which has led to an increase in demand for the dollar globally and locally as a safe haven currency.”
He added that the heavy reliance on oil as a primary source of foreign currency makes the Iraqi economy more sensitive to any disruptions or concerns regarding its flows.
In conclusion, experts believe that the continued rise of the dollar is not linked to a single factor, but rather is the result of an interaction between local speculation, increasing demand, regional conditions, in addition to financial policies and regulatory procedures within the country. link