Iraq’s foreign currency reserves fall to $78.2 billion as gold holdings and investments decline.

Indicators from the Central Bank of Iraq showed on Thursday that its foreign reserves fell to $78.245 billion at the end of September 2026, compared to $81.538 billion at the end of August, a decrease of $3.293 billion, or 4.04%.

According to data seen by Shafaq News Agency, foreign reserves also recorded a decline compared to the end of 2025, when they amounted to $97.426 billion, meaning they decreased by about $19.181 billion, or approximately 19.7%.

Regarding gold, the data showed that its value decreased to 30.509 trillion dinars at the end of September, compared to 32.655 trillion dinars at the end of August, a decrease of 2.146 trillion dinars.

The Central Bank’s investments also decreased to 70.467 trillion dinars, compared to 72.926 trillion dinars in the previous month, a decrease of 2.459 trillion dinars.

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To ensure market stability, the Central Bank of Iraq renews its commitment to covering imports of goods and services.

The Central Bank of Iraq confirmed on Thursday that it will continue to meet requests for foreign currency reinforcement in a smooth manner and in a way that meets the needs of importers to finance the import of goods and services at the official exchange rate.

As stated in an official statement, the bank will continue to provide the necessary coverage for external transfers that meet the controls and are covered by the approved reinforcements before 7/10/2026, and will continue to follow up on their implementation in coordination with the banks concerned in order to ensure that they reach the beneficiaries.

The statement called on traders and companies whose remittances have not reached the beneficiaries to contact their banks, with the possibility of submitting complaints through the Central Bank’s complaints platform at the following link: www.complaint.app.cbi.iq .

The Central Bank had announced, on October 20th, that it had completed fulfilling requests for money transfers related to imports, which had been suspended before the official exchange rate was amended on 7/10/2026, and which met the approved conditions and controls.

Shafaq.com

Exclusive: Meeting between al-Zaydi, al-Amiri, al-Fayyad, and “Abu Fadak” to contain the escalation with Kataib Hezbollah

An informed source revealed on Thursday that a meeting that lasted more than three hours took place at the Government Palace in Baghdad, bringing together Prime Minister Ali al-Zubaidi, Badr Organization leader Hadi al-Amiri, Popular Mobilization Forces chief Faleh al-Fayyad, and the head of the Popular Mobilization Forces, Abdul Aziz al-Muhammadawi, known as “Abu Fadak,” to discuss mechanisms for dealing with Kataib Hezbollah, in light of escalating disputes over restricting weapons to the state.

The source told Shafaq News Agency that Al-Zaydi stressed during the meeting “the need to deal with outlaws in accordance with the applicable Iraqi laws,” while Al-Amiri and Al-Fayyad put forward a proposal to give the concerned parties an opportunity to rearrange their situations and return to the table of dialogue and negotiation, with the aim of reaching a settlement on the issue of weapons. Iraqeconomic reports

The source added that the proposal included the continuation of the work of the Quartet Committee tasked with negotiating with the armed factions, in order to reach an agreement that ends the existing disputes and addresses the issue of weapons in a way that serves the public interest and maintains internal stability.

The meeting comes days after a planned meeting of the leaders of the Coordination Framework with the Prime Minister, scheduled for Monday evening, was disrupted due to disagreements over how to deal with Kataib Hezbollah, as well as the lack of progress by the Quartet Committee in its negotiations with armed factions to confine weapons to the state.

An informed source revealed to Shafaq News Agency that some parties within the framework expressed their dissatisfaction with al-Zaydi’s escalation towards the brigades, amid fears that the continuation of the confrontation would lead to other armed factions joining them, which could threaten the collapse of the ongoing negotiations regarding weapons.

The dispute between the government and Kataib Hezbollah has escalated in recent days, against the backdrop of political, security and economic issues, including mutual media disputes and government measures that included activating arrest warrants issued against a number of wanted individuals linked to the group.

The disagreements extended to the mechanism for managing the negotiations itself, after sources told Shafaq News that some members of the Quartet Committee, including Al-Amiri, had reservations about Al-Zaidi holding separate meetings with leaders of factions that refuse to hand over their weapons, fearing that these moves would negatively affect the course of the negotiations.

These developments prompted leaders within the coordination framework, including the leader of the Wisdom Movement, Ammar al-Hakim, and the head of the Supreme Islamic Council, Humam Hamoudi, to make contacts and mediations to contain the tension between the government and the brigades, and to prevent the dispute from moving from political and media debates to a field confrontation.

The issue of restricting weapons to the state is one of the most prominent challenges facing the Al-Zaidi government, in light of the insistence of armed factions, including Kataib Hezbollah, Harakat Al-Nujaba and Kataib Sayyid Al-Shuhada, on maintaining their military capabilities, in contrast to the government’s insistence on extending state authority and ending the manifestations of weapons outside its institutions.

Shafaq.com

A report analyzes the dollar crisis: 14 reasons driving the rise of the parallel market rate and widening the price gap in Iraq.

The head of the “Iraq Future” Foundation for Economic Studies and Consultations, economist Manar Al-Obaidi, identified on Thursday a set of main reasons that drive the increased demand for the dollar in the parallel market, and the pressure to widen the gap between the official and unofficial prices in Iraq. Iraqeconomic reports

Inability to finance trade with Iran

According to a report issued by the organization and published by Al-Obaidi, Iraq is considered one of Iran’s largest trading partners, and the sanctions prevent its trade from being settled through the window or the international banking system, so it is paid in cash or in currencies purchased with dollars.

US restrictions on dollar transfers

The report stated that the US Federal Reserve’s prior scrutiny and the ban on banks dealing in dollars narrow the official supply and push qualified traders towards the parallel market to avoid rejection and delays.

Invoice tampering and importing outside the window

The organization indicated in its report that part of the value of the goods is financed officially and the remainder is paid from the parallel market to reduce customs duties and taxes, in addition to importing from entities not served by the window.

Increased customs tariffs on “high-value” goods

According to the institution, full disclosure and payment of tariffs through the official channel makes its cost uncompetitive compared to the parallel system, which bypasses customs entirely or partially.

Funds that do not enter the formal system

The report noted that the inability to clarify the sources of funds in the face of compliance requirements keeps them in cash outside the system, so they are spent and transferred through the parallel market.

Smuggling dollars to neighboring countries

The “Iraq Future” Foundation considered Iraq to be one of the largest sources of cash dollars in the region, and the demand from countries subject to sanctions and review with neighboring markets comes from its parallel market. Iraqeconomic reports

Small traders outside official platforms

The report stated that among the reasons for the high exchange rate was the failure to include small traders in the official platforms for selling dollars, stressing that they cannot access the transfer platforms due to the scarcity of their resources or the small size of their transactions, so they finance imports from the parallel market.

Excess liquidity in dinars

The report noted that the expansion in government spending and salaries is injecting more dinars than dollars are being offered through the window, and the surplus is looking for a store of value.

Hoarding dollars at the expense of the dinar

The report confirmed that households and businesses hold their dollar reserves as a store of value and a hedge against inflation, thus withdrawing the dollar from circulation.

Slow conversion and disruption of capital circulation

The institution criticized the slowness of the transfers, noting that taking days or weeks in the official channel compared to hours in the parallel channel makes the cost of lost time exceed the price difference for many traders.

Banks’ reluctance to process small transfers

The report criticized banks for favoring high-value transfers to maximize commissions and reduce compliance costs per transaction, while neglecting or delaying smaller amounts.

Limited spread of money transfer banks

The institution continued to list the reasons, including the concentration of banks capable of transferring funds in Baghdad and some centers without covering all governorates, leaving the local money exchange as the only option.

Expectations of reduction and speculation

The report warned that any discussion about adjusting the official price generates preemptive buying, and money changers speculate on the gap between the two prices, thus exaggerating it.

Shafaq.com

The dollar is soaring again… Exchange rates exceed 169,000 and approach 170,000 in Baghdad and Erbil

The exchange rate of the US dollar rose today, Thursday, in the markets of Baghdad and Erbil, the capital of the Kurdistan Region, as morning trading began.

A correspondent for Shafaq News Agency said that the price of the dollar rose in the Al-Kifah and Al-Harithiya exchanges in Baghdad to 169,150 Iraqi dinars per 100 dollars, while it recorded 168,900 dinars yesterday, Wednesday. Dinarexchange rate

Our correspondent noted that the selling prices in currency exchange shops in the local markets of Baghdad stabilized to record 169,500 dinars for 100 dollars, while the buying price reached 168,500 dinars.

In Erbil, the dollar prices recorded a similar increase, with the selling price reaching 169,150 dinars per 100 dollars, while the buying price reached 169,050 dinars.

Shafaq.com

Iraq’s oil production jumps to 4.88 million barrels per day in October

Data from the Organization of the Petroleum Exporting Countries (OPEC), based on official Iraqi data, showed that Iraq’s oil production increased during October 2026 by 489,000 barrels per day, compared to last September.

According to the data, Iraq’s production rose from 4.399 million barrels per day in September to 4.888 million barrels per day in October, registering a monthly increase of about 11.1%.

Iraq thus became the second country to record increases in production according to secondary source data during the month, after Saudi Arabia, whose production increased by about 1.215 million barrels per day, and Kuwait by 326,000 barrels per day.

Shafaq.com

The government devalues ​​the dinar and opens the door to new appointments… contradictions that strain the budget.

The government’s decisions in the budget law have sparked political criticism, particularly its move to devalue the dinar against the dollar to secure liquidity and address the financial deficit, while simultaneously burdening the budget with new appointments and the regularization of contracts.

Former member of the parliamentary finance committee, Mohammed Ibrahim, told Al-Maalomah, “There are many questions surrounding the government’s decision to devalue the dinar against the dollar to provide liquidity and increase revenues, while the existing deficit and liquidity shortage raise questions about the government’s motives for releasing appointments and creating new job positions.”

He added, “The issue of appointments to permanent positions does not necessarily translate into economic returns for the state or increased revenues through the productivity of the new employee,” noting that “there is no problem with some employees remaining on contracts; this is a successful practice in other countries and has proven that such employees will be productive.”

He explained that “releasing appointments in the budget while the exchange rate is changing confirms the existence of contradictions, especially since securing liquidity, providing it, and addressing the deficit cannot be achieved by increasing financial burdens and straining the budget with new appointments.”

Almaalomah.me

Barak: Iraq holds the key to dialogue with Iran, and we encourage strengthening trade and visits between them.

US envoy Tom Barrack asserted on Wednesday that Iraq possesses the “magic key” to resolving regional crises and managing dialogue with Iran, emphasizing that Washington encourages Baghdad to strengthen its trade relations and religious visits with Tehran instead of adopting a hostile stance. Iraqeconomic reports

Barak said during a dialogue session hosted by the Royal Institute of International Affairs, Chatham House, in London, and followed by Shafaq News Agency, that “the United States wants to learn from the lessons of the past and acknowledge the importance of the rule of law and democracy,” adding that “we must review what we have done for 23 years in Iraq; we were guests in this country, and many times we were bad guests, and we were not the owners of the house.”

The US envoy explained that “Iraq has a special and difficult situation as a result of the religious commonalities and extensive borders with Iran, which requires following a special policy towards the two countries,” noting that “Washington’s position is not to make Iraq an enemy of Iran, but rather to enable it to be the magic key to the doors of solutions, and to conduct dialogues that the United States cannot lead directly, in parallel with the continuation of the US economic embargo on Tehran and the threat of the military option if necessary.”

Regarding the withdrawal of the US-led international coalition against ISIS from Iraq, Barak said: “Our position has been clear from the beginning; the international coalition will withdraw from Iraq and as guests we have left, but we will remain as a permanent partner and we will not leave Iraq,” adding: “Washington will not stay forever to directly guarantee security and stability, but rather seeks to support Iraq’s unity, stability and the rule of law so that it can protect itself in a region that is constantly changing.”

Shafaq.com

The regional government calls on the Patriotic Union’s ministerial team to end the boycott and return to its meetings.

The Kurdistan Regional Government’s Council of Ministers announced on Wednesday its support for the initiative of Kurdish leader Masoud Barzani, who called on all political parties in the region to sit down at the negotiating table and resolve the existing disputes between them. At the same time, it called on the ministerial team of the Patriotic Union of Kurdistan to end its boycott of the council’s sessions and return to carry out its duties in the regional government. ReadDaily News

This came during the Regional Council of Ministers’ regular weekly meeting, chaired by Prime Minister Masrour Barzani, where it discussed a number of important issues related to Masoud Barzani’s initiative, the outcomes of the Kurdistan Regional Government’s high-level delegation’s visit to Baghdad, as well as the terrorist attack on the Kormor gas field and its repercussions.

At the beginning of the meeting, the Council of Ministers, in an official statement, expressed its welcome and support for Barzani’s initiative to call on political parties to engage in dialogue and address differences, in order to strengthen the foundations of the political system and consolidate legitimate and constitutional institutions in the Kurdistan Region.

The Cabinet also called on “colleagues” in the ministerial team of the Patriotic Union of Kurdistan to resume Cabinet meetings and resume their work and carry out their governmental duties, stressing that the institutional framework of the Cabinet is the natural way to raise any observations or proposals they have to be discussed and addressed within the framework of the Council meetings.

On another note, the Cabinet discussed the outcomes of the recent visit of the high-level Kurdistan Region delegation, headed by the Prime Minister, to Baghdad, and its meeting with the federal government delegation, headed by Prime Minister Ali al-Zaidi.

During his talks in Baghdad, the Prime Minister stressed the need to respect the federal system in Iraq and the constitutional entity of the Kurdistan Region, and to secure the financial entitlements and the region’s share of the federal general budget fairly and justly.

The Cabinet directed the negotiating delegation to continue its discussions and negotiations regarding the draft federal general budget for the year 2027, based on the understandings and positive atmosphere that resulted from the Prime Minister’s recent visit to Baghdad, with the aim of reaching a comprehensive, final and fair agreement that guarantees salaries, financial entitlements and the Kurdistan Region’s share in the federal general budget.

In another item on the meeting’s agenda, the Minister of Electricity and Acting Minister of Natural Resources presented a report on the repercussions of the terrorist attack on the Kormor gas field, which resulted in the cessation of gas production at the field and a decline in electricity supply to citizens. He also addressed the Ministry of Electricity’s efforts to compensate for some of the resulting shortfall through power generation plants operating on heavy fuel oil, diesel, hydroelectric power, and associated gas.

The Interior Minister then reviewed the details of the work of the joint security committee formed between the federal government and the Kurdistan Regional Government to investigate the facts and follow up on the circumstances of the attack, stressing that the ongoing investigations are continuing, according to the statement.

The Council of Ministers condemned in the strongest terms this terrorist attack on the Kormor field, which aims to undermine and sabotage the economic and energy infrastructure in the Kurdistan Region and Iraq in general, and to harm the public interest of citizens, stressing the need to put a final end to these attacks.

Shafaq.com