Experts: Decision to qualify 7 banks is a step towards global financial integration

Financial and economic experts considered the Central Bank of Iraq’s agreement with the US Treasury Department to qualify seven Iraqi banks to return to foreign correspondent banking channels as an important step in the path of reforming the banking sector and strengthening its integration into the global financial system, indicating that it frees banks from financial isolation, breaks the monopoly of the parallel market, and attracts foreign direct investment. Anti-CorruptionCampaign Updates

Prime Minister Ali Faleh al-Zaidi welcomed the understanding reached between the Central Bank and the US Treasury Department, considering the move as confirmation of the success of the financial reform approach adopted by the government, enhancing confidence in the Iraqi banking sector, and opening broader horizons for the economy.

National and investment.

The Beginning of a New Phase

Regarding the importance of understanding, the economic expert, Dr. Nabil Al-Abadi, considered it a very positive and necessary step, indicating that it is the beginning of a new phase that carries great strategic gains, in contrast to strict implementation challenges.

Al-Abadi explained to Al-Sabah that allowing these banks to deal in other currencies (the euro, the dirham, and the Jordanian dinar) is like a lifeline for them. He pointed out that halting dollar transactions is akin to “clinical death” for these banks, and their return to external channels will keep them alive and prevent their bankruptcy.

He added that the success of these banks in conducting foreign financial transactions legally and systematically will reduce pressure on the demand for dollars in the parallel market, which will positively impact the stability of the dinar-dollar exchange rate in the medium term. He pointed out that foreign investors need secure banking channels to bring in their funds and repatriate their profits. The rehabilitation of seven banks sends a reassuring message to the international community that Iraq has begun to take the issue of combating money laundering and terrorist financing seriously, a fundamental requirement for any investment.

Restructuring

The economist noted that returning to international channels necessarily entails full compliance with US Know Your Business (KYC) and AML standards. This means that any financial activity by these banks will be under US scrutiny, which could complicate some commercial transactions with certain entities and deprive Iraq of some of its traditional financial flexibility. He added that announcing the names (which have not yet been revealed) will be a true test. Whether these banks are private sector or large state-owned banks (such as Rafidain and Rasheed), their success will require a radical administrative restructuring.

Al-Abadi concluded that the step was 100 percent correct and that the Iraqi economy could not bypass it, because remaining outside the global financial system was a disaster, adding that the biggest challenge is not in reaching an understanding, but in the daily implementation within the banks.

Stimulating economic activity

In a related context, economist Dr. Mustafa Akram Hantoush believes that building a strong economy begins with adopting an efficient financial and banking system capable of stimulating the movement of money and recycling capital within the market.

Hantoush told Al-Sabah that successful experiences, including the Egyptian experience in developing the financial system, have proven that facilitating financial operations and enhancing payment and financing tools contribute to stimulating economic activity and increasing investment and production. He pointed out that reviving the capital cycle raises the efficiency of markets, provides greater liquidity for projects, and positively impacts job creation and the achievement of sustainable economic growth.

Restoring trust

Meanwhile, academic Dr. Ali Fakher stated that the Central Bank’s commitment to international standards, transparency, and anti-money laundering measures positively impacts building trust between citizens and the state, given that the Central Bank is the official body of the country.

Fakher added, in an interview with Al-Sabah, that the greatest importance lies in attracting foreign investments, as the latter are looking for a banking system capable of carrying out international transfers easily, noting that the return of Iraqi banks to the global financial system is extremely important for improving investments and increasing the flow of funds.

He stressed that the basic standard for cash transactions is trust, and the more the citizen trusts the banks, the higher the deposit rates will be. He explained that the use of electronic payment methods reduces the hoarding of money outside the scope of the bank and limits informal transactions. Moreover, the stability of the exchange rate through the dealings of Iraqi banks with their global counterparts reduces the pressure on the dollar market.

He explained that this step represents the transition from a sanctions economy to an open economy, given that Iraqi banks have long been associated with oversight, rather than financial partnerships built on trust. He pointed out that it is possible to raise their credit rating, which will have a positive impact on financial institutions, improve the business environment, and reduce international financial isolation.

He said that any success in banking reform will necessarily reflect on economic reform and achieve important results by maintaining compliance and governance standards, and will grant international confidence through transparency. Therefore, it is a step towards restoring international confidence and achieving a more robust economy.

Alsabaah.iq

Parliamentary movement to question al-Zidi and Al-Abadi about the $60 billion agreements with Washington

Member of Parliament Ahmed al-Shammari revealed on Monday that a broad parliamentary movement has garnered over 70 signatures from MPs to submit a formal request to summon Prime Minister Ali al-Zubaidi and Oil Minister Basim al-Abadi to Parliament.

Al-Shammari told the Information Agency that “the summons aims to compel the Prime Minister and the Oil Minister to clarify the nature of the agreements, contracts, and memoranda of understanding signed during their recent visit to Washington, D.C..”
He added that “the parliamentary request focuses primarily on the need to reveal the opaque mechanism related to the Energy and Development Fund, in addition to the issue of supporting the U.S. strategic reserves and its impact on the country’s economic sovereignty.”

It is worth noting that during the Prime Minister’s visit to Washington, D.C., a number of agreements and memoranda of understanding were signed, totaling 48, with a combined value exceeding $60 billion. These agreements covered vital sectors including energy, electricity, oil and gas, digital communications, and agriculture. EconomicForecast Reports

Almaalomah.me

Will Baghdad open the “postponed accounts” with the region and end the era of political compromises?

The latest data from the Federal Integrity Commission indicates that indicators of public funds mismanagement and the recovery of smuggled funds have reached record levels. Meanwhile, oversight reports concerning border crossings, oil revenues, and civil servants in the Kurdistan Region continue to face legal and political obstacles preventing their full audit by the Federal Board of Supreme Audit.

This discrepancy in figures places decision-makers in Baghdad under increasing public and legal pressure, and raises the inevitable question in political and public circles: When will the preferential treatment of the region end, and when will the equation for opening corruption files be applied equally to the region without exception or political immunity?

At this time, parliamentary and public demands to open corruption files in the Kurdistan Region are escalating, amidst repeated accusations from political circles in Baghdad of misappropriating public funds and wasting state money through oil and border crossings.
In this context, MP and former minister Wael Abdul Latif affirmed on Monday that the federal government’s dealings with the Kurdistan Region remain shrouded in ambiguity and uncertainty, particularly regarding matters related to the state’s sovereign rights. He stressed that the region is an integral part of Iraq and must be subject to the same regulations as all other provinces and state institutions.

In a statement to Al-Maalomah News Agency, Abdul Latif said, “The Kurdistan Region is not immune to the quagmire of corruption, and those involved in corruption there must be pursued and condemned, specifically concerning the ongoing smuggling of oil abroad on a daily basis without the knowledge or consent of the federal government.”
He added, “The region has been smuggling oil for a long time, transporting between 50 and 60 tankers daily at a minimum,” asking, “We still don’t know where these smuggled shipments are sold, at what price, or which political parties or entities benefit from the financial proceeds.”

Abdul Latif called on “the current government and the judiciary to take serious and effective action to open major corruption cases within the region, and to completely abandon the policy of political favoritism adopted by previous governments, which led to the squandering of the Iraqi people’s wealth.”

For his part, a leading source within the coordination framework, who preferred to remain anonymous, confirmed that the volume of corruption cases linked to the Kurdistan Region and some of its representatives in the federal government “has become too large to ignore,” considering that successive governments have dealt with these cases cautiously for political reasons.

The source told Al-Maalomah News Agency that “previous and current governments have pursued a policy of turning a blind eye to many corruption cases related to the region under the pretext of maintaining political agreements and not complicating relations with Kurdish leaders.”

He added that “there are accusations related to oil and investment files, smuggling networks, as well as awarding projects to companies linked to the region, which necessitates opening transparent legal investigations to uncover the facts and hold those involved accountable if the violations are proven.”

As for the general irrigation situation, experts believe that the anti-corruption campaign will face a real test if it extends to all files without exception, away from political pressures or partisan calculations, since the principle of equality before the law represents one of the most important criteria for the success of any reform project.

Observers note that resolving the contentious issues between Baghdad and Erbil through legal and judicial frameworks could contribute to strengthening confidence in oversight institutions and confirm that combating corruption is not linked to a specific region or political entity, but rather targets anyone proven to be involved in wasting public funds or abusing their influence.

Amidst the ongoing debate, the focus remains on the ability of judicial and oversight institutions to manage this issue according to evidence and legal procedures, ensuring the consolidation of the principles of justice and the rule of law, free from selectivity or political considerations. This is because combating corruption only achieves its objectives when it encompasses all those accused without discrimination, regardless of their location. ForeignInvestment Guide

Almaalomah.me

Instead of a budget, the Iraqi parliament is moving towards passing a borrowing law.

On Monday, the parliamentary finance committee revealed that it had discussed the draft law on borrowing, grants and subsidies with Finance Minister Faleh al-Sari, stressing that the law would be an alternative to the 2026 general budget law, in preparation for its inclusion on the agenda of the House of Representatives.

The head of the parliamentary finance committee, Uday Awad, told Shafaq News Agency that “the committee hosted Al-Sari today to discuss a number of proposed laws, most notably the law on borrowing, grants and subsidies, which aims to maximize public revenues in a way that supports the Iraqi state treasury.” NewsArticle Subscription

He added that “the borrowing law will be an alternative to the 2026 budget law, and the committee read the draft law and discussed it with the Minister of Finance, before voting by majority to include it in the agenda of the upcoming sessions of the House of Representatives.”

Awad explained that “the law includes mechanisms for internal and external borrowing, without specifying a particular amount or financial ceiling,” indicating that “the draft law grants specific powers to each minister with regard to spending, in addition to other powers granted to the Council of Ministers in accordance with the provisions of the law.”

Awad had revealed to Shafaq News Agency yesterday, Sunday, that the committee intends to discuss the possibility of separating the allowances and promotions of state employees from the budget law.

Earlier, Finance Committee member Hussein Al-Daraji revealed to Shafaq News Agency that the legislative and executive authorities intend to gradually move towards implementing a “programs and performance budget” starting from next year, 2027, to ensure the regulation of spending and the protection of public funds.

The committee had hosted the Minister of Finance and senior officials in the ministry on July 7 to discuss the financial and economic situation and the mechanisms for preparing the draft federal budget for 2027.

Shafaq.com

“Welcome to Baghdad”: Trump gives Al-Zaidi the key to regional de-escalation with Tehran

Iraqi Prime Minister Ali Faleh al-Zaidi will travel to the Iranian capital, Tehran, next Thursday, in his first regional stop after his recent visit to the United States. WashingtonNews Updates

The visit carries an Iraqi initiative that seeks to contribute to containing the escalation between Washington and Tehran and opening a path for dialogue between the two sides, amid questions about Baghdad’s ability to play the role of mediator in a crisis in which security, energy, nuclear program and regional influence files are intertwined.

Al-Zaidi’s visit comes after a meeting he had with US President Donald Trump in Washington, where the two sides discussed strengthening economic relations and attracting American investments to Iraq, in addition to security and political issues.

At a time when informed sources indicate that Baghdad is seeking to leverage its balanced relations with both sides to present itself as a platform for dialogue and not as an arena for conflict.

Iraqi Foreign Minister Fuad Hussein had confirmed that Baghdad was ready to play a mediating role between Iran and the United States, noting that any discussion of political or economic initiatives required first stopping the escalation, and that the priority at the present stage was to create the conditions for dialogue.

Hussein said that Iraq had previously played a role in bringing Tehran and Washington closer together, and that Baghdad does not carry an American message to Iran, but it can convey what it heard of opinions in Washington, in addition to presenting its Iraqi position.

Baghdad Dialogue Initiative

According to political sources, during his visit to Tehran, al-Zaidi will raise the possibility of Baghdad hosting a meeting that includes American and Iranian officials, directly or indirectly, with the aim of bringing viewpoints closer and opening political communication channels.

In this context, Iranian affairs expert Mehdi Azizi believes that the Iraqi Foreign Minister’s statements regarding mediation indicate that understandings were reached during Al-Zaidi’s visit to Washington about the possibility of Baghdad playing this role.

Azizi told Shafaq News Agency that “Trump gave this card to al-Zaidi in order to play a role in this battle,” considering that Iraq possesses qualities that are not available in other countries due to the nature of its relations with Iran and its location within the Arab world.

He adds that Iraq “understands the Iranian interior and the Iranian mood, and at the same time is present in the Arab environment,” pointing to the historical, social and religious ties between the Iraqi and Iranian peoples, and that this particularity may give Baghdad an opportunity to play a different role than any other mediator.

Azizi believes that Iraq, as an Arab country with a democratic political system and deep ties with Tehran, can be a party capable of communicating with various regional parties.

Limits of Iraqi mediation

However, Baghdad’s ability to play this role is not agreed upon by observers, as some researchers believe that the problem is not only related to Iraq’s possession of communication channels, but also to its ability to influence the positions of the conflicting parties. IraqEconomic News

In this regard, political researcher Nawal Al-Moussawi says that the issue is not related to Iraq’s ability to communicate, but rather to the challenges related to its internal situation, most notably the issue of Iranian influence within the country, which is one of the sensitive issues for the United States.

Al-Moussawi adds to Shafaq News Agency that the Prime Minister’s influence lies in his ability to conduct private dialogues with both sides and try to reach more flexible positions, noting that there are indications of the possibility of reaching unannounced understandings that would help in the success of any future negotiation process.

The dilemma of American commitment

In contrast, Saleh Al-Qazwini, a writer and researcher on Iranian affairs, focuses on the fact that the main problem in the crisis between Tehran and Washington does not lie in the identity of the mediator, but rather in the issue of implementing and adhering to agreements.

Al-Qazwini told Shafaq News Agency, “The problem is not the mediator, whether he is Iraqi, Pakistani, or Qatari, but the problem lies with the other party, which is the Americans, and their failure to abide by what is agreed upon.”

He refers to the experience of the 2015 nuclear agreement, considering that the Trump administration’s withdrawal from it constituted an example of a crisis of confidence between the two sides.

He adds that any future mediation needs to establish clear mechanisms and guarantees for implementation, and not just reach a political agreement, explaining that merely signing understandings without tools to compel the parties to implement them will not be enough.

Intermediary or carrier?

In a different interpretation, Haitham al-Hiti, a professor of political science at the University of Exeter in Britain, believes that talk of al-Zaidi being a mediator between Trump and Iran may be exaggerated.

Al-Hiti stated, in his interview with Shafaq News Agency, that Iran and the United States have direct and indirect channels of negotiation, as happened in Pakistan and the Sultanate of Oman, and therefore Al-Zaidi cannot be considered a mediator in the traditional sense.

He adds that al-Zaydi’s most realistic role may be to convey American demands related to the Iraqi file, explaining that Washington has become focused on reducing Iranian influence inside Iraq and opening the way for American investments.

He believes that al-Zaidi “may be a representative of American demands in Iraq,” and that his mission is to present new conditions that differ from the previous stage in which Iraq was an area of ​​balance between American and Iranian influence.

Al-Hiti warns that Iran may not deal easily with these transformations, noting that Tehran may use its tools inside Iraq to confront any steps it sees as a threat to its influence, predicting that the next stage will become more sensitive.

Challenges within Iraq IraqEconomic News

In contrast, political researcher Ziad Al-Arar believes that focusing on a regional role for Al-Zaidi may be premature, stressing that the priority for the Iraqi government is to address internal issues.

Al-Arar told Shafaq News Agency that Trump’s admiration for al-Zaidi does not necessarily mean assigning him roles outside of Iraq, noting that the new government faces major challenges related to combating corruption, controlling weapons, strengthening the prestige of the state, and improving living conditions.

He adds that regional mediation requires a stable and influential state, while Iraq itself still needs internal efforts to reorganize its political and security situation.

He explains that Baghdad’s external role may be possible in some files related to Iran, especially after the talks that Al-Zaidi held in Washington, but he does not see that Iraq is in a position to carry out a comprehensive international mediation file.

Al-Zaidi’s visit to Tehran comes as part of a regional tour that also includes Türkiye, Saudi Arabia and Syria, and focuses on energy issues and bilateral relations, in light of the repercussions of the US-Iranian tension and its effects on the region’s security and oil supplies.

Shafaq.com

Iran awaits an “important” visit from al-Zaidi: We are working to preserve Iraq’s sovereignty.

On Monday, the Iranian Foreign Ministry described the upcoming visit of Iraqi Prime Minister Ali al-Zaidi to Tehran as “important,” stressing its commitment to preserving Iraq’s sovereignty, while renewing its warning against targeting American bases and depots in the region if they are used to launch attacks on Iranian territory. ForeignInvestment Guide

Iraqi Prime Minister Ali Faleh al-Zaidi is scheduled to travel to the Iranian capital, Tehran, next Thursday, in his first regional stop after his recent visit to the United States.

Iranian Foreign Ministry spokesman Ismail Baghaei said during his weekly press conference, which was monitored by Shafaq News Agency, that al-Zaidi’s anticipated visit to Tehran at the end of the week represents an important milestone, stressing that Iran is working to preserve Iraq’s sovereignty and does not harbor hostility towards neighboring countries.

He added that his country would target American bases and depots in the region if they were used to attack Iranian territory, holding the United States responsible for the expansion of the war and accusing it of targeting civilian infrastructure and health facilities.

Regarding the negotiations, Baghaei said that Iran had not made any concessions, and that mediators had conveyed messages to Tehran in recent days, and that ideas had been put forward and were being worked on, in reference to the ongoing diplomatic efforts.

He stressed that Iran did not want war, considering that “whoever started it was an abnormal person,” and emphasizing that any future negotiations with the United States must take into account Iranian national interests.

Regarding the Strait of Hormuz, Baghaei stressed that the future of the strait must be coordinated with the Sultanate of Oman, and that Iran’s sovereignty over it “is not open to any discussion.”

He added that “Iran will pursue legal avenues to hold the United States accountable for its ongoing crimes against civilians,” stressing that targeting infrastructure will not succeed in destabilizing the country’s security, and that “Iran is not a collection of isolated islands that can be dismantled, but rather a cohesive nation from south to north.”

He also congratulated the Spanish national team on winning the World Cup title, noting that “Spain has always rejected the Israeli war of extermination,” while emphasizing that “Iran does not hold any position towards the Argentine people.”

He also criticized what he described as the “harassment” that the Iranian national team faced during its participation in the tournament in the United States, considering the current edition of the World Cup to be “fraught with politics”.

Shafaq.com

The Iraqi Central Bank’s coffers lost 1.3 trillion dinars in four months.

Data from the Central Bank of Iraq, released on Monday, showed a sharp decline in cash liquidity within the bank’s vaults during the first four months of 2026, as it fell from 1.907 trillion dinars at the end of December 2025 to 566 billion dinars at the end of April 2026. IraqEconomic News

According to data seen by Shafaq News Agency, cash liquidity declined to 1.524 trillion dinars at the end of January, then to 1.005 trillion dinars at the end of February, before falling to 849 billion dinars at the end of March, and finally to 566 billion dinars at the end of April.

She noted that cash liquidity in the Central Bank’s vaults lost about 1.341 trillion dinars during four months, equivalent to a decrease of 70.3% compared to its level at the end of 2025.

The data also added that although cash liquidity remained higher than its level recorded at the end of 2023, which amounted to 323 billion dinars, it declined significantly compared to the end of 2024, when it reached 2.092 trillion dinars, registering a decrease of 72.9%.

In contrast, the data showed that the official exchange rate remained stable at 1,300 dinars to the dollar during the period from January to April 2026, while the inflation rate gradually increased from 0.9% in January to 1.7% by the end of April.

Shafaq.com

The US military announces the death of one of its soldiers in northern Iraq.

The US military announced on Sunday evening that one of its soldiers had been killed in northern Iraq.

“Two U.S. service members were killed and another is missing in Jordan following an Iranian attack on July 17,” U.S. Central Command said in a statement. “After a thorough search, U.S. military forces located unidentified remains at the site earlier today. The process of examining the remains is ongoing to verify their identity.”

The statement added, “In a separate incident, a U.S. soldier was killed in northern Iraq on July 18 during a controlled detonation of unexploded ordnance from an Iranian single-pilot attack drone that was shot down,” noting that “another soldier sustained minor injuries and is still receiving medical treatment.”

Burathanews.com

Hassan: Al-Zaidi carried out the anti-corruption campaign with a green light from the American administration.

Luqman Hassan, a member of the Kurdish Azadi Movement, confirmed on Thursday that Prime Minister Ali al-Zaidi launched the anti-corruption campaign after receiving a green light from the US administration. He pointed out that the current campaign comes at a time when Washington is seeking to impose a new political reality on Iraq.
Hassan told the Information Agency, “The anti-corruption campaign launched by Prime Minister Ali al-Zaidi came with a green light from the US administration, especially since such an operation was not implemented under previous governments.”

He added, “The United States is seeking to draw up a new political landscape in Iraq, and the coming days and period may witness unexpected events in light of the continued US interference and Washington’s attempt to impose a new political reality on the country.” He explained that “the process of reform and change does not take place in the manner the country has witnessed in the current phase, but rather begins with all segments of society and the pillars of the ruling power that control the Iraqi scene.”

Almaalomah.me

Can Parliament intervene in al-Zaidi’s agreements with Washington? A legal expert explains.

The legal expert Ali al-Tamimi clarified on Thursday the extent to which the Iraqi Parliament can intervene in agreements signed by Prime Minister Ali al-Zubaidi during his visit to the United States.

Speaking to Al-Maalomah, al-Tamimi stated, “The Prime Minister has the authority to sign executive agreements, contracts, and memoranda of understanding, according to Article (2) of the Law on Concluding Agreements No. (35) of 2015, and all of them become effective immediately upon signing.”

He added, “Article Five of the aforementioned law designates the Prime Minister as the official representative of Iraq, a fact also confirmed by Article (78) of the Iraqi Constitution, as he is the direct executive responsible for the state’s general policy and the Commander-in-Chief of the Armed Forces, and he has the right to conclude these agreements, contracts, and memoranda of understanding.”

He explained that “there is no significant difference between a contract and an agreement in international law, because the essence lies in the intent and meaning, not the wording and structure. Both are binding on the parties, although an agreement is broader than a contract in terms of details, while a memorandum of understanding is not binding on the parties but rather constitutes a first step between them.”

He continued: “As for the treaty, the Prime Minister may initial it, after which it will be submitted to the Council of Representatives for ratification, in accordance with Article (61/Fourth) of the Constitution. The Prime Minister also has the authority to negotiate these treaties, based on Article (80/Sixth) of the Iraqi Constitution.”

He pointed out that “the ratification of treaties by the Council of Representatives is followed by their ratification by the President of the Republic, in accordance with Article (73/Second) of the Constitution. Parliament usually ratifies them by an absolute majority, with the exception of treaties that affect the fate of the state, which require the approval of two-thirds of the members of the Council of Representatives.

These include treaties related to war and peace, sovereignty, reconciliation, and accession to international agreements, as stipulated in Article (12) of the Law on Concluding Agreements No. (35) of 2015.” MiddleEast news

Almaalomah.me