Al-Sudani stresses to the US Secretary of State the need to avoid any unilateral steps outside the framework of communication and consultation.

Prime Minister Mohammed Shia al-Sudani affirmed that “friendly relations between Baghdad and Washington are based on constructive dialogue,” emphasizing the need to avoid any unilateral steps outside the framework of communication and consultation.

A statement from the Prime Minister’s Office said: “Al-Sudani received a phone call from US Secretary of State Marco Rubio, during which they discussed ways to strengthen bilateral relations between Iraq and the United States, and to continue joint efforts aimed at consolidating the deep and multidimensional partnership between the two countries in the political, economic, cultural, security, and military fields.”

The Prime Minister reiterated the Iraqi government’s commitment to continuing the momentum of bilateral cooperation and moving forward in implementing the agreements and understandings reached over the past months, stressing the need to avoid any unilateral steps outside the framework of communication and consultation.

He also stressed the government’s keenness to strengthen the democratic process in order to consolidate political stability and sustainable development in Iraq.

Burathanews.com

Central Bank: Iraq’s public debt is lower than that of the United States and several other Arab countries.

The Central Bank of Iraq confirmed on Monday that the external debt curve is declining and that Iraq is within safe limits for public debt. The bank noted that Iraq’s public debt-to-GDP ratio stands at 31%, a lower percentage than that of developed countries such as the United States and Japan, and other Arab countries such as Egypt, Algeria, and Morocco.
Samir Fakhri, Director General of the Statistics and Research Department at the Central Bank, said, “Total public debt is divided into domestic and external debt. Domestic debt, as of the end of last September, amounted to 90.6 trillion dinars.”

He added, “The domestic debt is divided into more than 50% in favor of the Central Bank, and less than 50% in favor of banks, whether private or government-owned,” indicating that “the majority of the debt owed to banks is owed to government-owned banks, i.e., from government to government.”

He pointed out that “the external debt has reached $54 billion, and is divided into three parts: the largest part, namely $40.5 billion, dates back to before 2003. It is a suspended debt, and we are not currently bearing any burdens on it, whether interest or debt service, from 2003 until today.”

He continued, “The second part is the Paris Club debt, which amounted to $120 billion, 80% of which has been written off, leaving $24 billion. With what Iraq has paid, only $3.8 billion remains, which was supposed to be covered until the end of 2028.” We note here that the external debt curve is declining.

He pointed out that “the third portion amounts to approximately $10 billion, and is related to investment spending. It is a long-term debt of twenty years, owed to a group of countries and organizations, including Japan’s JICA, Germany’s Siemens, Spain, and Britain. Thus, the total debt amounts to approximately $10 billion. If we exclude the forty and a half billion, the remaining amount is approximately $13 billion.”

He emphasized that “if we convert these debts into dollars multiplied by the current exchange rate and add them to the domestic debt, the total debt-to-GDP ratio would reach approximately 43%. However, if we exclude the suspended debt of $40 billion, the public debt ratio would be around 30 to 31% of GDP.”

Regarding financing the three-year budget deficit, Fakhri explained that “the deficit within the budget law was approved by Parliament for a period of three years. It is a planned deficit, not an actual one, of approximately 64 trillion dinars per year, meaning a total of 192 trillion dinars for the three years. What was actually spent as real debt is approximately 35 trillion dinars.” He indicated that “if we divide 35 trillion by the planned deficit, the percentage will be approximately 18.2%,” noting that “the debt was 56 trillion dinars until the end of 2022, and from 2022 until today, 35 trillion has been added to it, bringing the total to approximately 90.6 trillion dinars that we mentioned.”

He added, “One of the most important indicators of monetary policy is the consumer price index (inflation), which is currently close to zero. If we compare it with neighboring countries like Iran and Turkey, we find a clear difference in inflation rates between them and Iraq, in addition to the exchange rate gap.”

He stressed that “the focus must be on financing the deficit, so it must be directed towards investment spending, as this leads to growth in non-oil revenues.”

Fakhry touched on some of the debt ratios in neighboring countries, noting that “in Egypt, public debt amounts to 90% of GDP, in Algeria: 49%, in Morocco: 70%, in Lebanon: 160-170%, and in Saudi Arabia: 29%, despite being a strong and industrially advanced economy.”

He pointed out that “major industrialized countries, such as the United States, have a public debt of 120%, while Japan’s debt ratio is 250%.”

Alforatnews.iq

Central Bank: Iraq’s debt is moderate and within safe limits.

The Central Bank of Iraq stressed that the ratio of public debt to GDP did not exceed 43%, describing it as moderate and within internationally safe limits, and does not constitute a burden on the national economy.

The statements came in response to media reports regarding the size of the public debt and the deficit in the three-year general budget.

The statement explained that the planned deficit amounted to (191.5) trillion dinars, while the actual deficit did not exceed (35) trillion dinars, and was covered internally with bonds and transfers, which reflects the level of coordination between the government and the Central Bank to control the public debt. The statement added that the external debts due do not exceed (13) billion dollars, and the internal debt of (91) trillion dinars is mostly within the government banking system, and part of it is being transferred to investment instruments within a national fund.

For his part, economic expert Dr. Nabil Rahim Al-Abadi said that the statement delivers a well-thought-out message of reassurance, reflecting a high level of financial discipline and a drive toward financial sustainability and economic diversification away from a single reliance on oil.

Alsabaah.iq

Iraqi banks and exchange companies fined 91 billion dinars over nine months.

The Central Bank of Iraq announced on Monday that it had imposed fines on banks and non-banking institutions (exchange companies) amounting to more than 91 billion Iraqi dinars over the first nine months of 2025.

A bank statistic, seen by Shafaq News Agency, showed that fines imposed on banks and financial companies during the past nine months, starting from January until the end of last September, amounted to 91 billion, 921 million, and 130 thousand dinars. The statistics also indicated that “the fines also included 98 administrative penalties for these banks and non-banking institutions, distributed between warnings, alerts, and grace periods.”

According to the bank, “these fines are down from the same period last year, which amounted to 199 billion, 889 million, and 755 thousand dinars, while penalties amounted to 221, distributed between warnings, cautions, and grace periods.”

The bank did not mention the names of the banks on which it imposed fines or administrative penalties.

It is noteworthy that the number of private banks amounts to approximately 51 banks, including 23 private commercial banks and 28 private Islamic banks.

Shafaq.com

Zebari: Appointing Savaya is a bold step toward restoring Iraq’s sovereignty from militia rule.

Kurdistan Democratic Party (KDP) leader Hoshyar Zebari said on Monday that US President Donald Trump’s appointment of Mark Savaya as his special representative to Iraq is an admission that the situation in the country is “abnormal.”

Zebari said in a post on the X platform that “Trump’s appointment of Mark Savaya, a Chaldean Christian American of Iraqi origin, as his special representative to Iraq is an admission that the situation in Iraq is abnormal.” He stressed that this requires “measures and decisions outside the usual diplomatic and official frameworks to correct and rectify the turbulent and chaotic situation,” expressing his wishes for “Mark’s success in his mission.”

In a subsequent tweet in English, Zebari described the appointment as “good news and a bold decision to restore Iraqi sovereignty and independence, free from corruption, mismanagement of resources, and militia rule.”

For his part, Mark Savaya, US President Donald Trump’s special envoy, expressed his gratitude and pride at his appointment, stressing that he was humbled by this responsibility.

“I am committed to strengthening the partnership between the United States and Iraq under the leadership and guidance of President Trump,” Savaya tweeted.

US President Donald Trump announced yesterday, Sunday, the appointment of Mark Savaya as Special Envoy to Iraq, writing on the Truth Social platform: “I am pleased to announce that Mark Savaya will serve as Special Envoy to the Republic of Iraq.”

Trump added, “Mark’s deep understanding of the relationship between Iraq and the United States and his extensive connections in the region will advance the interests of the American people.”

Shafaq.com

The International Monetary Fund (IMF) has announced its forecast for Iraq’s inflation rate in 2028.

The International Monetary Fund (IMF) predicted on Monday that Iraq’s inflation rate will decline in 2028.

According to IMF data reviewed by Shafaq News Agency, Iraq’s annual inflation rate in 2024 was 3.6%, compared to 5.3% in 2023, and 5% in 2022.

The IMF also expects Iraq’s inflation rate to decline to 2% in 2028.

In Arabic, the Fund indicated that expectations indicate that Kuwait’s inflation rate will decline in 2028 to 1.9%, while Sudan will have the highest inflation rate, at 39%.

The Iraqi Ministry of Planning announced yesterday, Sunday, a slight increase in the inflation rate during September, according to field monitoring of consumer prices conducted by teams from the General Authority for Statistics and Geographic Information Systems in all governorates.

Shafaq.com

Iraq is implementing comprehensive banking reforms in cooperation with the Central Bank and international consulting firms.

The Iraqi economy is one of the most oil-dependent in the world, with oil accounting for more than 90% of government revenues and exports. This makes Iraq’s economic stability highly dependent on fluctuations in global oil prices.

Although Iraq has vast natural resources, decades of conflict, corruption, and weak governance have hampered its economic development. However, the Iraqi government, in collaboration with the Central Bank of Iraq and the International Monetary Fund (IMF), has begun implementing important reforms aimed at modernizing the banking system, enhancing transparency, and diversifying sources of income. These changes will have a significant impact on the future and stability of the Iraqi economy.

1. Oil dependence and economic fragility

The oil sector remains the backbone of the Iraqi economy, providing nearly all government revenue. When oil prices rise, the economy experiences rapid growth, but when they decline, budget deficits emerge, salaries are delayed, and investments in sectors such as health and education are reduced.

For example, the International Monetary Fund (IMF) (2025) reported that non-oil growth fell to about 2.5% in 2024 due to the volatility of oil revenues, demonstrating how deeply the Iraqi economy is intertwined with the oil sector. This heavy dependence creates a “boom and bust” cycle that impacts long-term planning, job opportunities, and social stability.

Effects:

Over-reliance on oil limits economic diversification.

Volatility in oil prices leads to instability in public services and salaries.

Weak investment in non-oil sectors such as agriculture and industry.

2. The role of banking and financial reforms

In 2025, the Iraqi government launched a comprehensive banking sector reform program in collaboration with international firms such as KPMG, Ernst & Young (EY), and the International Finance Corporation (IFC).
These reforms aim to modernize the banking system, increase transparency, and attract foreign investment. The Central Bank of Iraq is also working with the United Nations Development Programme (UNDP) to develop the digital economy and regulate e-commerce.

According to Iraq Business News (October 2025), Prime Minister Mohammed Shia al-Sudani emphasized that reforming the banking sector is a fundamental pillar for building confidence and boosting economic activity.

Effects:

Improving banking standards will make it easier for small and medium-sized enterprises to access financing.

Enhancing transparency will reduce financial and administrative corruption.

The shift to e-services will support modern commerce and entrepreneurship.

If these reforms succeed, Iraq will transform from a traditional cash economy to a more modern one based on technology and institutional trust.

3. Unemployment and weak private sector

Unemployment is one of Iraq’s most prominent economic and social challenges, especially among youth and women. A large number of citizens rely on government employment, while the private sector suffers from weak infrastructure, financing, and investment.

The IMF report (2025) indicates that improving labor market policies and financing could raise employment rates by about 2.5% over five years. To achieve this, Iraq needs to support entrepreneurship, expand vocational education, and stimulate domestic and foreign investment.

Effects:

High unemployment leads to increased poverty and social instability.

Supporting the private sector reduces dependence on government jobs.

Developing agriculture, tourism, and manufacturing industries could create thousands of new jobs.

4. Corruption and weak governance

Administrative and financial corruption and weak institutions are considered among the greatest obstacles to the development of the Iraqi economy. Both the World Bank and the International Monetary Fund (2025) emphasized that the lack of transparency and weak laws deter foreign investors and lead to the waste of public resources.

Although the government has begun implementing campaigns to combat corruption and enhance financial transparency, these efforts require greater institutional and legal support to ensure sustainability.

Effects:

Corruption widens the gap between social classes and reduces citizens’ trust in government.

Weak laws and regulations reduce investor confidence.

Improving governance will encourage international partnerships and investments.

5. The future outlook for the Iraqi economy

If Iraq continues to implement current economic reforms, the economic situation could improve significantly in the coming years. Diversifying the economy toward sectors such as renewable energy, agriculture, tourism, and digital services is expected to reduce dependence on oil.

The International Monetary Fund expects the success of structural reforms to lead to sustained GDP growth and expansion in the non-oil sectors. However, this improvement depends on political and security stability and continued cooperation with international institutions.

Potential positive effects:

Strengthening the financial system and increasing foreign investment.

Creating job opportunities for youth and women.

Improve infrastructure and promote trade.

Achieving long-term economic stability.

Potential negative impacts (if reforms fail):

Continued dependence on oil and economic volatility.

High unemployment and increased social tensions.

Weak international confidence and declining investment.

Conclusion

The Iraqi economy is going through a delicate phase combining challenges and opportunities. Although oil remains the primary source of income, ongoing reforms in the banking sector, governance, and economic diversification represent real steps toward transformation.
The greatest challenge remains transforming temporary oil wealth into long-term sustainable development. This requires transparency, investment in people, and building strong institutions that support innovation and integrity.

If Iraq succeeds in implementing these reforms and promoting economic diversification, it will be able to build a stable economy that creates jobs and improves the standard of living for future generations.

Economic Studies Unit / North America Office,
Rawabet Center for Research and Strategic Studies

Rawabetcenter.com

Trump appoints Mark Savaya as special envoy to Iraq

US President Donald Trump announced on Sunday the appointment of Mark Savaya as his special envoy to Iraq.

“I am pleased to announce that Mark Savaya will serve as Special Envoy to the Republic of Iraq,” Trump wrote on Truth Social.

The US President said, “Mark’s deep understanding of the relationship between Iraq and the United States and his extensive connections in the region will contribute to advancing the interests of the American people.”

Mark Savaya is a prominent American businessman and pioneer in the cannabis (marijuana) industry in Michigan. He is 40 years old and is known as the founder and CEO of Leaf and Bud, one of the fastest-growing cannabis companies in the state.

Mark Savaya was born to an Iraqi Chaldean family who emigrated from Iraq in the 1990s to escape unrest and settled in the Detroit, Michigan area. This area is known for being home to the largest Chaldean community outside of Iraq.

Burathanews.com

New instructions from the Central Bank of Iraq to prevent dollar smuggling starting next month

On Saturday, the Echo Iraq Observatory revealed new instructions issued by the Central Bank to all authorized banks in the country regarding financial transfers and customs clearance procedures related to the requirements for approving special commercial invoices.

The Observatory said in a statement received by Shafaq News Agency, “The Central Bank, in Circular No. (267/4/9) dated 10/15/2025, decided to include in commercial invoices a set of basic information, including: shipping and payment terms, value and invoice currency, and the Global Harmonized System of Classification and Labelling of Goods (GHS) code,” adding, “As well as the addresses of the importer and destination, an accurate description of the goods, their origin, their trademark, quantity and unit of measurement, and the unit and total price.”

He explained that “the circular stipulates that one of the following invoices must be approved: the final commercial invoice, or the preliminary invoice attached to the sales contract, provided that the final invoice contains all the data of the preliminary invoice.”

According to Echo Iraq, “these instructions will be implemented starting November 1, 2025,” indicating that “the aim of the decision is to regulate foreign financial transfers and enhance transparency and accuracy in customs clearance as part of the national automation project.”

The Observatory believes that “this step has several positive aspects, most notably enhancing the standardization of procedures and reducing errors in commercial transactions, in addition to supporting the customs automation project.”

This decision comes as part of the efforts of the Central Bank of Iraq and government agencies to develop the financial and administrative environment and improve the level of oversight and compliance with international standards in foreign trade.

The Eco Iraq Observatory is a media research institution specializing in analyzing the country’s economic performance. It focuses on oil prices and their impact on the budget, in addition to monitoring the performance of Iraqi banks and their role in supporting the economy and financing projects.

Shafaq.com

From Washington: A new banking and economic reform package for Iraq

The Iraqi delegation participating in the banking reform conference in Washington, D.C., on the sidelines of the International Monetary Fund and World Bank meetings, announced a new package of banking and economic reforms on Saturday aimed at strengthening the stability of the financial system and attracting investment.

“The government has implemented a series of steps as part of the economic and financial reform program, most notably the implementation of comprehensive strategic banking reforms in cooperation with the Central Bank of Iraq and international consulting firms, as well as the preparation of a three-year budget for the first time in Iraq’s history to ensure stable financial planning that attracts investment,” said Saleh Mahoud Salman, an advisor to the Iraqi Prime Minister, according to a statement received by Shafaq News Agency.

He added that “automating the customs system through the implementation of the United Nations ASYCUDA program has led to a significant increase in customs and tax revenues, the restructuring of government banks (Rafidain, Rasheed, Industrial, and Agricultural) and increased their operational efficiency, as well as the expansion of electronic payment systems and increased financial inclusion from less than 10% to more than 40% within two years.”

Salman continued, “Support programs have been launched for small and medium-sized enterprises to create job opportunities and stimulate the local economy,” noting that “these steps represent a pivotal stage in the economic reform process, and that the government will continue to support the development of the banking sector in cooperation with international institutions.”

Prior to this, the Central Bank of Iraq announced new instructions to all authorized banks in the country regarding money transfers and customs clearance procedures related to the requirements for the approval of special commercial invoices, with the aim of curbing currency smuggling.

This measure comes as part of the efforts of the Central Bank of Iraq and government agencies to develop the financial and administrative environment and improve the level of oversight and compliance with international standards in foreign trade.

Shafaq.com