British report: Modernizing Iraq’s underdeveloped banking system is a priority.

The British magazine “Global Finance” revealed on Thursday that economic diversification in Iraq is limited, considering that modernizing the “backward” banking system is a priority for the country.

In a report on the performance of central banks in the Middle East, seen by Shafaq News Agency, the magazine said, “Iraq’s GDP growth is expected to recover in 2025 after two consecutive years of recession, driven primarily by a recovery in oil production.” It noted that “the economy remains heavily dependent on hydrocarbons, which constitute 95% of government revenues, making it vulnerable to fluctuations in global oil prices.”

She added, “Although economic diversification has long been on the agenda, real progress has been limited. In response, the Central Bank of Iraq is promoting what it describes as ‘developmental central banking,’ focusing on directing credit toward strategic sectors, such as agriculture and industry, to expand the country’s economic base.”

The report explained that “modernizing Iraq’s underdeveloped banking system is another priority. Reforms are underway in state-owned banks, along with initiatives aimed at reducing the use of cash.”

In May 2024, new regulations were issued for digital banks and electronic payment companies, prompting several new players to enter the market.

According to the report, “Despite efforts to combat money laundering and terrorist financing, the Central Bank still faces severe compliance challenges, and many Iraqi banks remain restricted from dollar transactions due to concerns about illicit financial flows to sanctioned entities.”

The magazine noted in its report that “in early 2025, authorities uncovered a new scheme involving prepaid Visa and Mastercard products used to transfer funds to Iranian-backed militias. In response, the Central Bank of Iraq set a monthly cross-border transfer cap of $300 million and capped individual cardholder transactions at $5,000.”

Shafaq.com

Why did Trump choose an envoy to Iraq?

Security expert Fadel Abu Raghif confirmed on Wednesday that US President Donald Trump’s appointment of Mark Savaya as US envoy to Iraq was based on several considerations.
Abu Raghif explained to Al Furat News Agency that “Safaya is of Iraqi origin and led Trump’s two election campaigns. He is also a wealthy businessman with political experience in US foreign relations, including negotiating sensitive issues such as the Gaza issue.”

He added, “Trump also chose Savaya because he was born in Baghdad and is fluent in Arabic, which allows him to understand the nature of Iraqi society and maintain constant communication with political blocs, making him more capable of handling Iraqi affairs than others.”

US President Donald Trump’s appointment of 40-year-old Iraqi-born businessman Mark Savaya as special envoy to Iraq marks an exciting turning point in the bilateral relationship.

This decision sparked widespread debate in Iraqi political and security circles, where it is viewed as an indication of a new American trend toward direct engagement with the Iraqi issue, away from the usual diplomatic channels. Observers, however, believe that Savaya’s business background, political loyalty, and Iraqi origins give him a flexible approach to the complex Iraqi landscape.

Envoy Savaya, a Chaldean Christian businessman and CEO of medical cannabis companies, has been praised by Trump for his role in his campaign and his understanding of bilateral relations.

Alforatnews.iq

Deposit growth declines and cash credit rises in Iraq

The Central Bank of Iraq reported on Wednesday a decline in bank deposit growth, while credit growth increased during July.

A bank statistic reviewed by Shafaq News Agency showed that total deposits at banks operating in Iraq decreased by 1% in July, reaching 116.265 trillion dinars, compared to their value in June, which amounted to 117.439 trillion dinars.

The bank added that central government deposits amounted to 36.22 trillion dinars, while public institution deposits amounted to 25.442 trillion dinars, and private sector deposits amounted to 54.595 trillion dinars.

The statistics indicated that credit growth increased by 2% in July, reaching 73.027 trillion dinars, compared to June, when credit growth reached 71.483 trillion dinars.

The bank explained that credit provided to the central government amounted to 25.77 trillion dinars, while credit provided to public institutions amounted to 2.43 trillion dinars, and credit provided to the private sector amounted to 44.827 trillion dinars.

Shafaq.com

The Coordination Framework meets to respond to the US State Department.

The Coordination Framework forces decided to hold a meeting this evening, Wednesday, to respond to the US State Department’s statement regarding “disarming armed factions loyal to Iran .”

A statement from the US State Department noted that Secretary of State Marco Rubio informed Iraqi Prime Minister Mohammed Shia al-Sudani of the need to expedite the disarmament of Iran-backed armed factions in the country .

An informed source told Shafaq News Agency, “The Coordination Framework forces will hold their meeting this evening to respond to what the US Secretary of State called for in his call with Al-Sudani, in addition to discussing the framework agreement and the stages of implementing the withdrawal of US forces according to the agreed-upon withdrawal schedule .”

According to the same source, the meeting will discuss “the issue of water releases by the Turkish side and finding effective solutions, the international partnership to resolve outstanding issues in the region, the security partnership, and binding commitments to implement and enforce concluded agreements without pressure or disruption to the overall situation in the country .”

The US Secretary of State added, according to a statement from his department, that “Iran-backed militias in Iraq threaten the lives and businesses of Americans and Iraqis alike and plunder Iraqi resources for the benefit of Tehran .”

At the end of his phone call with Al-Sudani, Secretary Rubio affirmed Washington’s commitment to “working closely with the Iraqis to advance our shared interests .”

Shafaq.com

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

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

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

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

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

Burathanews.com

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

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

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

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

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

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

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

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

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

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

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

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

Alforatnews.iq

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

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

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

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

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

Alsabaah.iq

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

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

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

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

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

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

Shafaq.com

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

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

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

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

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

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

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

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

Shafaq.com

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

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

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

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

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

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

Shafaq.com