Central Bank Governor: Banking reform is receiving direct attention from the Prime Minister
Baghdad – WAA The Governor of the Central Bank of Iraq, Ali Al-Alaq, confirmed on Tuesday that there is no intention to reduce the exchange rate of the dinar against the dollar. While denying the existence of any American embargo on Iraqi funds, he indicated that the banking reform file is receiving direct attention from Prime Minister Ali Al-Zubaidi.
Al-Alaq told a number of journalists, as reported by the Iraqi News Agency (INA), that “there is no intention to reduce the exchange rate of the dinar against the dollar, and we will help the government overcome the repercussions of any potential closure of the Strait of Hormuz by discounting treasury bonds and securing salaries,” noting that “the cash reserves are currently being invested in several countries, and there is no American embargo on Iraqi funds.”
He added that “the US Treasury and the Federal Reserve praise the role of the central bank,” noting that “the central bank provides dollars to travelers and traders at the official rate.”
He explained that “most banks have reached the stage of merger or liquidation, and only one or two banks remain that are unable to continue,” stressing that “the banking reform file is receiving direct attention from the Prime Minister, and there is an expected meeting in the coming days with the Federal Reserve and the US Treasury Department.”
He confirmed that he “directly oversees the banking reforms file, and the banks concerned and the consulting firm have made significant progress in implementing the reform requirements,” noting that “a meeting is expected in the coming days that will bring together Oliver Wyman and the Central Bank of Iraq with the US Federal Reserve and the US Treasury Department.”
He added: “The meeting will pave the way for the transition to dealing in other foreign currencies for banks that have completed all the required requirements and procedures,” noting that “there is no truth to what is being said about the Central Bank obstructing banking reforms, and our interest lies in the return of the deprived banks to activity as quickly as possible.”
He concluded by saying: “The media has a major role, and the international community is watching with interest what is being said by parliamentarians, analysts, and local media.” https://ina.iq/ar/economie/263703-.html
Ali al-Alaq: Central Bank Participation in Budget Drafting Is Essential
The Governor of the Central Bank of Iraq (CBI) stressed the need for stronger coordination between fiscal and monetary policy, stating that the bank’s involvement in budget preparation helps prevent an economic gap.
Coordination Between Fiscal and Monetary Policy
CBI Governor Ali al-Alaq said that the participation of the Central Bank in drafting the state budget is essential to ensure complementarity between fiscal and monetary policies.
He noted that such coordination helps prevent economic disparities and strengthens long-term fiscal and monetary stability.
Role of the Central Bank in Economic Policy
Al-Alaq explained that the Central Bank has detailed indicators and data on cash flow, foreign reserves, and money supply levels. Therefore, it must play a key role in shaping the country’s overall economic policy alongside the fiscal policies implemented by the government and the Ministry of Finance.
He also emphasized that a lack of coordination directly affects prices and inflation levels.
Toward a More Balanced Budget Framework
Al-Alaq stated that coordination between the two institutions would lead to a more realistic and balanced budget capable of responding to economic changes.
These remarks come as the Iraqi government has yet to prepare the 2026 budget, with indications that a budget law for this year is unlikely.
Al-Zaidi Emphasizes Economic Reforms and Stability Initiatives
In his first official address after becoming prime minister, Ali Faleh al-Zaidi underlined that one of the “top priorities” for his government is initiating a comprehensive economic and financial reform program.
He highlighted the program aims at “building a strong, diversified, and sustainable national economy that does not rely on a single resource.”
Al-Zaidi also chaired a meeting of the Financial Stability Council earlier this week with the CBI governor and the minister of finance, during which he underscored the importance of making financial decisions that support stability in a way that positively impacts the government’s development, service, and economic plans. https://channel8.com/english/news/58421
Political Consensus Paves The Way For The Passage Of The Oil And Gas Law.
2026/05/19 Baghdad: Jinan Al-Asadi The Iraqi Parliament is preparing to introduce the draft oil and gas law in the coming period, amid indications of a political consensus among most blocs to pass it. MP Adel al-Mahalawi, from the Progress Bloc, told Al-Sabah newspaper that the law will be presented to Parliament soon after political understandings are reached.
He explained that Prime Minister Ali al-Zubaidi has expressed his willingness to cooperate in finalizing legislation with an economic dimension. He clarified that the law is considered one of the most anticipated pieces of legislation, as it regulates the relationship between the federal government and the oil-producing provinces and contributes to supporting the budget and boosting revenues.
Al-Mahalawi added that some technical and political disagreements still exist, but they are resolvable through national consensus. He also noted Parliament’s intention to introduce a set of service and economic laws in the coming period in coordination with the government. https://alsabaah.iq/132587-.html
Lebanese News: US General Petraeus’s Visit To Baghdad Brings Back Memories Of The “Sunni Awakening” Project
Baghdad – One News 5/23/2026 Sunni Awakening project that became associated with his name after 2007.
According to the Lebanese newspaper Al-Akhbar, the visit coincided with political changes that accompanied the formation of the new government, most notably the exclusion of factional forces from the first ministerial batch, in addition to growing talk within political circles about unannounced understandings between Baghdad and Washington regarding the Popular Mobilization Forces and the restructuring of the security landscape in Iraq.
Iraqi political sources indicate that Petraeus discussed during his meetings with government officials and security leaders American visions for reorganizing the Iraqi security establishment, within a vision that considers the continuation of the current form of the Popular Mobilization Forces to be an obstacle to the stability of Iraq and its regional relations.https://1news-iq.net/الاخبار-اللبنانية-زيارة-الجنرال-الأم/
Masrour Barzani And Ali Al-Zaidi Hold A Bilateral Meeting In Baghdad
Latest News Baghdad – One News 5/23/2026 Meanwhile, the Prime Minister of the Kurdistan Region, Masrour Barzani , and the Prime Minister of the Federal Government, Ali al-Zaidi , held a bilateral meeting at the Government Palace in the Iraqi capital, Baghdad .
The Prime Minister of the Kurdistan Region arrived in Baghdad on Saturday afternoon, leading a high-level government delegation, for a two-day visit.
During his visit, Masrour Barzani is scheduled to hold a series of meetings with the Federal Prime Minister al-Zaidi, the Speaker of Parliament, and the Head of the Supreme Judicial Council, along with a number of senior officials and leaders of political forces.
The talks will address the latest developments and updates on the Iraqi and regional scenes, as well as discuss contentious issues and outstanding files between the Kurdistan Region and the Federal Government, in accordance with the provisions of the Constitution and in a manner that guarantees the rights of all components of the country.
Iraqi And Kurdish Premiers Seek Agreement On Longstanding Disputes
026-05-23 / 05:18 Shafaq News- Baghdad/ Erbil Iraqi Prime Minister Ali Al-Zaidi and Kurdistan Region Prime Minister Masrour Barzani on Saturday launched talks in Baghdad focused on oil exports, border crossings, customs procedures, and revenue-sharing arrangements between Baghdad and Erbil.
During the discussions, which also addressed implementation of the UN-developed ASYCUDA customs platform and coordination over oil companies operating in the Kurdistan Region, Al-Zaidi stated that his government was seeking to resolve outstanding issues “according to the law and constitution,” adding that Baghdad aimed to reach an agreement serving “the interests of the country and its people.” مكتب الاعلامي لرئيس الوزراء العراقي
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Prime Minister Ali Falah Al-Zaidi Emphasizes The Government’s Keenness To Cooperate With The Regional Government To Resolve Technical Issues
Today Saturday, the Prime Minister, Mr. Ali Falah Al-Zaidi, the Prime Minister of the Kurdistan Region of Iraq, Mr. Masrour Barzani, and his accompanying delegation.
During the meeting, the research of the situation in the country, discussion of technical issues related to border port files, implementation of Asikoda system and oil companies operating in the region was emphasized, the opportunity for high coordination and cooperation between the federal government and the regional government, to manage technical issues and to lower obstacles to them in accordance with law and constitution.
His majesty emphasized the diligence to solve all issues, in line with the vision of the government that aims to serve citizens with different components, demonstrating that everyone is partners in this country, and that its goal is to reach an agreement that fulfills the interests of the country and serve its people.
On his part, Mr. President of the Iraqi Kurdistan Region Government renewed his congratulations to Mr. Al-Zaidi, on the occasion of his confidence in the House of Representatives and the formation of the new government, and expressed his support of the regional government for the ministerial cabinet, he also stressed the importance of radical resolving all technical issues in accordance with the Constitution.
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Media office of the Prime Minister 23- MAY-2026
Barzani, meanwhile, stressed the importance of resolving disputes under the constitution while respecting the Kurdistan Region’s federal status.
His two-day visit to the capital will also include meetings with Iraqi Parliament Speaker Haibet Al-Halbousi, Supreme Judicial Council President Faiq Ziidan, and senior political leaders, marking one of the first major engagements between Baghdad and Erbil since Al-Zaidi’s government gained confidence on May 14.
In March, Baghdad and Erbil reached an agreement to resume Kurdish crude exports through the Iraq-Turkiye pipeline following nearly two years of disruption, with exports resuming at around 170,000 barrels per day.
Despite the agreement, negotiations have continued over payment mechanisms, revenue-sharing arrangements, and guarantees demanded by foreign oil companies operating in the Region, including members of the Association of the Petroleum Industry of Kurdistan (APIKUR).
The strategic importance of northern export routes has also increased following months of disruption to maritime shipping through the Strait of Hormuz, which Iran closed and the United States blockaded during their conflict.
Read more: Iraq’s oil lifeline is blocked: Here is why the crisis runs deeper than Hormuz
Baghdad And Erbil Also Remain Divided Over Federal Budget Transfers And Salary Payments To Kurdistan Region Public Employees.
Earlier this year, the Kurdistan Regional Government’s Ministry of Finance and Economy said Baghdad had transferred only about 41% of the Kurdistan Region’s financial entitlements over the previous three years despite agreements on oil and non-oil revenue sharing, while the federal Finance Ministry argued that salary transfers depend on the Kurdistan Regional Government complying with revenue-sharing obligations under Iraq’s federal budget law.
Read more: Into 2026, Baghdad and Erbil face the same disputes—with higher stakes
Ali Al-Zaidi’s Incomplete Cabinet Faces Iraqi Armed Factions Test
2026-05-22 / 02:12 Shafaq News Iraq’s new Prime Minister, Ali al-Zaidi, entered office under the shadow of an incomplete parliamentary mandate after the Iraqi parliament approved only 14 cabinet ministers, leaving nine key sovereign and service portfolios unresolved, including the ministries of Interior, Defense, and Planning.
The delay has not been viewed as a routine political dispute over appointments. Instead, it reflects deeper tensions tied to the restructuring of Iraq’s post-2003 political order and the future role of armed Shiite factions within the state apparatus.
Vacant ministries encompass some of Iraq’s most critical institutions, overseeing security, administration, and economic planning. The Interior and Defense portfolios, in particular, remain highly contentious because they are directly tied to the issue of weapons control and the influence of armed factions, a file that lies at the heart of both Baghdad’s relationship with Washington and rivalries within the Shiite political camp.
Amid a highly sensitive regional and international climate, Baghdad faces increasing US pressure alongside escalating competition among factions within the Coordination Framework. At the same time, Iraqi political forces are attempting to craft a governing arrangement capable of containing external demands without upsetting the country’s fragile internal equilibrium.
Read more: Iraq’s armed factions, state authority, and the battle over disarmament
Armed Factions and the Post-2003 Order
One of the most significant transformations in Iraq since 2003 has been the evolution of armed factions from military actors into influential political stakeholders with direct leverage over state institutions. Many of these groups expanded their influence during the war against ISIS and now maintain substantial parliamentary, political, and economic power that major Iraqi parties can no longer ignore.
Political researcher Ramadan Al-Badran told Shafaq News that the issue of armed factions is simultaneously a domestic Iraqi crisis and part of a broader regional confrontation. “The factions’ relationship with Iran makes them part of the wider tension between Tehran and Washington,” Al-Badran said, arguing that the post-2003 political system, particularly during the governments of former Prime Minister Nouri Al-Maliki between 2006 and 2014, “effectively legitimized the presence of these groups by presenting them as defenders of Iraq’s political order.”
He questioned the current calls to limit factional influence, asking why parallel military formations were established outside the traditional army structure in the first place and why they are now being asked to retreat after years of participating in protecting the state.
Read more: Ali Al-Zaidi sworn in as Iraq’s prime minister with a program already failed
A Consensus Prime Minister
Observers interviewed by Shafaq News said Al-Zaidi’s selection was less the result of political dominance within the Coordination Framework than a compromise among competing Shiite forces seeking a figure capable of managing internal rivalries.
Haitham Hadi Numan, Professor of Political Science at the University of Exeter, noted that Al-Zaidi emerged as a consensus candidate acceptable to the major factions inside the alliance, and the forces within the Coordination Framework now possess relatively balanced influence that prevents any single party from dominating. “Therefore, they chose a figure who can be politically managed.”
According to Numan, confrontation with armed factions “remains unlikely” in the current phase. Instead, Iraq’s ruling forces appear more inclined toward the “legal institutionalization” of these groups within state structures.
Read more: The Shiite Coordination Framework: Can govern Iraq, but cannot agree on a primeminister
Factions Push Back
Pillar One of al-Zaidi’s program commits the government to consolidating all weapons under exclusive state authority, meaning no armed group outside the formal military and security structure should operate independently. In most countries, this would be an unremarkable statement, but in Iraq, it is the central unresolved dilemma of the post-2003 political order.
Signs of resistance quickly emerged. Harakat Hezbollah al-Nujaba rejected suggestions that the government’s pledge to limit weapons to state authority applies to what it called “resistance weapons.”
The group’s Executive Council chief, Nazem Al-Saadi, stressed that the term “uncontrolled weapons” referred only to illegal arms that create “chaos,” insisting that it did not include weapons held by fighters who “defended Iraq, its holy sites, and its people during the most difficult circumstances.”
At the same time, new fractures appear to be emerging within the Coordination Framework itself.
A well-informed source revealed to Shafaq News that five influential Shiite leaders are holding advanced discussions to establish a new parliamentary alliance that could significantly reshape Iraq’s ruling coalition landscape.
The figures involved include Nouri Al-Maliki, leader of the State of Law Coalition; Hadi Al-Ameri, leader of the Badr Organization and head of the Fatah Alliance; Faleh Al-Fayyad; Humam Hamoudi; and Ahmed al-Asadi.
According to the source, the proposed bloc could include between 75 and 100 lawmakers, potentially making it one of the largest organized opposition forces in parliament despite originating from within the Shiite political establishment itself.
If formed, the alliance would signal not only dissatisfaction with Al-Zaidi’s government arrangements but also deeper competition over the future leadership of the Coordination Framework and the distribution of influence inside the Shiite camp.
Washington Pressure and Baghdad’s Balancing Act
In recent months, Washington has intensified sanctions targeting individuals linked to armed factions while repeatedly stressing that restricting weapons to state control remains a prerequisite for deeper bilateral cooperation with Baghdad.
Iraqi political sources have also spoken of an undeclared American veto against the participation of armed factions in government institutions.
The US Department of State has indicated that its relationship with the new Iraqi government will be judged “by actions, not words,” placing Baghdad in a difficult position. The Iraqi government must preserve the cohesion of its internal alliances while simultaneously avoiding confrontation with Washington, whose support remains critical for Iraq’s economic stability, security cooperation, and international relations.
Read more: Ali al-Zaidi named Iraq’s prime minister: Easy nomination, harder road ahead
Iraq’s Unresolved State Dilemma
According to analysts, the troubled birth of Al-Zaidi’s government underscores a structural crisis that extends far beyond cabinet formation or ministerial quotas.
At its core, the conflict concerns the nature of the Iraqi state itself: the limits of armed faction influence, the future of the Popular Mobilization Forces (PMF), and Baghdad’s relationship with competing regional and international powers.
Caught between American pressure, Iranian calculations, and the internal balance of the Coordination Framework, the new prime minister faces a defining challenge: either engineer a new political settlement capable of reorganizing the relationship between the state and armed factions or enter another prolonged phase of political paralysis.
One notable indicator of the current compromise is the absence of any explicit commitment in the government program regarding the future of the PMF or its weapons. That omission raises a central question now dominating Iraq’s political debate: can the PMF become the foundation for a broader political settlement between the state and the factions, or has the issue already moved beyond the limits of purely Iraqi solutions?
Read more: Iraq’s new political equation: Armed groups’ gains put pressure on US
