The Iraqi Dinar Continues To Recover Against The Dollar In Baghdad Markets.
Money and Business Economy News – Baghdad The Iraqi dinar continued its gradual improvement against the US dollar in Baghdad markets on Monday, recording a new decline in exchange rates compared to yesterday’s trading.
Baghdad markets witnessed a decrease in the exchange rate of the US dollar against the Iraqi dinar, as part of a gradual recovery of the local currency in recent days.
The dollar exchange rate in the local market reached about 148,000 dinars per 100 dollars, recording an additional decline compared to yesterday’s price of 149,300 dinars per 100 dollars in the Al-Kifah exchange. https://economy-news.net/content.php?id=65242
IMF Managing Director: We Expect Global Inflation To Fall To 3.8% This Year
Money and Business Economy News – Follow-up The head of the International Monetary Fund predicted on Monday that global inflation would fall to 3.8% this year and to 3.4% in 2027 as demand declines and energy prices fall.
Kristalina Georgieva said in a speech at a forum in Dubai that global growth has maintained its level “remarkably” despite profound shifts in geopolitical conditions, trade policies, technology and demographics, according to Reuters. https://economy-news.net/content.php?id=65234
Iraq Records An Increase In Accumulated Domestic Debt To 89 Trillion Dinars
Money and Business Economy News – Baghdad The economic advisor to the Prime Minister, Mazhar Muhammad Salih, announced that Iraq’s accumulated domestic debt has risen to 89 trillion dinars.
According to the official newspaper, Mazhar Muhammad Saleh said that the solutions adopted by the financial authority, within the framework of the government program, are aimed at diversifying sources of income and reducing dependence on external loans, in parallel with proceeding with the path of economic reform through the restructuring of government banks, stressing that the state is moving towards consolidating the philosophy of partnership with the private sector.
Saleh revealed that Iraq’s external public debt amounts to only $13 billion, while the accumulated internal public debt has risen to about 89 trillion dinars, stressing that there is a governmental direction to transform this “internal” debt from a financial burden into an opportunity for development and investment, but he acknowledged that the escalating pressures of servicing the internal debt may negatively affect the standard of living of citizens.
He added that “under the influence of fluctuations in the oil asset cycle, and the escalation of geopolitical pressures in energy belt regions since the middle of last year, along with the slowdown in global economic growth and the rise in levels of uncertainty in international real investment – whose growth is a strategic factor in energy demand – the financial situation in Iraq has faced major challenges, given its dependence on oil export revenues of nearly 88%.”
The Prime Minister’s economic advisor explained that “in this context, the accumulated domestic public debt over the years has increased to about 89 trillion Iraqi dinars (equivalent to about 67 billion dollars) at the end of 2025, an increase of nearly 6% compared to 2024,” attributing this increase mainly to the public finances’ reliance on domestic borrowing from government banks to finance the temporary budget deficit resulting from the decline in oil prices and the fluctuation of oil revenues.
He explained, “This path has produced tangible effects on the liquidity of the economy, as the continuation of the fiscal deficit and the recourse to internal financing, in conjunction with the rise in government expenditures, would deepen the actual deficit in the budget and leave negative effects on economic growth,” indicating that “this problem is exacerbated in light of the limited non-oil revenues, which have become close in size to the costs of servicing the debt itself, if this path is not addressed radically.”
He added, “Moreover, increased investment in government debt instruments has become more attractive to government banks than lending to the private sector, which limits the role of credit in stimulating productive activity. In addition, the rising pressures of servicing domestic debt may negatively affect the standard of living of citizens if it begins to burden price support programs and social welfare networks.”
Saleh explained that “in contrast, Iraq’s external debt is only about $13 billion, which is a low level compared to the gross domestic product. International creditors appreciate Iraq’s ability to meet its external obligations thanks to the strength of its foreign reserves and its financial stability, which has contributed to giving it a stable and promising credit rating.”
He revealed that “based on this, the solutions adopted by the financial authority, within the framework of the government program, are aimed at diversifying sources of income and reducing dependence on external loans, in parallel with proceeding with the path of economic reform through restructuring government banks, improving the efficiency of the financial sector, and enhancing transparency and accountability in public finance management through digital governance and expanding digital financial inclusion.”
The economic advisor pointed out that “there are clear trends to transform internal public debt from a financial burden into opportunities for development and productive investment in real assets, through adopting the philosophy of partnership between the state and the private sector, especially in the real sectors with high productivity, which is expected to form one of the axes of the economic program for the next stage.” https://economy-news.net/content.php?id=65239
In The Presence Of The Framework Delegation, Al-Sudani And Barzani Affirmed Their Commitment To Completing The Formation Of The Government.
Economy News – Baghdad Prime Minister Mohammed Shia al-Sudani and Kurdistan Democratic Party leader Masoud Barzani affirmed on Monday their commitment to completing the formation of the government in accordance with the results of the parliamentary elections.
A statement from his media office, received by “Al-Eqtisad News”, stated that “Al-Sudani met in Erbil with the President of the Kurdistan Democratic Party, Masoud Barzani, in the presence of the accompanying Coordination Framework delegation, which included the Secretary-General of the Badr Organization, Hadi Al-Amiri, the President of the Al-Asas Coalition, Mohsen Al-Mandalawi, and the Secretary-General of the Framework, Abbas Radhi.”
He noted that “the meeting discussed the upcoming constitutional entitlements, foremost among them the election of the President of the Republic, in order to proceed with completing the formation of the government in accordance with the results of the parliamentary elections.”
He explained that “the meeting addressed the current developments in the region, the situation in Syria, and the importance of unifying the Iraqi national political discourse regarding these changes and events, in order to strengthen Iraq’s position and its supreme national interests.” https://economy-news.net/content.php?id=65250
Dollar Declines In Baghdad And Erbil
2026-02-02 Shafaq News– Baghdad/ Erbil The US dollar opened Monday’s trading lower in Iraq, hovering around 149,000 dinars per 100 dollars.
According to a Shafaq News market survey, the dollar traded in Baghdad’s Al-Kifah and Al-Harithiya exchanges at 149,000 dinars per 100 dollars, down from the previous session’s 149,400 dinars.
In the Iraqi capital, exchange shops sold the dollar at 149,500 dinars and bought it at 148,500 dinars, while in Erbil, selling prices stood at 148,900 dinars and buying prices at 148,700 dinars. https://www.shafaq.com/en/Economy/Dollar-declines-in-Baghdad-and-Erbil
Gold Prices Fall In Baghdad And Erbil Markets
2026-02-02 Shafaq News– Baghdad/ Erbil On Monday, gold prices hovered around one million IQD per mithqal in Baghdad and Erbil markets, marking a sharp decline from the previous session, according to a survey by Shafaq News Agency.
Gold prices on Baghdad’s Al-Nahr Street recorded a selling price of 970,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 965,000 IQD. The same gold had sold for 997,000 IQD on Sunday.
The selling price for 21-carat Iraqi gold stood at 940,000 IQD, while the buying price reached 936,000 IQD.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 970,000 and 980,000 IQD, while Iraqi gold sold for between 940,000 and 950,000 IQD.
In Erbil, 22-carat gold was sold at 1.059 million IQD per mithqal, 21-carat gold at 1.012 million IQD, and 18-carat gold at 865,000 IQD. https://www.shafaq.com/en/Economy/Gold-prices-fall-in-Baghdad-and-Erbil-markets-1-8
Oil Prices Plunge On Signs Of US-Iran De-Escalation
2026-02-02 Shafaq News Oil prices fell 4% on Monday as U.S. President Donald Trump said over the weekend Iran was “seriously talking” with Washington, signalling de-escalation with an OPEC member after risks of a military strike drove prices to multi-month highs.
Brent crude futures were down $2.81, or 4.1%, to $66.51 per barrel at 0325 GMT. U.S. West Texas Intermediate crude fell $2.70, or 4.1%, to $62.51 per barrel.
Both contracts dropped sharply from the previous sessions, when Brent touched a six-month high and WTI was hovering near its highest since late September on mounting tensions between the United States and Iran.
Trump has repeatedly threatened Iran with intervention if it does not agree to a nuclear deal or continues killing protesters. The persistent threats have underpinned oil prices throughout January, said Priyanka Sachdeva, an analyst at Phillip Nova.
“The recent pullback has also been reinforced by renewed strength in the U.S. dollar, which typically makes dollar-denominated oil more expensive for non-U.S. buyers, further weighing on prices,” Sachdeva said.
On Saturday Trump told reporters Iran was “seriously talking,” hours after Tehran’s top security official Ali Larijani said arrangements for negotiations were underway.
Trump’s comments, along with reports that the naval forces of Iran’s Revolutionary Guards have no plans to carry out live-fire exercises in the Strait of Hormuz, are signs of de-escalation, said IG market analyst Tony Sycamore.
“The crude oil market is interpreting this as an encouraging step back from confrontation, easing the geopolitical risk premium built into the price during last week’s rally and prompting a bout of profit-taking,” he said.
OPEC+ agreed to keep its oil output unchanged for March at a meeting on Sunday. In November they froze further planned increases for January through March 2026 because of seasonally weaker consumption.
“Geopolitical risks mask a fundamentally bearish oil market,” Capital Economics said in a January 30 note. “The historical example of last year’s 12-day war (between Israel and Iran), and a well-supplied oil market, will still bear down on Brent crude prices by end-2026.” (Reuters) https://www.shafaq.com/en/Economy/Oil-prices-plunge-on-signs-of-US-Iran-de-escalation
