On Thursday, the Iraqi parliament in Baghdad voted to extend its term by an additional 30 days, a decision that elicited no surprise given the historical context. Since 2005, every cabinet formation in Iraq has failed to adhere to its constitutional timeline, with the 2018 cycle taking eight months to appoint key ministers and the 2022 cycle exceeding a year before a government was established. The current parliamentary environment is critical, particularly as the 2026 budget is already finalized. Article 24 prohibits new borrowing until a functioning parliament enacts relevant legislation, and the flow of oil revenue through the Federal Reserve Bank of New York has been suspended. Recent broadcasts on Iraqi state television have indicated stress on reserves, leaving the Central Bank of Iraq with two options: deplete reserves or adjust the dinar’s value. This week, one of these options received a signal, while the other remains unaddressed for now.
These are Iraqi Dinar Guru Updates, News, Opinions, and Intel Dinar Opinion
