The collapse of the Iranian currency: a crisis that shakes markets and confounds Kurdistan’s traders.

The Iranian rial has been experiencing a sharp decline for days, the most severe in years, in a rapid downward wave that has cast a shadow over the markets of Iraqi Kurdistan, especially the banking sector, which relies heavily on the movement of the toman in daily buying and selling.

According to a Shafaq News Agency correspondent in Sulaymaniyah, the price of 100 US dollars reached about 12 million and 150 thousand Iranian Tomans, an unprecedented level that prompted many traders to recalculate their accounts.

Kawa Yahya, a currency trader in Sulaymaniyah, told Shafaq News that the recent decline was unexpected, stressing that demand for the dollar inside Iran rose exceptionally following the escalation of tensions between Tehran and both the United States and Israel, which put direct pressure on the local currency.

Yahya points out that what is happening today cannot be explained by economic standards alone, and in his opinion, “the political factor is the main driver of the current decline,” expressing surprise that a country with such broad local self-sufficiency as that achieved in Iran cannot prevent this decline in its currency.

He adds that many currency traders in the Kurdistan Region have suffered significant losses as a result of the rapid decline, especially those who had been holding large quantities of Toman during the past period.

In the context of a broader economic analysis, economist Ismail Mohammed reveals to Shafaq News Agency that the current crisis has complex roots, starting from the outside and not ending at the inside.

The expert confirms that the deterioration of relations between Iran and the United States and European countries has put the local currency under direct political pressure, saying that “any disturbance between a country and America or Europe is quickly reflected in the value of its currency, and the Iranian rial is no exception.”

But at the same time, he points to the existence of concurrent internal reasons, represented by a package of economic decisions that the Iranian government is preparing to implement at the beginning of next year, most notably raising fuel prices and increasing the prices of a number of local goods in exchange for government plans to raise employee salaries, which are measures that he believes will double the pressure on the currency and open the door to a new wave of inflation.

The agency’s correspondent reports that the currency exchange markets in Sulaymaniyah, Halabja and Garmian have witnessed a clear state of confusion over the past two days, as a number of traders have reduced their transactions in Toman while waiting for the market to stabilize, while others reported a decline in demand from customers who usually relied on the Iranian currency for daily transfers or for purchasing goods coming from the Iranian side.

This decline comes in the context of a long downward trend witnessed by the Iranian currency during 2025. According to a quick tracking, the year began with a price of approximately 4.8 million tomans per 100 dollars, then it rose to about 7.5 million tomans in the middle of the year following a new round of US sanctions. With the fall, and with the increase in regional tensions, the price exceeded 10 million tomans, reaching 11.15 million tomans in December, which is the lowest level in more than ten years.

Analysts agree that continued political tension and the absence of radical economic solutions could push the currency down further in the coming weeks unless Tehran intervenes with effective steps to curb the decline.

Shafaq.com

A Shiite faction calls for the “execution of the second term” and accuses the Sudanese government of treason.

The al-Nujaba Movement, led by Akram al-Kaabi, described on Thursday the Iraqi government’s classification of the Lebanese Hezbollah and the Yemeni Ansar Allah group as terrorist organizations as “treason,” while a leader in the Reconstruction and Development Coalition, led by Mohammed Shia al-Sudani, explained that what happened was a “technical error” and that the motives behind it are being investigated.

Ali al-Asadi, head of the political council of the al-Nujaba Movement, said in a post on the “X” platform, which was followed by Shafaq News Agency, that “Iraq’s nomination of (Trump) for the Nobel Prize is a disregard for the blood, an insult to the sacrifices of the martyrs, and a real transgression against the will of millions of people.”

He added: “Today, through the events in Iraq, Hezbollah and Ansar Allah (the Houthis) are classified as terrorists, even though their blood was shed on Iraqi soil to preserve its dignity and holy sites!! This is treason.”

He concluded by saying, “Such a government does not represent the proud Iraqi people,” and added the hashtag “#DecisionToExecuteTheSecondTerm.”

The Iraqi government’s Committee for Freezing Terrorist Funds had listed the Lebanese Hezbollah and the “Ansar Allah-Houthi” group in Yemen on terrorism lists, in implementation of a package of Security Council resolutions on combating terrorism and its financing, according to what was stated in issue 4848 of the Iraqi Gazette issued on November 17, 2025.

For his part, Bahaa Al-Araji, a leader in the Reconstruction and Development Coalition, said in a post on the “X” platform, which was followed by Shafaq News Agency: “We will not accept bidding on Iraq’s principled positions, nor will we be lenient with those who seek to confuse matters, as liberation movements and oppressed peoples are held in official and popular esteem and respect in Iraq.”

He continued, “What is being circulated about an alleged classification and listing is nothing but a (technical error), as classifications approved by American financial institutions were included in an Iraqi decision issued by a specialized committee affiliated with the Central Bank of Iraq, which is an independent national institution, not subject to the will of the government.”

Al-Araji indicated that “the mistake will be corrected, and the reasons and motives will be investigated, in a way that does not give any opportunity to those who seek to exploit the situation.”

Following the circulation in local media of the decision to classify Hezbollah and Ansar Allah, the Iraqi authorities practically backed down from including the Lebanese party and the Yemeni group in the lists of frozen terrorist funds, after publishing an official clarification and a document issued by the Central Bank of Iraq confirming that Baghdad’s approval was limited to entities and individuals linked exclusively to ISIS and Al-Qaeda.

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Iraq aims to increase oil and gas production from the Kirkuk fields to approximately 500,000 barrels and 500 million cubic feet per day.

The Undersecretary for Extraction Affairs, Bassem Mohammed Khudair, said on Thursday that the strategic contract concluded by the Iraqi Ministry of Oil with the British company BP aims to increase the production capacity of oil and gas in the Kirkuk Governorate fields to reach about 500,000 barrels of crude oil per day, and 500 million cubic meters.

This came during his chairmanship today of the second meeting of the Joint Management Committee for the Kirkuk Fields Development Project, which is being implemented by the British company BP, and which was held at the headquarters of the North Gas Company, according to a statement issued by the Iraqi Ministry of Oil.

The statement said that the meeting witnessed a comprehensive discussion of the executive plans and programs for the project, which aims to develop four of the most important oil fields in Kirkuk Governorate (Jambur, Bai Hassan, Kirkuk, and Khabbaz).

Khodair explained that the strategic contract awarded to BP aims to raise production capacities to 450,000 barrels per day, and produce 500 million standard cubic feet of gas per day, in addition to closing the file on flared gas and achieving a qualitative leap in gas investment.

He pointed out that the project will provide ample job opportunities for the people of Kirkuk Governorate, and will contribute to revitalizing the work of local companies, improving the economic situation of the governorate, and supporting the national economy.

In conclusion, the Undersecretary stressed the need to strengthen teamwork between BP and the North Oil and North Gas companies, in order to achieve common goals according to the highest technical and environmental standards, and to enhance Iraq’s position in the global energy market.

According to a statement from the Ministry of Oil, the meeting discussed the 2026 budgets, the operating authority for the four fields, and ways to support the Ministry of Oil’s companies, including the Oil Exploration Company and the Iraqi Drilling Company, to ensure that work is carried out according to the specified timetables.

The meeting was attended by the General Manager of BP in Iraq, the General Manager of the North Oil Company, the General Manager of the North Gas Company, the General Manager of the Reservoirs and Field Development Department, the General Manager of the Legal Department, and the General Manager of the Technical Department, along with a number of specialists and experts from the British company and from the departments and companies of the Ministry of Oil.

In March 2025, the Iraqi Ministry of Oil signed a contract with the British company (BP) regarding the project to develop and produce the four oil fields in Kirkuk, namely: (Kirkuk with its two domes (Baba Wafana), Bai Hassan, Jambur, and Khabbaz).

Shafaq.com

Legal experts: Amending the Official Gazette is “permissible,” and the decision regarding the Houthis and Hezbollah is international and binding on Iraq.

Legal experts confirmed on Thursday the legality of correcting any decision published in the Iraqi Gazette, but stressed that the decision to classify the Houthis and Hezbollah as terrorist organizations was based on the classification of the UN Security Council, which is internationally binding .

Legal expert Ali al-Tamimi told Shafaq News Agency that “the committee for freezing terrorists’ funds is located in the General Secretariat of the Council of Ministers, and it is headed by the Governor of the Central Bank. The committee also includes the Director of the Anti-Money Laundering Office and representatives from the Ministries of Finance, Interior, Foreign Affairs, Justice, Trade and Communications, in addition to the Integrity Commission and the Counter-Terrorism Service .”

He added that “the committee was formed under the Anti-Money Laundering and Counter-Terrorism Financing Law No. (39) of 2015, as well as the Terrorists’ Funds Freezing System No. (6) of 2023. One of the main tasks of this committee is to follow up on the resolutions issued by the UN Security Council, as there is a sanctions committee in the Security Council that was formed under Security Council resolutions from 1999 to 2015, and it is the one that issues the resolutions related to freezing funds, and the Funds Freezing Committee in Iraq is committed to implementing them based on the applicable laws .”

He continued, “As for the Houthis and Hezbollah, the Committee for Freezing Terrorist Funds has adopted the UN Security Council resolutions that stipulated freezing the funds of these entities, and it is implementing those resolutions as they are internationally binding .”

He stressed, “As for retracting decisions, it is available and legally permissible, and it is published in the Iraqi Gazette, based on the Publication Law in the Official Gazette No. (78) of 1977, which allows the authority that issued the decision to issue a correction or explanatory statement when needed .”

The Iraqi authorities – the Committee for Freezing Terrorist Funds – have included the Lebanese Hezbollah and the Ansar Allah (Houthi) group in Yemen on their lists, in implementation of a package of Security Council resolutions on combating terrorism and its financing, according to what was stated in issue 4848 of the Iraqi Gazette issued on November 17, 2025 .

For his part, legal expert Abbas Al-Aqabi told Shafaq News Agency that “according to Article 8 of the Iraqi Gazette Law (typographical errors that occur during publication are corrected in a statement issued by the entity that issued the original, and the correction is published in the Iraqi Gazette), if the error was made unintentionally, it is corrected, and if it was from the Central Bank, it is also corrected by a decision from them .”

He explained, “But what is striking is that the committee that issued the decision through the statement of the General Secretariat of the Council of Ministers presented the names of Hezbollah and the Houthis, and according to their statement, approval was not obtained to include them in the list .”

The Iraqi authorities quickly backed down from including the Lebanese Hezbollah and the Ansar Allah-Houthi group on the lists of frozen terrorist funds, after publishing an official clarification and a document issued by the Central Bank of Iraq confirming that Baghdad’s approval was limited to entities and individuals linked exclusively to ISIS and Al-Qaeda .

On Thursday, outgoing Prime Minister Mohammed Shia al-Sudani ordered an “urgent” investigation into the decision to freeze the funds of the Lebanese Hezbollah and the Houthi group, which was published in the official Iraqi newspaper Al-Waqi’ and sparked widespread controversy in political circles, especially those that support the so-called “axis of resistance” in the country .

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Foreign Minister: Financial and banking reforms are an internal necessity before they are an external demand.

Deputy Prime Minister and Foreign Minister Fuad Hussein affirmed on Wednesday that financial and banking reforms are an internal necessity before being an external demand.

The Ministry of Foreign Affairs stated in a statement that “Deputy Prime Minister and Minister of Foreign Affairs, Fuad Hussein, chaired the second meeting of the High National Committee concerned with examining the decision of the US Treasury Department issued on October 9, 2025, regarding the inclusion of a number of entities and individuals on its lists,” noting that “the meeting was held at the headquarters of the Ministry of Foreign Affairs, in the presence of members of the committee from the representatives of the relevant ministries and government bodies.”

She added that “the committee reviewed during the meeting the measures taken by the concerned authorities, and the proposed ways to deal with the files raised at the internal and external levels. It also addressed the evaluation of the available legal paths to deal with these developments, and discussed practical options to complete the ongoing efforts, while emphasizing the continuation of meetings during the next stage and scheduling subsequent sessions with the participation of additional parties related to the file.”

The minister stressed, according to the statement, that “financial and banking reforms are an internal necessity before they are an external demand,” noting that “the data related to the current and future policy of the Iraqi government, the general economic situation, and the financial aspect in particular, call for positive interaction with what is being proposed externally, in order to ensure the protection of national interests and enhance the stability of the Iraqi economy.”

Burathanews.com

Finance in Iraq: Financial chaos and potential risks

For months, Iraq has been experiencing a clear disruption in the implementation of service and investment projects, as a result of the delay in sending the 2025 budget schedules to Parliament, and the accompanying administrative paralysis and funding stoppage.

The continued application of the 1/12 monthly rule, according to Financial Management Law No. 6 of 2019, has resulted in the inability to finance new projects or complete stalled ones, which has cast a heavy shadow on ministries, governorates and implementing companies, and has led to a decline in basic services and an increase in the levels of delays in completion.

The effects of this delay are compounded by the political and technical disputes that have disrupted the completion of the budget schedules, in addition to the widespread criticism of the previously imposed three-year budget (2023–2025), which experts believe opened the door to manipulation of public funds and was not implemented transparently, thus exacerbating the financial turmoil and delaying the funding of vital projects.

Deteriorating services

Meanwhile, MP Mahma Khalil, who won the recent parliamentary elections, says that the budget delay has negatively impacted the level of services and projects, as the astronomical three-year budget for the years 2023-2024-2025 was not spent transparently and was marred by numerous suspicions that led to the stagnation of service projects.

Khalil adds to Shafaq News Agency that the spending in the three-year budget gave the government leeway to manipulate public funds, considering it a resounding failure that necessitates demanding final accounts to know the true size of spending, especially since the 2025 budget has not yet been completed despite the approaching end of the year.

For his part, Baghdad Provincial Council member Amer Dawood Al-Faily told Shafaq News Agency that the lack of budgets has disrupted projects in general, noting that the Baghdad Provincial Council’s budget for 2025 has not been released yet, which has caused obstruction of service projects and delays in payments to implementing companies.

According to Al-Faily, the problem is clearly evident in the projects department of the Baghdad Municipality, where implementing companies stopped working due to the lack of funding, which directly affected services in the capital and caused a decline in completion levels in vital sectors.

reformist vision

In contrast, former member of the parliamentary finance committee, Mu’in al-Kadhimi, explains that there is a trend within the coordination framework to address past mistakes by approving a “real” budget in which unnecessary expenditures are reduced and revenues and levies are increased.

Al-Kadhimi, speaking to Shafaq News Agency, points to the need for political solidarity within the state administration coalition, along with popular understanding of the nature of the upcoming financial phase.

It is also expected that the 2026 budget will amount to only 150 trillion dinars, after the 2025 budget was at the level of 211 trillion dinars, but only 150 trillion dinars were actually spent, which confirms the need for a more realistic budget that is commensurate with the available revenues and reduces waste.

Shafaq.com

The National: Sudani’s chances of a second term are “slim”.

The chances of caretaker Prime Minister Mohammed Shia al-Sudani securing a second term as head of the Iraqi government have become “slim,” according to a report in The National newspaper that discussed the development of heated negotiations between political blocs.

The report, published in English in Abu Dhabi and translated by Shafaq News Agency, noted that the Reconstruction and Development Coalition, led by al-Sudani, came in first place in the recent legislative elections, winning 46 parliamentary seats out of 329.

The report quoted Michael Knights, a researcher at the Washington Institute, as saying that Sudani “was never likely to get a second term because he had few seats and many at the same time.”

He explained that “Sudani has a small number because it requires at least 60 to 70 seats to be able to claim the premiership as a single effort, and a lot of seats because the other Shiite parties want to participate (in choosing) a prime minister who can be controlled and who does not have seats, or almost no seats.”

According to the report, most political parties, especially Shiite ones, are strongly convinced that allowing any prime minister to serve more than one term disrupts the political balance.

The report noted that Nouri al-Maliki’s second term experience raises the possibility of the prime ministership becoming an independent power center capable of establishing a deep political and security network that could override the will of political blocs and threaten their interests, even the political system itself.

At the same time, the report said that some believe that al-Sudani, who is seeking a second term, has likely accumulated experience and networks of influence within state institutions, making him more independent and less susceptible to pressure.

According to this logic, this raises the possibility of the formation of a deep state that extends into the security, economic and foreign affairs sectors, turning the executive authority into a closed system.

The report quoted an unnamed Shiite politician as saying that “so far, al-Sudani does not enjoy the same broad support within the coordination framework as when he was nominated for this position in 2022, and the road ahead is still bumpy.”

According to the same Shiite politician, the coordinating framework is still discussing several candidates to assume the premiership, and it is believed that among the names on the shortlist are the head of the Integrity Committee, Bassem al-Badri, the governor of Basra, Asaad al-Eidani, and the head of the intelligence service, Hamid al-Shatri.

The report quoted Sajjad Jiyad, an expert on Iraqi affairs at the Century Foundation, as saying that the coordinating framework “clearly wants someone who does not have a party, who does not have greater political ambitions in terms of running in the upcoming elections, and someone they feel they will be able to control better.”

Giyad continued, saying, “This type of standard means that al-Sudani is expected to be disqualified.” He added that al-Sudani has “little chance” of securing a second term, noting that he did not achieve a significant majority in the elections, such as winning 70 or 100 seats.

The report quoted a Shiite politician linked to an armed faction as saying, “We cannot deny some of Sudani’s successes in certain areas, but there are also failures,” adding that among them is Sudani’s inclination towards Washington and his willingness to make concessions that could harm the interests of his allies who initially supported him, and this worries us.

According to the same politician, one of the most important conditions for the Sudanese nomination in 2022 was not to build a party base and run in the elections, and “this in itself was a challenge to the partners.”

The report quoted Ina Rudolph, a researcher at the Center for Governance and National Security, as saying that the main red line of the coordination framework is that Sudani has exceeded his ambition to develop beyond the role assigned to him, which is that of “Director General,” referring to a term used by Asaib Ahl al-Haq leader Qais al-Khazali of the Sadiqun bloc in 2022.

According to The National, Rudolph continued, saying that Sudani’s gradual push for a more independent foreign policy, along with his self-promotion as a guardian of Iraq’s stability amid a highly volatile geopolitical conflict, has alarmed entrenched veterans of the Shiite power, such as Maliki.

She explained that these people began to feel an additional threat because of the Sudanese’s relatively higher credibility on the street, which has gained momentum since the municipal elections.

Rudolph believes that despite the challenges facing Sudan, it is seen as a relatively safer option, especially for those who want to keep Iraq out of the regional escalation with Israel and maintain balanced relations with Iran and the United States.

The report quoted Jaber al-Jabri, a political advisor to the Progress Party, as saying that “so far, al-Sudani’s chances are still limited, because there is a strong campaign by al-Maliki to obtain the position, but the final decision depends on the coordination framework.”

He added that the Sudanese are currently part of the coordination framework and “will abide by its instructions and requirements, but the final decision is still unknown.”

The report also quoted an official from the Kurdistan Democratic Party as saying that the party does not oppose al-Sudani’s candidacy for the position, explaining that “we do not have the right to veto anyone. We have been clear with all parties, and our only criterion for supporting any candidate is his commitment to implementing the constitution in its entirety, from A to Z.”

According to the official in the Kurdistan Democratic Party, “The constitution cannot be treated like a restaurant menu, where some items are picked and others are ignored or set aside. Rather, it must be applied fully, fairly, and consistently.”

Shafaq.com

With the participation of 40 companies and a thousand merchants, Sulaymaniyah hosts the third edition of “Made in Iraq”.

The third edition of the “Made in Iraq” exhibition is scheduled to launch in Sulaymaniyah Governorate tomorrow, Wednesday, December 3, and will continue for four days.

According to information obtained by Shafaq News Agency, “The exhibition will witness the participation of forty major companies from the Kurdistan Region, in addition to the presence of approximately one thousand traders and investors from various Iraqi governorates.”

Aram Baban, a member of the Sulaimaniyah Chamber of Commerce and Industry, stated during a press conference attended by Shafaq News Agency that “the aim of organizing this event is to highlight Iraqi industrial products, grant commercial agencies to those wishing to invest and deal with local industries, in addition to providing an important opportunity to promote Iraqi products and open the way for granting investment licenses in industrial projects within the country.”

He stressed that “the exhibition has become a platform that contributes annually to supporting the national industry and enhancing the presence of Iraqi products in the markets.”

Shafaq.com

Six names are competing for the position of Speaker of the Iraqi Parliament.

An informed source in the National Political Council, which includes the Sunni political forces that won the elections, revealed on Tuesday the names nominated for the presidency of the House of Representatives in its new session.

The source told Shafaq News Agency that “the meeting of the National Political Council forces, which includes Sunni components and is scheduled to be held next Thursday, will discuss a list of names of candidates for the presidency of Parliament and the matching of the candidate’s biography with the controls set by the Council in choosing the new Speaker of Parliament.”

He added that “the list of candidates for the position includes the leader of the Progress Party, Mohammed al-Halbousi, former Minister of Education Mohammed Tamim, Minister of Defense Thabit Mohammed al-Abbasi, and the leader of the Azm Alliance, Muthanna al-Samarrai, in addition to Salem al-Issawi and Mahmoud al-Qaisi.”

The source indicated that “the requirements for the position of Speaker of Parliament have been set at 25 points,” explaining that “another session will be held after Thursday’s meeting to finalize the nomination of a suitable candidate for the new Speaker of Parliament.”

A political source previously revealed to Shafaq News Agency that the National Political Council, which unites the Sunni forces that won the recent parliamentary elections, intends to hold its first meeting next Thursday to discuss the distribution of positions among the council’s blocs and parties.

It is worth noting that the spokesman for the Sovereignty Alliance, Mohammed Abbas, revealed to Shafaq News Agency last Saturday that there are some secret names being discussed behind the scenes as candidates for the presidency of the Iraqi Parliament.

Last Sunday, the Sunni alliances and parties that won the elections announced the establishment of the “National Political Council” during an expanded meeting held at the initiative and invitation of the head of the Sovereignty Alliance, Khamis al-Khanjar, in Baghdad, with the aim of unifying visions and positions on major national issues and strengthening joint action between political leaders and blocs, according to a statement issued at the time.

According to the final election results, Sunni forces won 77 seats, making the reshaping of alliances a crucial factor in the negotiations to form the next government.

Shafaq.com

ExxonMobil is negotiating with Baghdad to inherit Lukoil’s stake.

ExxonMobil has approached Iraq’s oil ministry to express its interest in buying the majority stake held by Russia’s Lukoil in the giant West Qurna-2 oil field, according to five sources familiar with the matter who spoke to Reuters.

According to a Reuters report, Lukoil is trying to sell its international assets after the United States imposed sanctions on the company, adding that ExxonMobil’s move would be a major expansion of the leading American company’s return to Iraq, at a time when Moscow is trying to liquidate key energy assets.

He noted that Exxon declined to comment, while Lukoil did not respond to questions, explaining that the US Treasury Department has authorized potential buyers to speak to Lukoil until December 13, but that these buyers will need to obtain approval for specific deals.

The report stated that banking sources estimate the market value of the West Qurna-2 field at approximately $1.6 billion, based on its production and reserves exceeding 8 billion barrels.

The report noted that Lukoil’s largest overseas asset is its 75% operating stake in the West Qurna-2 oil field, one of the world’s largest oil fields, which produces about 470,000 barrels per day, representing about 0.5% of global oil supplies and 9% of total production in Iraq, the second largest producer in OPEC after Saudi Arabia.

He noted that Exxon had long operated the adjacent West Qurna-1 project before withdrawing last year, explaining that the American company signed a non-binding agreement with Iraq last October to help it develop the giant Majnoon oil field and expand oil exports.

The report quoted a senior Iraqi oil official as saying that “Exxon is our preferred choice to take over instead of Lukoil,” adding that the company “has the capability and experience to manage a large and complex field like West Qurna-2.”

On Monday, the Iraqi Oil Ministry invited several American oil companies to enter into negotiations regarding control of the West Qurna-2 oil field, and to seek to transfer the operation of the field to one of the companies through competitive bids.

It is worth noting that the Russian company Lukoil declared force majeure at the West Qurna-2 field on November 19th, after its operations were disrupted due to Western sanctions imposed on it, as it sent an official letter to the Iraqi Ministry of Oil stating that there were force majeure circumstances preventing it from continuing operations.

The West Qurna 2 field is one of the huge oil fields in southern Iraq. It was discovered in 1973, and its operating agreement includes the Russian company Lukoil with a 75% stake and the Iraqi South Oil Company. The field forms a key pillar of the Iraqi economy through its contribution to increasing oil production.

Shafaq.com