A political move is expected to finalize the cabinet formation.

With the end of the legislative recess and the return of the House of Representatives to its duties, the political arena enters a new phase of dialogues aimed at accomplishing a number of postponed obligations, foremost among them completing the cabinet and resolving the vacant ministries. Politics

Political circles confirm that the next phase will witness momentum in consultations between political forces, in parallel with the government continuing to implement its priorities related to combating corruption and restricting weapons to the state, which will enhance stability and push towards completing the implementation of the government program.

Deputy Walaa Al-Jizani, Vice President of the Badr parliamentary bloc, told Al-Sabah: “The resumption of the House of Representatives’ work after the end of the legislative recess will bring back to the forefront a number of important issues, most notably completing the cabinet and resolving the vacant ministries.” He explained that “this issue is still subject to intensive political dialogues and consultations between the blocs in order to reach final agreements on the candidates.”

Al-Jizani added that “the political forces are working to bring viewpoints closer and resolve points of disagreement related to the nominated names, noting that some of the figures that were put forward in previous sessions did not receive enough votes, which led to postponing their resolution, and it is expected that they will be put forward again or that new candidates who enjoy broader political acceptance will be presented during the upcoming sessions.”

Al-Jizani stressed that “the next stage requires cooperation between all political forces to expedite the completion of the formation of the government cabinet, especially since fulfilling this constitutional requirement will contribute to enhancing government performance and enabling the executive authority to implement its program in an integrated manner, as well as supporting political and administrative stability and meeting the requirements of the current stage.”

For his part, Mohammed Hassan Al-Saadi, who is close to the Coordination Framework and a researcher in political affairs, told Al-Sabah: “The Coordination Framework held two meetings during the past period, during which it discussed the most prominent developments on the internal and regional political scenes, most notably the issue of completing the cabinet, in addition to the issues of restricting weapons to the state and combating corruption.”

Al-Saadi added that “the coordination framework stressed the importance of proceeding with the completion of the cabinet after the Prime Minister’s return from his visit to the United States of America,” noting that “there are extensive discussions between the government and the political forces regarding a number of important issues, foremost among them being the restriction of weapons to the state in a manner consistent with the government’s program and that enhances the prestige of the state and its institutions.” He pointed out that “the file of combating corruption represents a major priority for the government of Prime Minister Ali Faleh al-Zaidi, and that Operation Dawn came under his direct supervision, and included a number of governorates, with movements to complete it in other governorates.”

Al-Saadi explained that “the campaign reflects a unified political will to confront corruption, noting that there is good security cooperation and coordination with the Kurdistan Region that contributed to handing over a number of wanted persons to the judiciary, which reflects the spirit of national responsibility and cooperation between the various parties in pursuing corrupt individuals inside and outside Iraq.”

Political analyst Mohamed Salah told Al-Sabah that the issue of completing the government formation will be present and ready for resolution after the conclusion of discussions between the political forces, as it is one of the files that must be completed as quickly as possible in light of the requirements of the current stage, especially with regard to combating corruption and improving performance.

Governmental.

He added that “completing the cabinet will give the government greater momentum to implement its program and contribute to supporting its efforts to combat corruption and achieve the required reforms,” ​​noting that “there are new names that will be put forward for discussion within the cabinet formation before proceeding to decide on them within the House of Representatives.”

Alsabaah.iq

MP: No political pressure on al-Zaidi’s campaign; holding those involved accountable must continue.

MP Mohammed Hadi called on Tuesday for support for Prime Minister Ali al-Zaidi’s anti-corruption campaign through the enactment of several laws that strengthen government procedures in prosecuting corrupt individuals, stressing the importance of the Parliament’s oversight role at this stage.

Hadi told the Information Agency that “Prime Minister Ali al-Zaidi’s anti-corruption campaign needs legislative support through the passage of several laws that bolster the state’s efforts in prosecuting corrupt individuals and protecting public funds.”
He added that “the legislative body is required to fulfill its oversight role and monitor the performance of government institutions, in accordance with its constitutional responsibilities in combating corruption.”

He called for “the avoidance of any pressure from political blocs to obstruct the anti-corruption campaign, and the necessity of providing full support for governmental and judicial procedures to ensure that those involved are held accountable according to the law.”

Almaalomah.me

Reuters: India resumes importing Iraqi oil

Indian state-owned oil refineries have resumed purchasing Iraqi crude oil that would have passed through the Strait of Hormuz, in an indication that the world’s third-largest crude oil importer is seeking to bring in supplies from the Middle East after the strait was temporarily reopened.

A Reuters report, translated by Al-Maalomah News Agency, stated that Mangalore Oil Refinery and Petrochemicals Limited (MRPL), a state-owned company that operates a 300,000-barrel-per-day refinery in southern India, has chartered an oil tanker to load crude oil from Iraq. This marks the first time an Indian state-owned refiner has chartered a vessel to transport Iraqi crude since tankers began entering the Strait of Hormuz several weeks ago.

The report added that, according to sources, MRPL has booked an Aframax tanker to load crude oil from the Basra oil terminal in the Gulf on July 19th and 20th. India has been attempting to charter vessels for weeks, facing difficulties amidst rising shipping costs and unclear terms and requirements governing passage through the Strait of Hormuz.
The report explained that since the temporary reopening of the strait, shipping traffic has picked up, particularly for departing tankers that had been stranded in the Gulf for months. However, many ship owners and operators remain extremely cautious about sending tankers through the strait to load cargoes.

The report also noted that Total… Energies is offering millions of barrels of Iraqi Basra Medium and Heavy crude for immediate delivery to Asia this month and next. Total Energies, one of the largest commodity traders among major oil companies, has offered buyers in China, South Korea, and Taiwan unspecified volumes of Iraqi crude that the giant will load from Basra and deliver via the Strait of Hormuz in the coming weeks. Arabs& Middle Easterners

Almaalomah.me

Finance: The first phase of the program budget includes electricity and two governorates

Iraqi Finance Minister Faleh Sari confirmed on Tuesday that the first phase of the program and performance budget will include the electricity sector and the governorates of Diwaniyah and Salah al-Din, with a gradual expansion to include all state institutions over the next three years. Arabs& Middle Easterners

According to a statement from the Ministry of Finance, which was followed by Shafaq News Agency, this came during a meeting held by the Minister with the Parliamentary Finance Committee today, within the framework of early coordination to prepare the next draft budget in cooperation with the House of Representatives and the World Bank.

Sari explained that “the Ministry of Electricity was chosen because this sector has spent large sums of money over the past years without achieving the desired results, which requires adopting a program budget to ensure that spending is directed towards sustainable solutions and measurable results.”

He added that “the selection of the governorates of Diwaniyah and Salah al-Din comes in light of their need to accelerate the pace of service and development projects, which allows for directing resources according to actual priorities and achieving the best benefit from financial allocations.”

Sari explained to the members of the parliamentary committee the picture of the current financial situation, the measures taken by the ministry to meet financial obligations, in addition to its efforts to maximize non-oil revenues, in order to ensure the continued funding of projects and basic services for citizens.

It is worth noting that the Cabinet approved last June, under the direction of Prime Minister Ali Faleh Al-Zaidi, the formulation of a “program budget” in coordination and joint cooperation with the World Bank and the Parliamentary Finance Committee, to advance the economic reform process in the country.

On Monday, Mazhar Muhammad Salih, advisor to the Iraqi Prime Minister for Financial Affairs, revealed that the Ministry of Finance had begun preparing the draft federal general budget law for 2027, in the first new budget that Iraq has begun preparing after two years of not approving a federal budget.

The government’s commencement of preparing the 2027 budget comes after two years of the absence of an effective federal budget with approved schedules, as the 2025 budget schedules were not approved, nor was a budget law for 2026 approved, despite the House of Representatives, during the government of former Prime Minister Mohammed Shia Al-Sudani, approving the three-year budget law for the years 2023, 2024 and 2025.

The 2025 budget, in its updated form, could not be implemented after its schedules were not approved within the House of Representatives and the fiscal year ended, which prompted the Ministry of Finance to adopt a temporary disbursement mechanism at a rate of 1/12, based on the Financial Management Law, to secure salaries, governing expenses and basic obligations.

The 2026 budget was also not approved, due to political complexities and economic pressures resulting from regional tensions and energy market volatility, so Iraq continues to manage its spending according to the temporary spending mechanism, pending a new federal budget.

Shafaq.com

The Central Bank of Iraq reduces the dollar quota for travelers to $2,000.

An informed source revealed on Tuesday morning that the Central Bank of Iraq has issued new directives to reduce the share of foreign currency (dollars) for travelers to $2,000 instead of $3,000, as part of the approved mechanism to meet travel requests.

The source told Shafaq News Agency that the decision will include Iraqi citizens departing through all airports and border crossings, whether they are heading for tourism, medical treatment, study, performing Hajj and Umrah rituals, as well as business trips.

He explained that the mechanism for delivering the funds will remain unchanged, through government and private banks and approved exchange companies, where the traveler receives his share after his passport is stamped and before the flight’s departure time.

The source added that the new instructions included travelers whose circumstances require additional amounts (for exceptional medical or commercial reasons) relying on electronic payment cards and loading them with additional balance, stressing that spending outside Iraq through these cards will be done according to the official exchange rate of 1320 dinars per dollar. Arabs& Middle Easterners

Shafaq.com

Araghchi: US threats are hindering the final agreement with Washington

Iranian Foreign Minister Abbas Araqchi asserted on Tuesday that negotiations to reach a final agreement between Tehran and Washington will not commence if American threats persist, in response to statements by US President Donald Trump.

Araghchi said in a post on the “X” platform that “negotiations on the final agreement will not begin if the threats continue. Respect your signature,” referring to the interim agreement signed by Iran and the United States last month, which stipulates that both parties refrain from threatening or resorting to the use of force.

The Iranian minister’s remarks come after the conclusion of a round of indirect talks between the two sides last week, without any announcement of progress towards a permanent agreement, despite the implementation of a 60-day ceasefire that was agreed upon to allow for the diplomatic track following the latest military confrontation.

US President Donald Trump had previously stated that the United States “either reaches an agreement with Iran or ends the mission,” hinting at the possibility of resorting to the military option if negotiations faltered.

Trump added that his country is capable of “destroying bridges and cutting off energy supplies” to Iran, noting that Washington prefers to reach an agreement, but has other options in case the diplomatic track fails.

Shafaq.com

Tensions with Araqchi and restrictions on Khamenei’s funeral procession… Al-Zaydi is leading Iraq away from Iran

Paul Davis, an American academic and researcher in national security affairs, believes that the Iraqi government is sending clear political messages that reflect a gradual shift in its foreign policy, led by Prime Minister Ali Faleh al-Zaidi, with the aim of reducing Iranian influence and opening up more to the United States and Arab countries. GeographicReference

Davis, an assistant professor at the Institute for World Policy in Washington, told Shafaq News that limiting the funeral ceremonies for former Iranian Supreme Leader Ali Khamenei within Iraq to Najaf and Karbala, without organizing official ceremonies in Baghdad, “represents a striking indication of the nature of the new relationship that the Iraqi government is trying to forge with Tehran.”

He added that “it is natural, given the historical relations and sectarian ties, for Iraq to participate in this occasion, but the absence of the capital from the scene carries political implications that cannot be ignored.”

Davis believed that the reports circulating about restricting the participation of Quds Force commander Ismail Qaani, if true, would be a “very significant signal,” especially in light of the government’s efforts to confine weapons to the state, and the associated influence of armed factions supported by Iran.

He noted that the heated discussions between Prime Minister Ali Faleh al-Zaidi and Iranian Foreign Minister Abbas Araqchi reflect the growing divergence between Baghdad and Tehran, especially with al-Zaidi’s anticipated visit to Washington approaching.

He continued: “It appears that al-Zaidi is not only seeking to strengthen his relationship with the United States, but is also working to reposition Iraq regionally, by building closer relations with neighboring Arab countries, and reducing the extent of Iranian influence in Iraqi decision-making.”

The American researcher added that this path will not be easy, explaining that the Prime Minister will face pressure from political forces and influential factions within the ruling coalition, and that it is still too early to judge the success of this approach.

Davis’s remarks came after information revealed by Iraqi sources to Shafaq News Agency, which spoke of the Iraqi government imposing restrictions on Khamenei’s funeral ceremonies, limiting them to the governorates of Najaf and Karbala, based on security and political considerations, while avoiding holding any ceremonies in Baghdad.

The sources also reported that Baghdad informed the Iranian side of the need for Iranian military leaders, including Quds Force commander Ismail Qaani, not to participate in the ceremonies, for fear that the event would carry political and security messages that go beyond its religious character.

However, the head of the parliamentary Design Alliance bloc, Amer Al-Fayez, denied to Shafaq News Agency the validity of the reports that Tehran had been informed that Qaani was “persona non grata” inside Iraq, stressing that this information was “completely false” and that it aimed to harm relations between Baghdad and Tehran, especially since Qaani “did not issue anything that warranted taking such a position.”

These developments coincide with al-Zaidi’s preparations to visit Washington and meet with US President Donald Trump, in a visit seen as a pivotal moment in shaping the foreign policy of the new government, amid Iraqi attempts to manage the balance between partnership with the United States and maintaining its relations with Iran, at a stage that is witnessing a rearrangement of the equations of influence in the region.

Shafaq.com

Economic analysis: Reduction in the traveler’s dollar rate pushes Iraqis to the black market

Economic expert Mohammed Al-Hassani suggested on Tuesday that the decision by the Central Bank of Iraq to reduce the amount allocated for air travelers from $3,000 to $2,000 will lead to an increase in demand for dollars in the parallel market during the first phase, with some travelers resorting to buying the remaining amount from local markets.

Al-Hassani told Shafaq News Agency that reducing cash allowances will push a segment of travelers who need larger sums to cover travel expenses to compensate for the difference by buying dollars from the parallel market, which may increase the volume of demand and have an impact on the exchange rate if it is not met with an increase in supply.

He added that the impact will not necessarily be large or long-lasting, as it depends on the number of travelers and the actual size of demand, as well as the ability of bank cards to meet spending needs outside Iraq, which is what the Central Bank seeks to enhance within the policy of expanding electronic payment.

Al-Hassani pointed out that the Central Bank’s success in encouraging the use of bank cards outside Iraq may reduce pressure on the parallel market, noting that any rise in the dollar’s ​​price will be temporary if it is accompanied by regulatory and supervisory measures that ensure market stability and the availability of foreign currency.

An informed source reported earlier today that new directives were issued by the Central Bank of Iraq to reduce the share of foreign currency (dollars) for travelers to $2,000 instead of $3,000, as part of the approved mechanism to meet travel requests.

According to the source, who spoke to Shafaq News Agency, the decision will include Iraqi citizens departing through all airports and border crossings, whether they are heading for tourism, medical treatment, study, performing Hajj and Umrah rituals, as well as business trips.

The mechanism for delivering the funds will remain unchanged, through government and private banks and approved exchange companies, where the traveler receives his share after his passport is stamped and before the flight’s departure time.

According to the source, the new instructions included travelers whose circumstances require additional funds (for exceptional medical or commercial reasons) relying on electronic payment cards and loading them with additional balance, stressing that spending outside Iraq through these cards will be done according to the official exchange rate of 1320 dinars per dollar.

Shafaq.com

During June, Iraq exported one-fifth of its pre-war oil volume.

Data from Vortexa showed that Iraq exported about 780,000 barrels per day of crude oil during June, which is only about 20% of the quantities it exported before the war, making it one of the Gulf countries that has not recovered its previous levels of production and export. Arabs& Middle Easterners

In contrast, the United Arab Emirates raised its crude oil production to more than 3.8 million barrels per day during June, the highest level approaching the record since April 2020, after withdrawing from OPEC and OPEC+ on May 1, which allowed it to increase production outside the quota system.

According to informed sources, the UAE was the fastest among Gulf producers to restore its production, while Saudi Arabia, Kuwait and Iraq remain below pre-war levels, despite the gradual improvement in exports with the resumption of navigation through the Strait of Hormuz.

Shafaq.com

Shafaq News deciphers the “code” of the biggest threat to the Iraqi dinar

The Iraqi citizen may not directly feel the rise or fall of the Central Bank’s foreign currency reserves, but he feels its effects in the dollar exchange rate, commodity prices, the purchasing power of the dinar, and even in the state’s ability to cope with economic crises. Arabs& Middle Easterners

Foreign reserves are considered the “first line of defense” for the Iraqi economy, as they give the central bank the ability to protect the dinar’s exchange rate, finance import operations, and maintain confidence in the financial sector, especially in a country that depends almost entirely on oil revenues.

In recent years, the reserve has recorded a gradual decline, as it decreased from $111.6 billion at the end of 2023 to $100.2 billion in 2024, then to $97.4 billion at the end of 2025, before settling at $97.8 billion at the end of April 2026. Despite this decline, experts confirm that the reserve is still at safe levels, but it remains dependent on oil prices and the state’s financial management.

In this regard, the Prime Minister’s financial advisor, Mazhar Muhammad Saleh, said that the Central Bank’s reserves are still within reassuring limits according to international standards, as they cover Iraq’s imports for about 12 months, while the global standard is only three months.

Saleh confirmed to Shafaq News Agency that these levels give the Central Bank significant ability to intervene in the exchange market and maintain the stability of the dinar, explaining that the size of the reserves is one of the most important indicators of the strength of monetary policy. He pointed out that exchange rate stability does not depend on reserves alone, but is also linked to oil prices, government revenues, the efficiency of the banking sector, and the level of confidence in the economy.

For his part, economist Mohammed Al-Hassani believes that the central bank’s reserves are primarily fueled by oil revenues, while non-oil revenues remain of limited impact.

Al-Hassani told Shafaq News Agency that the Central Bank does not use these funds to finance the budget, but rather to maintain monetary stability, support the dinar’s exchange rate, secure the necessary dollars for imports, and bolster investor confidence in the Iraqi economy. He noted that a portion of the reserves is invested in safe and highly liquid financial instruments with international institutions, thus preserving their value and ensuring their availability when needed.

Mahmoud Dagher, the former general manager of the Central Bank, believes that the impact of the reserve on the citizen is indirect, explaining that its real impact appears when speculation on the dollar increases or confidence in the market declines.

Dagher told Shafaq News Agency that news and rumors about the economy or oil exports are driving some citizens and merchants to buy dollars, increasing demand and driving up its price on the parallel market. Since Iraq relies heavily on imports, any rise in the dollar’s value inevitably leads to higher prices for imported goods and a decline in the dinar’s purchasing power, according to Dagher.

For his part, Najm Abdul Tarish, a professor of political science at Dhi Qar University, pointed out that the continued decline in oil prices to levels ranging between $55 and $60 per barrel may put pressure on reserves, if it coincides with continued high government spending.

Abdul Tarish explained that the reserves will not decline sharply in the near term, but they could gradually erode if oil revenues continue to fall without genuine economic reforms. He stated that protecting the reserves cannot be achieved by relying solely on oil, but rather through economic diversification, increasing non-oil revenues, and encouraging investment and domestic production.

What does this mean for the citizen?

According to experts, keeping the reserves at their current levels reassures the markets and strengthens the stability of the dinar’s exchange rate, while a prolonged decline in reserves could reduce the central bank’s ability to intervene, negatively impacting the prices of the dollar and imported goods.

Thus, the central bank’s reserves are not just a number in financial reports, but one of the most important guarantees for the stability of the Iraqi economy, and largely determine the state’s ability to protect the dinar, confront crises, and maintain the purchasing power of citizens.

Shafaq.com