Mazhar Saleh: Iraq’s Foreign Reserves Provide Exceptional Stability For The National Currency.
Time: 2025/08/22 Read: 1,335 times {Economic: Al Furat News} The Prime Minister’s financial advisor, Mazhar Mohammed Salih, confirmed on Friday that the Central Bank of Iraq enjoys substantial foreign reserves that represent the primary backing for the national currency. These reserves are managed within a diversified foreign currency investment portfolio in accordance with the highest standards of global banking efficiency and professionalism.
Saleh added in an interview with Al Furat News Agency that “the ability of these reserves to meet external demand for foreign currency for the purposes of financing import trade is one of the primary indicators of their efficiency,” noting that “the global standard for financing trade from central bank reserves is three months’ coverage, while Iraq has an exceptional capacity of up to twelve months.”
He pointed out that “this level reflects a high degree of stability in the foreign exchange market, despite the temporary pressures on the current account of the balance of payments due to the relative contraction in oil prices,” noting that oil revenues continue to constitute the main pillar in the formation and accumulation of these strategic reserves.
Saleh explained that “the Central Bank largely controls the foreign exchange market by imposing an official exchange rate of 1,320 dinars per dollar for the dinar. This has contributed to keeping the annual inflation rate below 3%, which falls within what is known as the normal range for the general price level or the natural price break-up in the country.” He emphasized that this represents the highest levels of stability targeted by Iraqi monetary policy. LINK
Fluctuations In Exchange Rates In Baghdad
economy | 12:00 – 08/23/2025 Mawazine News – Baghdad – The dollar exchange rate witnessed new fluctuations in the capital’s markets on Saturday.
The exchange rate for $100 in exchange shops reached 143,500 dinars for sale, compared to 141,500 dinars for purchase. The exchange rate on the Baghdad Stock Exchange also reached 142,450 dinars. https://www.mawazin.net/Details.aspx?jimare=265594
A Crisis Of Confidence And Banking Red Tape… Why Do Iraqis Keep Billions Of Dollars At Home?
Time: 2025/08/23 Reading: 375 times {Economic: Al Furat News} Economic expert Nabil Al Marsoumi confirmed that citizens’ retention of up to 80% of their cash balance in their homes is due to a number of reasons, most notably the crisis of confidence between banks and citizens.
Al-Marsoumi told Al-Furat News: “This crisis has worsened after the Central Bank recently announced that 10 banks were unable to return citizens’ financial deposits, a situation that had previously occurred with another group of banks.”
He also considered that “red tape is a major reason why citizens are unable to withdraw their entire amounts of money, as banks divide them into portions, which is unacceptable.”
Al-Marsoumi added, “The complexities, mistreatment, and difficulty in recovering deposited funds are all factors that prevent citizens, especially merchants and contractors, from depositing their money in banks.”
The expert concluded his remarks by emphasizing “the need for banks to develop their interactions with the public to build mutual trust,” noting that “the current situation stems from a loss of confidence in the banking system and its complex procedures.” LINK
The Prime Minister Directs The Completion Of The Final Draft Of The Iraq 2050 Vision.
Saturday, August 23, 2025, | Economic Number of reads: 219 Baghdad / NINA / Prime Minister Mohammed Shia Al-Sudani directed the completion of the final draft of the (Iraq 2050) vision.
A statement by his media office said that Prime Minister Mohammed Shia Al-Sudani directed, today, Saturday, the Supreme National Committee for Strategies in Iraq, to proceed with completing the implementation of the requirements of the comprehensive long-term national vision (Iraq 2050 – Towards Development and the Future), which paves the way for a strategic transformation in the Iraqi state system at various developmental, economic, administrative, digital technology and artificial intelligence levels.
Al-Sudani stressed, during his meeting with the Chairman of the Supreme National Committee for Strategies in Iraq, that the implementation of the anticipated vision should elevate the Iraqi reality and its specificities, as it represents a strategic roadmap that establishes a new national contract, restores confidence in institutions, and ensures the participation of all segments of society in shaping the country’s future, away from immediate policies and reactions.
This directive comes in implementation of the vision presented by the Prime Minister in the ministerial program, within the framework of establishing a new era of sound forward-looking planning, redrawing the features of Iraq over the next three decades, based on the standards of sustainable development, social justice, digital transformation, and integrated sovereignty over decisions and resources. /End https://ninanews.com/Website/News/Details?key=1247915
It Has Risen In A Short Period. An Economist Warns Of The Risks Of Iraq’s Internal Debt.
Economy | 08/23/2025 Mawazine News – Baghdad – Economic expert Nabil Al-Marsoumi warned on Saturday of the escalating risks of Iraq’s domestic debt, which has witnessed a rapid increase in a short period, which could affect the state’s ability to finance itself and ensure sustainable financial performance.
Al-Marsoumi said in a clarification monitored by Mawazine News, “Iraq’s domestic debt rose from 70.575 trillion dinars at the end of 2023 to 83 trillion dinars at the end of 2024, then rose at the end of the first half of 2025 to 92.2 trillion dinars, 47% of which was deducted from remittances at the Central Bank of Iraq.”
He added that this domestic debt, which finances the budget deficit resulting from excessive operating spending, has several negative repercussions, which can be summarized as follows:
– A decrease in the real value of government financial assets and the loss of the government’s ability to repay.
– Deepening the rentier nature of the economy and neglecting strategic investment.
– Increasing the burden on the general budget and worsening the deficit.
– Pushing inflation rates higher if this is not coordinated with monetary policy.
– Weakening the tools and control of the monetary authority.
– Declining economic growth as a result of the banking sector’s allocation of government debt instruments instead of the private sector.
– Increased domestic debt service burdens, reaching 9.342 trillion dinars in 2024, could impact the standard of living if essential social spending is reduced.
These indicators confirm that domestic debt is no longer merely a temporary financing tool for the budget deficit, but rather a growing pressure factor on the macroeconomy.
Most loans go to cover operating expenses, without corresponding growth in productive investments, widening the gap between oil revenues and current spending.
According to economists, the continuation of this trend deepens the budget’s vulnerability to any shocks in oil prices and increases the state’s dependence on domestic borrowing, which consumes a growing portion of its resources. https://www.mawazin.net/Details.aspx?jimare=265600
New Deadline For Iraqi Banks To Lift Sanctions
economy | 07:58 – 08/22/2025 Mawazine News / Follow-up on granting Iraqi banks a “rescue period”.. After the banks rejected the American “Oliver Wyman” plan following sharp disagreements between the Iraqi Private Banks Association and the Central Bank of Iraq, and their rejection of the banking reform paper approved by the bank based on the plan of the American consulting company “Oliver Wyman”, and Al-Sudani’s resort to Washington in search of a solution, “Oliver Wyman” approved amendments to its terms within a “rescue plan” for the banks, which included the following:
– Extending the period for submitting pledges to September 30th instead of the end of August, taking into account “flexibility” in implementing the banking reform plan.
– Expanding the timeframe for capital increases from 200 billion to 400 billion dinars gradually over four phases, at a rate of 50 billion dinars annually until 2028.
– Raising the conditions for family ownership from 10% to 40% of the bank’s portfolio size, which will give private banks greater opportunities to engage in the reform plan and escape the restrictions on dealing in dollars imposed by the Federal Reserve and the Treasury Department, starting in early 2029.
– Banks that are unable to join the reform process will be allowed to operate exclusively in the Iraqi dinar, without their licenses being revoked. https://www.mawazin.net/Details.aspx?jimare=265562
Due to terrorist threats, the US embassy in Baghdad sounds the alarm.
A wish | 08/23/2025 Mawazine News – Baghdad The US Embassy in Baghdad expressed its concern on Saturday about the ongoing operations and regional expansion of the terrorist organizations ISIS and al-Qaeda.
The embassy stated in a tweet on the “X” platform, “The United States continues to prioritize partnerships with allies and regional actors in counterterrorism, as we express our deep concern about the ongoing operations and regional expansion of ISIS and al-Qaeda.”
It added: “The United States also commends the UN member states that have maintained counterterrorism pressure in Iraq, Syria, and Somalia, which has limited ISIS operations.” https://www.mawazin.net/Details.aspx?jimare=265607
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