First government comment on the rise in the dollar exchange rate in Iraq

The Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Salih, confirmed Sunday, January 4, 2026, that the fluctuation in the exchange rate is “temporary” and does not reflect a structural imbalance, especially since it has practically become detached from the level of income and consumption, and its effect has been transferred to the asset sector, which is not directly related to the stability of daily living.

Saleh said in a statement: “The limited fluctuations witnessed in the parallel exchange market are merely temporary and ineffective reactions that came in response to the launch of the latest fiscal discipline package, which included decisions aimed at re-examining the paths of public spending in general and enhancing the efficiency of public revenues in particular, especially with regard to expanding and controlling tax and customs bases.”

He added, “Such movements are normal market behavior when receiving new signals from fiscal policy, as supply and demand forces tend to test these signals and adapt to them in stages, before returning to more stable paths that are in line with the new economic and financial fundamentals.”

Saleh continued, “Thus, the current fluctuations in the parallel market do not reflect a structural imbalance, but rather represent a temporary adaptation phase to regulatory tools that are essentially aimed at enhancing financial and monetary stability in the medium term. Likewise, the fluctuations observed in the parallel exchange market are limited in impact and do not affect the stability of the general price range in our country, which has maintained a low inflation rate of around 2.5% annually.”

The government advisor pointed out that “this is due to the convergence of three effective economic policies. The first is the monetary policy, which adopts a fixed official exchange rate for the Iraqi dinar against the dollar, at a level of 1,320 dinars per dollar, which provides a stable nominal anchor for prices. The second is the fiscal policy, which exercises support on a wide scale, as support constitutes approximately 13% of the gross domestic product, which mitigates the transmission of price shocks to living standards, especially in basic goods and services.”

He continued, “The third is the trade policy in price defense; in addition to the subsidized food basket, the modern market system (hypermarkets) has emerged as the ‘qualitative countermeasure’ to the effects of the exchange market, as it works to absorb what can be called the ‘colored noise’ resulting from confused information in the parallel exchange market, and transform it into white noise with stable content in terms of prices and consumption.”

Saleh noted that “the parallel exchange market no longer has any significant impact on living standards, after it became practically detached from income and consumption levels, and its impact shifted to the asset sector, which is not directly related to the stability of daily living.”

Burathanews.com

Ministry of Oil: Completion of drilling and rehabilitation of 237 oil wells during 2025

The Iraqi Drilling Company announced on Monday the completion of drilling and rehabilitation of 237 oil wells during 2025. The company’s Director General, Hassan Mohammed Hassan, stated in a statement received by the Iraqi News Agency (INA): “The technical and engineering staff of the Iraqi Drilling Company completed the drilling of 62 oil wells and the rehabilitation of 175 oil wells during 2025.”

He added that “the total number of drilling and reclamation works reached 237 wells, distributed among the various Iraqi oil fields from north to south, within the approved technical programs and in accordance with quality and safety standards.”

He also pointed out that “these achievements are the result of the continuous efforts made by the company’s staff, and their high commitment to timelines and technical specifications,” stressing “the company’s continued commitment to carrying out its work with high efficiency and in coordination with national and international oil companies.”

He affirmed that “the Iraqi Drilling Company is continuing to enhance its operational capabilities and develop its technical performance, which contributes to supporting plans to increase and sustain production, and strengthens its pivotal role in supporting the national oil sector and achieving the strategic goals of the Ministry of Oil.”

Burathanews.com

Farhad Atroushi wins the position of Second Deputy Speaker of the Iraqi Parliament

On Tuesday evening, members of the Iraqi Parliament elected Farhad Amin Atrushi, a member of the Kurdistan Democratic Party, as the second deputy speaker of the parliament, after a third round of voting was held due to the failure to achieve a parliamentary majority in the previous two rounds, in which Shakhwan Abdullah, a member of the Kurdistan Democratic Party, competed with Ribwar Karim, a member of the Al-Mawqif bloc, on Monday evening.

A Shafaq News Agency correspondent reported that MP Farhad Amin Atroushi received 178 votes, while his rival, MP Ribwar Karim, received 104 votes, in the third round of voting.

An informed source told Shafaq News Agency that the Kurdistan Democratic Party (KDP) moved on Tuesday to replace its previous candidate, MP Shakhwan Abdullah, with MP Farhad Atrushi to fill the position.

He pointed out that the Kurdistan Democratic Party stipulated the withdrawal of Shakhwan Abdullah’s nomination in exchange for the withdrawal of the candidate of the Al-Mawqif Current, Ribwar Karim, indicating that the heads of the political blocs informed the Al-Mawqif Current of this, but the Current refused and insisted on nominating Ribwar Karim for the position of second deputy speaker of parliament.

He noted that there is a binding decision from the Federal Court for all authorities stipulating that it is not permissible to replace candidates for the position of Speaker of the House of Representatives and his deputies, but rather the elections are held between the candidates who registered themselves for the first time, except in the case of the withdrawal of all candidates in order to reopen the nomination process again.

The new Iraqi parliament failed on Monday to decide on the position of its second deputy speaker during the opening session of the sixth term, despite its success in electing the speaker, Hebat al-Halbousi, a leader in the “Progress” alliance, and his first deputy, Adnan Faihan, a leader in the “Sadiqun” movement, which led to referring the election to a third round.

The Presidency of the House of Representatives consists of a Speaker and two Deputy Speakers, who manage the legislative sessions and organize the work of the Council. According to the political traditions followed after 2003, the position of Speaker of Parliament is allocated to the Sunni component, the First Deputy Speaker to the Shiite component, and the Second Deputy Speaker to the Kurdish component.

According to constitutional procedures, the election of the Speaker of Parliament and his two deputies is supposed to be followed by the election of the President of the Republic within 30 days of the first session, with the President subsequently tasking the largest bloc with forming the government, a process that may extend for months due to the complexities of political agreements.

Shafaq.com

Intensifying efforts to raise Iraq’s credit rating

The government has intensified its efforts to achieve the highest international credit rating, given the importance of this step in gaining the confidence of international investors, facilitating the attraction of foreign investments, reducing borrowing costs, and enhancing confidence in the national economy.

The process of raising the credit rating contributes to supporting structural reforms and enhancing the ability to obtain financing from international institutions. It is an important indicator of the state’s ability to meet its obligations, which encourages sustainable economic development.

A few days ago, Fitch Ratings confirmed in its latest report that it had maintained Iraq’s sovereign rating at “B-” with a stable outlook, reflecting international confidence in the Iraqi economy’s ability to maintain its financial and credit stability despite current global and regional challenges.

In this regard, economic expert Alaa Fahd believes that the country needs investment, especially foreign investment, at the present stage, to carry out infrastructure projects and major projects, stressing the need to create a suitable environment for investment, whether legal, legislative, economic, or financial, by providing financial and banking facilities.

Government efforts

In an interview with Al-Sabah, Fahd expressed his hope that investment contracts would be free from corruption, as this would raise Iraq’s credit rating. He noted that the country is currently rated B- according to the latest report from the international credit rating agency Fitch, which confirmed that Iraq is a “stable environment.”

He explained that stability paves the way for a higher rating by creating a conducive financial environment, combating corruption, and establishing a suitable legislative framework to support investments. He emphasized that the steps taken by the government and the Central Bank, in cooperation with international financial institutions, to attract investment, particularly in sectors that generate profits and economic savings, such as the Development Road, the Faw Port, and also investment in the oil sector and manufacturing industries, as well as investment in the housing sector, economic cities, smart cities, and the banking sector, have contributed to achieving this rating.

Ways of cooperation

The spokesperson added that many countries have greatly benefited from foreign investment, emphasizing the importance of providing government support and finding avenues for cooperation to ensure investment becomes a driving force in Iraq, as many other countries have achieved, creating an attractive investment environment by eliminating bureaucracy. In this context, Dr. Maitham Adham Al-Zubaidi, Vice President of the Competition and Monopoly Council, stated that attracting investment to Iraq requires addressing the structural factors that influence investor decisions, primarily reforming the banking system, ensuring exchange rate stability, and establishing clear monetary policy. He noted that these factors play a crucial role in building trust and providing a predictable financial environment.

Al-Zubaidi told Al-Sabah that reform remains incomplete unless it is complemented by strengthening governance and transparency, especially in the Iraq Stock Exchange, by protecting shareholders’ rights, ensuring disclosure, and transforming the market into a real tool for financing companies and not just a limited trading platform with an economic concentration in the banking sector to the exclusion of other sectors. He pointed out that simplifying administrative procedures is a necessity of no less importance, as the multiplicity of granting bodies and licensing committees and the conflict of classifications of economic activities constitute a burden on the investor.

Pivotal steps

He added that unifying activity classification systems among licensing and business registration bodies and regulatory authorities, such as the ISIC4 system, is a pivotal step toward reducing overlaps, preventing conflicting interpretations, and building a unified government economic data portal accessible to the public. This portal will accurately serve investors and feasibility study makers. He emphasized that infrastructure, particularly in communications and transportation networks, forms the foundation upon which any economic activity rests, and its development requires liberalizing competition and preventing monopolies, along with effective regulation that ensures a level playing field. By linking these three paths within a clear governance framework, Iraq can transition from an economy that repels investment to one that is attractive and sustainable.

Alsabaah.iq

Al-Karawi: 10 urgent laws awaiting a vote in the sixth parliamentary session

MP Mudhar al-Karawi confirmed on Tuesday that there are ten urgent laws that must be voted on during the sixth parliamentary session, given the economic and financial challenges facing the country.

Al-Karawi told Al-Maalouma that “the sixth parliamentary session faces significant tasks and responsibilities, especially with dozens of laws, some ready for a vote, that require progress in the coming period.” He pointed out that “there are ten urgent laws, foremost among them the salary scale law, in addition to other laws that require national consensus for their passage.”

He emphasized “the necessity of activating oversight and monitoring mechanisms within the legislative powers and pressing for a roadmap to address the economic situation.” He explained that “the financial and economic situation will constitute the most prominent challenges over the next four years, especially with the decline in oil prices and its repercussions on the state treasury, as well as the current financial crisis.”

Al-Karawi stressed “the importance of adopting bold solutions to support government measures in a way that contributes to strengthening the economy and providing more job opportunities.” He affirmed that “poverty rates in the country remain high, which necessitates swift legislative and governmental action to address these issues.”

Almaalomah.me

A political agreement has been reached to resolve the issue of the position of Second Deputy Speaker of Parliament.

A parliamentary source revealed on Tuesday a political agreement among the blocs to resolve the issue of the second deputy speaker of parliament, indicating that the session will witness a carefully planned scenario to ensure the passage of the Kurdistan Democratic Party’s candidate.

The source explained that “the acting speaker will open nominations for the position, with MP Farhad al-Atroushi submitting his candidacy as the third nominee, followed by the withdrawal of candidate Shakhwan Abdullah, after which the direct vote will begin.”

The source confirmed “a consensus among the main political blocs to pass the Kurdistan Democratic Party’s candidate, in a move aimed at completing the structure of the parliament’s leadership and overcoming the political deadlock on this matter.”

Almaalomah.me

Iran announces the release of $2 billion frozen in a “neighboring country”.

Iran’s Fars News Agency revealed on Tuesday that more than $2 billion of frozen Iranian assets had been released by a neighboring country, likely Iraq.

The Iranian agency quoted an informed source confirming that “these funds are located in a neighboring country,” without naming it.

This came after a statement made by an official in the Iranian Planning and Budget Organization on Monday evening, in which he indicated that “billions of dollars had entered the country,” without providing further details at the time about the source of these funds or the mechanism for transferring them.

This comes at a time when Tehran has witnessed protests against the sharp decline in the value of the Iranian rial (toman), with the price of the dollar exceeding 1.4 million rials (or 140,000 tomans).

It is worth noting that the Iranian economy is suffering from multiple pressures, including international sanctions, which contribute to the continued challenges to living standards and fluctuations in the exchange market.

Shafaq.com

The Prime Minister directs a study of the revenue maximization program.

On Tuesday, during his chairmanship of the Ministerial Council for the Economy meeting, the Prime Minister directed that a program to maximize financial revenues be studied and final proposals submitted regarding it. A statement issued by the Prime Minister’s Media Office stated that “Prime Minister Mohammed Shia’a Al-Sudani chaired the meeting of the Ministerial Council for the Economy, where the meeting, the third of its kind dedicated to maximizing financial revenues, discussed the program prepared by the Higher Committee for Tax Reform, whose chairman presented a detailed explanation of this program and the steps it included. The Prime Minister directed that the program be studied and final proposals submitted to the Council so that final decisions could be made regarding it.”

The statement added that “the meeting discussed the issue of lending mechanisms from the Export Support Fund, and in this regard, the Prime Minister instructed that a list be prepared of all exports, exporters, quantities, and destinations in order to make decisions regarding the principle of lending from the Export Support Fund.” The statement continued that “the meeting completed the discussion of the outcomes of the previous session regarding maximizing revenues and reducing expenditures, and reviewed the procedures taken regarding the follow-up on the implementation of Cabinet Resolution No. (1033) of 2025, in addition to evaluating the proposals of the Tax Collection Committee.”

Burathanews.com

What does the Iraqi economy need to reform? An analytical look at the current situation and potential paths to correction.

For many years, the Iraqi economy has suffered from a clear paradox: possessing substantial financial resources, yet lacking the capacity to translate these resources into genuine and sustainable development. The relative financial stability Iraq enjoys today does not necessarily reflect a sound economic structure; rather, it masks accumulated structural imbalances stemming from excessive dependence on oil, an inflated role for the state, and weak economic and administrative institutions. Therefore, any serious discussion of reforming the Iraqi economy must begin with a realistic diagnosis of these imbalances before proceeding to prescribe reform measures.

Successive governments have managed short-term stability through increased public spending, benefiting from oil revenues and high foreign currency reserves. However, this approach has created a fragile economy more dependent on oil price shocks than on production. Public budgets have ballooned since 2004, not as a result of growth in the productive base, but due to expanding operating expenses, particularly salaries and subsidies, making the state the largest employer and source of income in the country. This reality has placed a constant burden on public finances and limited the government’s ability to direct resources toward long-term investment and development.

The bloated public sector and the multiplicity of laws governing salaries and benefits have created profound distortions in the income structure and undermined the principles of fairness and efficiency. The economy cannot become productive as long as government employment remains a substitute for genuine job opportunities in the private sector. Therefore, reforming the salary scale and linking wages to productivity, along with redefining the state’s role from direct employer to regulator and supporter, represents a fundamental step in the reform process.

At the same time, the social support system reflects another form of structural dysfunction. While socially important, the comprehensive nature of the support has led to significant resource waste and reduced the effectiveness of social protection. Reform here does not mean reducing support as much as it means redirecting it towards the most vulnerable groups and linking it to genuine economic empowerment policies that create opportunities for work and production instead of perpetual reliance on subsidies.

The energy sector represents one of the most significant structural challenges draining public finances and hindering growth. Massive spending on electricity has failed to provide a stable service due to deficiencies in management, governance, and revenue collection. The continued flaring of associated gas is a glaring example of resource mismanagement, costing Iraq billions of dollars annually that could have been used to generate energy, income, and employment. Genuine reform in this sector requires a comprehensive restructuring, not partial or temporary solutions.

Regarding public debt and fiscal deficits, the problem lies not in their existence itself, but in how they are used. Borrowing to finance operational spending exacerbates the crisis, while debt can be a positive tool if directed towards productive projects with clear returns. Hence, the need arises for a medium- and long-term fiscal framework that links deficits to growth and prevents imposing unfair inflationary or tax burdens on citizens.

Despite this, Iraq possesses significant strengths, most notably monetary stability, high foreign reserves, and low inflation. However, these indicators will remain limited in their impact unless they translate into genuine growth in the real economy. This requires a fundamental reform of the banking sector, enabling it to finance investment and production, rather than simply acting as a conduit for liquidity.

The weakness of non-oil revenues also reveals the depth of the institutional crisis. The absence of effective governance, complex procedures, and the prevalence of the informal economy all limit the state’s ability to collect revenue fairly and efficiently. Institutional reform is no less important than fiscal reform, as it provides the framework within which economic policies are implemented.

Ultimately, no economic reform in Iraq can succeed without a strong and effective private sector. The state can no longer continue to be the sole engine of the economy. What is needed is a stable business environment that protects investors, reduces bureaucracy, and provides clear and fair rules for competition. A competent private sector is not a replacement for the state, but rather an essential partner in achieving development.

The Iraqi economy stands at a pivotal moment. It must either leverage its current financial stability to launch genuine structural reforms that rebuild the economy on a foundation of production and diversification, or continue its reliance on oil and public spending, with all the future risks that entails. Reform is not merely a political choice, but an economic imperative to guarantee stability and development for future generations.

Economic Unit / North America Office,

Rawabetcenter.com

Border Ports Authority: Ports are undergoing a digital transformation after the introduction of modern technologies and the networking of sonar systems.

The head of the Border Ports Authority, Omar Adnan Al-Waili, confirmed today, Thursday, that the ports are witnessing a digital transformation after the introduction of modern technologies and the networking of sonars. A statement from the Authority stated that “the head of the Border Ports Authority, Omar Adnan Al-Waili, received today an official delegation from the International Trade Centre of the United Nations, coming from Switzerland, headed by Pierre Bonthoneau, Director of the Trade and Investment Facilitation Department, the Director of Trade Facilitation and Digital Transformation Programs, and a Trade Policy Advisor, with the aim of strengthening cooperation and facilitating international trade.”

The head of the authority also gave a detailed explanation of the authority’s work and efforts to maximize non-oil revenues and combat smuggling in all its forms, stressing that the authority is undergoing a broad digital transformation through the introduction of modern technologies, data exchange between relevant working entities, networking of sonars at all border crossings, and activation of cross-border trade according to the TIR system, with direct follow-up and supervision from the Prime Minister.

Al-Waeli stressed “the continuation of hard work to enhance security and stability at border crossings, which will positively impact the increase in trade exchange in Iraq and facilitate international trade.”

In turn, the delegation members praised the Authority’s actions in the field of governance and electronic oversight, and expressed their admiration for its efforts in combating smuggling and rebuilding border crossings, stressing their readiness to provide technical and training support to improve the Authority’s technical capabilities.

He also noted that “this visit reflects the International Trade Centre’s interest in strengthening cooperation with the Border Ports Authority with the aim of raising work efficiency and promoting stability and economic development.”

Burathanews.com