Tishwash: 100 trillion dinars are circulating outside banks, and Iraqis continue to prefer cash.
Indicators from the Central Bank of Iraq showed a continued rise in the volume of currency circulating outside the banking system, reaching about 100.183 trillion dinars at the end of August 2026, despite recording a decline compared to the previous month.
According to data seen by Shafaq News Agency, the currency outside banks decreased from 100.792 trillion dinars at the end of last July to 100.183 trillion dinars at the end of August, a decrease of 609 billion dinars.
The data indicated that the total currency issued amounted to 107.998 trillion dinars at the end of August, while the currency held by banks amounted to 7.815 trillion dinars, with funds circulating outside banks constituting about 92.8% of the total currency issued.
On an annual basis, currency outside banks increased from 92.560 trillion dinars at the end of 2025 to 100.183 trillion dinars in August 2026, an increase of 7.623 trillion dinars.
These indicators highlight the continued dominance of cash outside the banking system in Iraq, which accounts for the largest share of the currency issued, reflecting the continued heavy reliance on cash transactions outside banks. link
Tishwash: 100 trillion dinars outside Iraqi banks… What do the Central Bank’s figures reveal?
Data from the Central Bank of Iraq showed that the volume of currency circulating outside the banking system rose to about 100.183 trillion dinars at the end of August 2026, despite recording a decrease compared to the previous month.
According to the data, the currency outside banks declined from 100.792 trillion dinars at the end of July to 100.183 trillion dinars at the end of August, a decrease of 609 billion dinars.
The total currency issued amounted to 107.998 trillion dinars, while the currency held by banks amounted to 7.815 trillion dinars, with funds circulating outside the banking system constituting about 92.8% of the total currency issued.
On an annual basis, currency outside banks increased from 92.560 trillion dinars at the end of 2025 to 100.183 trillion dinars in August 2026, an increase of 7.623 trillion dinars.
These figures reflect the continued reliance of the Iraqi economy on direct cash transactions, in contrast to the limited funds held within the banking system, despite the monthly decline recorded in August. link
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Tishwash: The “Generations Fund” is a model for the government’s approach to nation-building.
In parallel with consolidating state authority and strengthening national decision-making, the government is proposing an integrated path to build a more sustainable economy based on reforming public finance management, establishing a “Generations Fund,” diversifying income sources, attracting investments, developing the electricity sector, and increasing oil production.
Parliamentary and economic perspectives confirm that the success of these measures remains linked to consolidating political and security stability, restricting weapons to the state, and distancing Iraq from the repercussions of regional conflicts.
Al-Zaydi meeting
MP Mustafa Abdul-Hadi told Al-Sabah: “Prime Minister Ali Falih Al-Zidi stressed the importance of transitioning to a more sustainable economy by adopting a program and performance budget and developing infrastructure, especially in the electricity sector, in addition to working on building an economic identity capable of attracting foreign investments and strengthening international partnerships with developed countries, which contributes to diversifying the economy and reducing dependence on traditional revenues.”
He pointed out that “one of the most prominent things presented by the Prime Minister is the government’s vision to raise oil production capacity to 10 million barrels per day by 2031, which will enhance the state’s financial resources and support the implementation of development and service projects.”
Abdul-Hadi explained that “establishing the Generations Fund represents an important step to guarantee the rights of future generations,” noting that “allocating 1.5 trillion dinars to the fund and adding the funds recovered from anti-corruption cases to its accounts reflects a governmental trend to transform recovered resources into development projects and long-term investments.”
The long term serves the future of the country.
The MP stressed that “the government is proceeding in parallel with the paths of economic reform, international openness and the protection of internal stability, which will enhance Iraq’s regional and international standing and lay the foundation for a more stable development phase.”
State building
For his part, MP Khaled Seido told Al-Sabah: “Prime Minister Ali Faleh Al-Zaidi’s emphasis on strengthening state-building focuses on key issues, foremost among them the control of weapons and the consolidation of the authority of institutions, which contributes to strengthening political and security stability and creating a more stable environment for economic activity.”
He added that “the stability of the security and political decision directly reflects on the state’s ability to implement its economic programs and attract investments.”
Sido pointed out that “keeping Iraq away from the repercussions of regional conflicts and maintaining balanced relations with neighboring countries and the international community are two essential factors in protecting stability,” stressing that “political and security stability forms a necessary foundation for supporting the economy.”
And improving the investment environment.”
He explained that “the next stage requires the integration of political, security and economic measures, so that the national decision is unified and state institutions operate within clear powers, which allows the government to proceed with reform and development programs away from the influence of surrounding crises and conflicts.”
Political files
Political analyst Ali Al-Sabahi explained in an interview with Al-Sabah that “Prime Minister Ali Falih Al-Zaidi had previously focused on a number of political issues, foremost among them strengthening the authority of the state, restricting weapons to its control, and preserving Iraq’s independent decision-making.”
Al-Sabahi pointed out that “the Prime Minister’s talk about relations with major powers and neighboring countries reflects a trend towards expanding international partnerships and addressing outstanding issues through political and diplomatic channels, especially with regard to Turkey and Kuwait.”
He explained that “the emphasis on keeping Iraq away from the region’s conflicts is linked to a foreign policy based on not turning Iraqi territory into an arena for conflict while maintaining balanced relations with regional and international parties.”
He added that “the issue of sovereignty and limiting decision-making to the state is also linked to the withdrawal of foreign forces, regulating relations with armed groups, and strengthening the ability of government institutions to manage these issues.”
Security and political matters.
Economic Vision
Economic expert Dr. Qasim Al-Sultani believes that “the measures announced by the government, foremost among them the establishment of the (Generations Fund) and the allocation of 1.5 trillion dinars to it, represent a step towards managing a portion of oil revenues in the long term,” indicating that “adding the funds recovered from anti-corruption cases to the fund can enhance its resources.”
Al-Sultani told Al-Sabah: “The government’s move towards a program and performance budget is linked to improving the efficiency of public spending, by directing allocations to specific projects and measuring their results,” noting that “focusing on infrastructure projects, especially electricity, can reflect on economic and investment activity.”
He pointed out that “plans to increase oil production represent an important resource for the economy, but benefiting from them requires directing the additional revenues towards investment and the development of non-oil sectors instead of increasing reliance on current spending.”
Al-Sultani explained that “government measures related to paying farmers’ dues can support liquidity in the agricultural sector, while achieving a sustainable economic impact requires linking financing to increased production and reducing the need for imports.”
He pointed out that “attracting foreign investments is another key aspect of economic measures and requires facilitating procedures, improving the legislative environment, and developing infrastructure to enable the private sector and investors to engage in productive projects.”
Al-Sultani stressed that “the importance of these measures lies in their interconnectedness. Managing oil revenues through the (Generations Fund), improving spending efficiency through program budgeting, supporting agriculture, developing electricity, and attracting investment, all together form a path that can support economic diversification if coupled with implementation, follow-up, and measurement of results.” link
Tishwash: Generations Fund: A New Developmental Beginning
The government’s move to establish the Generations Fund was described as a bold step, as an economic approach aimed at transforming wealth into sustainable investment and linking the potential of the present with the requirements of the future.
This trend has raised many questions and opened the door to differing positions between supporters, opponents, and those who are waiting, while analysts and economic experts have been busy discussing its dimensions, chances of success, and the challenges it may face. The most prominent questions raised can be summarized in three main axes: What is the legal basis for the fund? What are its sources of funding? And what is the nature of the projects that it will finance or invest in?
These are legitimate questions, indeed necessary, given the importance of the experience and the novelty of its presentation in its anticipated form. The fund can be transformed into an economic and investment tool that transcends the limits of immediate spending, to contribute to supporting development during the current stage, and at the same time establish wealth that future generations will benefit from.
Iraq is not far removed from the experience of investment and development funds, as it possesses institutions and experiences that can be utilized in building this approach, most notably the Iraq Development Fund, with the need to define the nature of the institutional and functional relationship between it and the Generations Fund, in order to ensure integration of roles.
As for the legal aspect, it represents the cornerstone in building the fund, and it is expected that including clear texts about it in the general budget for 2027, if this is approved within the approved legislative path, will constitute a foundational step to determine its financial and administrative framework and sources of funding, provided that the law specific to the fund, including the controls of governance, oversight, investment and mechanisms to protect its funds, remains a necessity to ensure its sustainability and the clarity of its powers.
Regarding financing, the Iraqi economy is experiencing significant financial activity across multiple sectors, which opens the door to exploring sustainable revenue sources for the fund. This could be achieved either by allocating specific percentages of revenues or returns, selected based on sound legal and economic principles (including oil), or by reinvesting profits and returns generated from its assets and projects. Perhaps the most promising avenue for the fund lies in long-term investment in productive assets and projects, ranging from airports, highways, and economic, industrial, and residential cities, to commercial facilities, tourism, agricultural, and healthcare projects. These sectors offer returns that extend beyond financial revenues, stimulating the economy, creating jobs, revitalizing the private sector, and expanding the country’s productive base.
Iraq has international experiences in this area from which it can learn, most notably those of our neighbors Kuwait, Norway, and Alaska, which have, through different mechanisms, transformed a portion of their natural resource revenues into assets and investments that benefit future generations. This does not mean replicating their experiences, but rather extracting lessons that suit the specific characteristics and challenges of the Iraqi economy.
Yes, the step came late, but it is better to come late than never, and a journey of a thousand kilometers always begins with the first centimeter. link
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Tishwash: Prior to the arrival of the draft budget from the government, the parliamentary finance committee told NINA: These are the disputes over quotas, entitlements, and oil revenues.
The Parliamentary Finance Committee summarized the objections and observations of the Kurdish blocs regarding the draft 2027 federal budget law, which the Parliament is still awaiting from the government.
The committee’s vice-chair, Ikhlas al-Dulaimi, stated to the Iraqi National News Agency ( NINA ) that “there are many observations on the general budget, which requires significant amendments. Furthermore, no final agreement has yet been reached between the Ministries of Finance and Oil in the federal government and the ministries of the Kurdistan Regional Government.”
She explained, “There is a strong Kurdish objection to the percentages allocated to the Kurdistan Region’s share, which totals 6% including sovereign expenditures, not 12.67% in the tables we reviewed. This amounts to 12.8 trillion dinars out of a total of 217 trillion dinars in the general budget allocations. This percentage is also conditional on actual spending. Additionally, non-sovereign expenditures have been included under the sovereign budget item, which is unprecedented.”
She added, “The budget will face significant challenges this fiscal year. We will be unable to secure employee salaries, which amount to approximately 11-13 trillion dinars after regularizing contract employees, including bonuses, promotions, and other new appointments. This necessitates sitting down at the negotiating table to establish a sound basis for resolving the disputes.”
Regarding the transfer of oil revenues, the Vice Chair of the Finance Committee affirmed, “There is no Kurdish objection, and joint meetings are being held between government delegations from the federal Ministries of Finance and Oil and representatives from the Ministries of Finance and Oil in the Kurdistan Regional Government.”
She added, “There is a Kurdish proposal to subject oil revenues to the estimates of the federal Ministry of Oil and the national oil company SOMO. However, stipulating a specific ceiling on actual spending to determine the region’s share, based on a revenue rate of 400,000-450,000 barrels, is unattainable and will trigger a new crisis in the general budget.”
Regarding non-oil revenues and border crossings, she explained that “the Kurdish blocs did not object to the management of the crossings and the activation of the ASYCUDA system, nor did they object to allocating 50% of those revenues to the governorates. However, there are other governorates that demand that their revenues be directly theirs, and that each governor have the right to collect and maximize their governorate’s revenues, which would be easier and faster for the general budget procedures, instead of transferring them to the federal treasury and then having them return to the governorate after a period that could take a whole year.” link