Controversy over the effectiveness of “economic laws” in Iraq

Controversy is growing over the enactment of new laws to reform Iraq’s banking system, with economists emphasizing the importance of updating them to reflect current developments.

Economic expert Abdul Rahman Al-Shaikhli told Shafaq News Agency, “Despite three decades having passed since the change in the political system, legislators, especially the House of Representatives, have not paid attention to the antiquity of economic laws that have been in effect for decades.” He explained that “many of these laws are no longer valid for the current stage, such as Law No. 111 of 1969, as amended, which is still in effect and includes a paragraph related to a fine of 100 dinars.”

He pointed out the “importance of amending and updating laws in line with contemporary requirements and actual needs,” adding that “Article 28 of the Banking Law does not permit currency trading, which leads to the deterioration of the operations of banking institutions, which are the backbone of the economy.”

Al-Shaikhli continued, “It is necessary to review all economic and banking laws, including those enacted by Paul Bremer during the special circumstances of the invasion of Iraq, which are still in effect.”

Other experts believe that there is no longer time to enact new laws to reform the banking system, as this would require a long time. It would be better to work on updating existing laws based on the powers of the federal government and the Central Bank of Iraq.

In the same context, the Prime Minister’s economic advisor, Mazhar Mohammed Salih, told Shafaq News Agency that “the time is not right to amend the legal provisions related to banks, as this is a rigid and slow legislative issue. It is possible to arrange the economic and banking situation based on the current laws that include flexibility.”

According to Saleh, comprehensive legal reform requires a long time, but it could be pursued in the future. He explained that banking reform does not require new laws, as the laws already exist, and updating them falls under the responsibility of the government and the Central Bank, through a series of special measures within their mandate to modernize banking and financial policies.

The Central Bank of Iraq had previously contracted with Oliver Wyman to conduct reviews and studies related to the Iraqi banking sector as part of a plan to modernize and develop the sector.

The Iraqi banking sector faces a host of challenges, including corruption, red tape, and a failure to keep pace with technological advancements. Furthermore, the difficulty of integrating into the international banking system due to US sanctions is compounded by the lack of transparency.

Shafaq.com

$200 billion in trade between China and Iraq by 2024

The Chinese Embassy Counselor in Iraq, Xu Haifeng, confirmed on Wednesday that Iraq is a key partner for his country, noting that China imported approximately 64 million tons of crude oil from Iraq in 2024.

In a press conference held in Baghdad to mark the 80th anniversary of the victory over Japan, attended by a Shafaq News Agency correspondent, Haifeng said that Chinese companies have been operating in the energy sector in Iraq for many years, especially after 2003, and have contributed to the reconstruction of the oil sector and the export of crude oil to foreign markets. He stressed the readiness of both the Iraqi and Chinese sides to enhance cooperation in the fields of oil and electricity, with expectations of more diverse partnerships in the future.

The Chinese diplomat added that his country had invited 26 countries, including heads of government, parliaments, political leaders, and military leaders, to participate in China’s celebrations of its victory over Japan. He noted that the Chinese president emphasized in his speech that the Chinese people’s resistance was the first struggle against foreign aggression and contributed to saving human civilization. He affirmed his country’s commitment to working with the world to build a bright future for humanity.

Haifeng explained that China’s relations with its neighboring countries during World War II were intertwined, as the region’s peoples fought against Japanese aggression. In response to our correspondent, the Chinese diplomat noted that his country is now open to economic cooperation in Iraq through its companies operating in the energy, electricity, and communications sectors.

He pointed out that cooperation between China and Iraq includes combating terrorism, with Beijing providing training programs for Iraqi security forces.

The Chinese official concluded his remarks to the agency by pointing out that the volume of trade between the two sides reached approximately $200 billion in 2024. He explained that Chinese companies have also participated in the reconstruction of the Kurdistan Region’s economy, with financial cooperation expanding over the past two years.

Shafaq.com

Source: Iraqi retirees’ salaries postponed until September

An informed source reported on Wednesday that the disbursement of retirees’ salaries has been postponed until further notice.

The source told Shafaq News Agency that the salaries of civilian and military retirees for the current month of September have been postponed until further notice, which has not yet been announced, due to the lack of financial liquidity. He expected them to be distributed at the beginning of next week.

He added that it would have been more appropriate for the Ministry of Finance to borrow from government banks to cover the salaries of retirees who are in dire need of them, rather than granting loans under the so-called “initiative.”

The source also noted that the General Retirement Authority had announced four days ago a statement regarding the completion of the disbursement of retirees’ salaries for September, but that funding has not yet been received. He noted that retirees have what is known as a retirement fund, and the lack of financial liquidity is not expected to affect it.

Rafidain Bank announced this week the funding of the eighth tranche of Riyadah loans under the Central Bank of Iraq’s initiative, which amounts to between 20 and 100 million dinars.

Shafaq.com

German Ambassador: Access to Finance Guide will develop Iraq’s financial sector

The Chargé d’Affaires of the German Embassy in Iraq, Roland Westebe, confirmed on Wednesday that the Access to Finance Guide is a strategic step for small and medium-sized enterprises (SMEs). He pointed out that the cooperation with the Central Bank aims to strengthen and support the financial sector in Iraq for the coming years. Westebe told the official agency, “The Access to Finance Guide offers many financial services, but SMEs are unable to access them because there is a lack of information available to them, or it may be offered privately.”

He also pointed out that “the guide will be the primary reference for small and medium-sized enterprises to understand the types of services provided and how to access and evaluate them.”

He added, “The project is a major strategic step towards improving access to financing for small and medium-sized enterprises and enhancing the financial sector in Iraq, in cooperation with the Central Bank and the Association of Banks,” noting that “we will continue to provide support to the Iraqi financial sector in the coming years.”

Burathanews.com

Monetary stability and exchange rate liberalization.

In economic feasibility studies, the financial, marketing, and technical studies cannot be prepared in an investment environment unless that environment enjoys monetary stability, paving the way for stable exchange rates for the local currency against foreign currencies. This allows the economic feasibility researcher—particularly the foreign investor—to calculate costs, returns, and profits over the time periods within the project’s lifetime.

This means that monetary instability can be a factor that repels investment capital, even if the investment environment is promising. Therefore, monetary authorities, through their available tools, seek to achieve the goal of monetary stability and reassure investors and those preparing economic feasibility studies, with stability that makes the margin of error in forecasts very small. This leaves it to the executive, legislative, and judicial authorities to establish attractive security, legal, and social environments through security stability and social acceptance, along with the presence of a legal system and judicial institutions that regulate and protect market relations on the one hand, and the relations of business owners with institutional and social formations on the other, in a manner that ensures integrity and integration with societal customs and traditions.

Based on this and other factors related to the inflationary situation and its extension to the areas of growth rates and development, the local currency exchange rate and monetary stability have been among the priorities of the monetary authority in our country over the years of economic adaptation to the phase of the macroeconomic transition to a market economy in light of structural imbalances, the inability of productive sectors to finance domestic demand due to the disruptions of the transition phase and the internal influences related to financing foreign trade, and the growth of the black market for currency exchange.

After the country witnessed security stability, an increase in the level of services and sectoral growth rates, with a clear reduction in the circles of administrative slackness due to the introduction of technologies and electronic payment systems, in conjunction with measures to tighten control over border crossings, and transfer the mechanisms of foreign currency flow to finance foreign trade through the banking system, the rates of the dollar mass flow outward to the local market decreased, which was reflected positively in favor of the Iraqi dinar, and which bodes well for the black market exchange rate approaching the official exchange rate.

However, achieving monetary stability under the conditions of economic reform, which include the liberalization of the exchange rate, does not mean a decline in the black market exchange rate in favor of the official exchange rate. Rather, it means price stability in a market capable of financing aggregate demand at a point close to or identical to the official rate, with the possibility of maintaining this stability in the face of the many variables and transformations witnessed by the country and the region. In other words, achieving stability is conditional upon the liberalization of the exchange rate, which favors the adoption of a managed float method, through a free market in which minor fluctuations in the exchange rate are permitted, while the monetary authorities intervene when necessary to support price stability in cooperation with the executive and legal authorities.

Alsabaah.iq

Signing the contract to establish the National Mobile Telephone Company in Iraq

Prime Minister Mohammed Shia al-Sudani sponsored the signing ceremony of the founding contract for the National Mobile Phone Company today, Sunday.

On March 11, 2025, the Iraqi Council of Ministers, headed by Mohammed Shia al-Sudani, approved the establishment of the National Mobile Telecommunications Company to operate 5G in partnership with Vodafone, with contributions from the Ministry of Communications, the National Retirement Authority, and the Trade Bank of Iraq.

In a video statement following the voting session, Minister of Communications Hiyam Al-Yasiri said that the decision to establish the company, with contributions from the Ministry of Communications, represented by the Al-Salam General Company, the Trade Bank of Iraq, and the National Retirement Authority, aims to maximize the employee retirement fund and provide subsidized services to retirees.

Last December, Minister of Communications Hiyam Al-Yasiri announced that the Council of Ministers had issued an important decision approving the selection of Vodafone International as the operator of the government’s national 5G mobile phone license. This decision was based on the recommendations of the negotiating team formed by the Ministry of Communications.

Shafaq.com

Tankers in the Shadows: Iraq a Strategic Hub for Sanctioned Oil Transport

Iraq has recently emerged as a key logistical player within the shadow oil tanker network serving sanctioned countries such as Russia, Iran, and Venezuela.

S&P Global data indicates that the fleet of these vessels expanded significantly during the first half of 2025, relying on new shipping companies registered in China, Hong Kong, and the UAE to circumvent Western restrictions on oil exports.

Some brokers exploit Iraq’s ports to facilitate the transport of crude oil and its products, including oil exchanges between sanctioned countries and Venezuela, making Iraq a key transit point for this international trade.

According to experts, some Iranian shipments are being funneled under the guise of Iraqi oil, prompting Western authorities to impose sanctions on intermediaries linked to these operations, including Iraqi-British citizen Salim Ahmed Saeed.

Internationally, Russia, Iran, and Venezuela rely on this fleet to secure their exports despite sanctions. The ships are highly flexible and enable them to transport oil to major markets such as China and India at reduced prices, benefiting from the evasion of oversight and the discounts on barrel prices compared to non-sanctioned oil.

However, these operations face widespread criticism due to environmental risks and the proliferation of old, uninsured ships, which can cause significant damage to the marine environment.

Economists say that Iraq and other countries involved in these maritime networks play important strategic roles, providing essential transit points to facilitate international trade. Meanwhile, shipping companies continue to make significant profits by exploiting differences in global oil prices and demand, despite increasing Western pressure on sanctioned countries to reduce unauthorized flows.

Shafaq.com

“A Big Deception”… Turkish Water Releases to Iraq End

The Green Iraq Observatory, which specializes in environmental affairs, confirmed that Sunday marks the last day of the grace period set by Türkiye for water releases into Iraq.

The observatory stated, in a statement received by Shafaq News Agency, that Turkey had announced the release of 400 cubic meters per second during July and August of this year, but Iraq was “seriously deceived” when it expected the releases to be in accordance with the Turkish announcement. It later emerged that Türkiye had only released 120 cubic meters per second.

The observatory noted that this prompted Iraq to release double this amount, resulting in the emptying of dams and regulators.

The Observatory warned that Iraq will suffer from a severe water shortage in the coming period until a solution is reached with Turkey through negotiations to extend the release period, especially given the possibility that politicians will exploit this issue during the election season.

The observatory concluded its statement by warning that Iraq is experiencing an extremely dire water situation that could worsen in the coming months if effective solutions are not provided by the responsible authorities. Furthermore, water quality remains unfit for consumption in most governorates.

In early July 2025, Iraqi Parliament Speaker Mahmoud al-Mashhadani announced from Ankara that Turkish President Recep Tayyip Erdoğan had agreed to increase water releases to Iraq by 420 cubic meters per second, starting Wednesday, July 2, 2025.

On the 8th of the same month, the Green Iraq Observatory revealed that the water Türkiye had released towards Iraq was only for two months, and that “those releases have not been carried out yet (July 8).”

Water resources strategy and policy expert Ramadan Hamza had previously revealed that Iraq would not benefit from increased water releases by Türkiye.

Shafaq.com

The United States and Kurdistan agree to strengthen relations and resolve outstanding financial issues.

Kurdistan Regional Government Prime Minister Masrour Barzani and the new US Consul General to the Kurdistan Region, Wendy Green, agreed during a meeting held on Sunday to strengthen bilateral relations and resolve outstanding financial issues between the region and the federal government.

The regional government said in a statement received by Shafaq News Agency that Masrour Barzani received today the new US Consul General to the region, Wendy Green.

The Prime Minister began the meeting by welcoming the Consul General and congratulating her on assuming her duties. He affirmed the government’s full readiness to provide all necessary support to ensure the success of her diplomatic mission. He also commended the United States’ continued support for the Kurdistan Region in various fields.

For her part, the Consul General expressed her pleasure at beginning her work in the region, praising the bonds of friendship between the two sides. She affirmed her country’s commitment to moving forward in strengthening and developing relations to serve mutual interests, and revealed an upcoming visit by a US trade delegation to the region in the near future.

The Consul General commended the reform package implemented by the Kurdistan Regional Government, specifically mentioning the “Ronaki” project, which provides 24-hour national electricity, and the “My Bank Account” project, which aims to digitize the financial sector.

The meeting also addressed the need to resolve the contentious issues between the Kurdistan Region and the federal government, ensuring the constitutional rights and financial dues of the region’s citizens, as well as the importance of resuming oil exports.

Shafaq.com

With a multi-billion dollar investment, Iraq opens the banks of the Tigris River to hotels and restaurants.

The head of the National Investment Commission, Haider Makiya, confirmed on Sunday that the volume of investments in Iraq has reached more than $100 billion, while revealing the nature of the developments that will take place along the banks of the Tigris River.

” The volume of investments in Iraq has reached more than $100 billion, with local investment reaching $38.6 billion and foreign investment reaching $64 billion,” Makiya told Shafaq News Agency .

He added, ” The government has a vision to develop the banks of the Tigris River, after the extensive neglect that occurred previously, and we are trying to add some investment projects to this project.”

He continued, ” Developing investment on the banks of the Tigris River will see the construction and development of hotels and restaurants, and the addition of river taxis. This will be a major investment opportunity for both foreign and local investors.”

Iraqi Prime Minister Mohammed Shia al-Sudani confirmed last January that Arab and foreign investments in Iraq had reached $63 billion over the past two years.

Shafaq.com