Central Bank of Iraq: Adjusting the exchange rate was the best solution to protect foreign reserves

The Director General of the Statistics and Research Department at the Central Bank of Iraq, Samir Fakhri Naama, described on Tuesday the decision to adjust the exchange rate of the US dollar against the dinar as the “ideal” solution to preserve the country’s foreign reserves and to confront the “shock” of declining revenues resulting from the crisis in the Strait of Hormuz and its surroundings, stressing that the impact of this adjustment on inflation remains much less than the consequences of devaluing the currency. Iraqeconomic news

This came during his participation in the ninth dialogue session of the “Miri 2026” forum held in Erbil, which was entitled “The Dinar, the Dollar and Discipline: The Central Bank of Iraq in a Turbulent World”.

Naama said, “The issue of the exchange rate and its relative importance varies from one country to another. For Iraq, it is not just a local exchange of foreign currency, but because the Iraqi economy is rentier, it depends almost entirely on oil revenues, and its sources of income depend on external demand, which makes any external fluctuations directly affect it.”

He explained that “the most important equation that works in the Iraqi economy is that government spending depends on oil revenues in dinars issued by the Central Bank,” noting that “for every billion dollars exchanged at the approved exchange rate, for example (1300 dinars per dollar), the government is financed with 1.3 trillion dinars, but every dinar spent in the budget for operational spending returns again as a demand for dollars at the Central Bank.”

Naama added that “oil revenues constitute more than 93% of the state’s public revenues,” noting that “if this spending were directed towards investment aspects, it would contribute to the growth of the gross domestic product and reduce the demand for the Central Bank’s dinars, while the accumulated foreign reserves would be used to meet this operational spending through a sterilization strategy to withdraw the dinar in exchange for the dollar.”

The Central Bank official revealed the behind-the-scenes details of the recent crisis involving the adjustment of the exchange rate since October, explaining that “the Iraqi economy has been exposed to more than one positive and negative shock; in 2023 we witnessed a positive shock that led to an increase in revenues and the exchange rate was reduced at that time, while the negative shock represented by the Strait of Hormuz crisis in 2026 caused an oil production shock that directly put pressure on indicators and reserves.”

He pointed out that “given the difficulty and conditions of external borrowing, the effects of the crisis began to appear in May and June because the shock did not appear in February and March due to the sale of oil on credit, which later led to an almost complete halt in realized oil revenues, and caused great pressure on reserves.”

Naama continued, saying that “the government issues bonds financed by government banks, and if those banks are unable to dispose of them, the central bank intervenes to exchange the dinars,” stressing that “the central bank’s vaults are full of dinars, but they constitute a debt that must be countered by a dollar obligation or revenue.”

The Director General of Statistics and Research concluded by emphasizing that “the main challenge was how to maintain foreign reserves to keep the economy running and bring it to safety, which necessitated changing the exchange rate to counter the shock of financial revenues generated from oil,” stressing that “the impact of adjusting the exchange rate on the general level with regard to prices and inflation was much less than the consequences of a direct change if it had been made to the value of the currency.”

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The Central Bank reassures Iraqis: Our foreign reserves cover imports for a full year.

The Director General of the Statistics and Research Department at the Central Bank of Iraq, Samir Fakhri Naama, announced on Tuesday that the bank’s foreign currency reserves are in a “comfortable position” and can cover the import bill for a full year, revealing that monthly government spending ranges between 9 and 10 trillion dinars, and that the recent rise in oil exports has eased the financial pressure. Iraqeconomic news

This came during his participation in the ninth dialogue session of the “Miri 2026” forum held in Erbil, which was entitled “The Dinar, the Dollar and Discipline: The Central Bank of Iraq in a Turbulent World”.

Naama said that “Iraq’s external debt has witnessed a continuous decline throughout the previous years,” noting that “due to the shock resulting from the disruption of oil exports, we are going through a situation that requires evaluation and choosing between the two options: moving towards internal or external debt, which requires accurate studies and forecasts, as well as continuous consultation and coordination with financial policymakers on a monthly basis.”

He explained that “monthly government spending is limited to between 9 and 10 trillion dinars, and its financing mechanism is divided,” noting that “during this month and the previous month, we began to develop much greater flexibility compared to previous months, as the average oil exports exceeded the 2.5 million barrel per day mark, which gave the government greater flexibility in financing and reduced the direct pressure on the Central Bank.”

The Central Bank official reassured the Iraqi public regarding the cash cover, stressing that “the Central Bank is in a very comfortable position in terms of foreign reserves; while the International Monetary Fund reports indicate our ability to finance the import bill for a period ranging from 3 to 6 months, I confirm that it covers the country’s needs for a full year or more, and we will successfully overcome this crisis we are facing, which is represented by oil financial revenues.”

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Al-Jurani: Basra’s commercial ports are a wasted economic asset.

MP Qaisar al-Jurani affirmed on Monday that activating commercial ports in Basra Governorate is an economic necessity to revitalize trade and increase non-oil revenues, in addition to providing job opportunities for the governorate’s residents in the transportation, storage, and services sectors.

Speaking to Al-Maalouma, al-Jurani said, “Iraq’s geographical location, and Basra Governorate in particular, gives the country a strategic opportunity to connect Asian and European markets via Iraqi ports.” He pointed out that “capitalizing on this advantage can transform the ports into a vital economic artery that contributes to supporting trade and strengthening the state’s resources.”

He added, “This matter requires a clear vision from the relevant authorities, especially the Ministry of Transport and the General Company for Iraqi Ports, along with the necessity of reviewing current plans and identifying the reasons for not utilizing available resources as required, at a time when neighboring countries are working to develop their ports and enhance their commercial role.”

Al-Jurani explained that “port development is not limited to expanding commercial activity, but also requires establishing an integrated transport fleet and developing logistical facilities, in addition to facilitating customs procedures and reducing the complexities that affect the movement of goods and increase the costs of transporting and delivering them to markets.”

He pointed out that “Iraq possesses maritime and commercial capabilities that can contribute to diversifying the economy and reducing dependence on oil revenues,” stressing “the importance of reconsidering the management of this sector and developing practical plans to capitalize on Basra’s location and its ports, which will positively impact the national economy and citizens.” Iraqeconomic news

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Al-Tamimi clarifies the legality and feasibility of paying salaries in dollars instead of dinars.

Legal expert Ali Al-Tamimi explained the legality and possibility of moving towards paying salaries in Iraq in US dollars instead of Iraqi dinars.

Al-Tamimi told Al-Maalouma, “Iraq does not have any legal basis at present, and its application is a clear violation of existing laws and requires legislative amendment, because the laws of service and salaries stipulated the dinar exclusively, as the State and Public Sector Employees Salaries Law No. 22 of 2008, Article (1) defined the salary, and Article (3) and the salary schedule attached to the law specified the amount of the salary in numbers in Iraqi dinars exclusively, and any payment in another currency is considered an amendment to the salary schedule and this can only be done by law according to Article 3/Second of the same law.”

He added that “Civil Service Law No. 24 of 1960, in Article (56) and beyond, when it speaks about salary and allowances, assumes that they are in the national currency. The Central Bank Law also prohibits this, as Law No. 56 of 2004 indicated in Article (32), Paragraph One (the Iraqi dinar shall be the national currency, and the only legal tender that has unlimited legal tender power within Iraq).”

He explained that “Article (33) confirmed (no person may be obliged to accept a currency other than the dinar in settling debts within Iraq), in addition to the fact that the salary is a debt owed by the state to the employee, so it must be paid in the legal currency.”

He pointed out that “the only exception permitted by the legislator is outside Iraq, for the payment of allowances to Ministry of Foreign Affairs employees abroad. Furthermore, the instructions for sending employees abroad have permitted the payment of salaries and allowances in foreign currency (dollars) for embassy and mission staff and scholarship students, because the place of payment is outside Iraqi monetary sovereignty. However, this is not permissible within Iraq.”

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This week, Al-Hamami reveals details of the session to decide on the nine remaining ministerial portfolios in Al-Zidi’s government.

Former MP and State of Law Coalition member, Arif al-Hamami, confirmed on Monday that the session to decide on the nine remaining ministerial portfolios in Ali al-Zaidi’s government will be held this week.

Al-Hamami explained to Al-Maalouma that “through consultations, meetings, and dialogues among various political forces, including the Coordination Framework, the direction is towards holding a session of Parliament this week to vote on the nine remaining portfolios in Ali al-Zaidi’s government, which are currently being run by acting ministers.” He denied “the existence of any disagreements regarding the candidates for some ministries.”

Al-Hamami confirmed that “the position of Minister of the Interior has been decided for the State of Law Coalition’s candidate, Abu Yasser al-Maliki,” indicating that “the ball is now in Parliament’s court, as it is the body constitutionally responsible for voting on ministerial candidates.”
He stressed that “the information available to us confirms that the session will directly decide on the portfolios.”

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Al-Shammari speaks about urgent steps to revive the economy and revitalize the markets.

Maysar al-Shammari, a leader in the Hikma Movement, emphasized on Monday the necessity of adopting economic diversification and activating the five pillars of agriculture, industry, technology, investment, and energy. He pointed out that these demands have been raised for years, but require practical steps for implementation.

Speaking to Al-Maalouma, al-Shammari said, “Iraq needs to diversify its economy and not rely on a single source of revenue by supporting productive sectors, developing industry, agriculture, and technology, attracting investments, and strengthening the energy sector. This will contribute to building an economy more capable of withstanding crises.”

He added that “diversifying oil export sources is an important step to reduce the risks associated with relying on a single route,” noting “the importance of activating export pipelines, including Banias, Ceyhan, and Basra-Aqaba, and working to increase oil exports.” Al-Shammari explained that “implementing these steps would alleviate the burdens on citizens, revitalize markets, stimulate the economy, and enhance the country’s ability to confront economic fluctuations and the repercussions of external crises.”

He pointed out that “the crises witnessed in the region have impacted the economic situation in Iraq, particularly in light of the repercussions of the American war on Iran,” stressing “the importance of expediting the diversification of export outlets and revenue sources to reduce the Iraqi economy’s vulnerability to regional developments.”

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Al-Zaydi reiterates the need to control currency exchange rates and prevent “speculation”

On Monday, Prime Minister Ali Faleh al-Zaidi reiterated his commitment to controlling currency exchange rates in the country, preventing speculation, and eliminating price discrepancies between the official and parallel rates. Financialnews subscription

Al-Zaydi said during a meeting held at the Nineveh Governorate headquarters that “the government is proceeding with the implementation of its development plans for the governorates, and that Nineveh deserves efforts to improve its service and living conditions. The doors are also open to follow up on any shortcomings, in order for the governorate to have a future that befits it, its history and its cultural heritage.”

According to a statement from his media office, he stressed the need to confront any cases of corruption, the importance of preserving public funds, and countering attempts to distort national identity by inciting discord and division among the components of the governorate .

He explained that the government is committed to financial and administrative reform, including controlling foreign exchange rates, preventing speculation, and stopping the economic bleeding represented by exchange rate differences, from which speculators were making profits at the expense of the local economic cycle .

Al-Zaydi explained that his plan for the million-farm project will be in the form of agricultural specializations that suit the governorates and develop agricultural wealth in them, such as making Basra the capital of Iraqi palm trees, and Najaf the capital of rice production, in addition to establishing food factories that will be supplied with the products of the farms, as well as what this plan will provide in terms of job opportunities, an increase in local production and the strengthening of food security.

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Exceeding 442 billion dinars… Significant growth in Iraqi customs revenues for the month of September

The Iraqi General Authority of Customs announced on Monday that it had achieved a significant increase in its total revenues for September 2026, compared to the same month in 2025. Iraqeconomic news

Financial comparison data showed that total customs revenues for September 2026 amounted to (442,266,831,097) four hundred and forty-two billion, two hundred and sixty-six million, eight hundred and thirty-one thousand and ninety-seven Iraqi dinars, compared to (334,196,099,859) three hundred and thirty-four billion, one hundred and ninety-six million, ninety-nine thousand, eight hundred and fifty-nine dinars in September 2025, achieving an increase of (108,070,731,238) one hundred and eight billion, seventy-million, seven hundred and thirty-one thousand, two hundred and thirty-eight dinars.

According to a statement issued by the authority, this increase is a result of efforts to enhance the efficiency of customs performance, raise the level of collection, and continue working on developing non-oil revenues, which strengthens the state’s financial resources and supports the economic development process.

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Talabani calls on Erbil to change its policy towards Baghdad and take advantage of al-Zaidi’s “golden opportunity”.

On Monday, the head of the Patriotic Union of Kurdistan, Bafel Jalal Talabani, warned of the seriousness of the situation in the Middle East and its security and economic repercussions on the Kurdistan Region and Iraq, describing the presence of Prime Minister Ali al-Zaidi as a “golden” opportunity that the regional government should take advantage of by changing its policy of dealing with Baghdad. Financialnews subscription

During a special dialogue session held on the sidelines of the “Miri” forum in Erbil, Talabani said, “The region is going through dangerous conditions that require preparedness and responsible action, starting with resolving the issue of forming the regional government.” He explained that “the security and economic risks are not limited to a specific region, but their effects extend to the entire world, which necessitates finding radical and urgent solutions.”

The opportunity for peace and the Iranian initiative

The head of the Patriotic Union explained that “the current crises hold great opportunities for the Kurds, foremost among them the peace process in Turkey, which everyone must support to achieve a comprehensive peace,” revealing that “the Iranians have proposed starting a general peace process in the region, and we, for our part, are always ready and prepared to play an active role in calming things down based on our historically balanced relations with various parties.”

The relationship between Baghdad and Erbil

Regarding the relationship with the federal government, Talabani stressed the need for the Kurdish forces to change their policy towards Baghdad, saying: “We have a good prime minister, a businessman who does not practice any discrimination or racism towards the Kurds, and this is a golden opportunity for the regional government that should not be wasted.”

He added, “Iraq today is not as it was in the past; if a weak Iraq in the past represented a reason for a strong Kurdistan, the equation today is completely different, as a stable, rich and united Iraq means a stable, rich and united Kurdistan.”

Kurdistan’s internal affairs and the agreement with “New Generation”

Regarding the internal affairs of the region, Talabani referred to the recent political agreement between the Patriotic Union and the New Generation Movement, describing it as a “positive opportunity” for the Kurdistan Democratic Party before it was for the Union, adding: “The entry of the largest opposition party into the political process is a positive step that should have been welcomed instead of being attacked by the media.”

Regarding the relationship with the Kurdistan Democratic Party, Talabani stressed that the doors of dialogue remain open, noting that “very positive” meetings were held recently between Qubad Talabani and the head of the Democratic Party, Kurdish leader Masoud Barzani, and emphasizing the complete readiness to coordinate and reach agreements that would spare the Kurdish people from crises and dangers.

American withdrawal and the weapons of the factions

Regarding the issue of the American withdrawal, Talabani commented, “America did not go to Mars, and if it wants to return to Iraq again, it will return with ease.”

Regarding the weapons of the armed factions and the state’s monopoly on weapons, Talabani revealed that these factions “agree in principle to hand over their weapons to the government,” explaining that these factions include religious people and fighters who fought ISIS, and they follow the vision of the religious authority in a way that serves the interest of Iraq.

He pointed out that the success of the arms delivery file “requires coordination and cooperation with Iran, as it cannot be achieved without it,” stressing that the matter is not impossible but it needs patience and time.

Repercussions of the Strait of Hormuz crisis

Talabani warned of the economic risks of the Strait of Hormuz crisis, stressing that it is “a very big crisis and casts a shadow over Iraq, which is mainly dependent on oil,” noting that “no tangible reforms or economic development can be expected unless this crisis is resolved.”

Relations with Türkiye and the regional Kurdish issue

In the area of ​​foreign relations, Talabani described the Patriotic Union of Kurdistan’s relations with Ankara as “very good,” noting that significant progress had been made in normalizing them.

He added that “Turkey has reached the conviction that the Kurdish issue can be resolved through dialogue and peaceful means,” revealing that talks have been held with the Iranian side to begin a similar process concerning the Kurds of Iran, stressing that “the region faces great dangers that require solidarity and overcoming secondary differences.”

Iranian-American relations: “An opportunity that will not be repeated”

In the context of regional crises, Talabani highlighted the negotiations between Washington and Tehran, describing the current stage as a “crucial and pivotal opportunity,” stressing that “if Iran cannot reach an agreement with the United States this time, it will never reach an agreement with it.”

The head of the National Union added that after his communication and discussions with several Iranian and American officials, he had reached a firm conviction that reaching an agreement was now inevitable, directing the same message to the American side by saying: “If the Americans cannot reach an agreement with President Pezeshkian’s administration and Foreign Minister Araqchi this time, they will never be able to reach an agreement.”

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Talabani sends a message to the KDP: By uniting our forces in Baghdad, we can govern Iraq and change the Middle East.

On Monday, the leader of the Patriotic Union of Kurdistan (PUK), Bafel Talabani, addressed an open letter to his rival, the Kurdistan Democratic Party (KDP), calling on them to conclude a comprehensive agreement to proceed with forming the new regional government and to unify efforts in the capital, Baghdad, to achieve successful governance throughout Iraq.

Talabani addressed his message at the conclusion of his hosting of the “Miri” forum held in Erbil, in which he said: “There are people within the Democratic Party who are my friends, and there are people in the same party who were comrades of my father and mother and the leader Kosrat Rasul Ali, and we are proud of them.”

He added, “Rest assured that the Patriotic Union of Kurdistan does not want to govern without you, nor can it govern without you,” stressing, “We are ready for all kinds of agreements with you, and this is a historic opportunity for us.”

Talabani continued, saying, “The region and the world are going through complex situations. Look at our relations in Baghdad, and look at your relations there; if we unite these two forces together, we can manage Iraq together and bring about change in the Middle East.”

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