PARLIAMENTARY WARNING OF THE REPERCUSSIONS OF DELAYING NON-OIL REVENUES ON THE IRAQI ECONOMY.
The Parliamentary Economic Committee called on all ministries to expedite the payment of their non-oil revenues to the Ministry of Finance, while warning of the repercussions of continued delays on the national economy and the financial pressures that could affect the implementation of development plans.
Yasser Al-Hussaini, a member of the Economic Committee, said in an interview: “The Ministry of Finance is making exceptional efforts to ensure cash liquidity, but it faces challenges due to the delay of some ministries in transferring their non-oil revenues, which leads to confusion in government spending plans.” He pointed out that “these revenues constitute an important source for strengthening the general budget and reducing dependence on oil revenues, especially in light of global market fluctuations.”
Al-Hussaini added that “the resumption of government projects, whether investment or service, is directly linked to the availability of financial liquidity, which makes commitment to paying dues essential to ensure the continuity of work in various sectors.” He explained that “providing liquidity is not the responsibility of the Ministry of Finance alone, but rather an integrated process that requires the commitment of all government agencies to transfer their non-oil resources according to the specified deadlines.”
Al-Husseini pointed out that “cooperation between ministries on this issue contributes to reducing financial pressures and ensures the implementation of vital projects needed by citizens.”
He explained that “the government, through the Ministry of Finance, is working to take measures to facilitate the activation of non-oil revenues, including enhancing transparency in the management of public funds and monitoring non-compliant entities, with the aim of achieving the required financial balance.” He stressed that “the current phase requires everyone’s cooperation to ensure economic stability, especially with the challenges facing global markets and their impact on the local economy.”
Al-Husseini concluded his remarks by saying: “We call on all ministries and government institutions to commit to transferring financial dues according to the specified timetables, as this has a positive impact on the national economy and to ensure the continuity of services and projects that benefit citizens.”
HOW IRAQ PLANNING TO ELIMINATE THE PARALLEL MARKET BY 2025
In 2025, Iraq implemented significant measures to eliminate the parallel currency market and reinforce the stability of its currency, the Iraqi dinar.
One of the most notable actions was the decision to permanently close the dollar auction system, officially known as the Foreign Currency Sale Window and Electronic Platform.
This measure, announced by Ammar Khalaf, deputy governor of the Central Bank of Iraq, was aimed at reducing dependence on the black market and increasing transparency in currency transactions. 964media
To replace the auction system, a new mechanism was established in which traders must deposit their funds in Iraqi dinars in local banks that maintain relationships with foreign correspondent banks.
These banks, in collaboration with US financial institutions, monitor and verify transactions, ensuring compliance with regulations and reducing the risk of fraudulent activity. 964media
In addition, the digitalization of financial services was promoted, facilitating electronic payments and reducing the need for cash transactions, which contributed to reducing black market operations.
These reforms sought to strengthen the Iraqi banking system, improve transparency, and stabilize the dinar exchange rate.
Although these measures represented important progress, some challenges remained.
For example, the lack of correspondent banking relationships at certain local banks made it difficult for all merchants to fully implement the new system.
However, most economic actors adapted to the new environment, contributing to the reduction of the parallel market and the strengthening of the national economy.
TRANSLATION IN SPANISH
En 2025, Irak implementó medidas significativas para eliminar el mercado paralelo de divisas y reforzar la estabilidad de su moneda, el dinar iraquí.
Una de las acciones más destacadas fue la decisión de cerrar permanentemente el sistema de subastas de dólares, conocido oficialmente como la Ventana de Venta de Monedas Extranjeras y Plataforma Electrónica.Esta medida, anunciada por Ammar Khalaf, vicegobernador del Banco Central de Irak, tenía como objetivo reducir la dependencia del mercado negro y aumentar la transparencia en las transacciones de divisas. 964media
Para reemplazar el sistema de subastas, se estableció un nuevo mecanismo en el cual los comerciantes deben depositar sus fondos en dinares iraquíes en bancos locales que mantienen relaciones con bancos corresponsales extranjeros.Estos bancos, en colaboración con instituciones financieras de Estados Unidos, supervisan y verifican las transacciones, asegurando el cumplimiento de las regulaciones y reduciendo el riesgo de actividades fraudulentas. 964media
Además, se promovió la digitalización de los servicios financieros, facilitando pagos electrónicos y reduciendo la necesidad de transacciones en efectivo, lo que contribuyó a disminuir las operaciones en el mercado negro.Estas reformas buscaban fortalecer el sistema bancario iraquí, mejorar la transparencia y estabilizar el tipo de cambio del dinar. Vocal
Aunque estas medidas representaron avances importantes, algunos desafíos persistieron.Por ejemplo, la falta de relaciones de corresponsalía bancaria en ciertos bancos locales dificultó la plena implementación del nuevo sistema para todos los comerciantes.No obstante, la mayoría de los actores económicos se adaptaron al nuevo entorno, contribuyendo a la reducción del mercado paralelo y al fortalecimiento de la economía nacional
BAGHDAD IS OFFICIALLY OUTSIDE THE “AXIS OF RESISTANCE”…AND THE US WANTS “ZERO IRAN” IN IRAQ.
(Can it get any clearer what the Trump policy is towards Iran?)
Abdul Mahdi arranges the deportation of the Houthis, and the factions remain silent.
Baghdad is working on “three lines” to avoid potential Israeli strikes, according to the Iraqi Foreign Ministry. An Iraqi politician reveals the content of “non-negotiable” American messages sent to Baghdad, including cutting off funding to the Houthis.
Parliament is expected to begin preparations for the “dissolution of the factions” in a session on Monday, which will discuss the “restructuring of the Popular Mobilization Forces.” The “restructuring” includes a confirmation of a previous decision taken six years ago, stipulating the separation of “the Popular Mobilization Forces from any political entity,” making it a more clearly state-affiliated institution.
According to information obtained by Al-Mada, it is believed that the restructuring law “would not have been discussed were it not for the recent changes that took place in the region.”
The executive order issued in 2019, which would be the nucleus of the “restructuring of the Popular Mobilization Forces,” was rejected by several factions.
Over the past three weeks, Shiite political parties have insisted on prioritizing the “restructuring of the Popular Mobilization Forces” over the “Popular Mobilization Service and Retirement Law.” Two weeks ago, Prime Minister Mohammed al-Sudani decided to withdraw the “service and retirement” law from parliament, instead sending a restructuring law.
Parliament published the agenda for today’s session, Monday, after a work stoppage for more than a month. The agenda includes seven paragraphs, including the restructuring of the Popular Mobilization Forces (PMF), or the so-called “Popular Mobilization Forces Authority Law.
” Suspicions circulate around the PMF regarding the presence of “alien” elements, according to former Prime Minister Nouri al-Maliki. There are also doubts about the PMF’s salaries and the “number of members,” according to MP Adnan al-Zurfi. According to information, the government is trying to “control the PMF and organize it institutionally.”
This information confirms that “this appears to be an attempt to block any accusations against this group (the PMF) that it is outside the law.” This movement is linked to the negotiations announced by the government more than a month ago with “three or four factions” to disarm them. The results of these negotiations have not yet been announced.
Neutrality… In contrast, Baghdad is seeking, through the “second track,” to prevent factions from interfering in the war that appears to have returned in Gaza, Yemen, and southern Lebanon. So far, no known Iraqi faction has announced intervention in response to the new Israeli or American attacks in the region.
Three unknown Iraqi armed groups have announced targeting American interests after “strikes on the Houthis,” but no incident has been recorded so far.
The appearance in Yemen of Adel Abdul Mahdi, the former prime minister known for his closeness to the Popular Mobilization Forces (PMF), is believed to be related to the “second track.”
Abdul Mahdi is believed to have arrived in Yemen on March 20, while the Houthis escalated attacks on Israel on the 18th and 20th of this month. Several reports have suggested “scenarios” for Abdul Mahdi’s presence with Houthi leaders:
one related to “coordination of the unity of the arenas,” a principle established by Iran in recent wars in the region; or the possibility that Abdul Mahdi was carrying a message from the United States to Yemen regarding the situation in the Red Sea. Or that Baghdad is working to “expel the Houthis” from the country, which is the most widely circulated scenario domestically.
This development coincided with news of the “closure of a Houthi headquarters” in Baghdad, which had been revealed a year earlier. On March 20, Iraq’s Joint Operations Command denied reports that the Houthis were using a training camp in Iraq. Reports indicated that the Houthis were using a training camp in the Khalis district of Diyala Governorate to receive training and support there.
Washington began a military escalation against the Houthis on March 15. On June 13 of last year, Abdul-Malik al-Houthi, the leader of the Ansar Allah group (also known as the Houthis), announced that they were working with the “Islamic Resistance in Iraq” to launch attacks against Israel from the Golan Heights.
That same year, local media reported that the Houthi group had opened a “representation” in Baghdad, days after the group’s representative in Iraq, Abu Idris al-Sharafi, who has resided in Iraq since 2016, visited Hashd sites. “We are not an axis of resistance.”
On the third track, Baghdad is trying to convince the United States that it is not part of the “axis of resistance,” according to Foreign Minister Fuad Hussein.
In a television interview, Hussein stressed that “Iraq does not accept ‘unity of arenas,’ and its constitution prohibits waging war against anyone by unilateral decision.” Hussein attacked Iraqi armed factions, saying that “what they have done for months has greatly harmed Iraq and has not benefited the Palestinian cause.”
Unusually, neither the factions nor political forces close to those groups have commented on Hussein’s recent statements. According to the minister, “there is an opportunity to reach an understanding with the armed factions to spare them and Iraq the risks that could result from a military strike by external parties, such as America or Israel.
” Hussein warned that “Iran could be the target of an Israeli attack if it fails to reach an agreement with the new US administration.” He said, “This means that disaster will befall Iraq and the region.”
Tehran has so far rejected US messages to engage in “negotiations” on the nuclear issue. Politician and former MP Mithal Alusi says that “the political forces in Iraq are unaware of the coming danger, and may be playing the roles drawn for them by Iran.”
Washington’s Messages In an interview with Al-Mada, Al-Alusi criticized Baghdad’s negotiating role with the United States, revealing the “existence of mediators” close to the ruling parties, separate from the “Ministry of Foreign Affairs.
” Al-Alusi asserted that the “mediators,” who, according to the former MP, are advisors, received decisive messages from Washington, stating: 1 – Zero Dollar: No dollars are allowed to flow to Iran, regardless of the pretext, cover, or means.
2 – Zero Oil: No Iraqi oil is allowed to flow to Iran, and no Iranian oil is allowed to be exported in Iraq’s name or mixed with Iraqi oil and marketed in the Gulf or anywhere else.
3 – Iraq will never fund, deal with, train, or shelter Hezbollah, Hamas, or the Houthis.
Al-Alusi asserted that the United States informed the Iraqi government that “$3.4 billion” is being transferred annually to Iran via funds allocated to the Popular Mobilization Forces, and this must be stopped.
(Mnt Goat-Who’s funding the terrorists? My jaw dropped when I heard these figures. No confusion now about the corruption from Iran on Iraq.)
The former MP points out that the United States considers the Popular Mobilization Forces (PMF) to be affiliated with Iran, and that “Washington does not use the term ‘factions’.”
Al-Alusi questioned the Coordination Framework’s ability to maneuver and remain in the political equation until the next elections, stressing that “there is no room for maneuver with Trump as there was under the previous administration (Joe Biden).” The former MP warned of a “great danger” threatening Iraq, as “Trump treats Iraq as a peripheral state implementing Iran’s will.”
(Mnt Goat-All I can say after reading this article is what I said way back in 2017. These Iranian militia left behind in Iraq after the ISIS was must leave Iraq along with their puppet Iranian politicians. This is what the US wants. Well…you can read for yourself the three main conditions Trump is imposing upon Iraq.)
In a recent interview with Economy News, economic adviser and banker Samir al-Nusari shared optimistic forecasts regarding Iraq’s economic landscape by 2025. He stated that with foreign cash reserves projected to exceed $108 billion and 163 tons of gold,
Iraq’s economy is set to witness a strong recovery that would sustain import coverage for 18 months. Al-Nusari highlighted that the local currency’s export value has reached 100 trillion dinars,
indicating a gradual rebound of the Iraqi dinar towards the Central Bank’s target exchange rate against the US dollar. He emphasized the steady advancements being made by Iraqi banks, which are aligning with the Central Bank’s strategy focused on reform, development, and digital transformation. Currently,
20 Iraqi banks maintain banking relationships and accounts with international banks, facilitating external transfers in multiple foreign currencies, especially notable as Iraq moves towards enhanced financial integration post the planned transition off the electronic platform by the end of 2024.
🚀 Economic Optimism: Samir al-Nusari predicts a robust Iraqi economy by 2025, buoyed by significant foreign reserves and gold.
💵 Local Currency Surge: The value of exported local currency has reached 100 trillion dinars, signaling economic rejuvenation.
📈 Target Balance Exchange Rate: The Iraqi dinar is showing signs of recovery, aiming to align with the Central Bank’s targeted balance rate against the US dollar.
🏦 Banking Advancements: Iraqi banks are enhancing their capabilities, in line with the Central Bank’s strategic reforms and digital initiatives.
🌍 International Banking Relations: There are currently 20 Iraqi banks engaged in banking relations with international entities, crucial for external financial dealings.
📅 End of Electronic Platform Transition: The anticipated phase-out of the electronic platform by the end of 2024 marks a significant milestone for the Iraqi banking sector.
🔄 Multi-Currency Transactions: Iraqi banks are diversifying their operations to handle transactions in multiple foreign currencies.
Key Insights
💪 Economic Forecasting as a Strategic Tool: Al-Nusari’s positive economic forecasts underscore the critical need for accurate economic forecasting in national planning. By identifying key indicators - such as foreign cash reserves and gold holdings - national and local stakeholders can steer strategic policies to facilitate growth and economic stability. As Iraq aims towards recovery, understanding these economic metrics will be key for attracting foreign investment and fostering business confidence.
📊 Impact of Local Currency Health: The reported increase in the value of exported local currency reflects a restoration in economic activity and consumer confidence. A robust currency not only stabilizes the economy but also enhances purchasing power for imports and investment in sectors such as infrastructure and health. Consequently, this rejuvenation of the dinar not only supports local businesses but also works towards reducing inflationary pressures.
🔄 Evolution of the Banking Sector: The mention of the Central Bank’s strategy in promoting reform and digital transformation is significant. It emphasizes the shift towards modern banking practices which can provide Iraq with the tools to engage more transparently and fluidly in global markets. Transitioning banking services to digital channels can enhance efficiency, reduce transaction costs, and improve customer accessibility.
🌐
Diversification of Banking Relationships: The engagement of 20 Iraqi banks with international banking entities indicates a strategic effort to reduce reliance on domestic financial mechanisms. This diversification enhances the credibility and reliability of Iraqi banks on an international scale, paving the way for better financing options and conditions which is critical for export-driven economies.
💡 Financial Inclusion and Accessibility: Al-Nusari’s comments indirectly hint at the importance of financial inclusion, particularly as banks transition away from electronic platforms. As Iraq’s banking sector innovates and develops, ensuring that smaller enterprises and the general population can access banking services will be integral to overall economic growth. Enhanced accessibility can lead to increased savings rates and investment opportunities.
🚀 Positioning for Future Growth: With the target reset in motion for the Iraqi dinar, Iraq is poised for economic advancement through strategic positioning in financial markets. The resilience shown by the banking sector amid fluctuating economic conditions may serve as a template for businesses to follow, emphasizing adaptability and response to global economic shifts.
📅 Strategic Planning for Transition: The upcoming transition from the electronic banking platform reinforces the necessity for robust strategic planning. This change not only sets the stage for improved banking practices but also prepares the economy for further integration into the global financial system. Stakeholders must ensure that the transition is seamless and that all associated challenges are adequately addressed to maximize benefits.
By fostering positive economic indicators, enhancing banking capabilities, and aligning with international standards, Iraq is on a path towards sustainable growth and financial stability, which is crucial for the empowerment of its economy and the wellbeing of its citizens. Through ongoing assessments and adjustments in response to market conditions, the Iraqi economic landscape has the potential to not only recover but also thrive in the foreseeable future.
