Iraqi private banks are facing increasing pressure to meet the requirements of the US Federal Reserve and have sanctions lifted.

Banking sources revealed on Thursday new and urgent directives to private banks in Iraq, aimed at completing the requirements that were raised during Prime Minister Ali al-Zubaidi’s visit to Washington, in preparation for completing the procedures to lift the sanctions and restrictions imposed on a number of banks. DailyNews Reports

The sources told Shafaq News Agency that the requirements that were emphasized include strengthening anti-money laundering and counter-terrorism financing measures, compliance and governance, tightening control over dollar movement, preventing smuggling and illegal transfers, as well as implementing a package of new banking instructions and procedures within specific time limits.

According to the sources, private banks have begun implementing the urgent instructions issued by the Central Bank of Iraq in this regard, amid warnings that failure to complete the requirements within the specified timeframes may lead to the bank being deprived of international banking facilities and transactions, which requires the administrations to expedite the completion of the required files and procedures.

In this context, a number of employees in private banks reported that the administrations imposed a high work pace to complete the requirements within the specified period, noting that some employees work about 12 hours a day due to the volume of procedures and files that need to be completed.

The employees added that the continuous work pressure caused, according to their statements, a state of extreme exhaustion and recorded cases of fainting among some employees as a result of the large working hours and deductions, while the banks are communicating with the regulatory authorities to complete the required requirements within the specified timetable.

These measures come as part of the Iraqi banking sector’s efforts to comply with international standards and strengthen its relationship with the global financial system, in light of the tightening of US control over the movement of dollars and financial transfers related to Iraq.

The media office of Prime Minister Ali al-Zaidi announced on July 18 that the Governor of the Central Bank of Iraq, Nizar Nasser Hussein, held a series of high-level meetings with officials at the US Treasury, which resulted in a common understanding to return restricted Iraqi banks to foreign correspondent banking channels not linked to the US dollar.

For his part, the governor of the central bank confirmed that there are 7 banks currently qualified to return and operate within the external banking correspondent channel not linked to the dollar (in other currencies), so that they will have the right later to deal in the US dollar after passing other stages of compliance and governance requirements.

This came in conjunction with the Prime Minister’s welcoming of the understanding reached between the Central Bank of Iraq and the US Treasury Department, describing it as “an important step in the path of reforming the banking sector and enhancing its integration into the global financial system.”

It is noted that at the beginning of 2024, an official document issued by the Central Bank of Iraq showed that 8 Iraqi banks were banned from participating in the foreign currency buying and selling window.

The document, which was reviewed by Shafaq News Agency, included a ban on those banks from participating in the foreign currency buying and selling window and from dealing in dollars.

The eight banks are: (Iraqi Investment Bank, Kurdistan International Islamic Bank, Iraqi Union Bank, Al-Huda Bank, Ashur International Investment Bank, South Islamic Bank for Investment and Finance, Arab Islamic Bank, and Hammurabi Commercial Bank).

Shafaq.com

“There’s no money”… Iraqi minister: The government is only thinking about securing salaries

Iraqi Health Minister Abdul Hussein Al-Moussawi acknowledged on Thursday that the government is facing a liquidity crisis that has made securing salaries its priority, while confirming that the General Company for Marketing Drugs and Medical Supplies (Kimadia) has received only 15% of its budget, which has led to its bankruptcy, the disruption of new contracts, and a threat to drug supplies.

During his speech in a video recording, which was reviewed by Shafaq News Agency, Al-Moussawi stood up from his seat and addressed the audience, saying: “There is no money… the government’s only concern is to provide salaries from the 1st to the 29th of the month,” indicating that the value of the salaries that need to be provided monthly amounts to “10 trillion and 800 million dinars per month.” DailyNews Reports

The minister explained that the decline in revenues from the currency auction window to between one billion and one and a half billion dollars per month, equivalent to about 2.2 trillion dinars, was directly reflected in the financing of the “Kimadia” company, which he said had received only 15% of its annual dues.

He added that the financial crisis led to a halt in the signing of new contracts for the current year, and prompted supplier companies to stop shipments of previously contracted medicines, which, he said, caused a decline in services within hospitals.

Earlier, Shafaq News Agency , quoting an informed source, reported that the process of distributing state employees’ salaries for the current month is expected to begin at the start of next August, amid the continued financial challenges facing the public treasury.

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Masrour Barzani and Halbousi affirm from Erbil their support for Zaidi in facing challenges and overcoming the current phase.

On Thursday, Kurdistan Regional Government Prime Minister Masrour Barzani and the head of the “Progress” party, Mohammed al-Halbousi, affirmed their support for the federal government headed by Prime Minister Ali al-Zubaidi to confront current challenges and overcome the region’s crises. DailyNews Reports

Masrour Barzani said during a joint press conference with Halbousi, “We discussed with Halbousi the bilateral relations that unite us with the ‘Progress’ party, and how to develop joint cooperation in light of the sensitive conditions that Iraq and the region in general are going through.”

He added, “We agreed on the need to cooperate with the federal government in Baghdad, headed by Prime Minister Ali al-Zubaidi, so that it can manage the numerous crises facing the country and the region under the current circumstances, and we will continue to provide full support to the federal government.”

For his part, the head of the Progress Party, Mohammed al-Halbousi, said during the conference, “We made a visit to the Kurdistan Region and met with the leadership of the Kurdistan Democratic Party and the Kurdish leader Masoud Barzani, and we exchanged talks on strengthening cooperation between the political parties, preserving the gains of the people, and discussing developments in the region.”

Al-Halbousi continued: “We renewed our support for our Iraqi government and its Prime Minister Ali al-Zubaidi to maintain security, stability and sovereignty for Iraq away from disputes,” stressing that “all parties and political forces should put the higher interests of the Iraqi people in mind.”

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The Minister of Transport clarifies the “circumstances surrounding the signing of the Development Road Memorandum” and vows to prosecute those spreading “falsehoods”.

Minister of Transport, Wahab Al-Hassani, confirmed on Wednesday (July 29, 2026) that the framework memorandum of understanding for the strategic development road project was signed after addressing technical and protocol issues that accompanied the signing procedures with the Turkish side, denying what was raised regarding the agreement being stalled.

Al-Hassani said in a statement that what happened was related to finding the “best formula” for signing the memorandum of understanding, which sparked “a surprising wave of interpretations and fabrications,” as he put it, calling on the media to be accurate and obtain information from official sources.

He added that the ministry was fully prepared, had completed all the amendments and official correspondence, and had expressed its desire to conclude the memorandum due to its strategic importance to Iraq. IraqEconomic Reports

Al-Hassani explained that the efforts resulted in the signing of the framework memorandum of understanding for the Development Road project later yesterday, stressing that the project represents a national priority, and that the government is working to implement it in a way that ensures a pivotal role for Iraq in regional transport and trade projects.

The Minister of Transport stressed that the ministry will take legal action against anyone who has abused or promoted inaccurate information regarding the file, stressing that its position is firm in supporting all projects that serve Iraq and the Iraqis.

The failure of Transport Minister Wahab al-Hassani to sign a document related to the “Development Road” project during the Iraqi-Turkish agreements ceremony in Ankara sparked widespread controversy, after Prime Minister Ali al-Zaidi directly asked him about the reason, in front of Turkish President Recep Tayyip Erdogan and media cameras.

A video clip circulating from the ceremony on Tuesday showed Al-Zaidi turning to the Minister of Transport and asking him, “Minister, why didn’t you sign the development road? What’s the problem?”, in a scene that appeared to be outside the protocol context of the signing.

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CENTCOM: Iran does not control the Strait of Hormuz, and F-16 fighter jets are patrolling the Middle East.

The US Central Command (CENTCOM) confirmed on Wednesday that the Iranian Revolutionary Guard has no authority to impose routes for free and open navigation in the Strait of Hormuz. DailyNews Reports

She added in a post on the “X” platform, which was monitored by Shafaq News Agency, that commercial ships continue to use the strait with American military support.

She added that since early May, US forces have helped nearly 1,000 ships and 500 million barrels of crude oil pass through this narrow waterway.

In another post, the US command said: “A US Air Force F-16 fighter jet is flying in the skies over the Middle East. The F-16 is capable of performing a variety of missions, including air combat, air-to-ground attacks, tactical reconnaissance, and close air support.”

Earlier today, a senior Iranian official told Reuters that Tehran had rejected Oman’s proposal for joint regional management of the Strait of Hormuz, saying there was no chance of it succeeding.

He added that the Sultanate must supervise the part of the strait that falls under its control, noting that the southern routes through the strait, which pass through Omani territorial waters, could pose a danger to navigation.

In developments regarding the Strait of Hormuz, a US official confirmed that Iran is exaggerating its demands related to the Strait of Hormuz, and explained in statements reported by Reuters that these demands are rejected by America, Oman, and the international community.

He pointed out that the agreement currently being discussed regarding the waterway is only about coordination and will not include talk of imposing any fees, whether for passage or otherwise.

For his part, US President Donald Trump reiterated that the United States controls the strait, not Iran.

In contrast, Iranian Deputy Foreign Minister Kazem Gharibabadi asserted that opening the southern route to the Strait of Hormuz would have caused Iran to lose control of the strait, noting that the Sultanate of Oman had requested that the removal of Hormuz mines be entrusted to another country, but Tehran did not allow it.

The Iranian Deputy Foreign Minister also stressed that the Strait has become part of the country’s national security, noting that Tehran is working to strengthen its defense capabilities and will not abandon them.

Control of the Strait of Hormuz, the narrow waterway between the Persian Gulf and the Indian Ocean that serves as the main route for about a fifth of the world’s oil supply and other vital commodities, has long been a major point of contention in efforts to end the war between the United States and Iran. It has been largely closed since the beginning of the war.

Shafaq.com

Kurdish warnings of an American plan to create a new political landscape in Iraq

Luqman Hassan, a member of the Kurdish Azadi Movement, warned of an American plan to create a new political landscape in Iraq that could lead to unforeseen events.
Hassan told Al-Maalouma, “Iraq and its internal political scene will witness a turning point in the coming period after the end of the ongoing war in the region between America and Israel on one side and Iran on the other.”

He added, “The post-war period may witness unexpected events, especially given the continued foreign interference and the statements made by the US envoy to Iraq and Syria, Tom Barrack, that federalism is unsuitable for both countries.”

He explained that “these statements may be intended to pave the way for a return to a centralized political system in order to control the security apparatus, state funds, and the economy,” noting that “there is an American green light to create a new political landscape in Iraq, which could lead to unforeseen events.” IraqPolitics News

Almaalomah.me

Al-Moussawi: Parliament has the authority to review and cancel Al-Zaidi’s agreements with Washington

Political analyst Haider al-Moussawi believes there is a possibility of reviewing the agreements signed by al-Zidi with the American side, stressing that Parliament has the authority to review these agreements and reject any that do not serve Iraq’s interests.
Al-Moussawi told Al-Maalouma, “There is an urgent need for the House of Representatives to move towards reviewing the agreements signed by al-Zidi during his visit to the United States, including the agreement with Syria on exporting oil via the Banias pipeline.”

He added, “The House of Representatives has the authority and power to reject any agreement it finds not to be in Iraq’s interest after reviewing what was agreed upon between al-Zidi and the American side.”

He pointed out that “General Electric signed contracts with Iraq in 2005, and these contracts are being renewed to this day, for the construction of power plants, yet the energy crisis persists,” noting that “renewing these contracts for this company is not in the interest of Iraq and its people, and this is something that the legislative and oversight authorities should pay attention to.” IraqiGovernment Updates

Almaalomah.me

Iraq announces the launch of the “Starlink” service.

The head of the executive body of the Media and Communications Commission, Baligh Abu Kalal, announced on Wednesday the actual launch of the “Starlink” satellite internet service in Iraq. DailyNews Reports

Abu Kalal said in a post published on the “X” platform: “With God’s blessing, the Starlink service has now been officially launched in Iraq.”

The announcement comes after months of regulatory and technical procedures related to introducing satellite internet service to the Iraqi market, allowing users to benefit from the service in accordance with the regulations approved by the competent authorities.

Shafaq.com

Al-Sadr calls on the Revolutionary Guard and militias to stop dragging Iraq into the regional conflict.

On Wednesday, Shiite nationalist leader Muqtada al-Sadr called on the Iranian Revolutionary Guard and “militias” not to drag Iraq into the regional conflict, demanding that the government impose state sovereignty and control security.

In a statement seen by Shafaq News Agency, Sadr said that Iraq is “the land of holy sites,” calling on the Revolutionary Guard not to bomb Iraqi territory as long as it is “not a launching point for bombing the Islamic Republic.” He also called on “unruly militias” not to give the Gulf Arab states an “excuse” to target Iraq.

He added that everyone is required to have a “spirit of brotherhood and peace” and not to be drawn into what he described as “the Zionist-American enemy’s schemes” to drag the parties into fighting and conflict.

Al-Sadr condemned the targeting of Iraqi territory “by all countries and parties,” and, according to the statement, he also condemned “the actions of the militias,” which he said were trying to drag Iraq into a “pointless” war.

He called on the Iraqi government to establish security, enforce sovereignty, and work to protect the Iraqi people and their holy sites, warning against being drawn into “sectarian myths,” and stressing that Iraq “needs peace after the wars that have depleted its resources.”

He also called for caution regarding “sleeper terrorist cells” at home and abroad, considering that they exploit sectarianism to destabilize security, and concluded his statement with a call for peace with neighboring countries and to move away from “bases, normalization and colonial hegemony.”

Al-Sadr’s statement comes after several headquarters belonging to the Popular Mobilization Forces in various parts of Iraq were subjected to Saudi-American bombing at dawn on Wednesday, which resulted in the death of at least 20 of its members and the injury of 32 others, in a toll described as “not final”.

Shafaq.com

Why have small denominations disappeared from the markets? Al-Zaydi’s advisor reveals the reasons.

The Prime Minister’s financial advisor, Mazhar Muhammad Salih, revealed on Wednesday the reasons for the scarcity of small denominations of currency in Iraqi markets, stressing that this is mainly related to their paper nature and the high speed of their circulation, which leads to their deterioration within a short period of time.

Saleh told Shafaq News Agency that issuing currency in its various denominations is one of the core tasks of the Central Bank of Iraq, which is responsible for managing the currency and providing the necessary liquidity to meet the needs of economic activity and ensure the smooth flow of payments and the stability of cash transactions.

He explained that small denominations of currency represent the primary tool for conducting low-value daily transactions, which makes them the most commonly traded among citizens and markets, and therefore the most susceptible to wear and tear.

Saleh added that Iraq, unlike many countries that rely on coins for small denominations, still uses paper denominations, noting that the lifespan of these denominations does not exceed about one year according to international standards, due to the intensity of their use and their continuous transfer between hands, at a time when reliance on paper money remains high while electronic payment methods continue to grow.

He pointed out that the Central Bank has accurate indicators and statistics to measure the demand for different denominations of currency, and it is the first entity to sense the market’s need to issue or reprint any denomination, especially the small denominations, which are characterized by their rapid circulation compared to the large denominations, which tend to be more towards saving or hoarding.

The government advisor concluded his remarks by saying that “providing small denominations is not just about issuing currency, but also represents one of the indicators of efficient cash management, and contributes to ensuring the smooth flow of economic activity and the stability of the payments system,” stressing that “these denominations are continuously monitored by the Central Bank of Iraq.”

Iraqi markets are experiencing ongoing suffering due to the scarcity of small denominations of currency, such as 250 and 500 dinars, which puts citizens and shop owners in front of frequent difficulties in completing daily buying and selling transactions.

Sellers often resort to compensating for the shortage by giving alternative goods such as gum, tissues, or sweets instead of returning the change as in the markets, while others are forced to round up or down prices, which provokes consumer dissatisfaction.

Shafaq.com