Tishwash: Oil brings distances closer… Baghdad and Kurdistan on the verge of a formal agreement
2025-07-08 13:09
The Parliamentary Oil and Gas Committee announced on Tuesday that Baghdad and Erbil have reached a preliminary agreement to end the Kurdistan Region’s employee salary crisis. The committee indicated that the agreement may be announced within the next few hours, followed by an official signing and presentation to the Council of Ministers at its scheduled session on Tuesday.
Committee member Sabah Sobhi said in a statement to the official newspaper, followed by Al-Mutala’a, that: “The preliminary agreement stipulates that the regional government will deliver 300,000 barrels of oil per day to the federal government through the National Oil Marketing Company (SOMO), in exchange for the region receiving 46,000 barrels per day for local consumption and refining.”
He added, “It is hoped that the agreement will be announced within the next few hours, to be officially signed and presented to the Council of Ministers at its session scheduled for today.”
This comes 48 hours after Parliament Speaker Mahmoud al-Mashhadani visited Erbil, where he met with regional officials to discuss resolving the disputes between Baghdad and the region. Prime Minister Mohammed Shia al-Sudani and President Abdul Latif Jamal Rashid also discussed the issue of funding the salaries of Kurdistan Region employees on Monday. link
Tishwash: Central Bank: Inflation fell by 21% and gold reserves rose by 19% in the first quarter of 2025.
A report by the Central Bank of Iraq revealed that inflation in Iraq fell by 21% in the first quarter of this year, and that remittances abroad declined by 0.6%, while the value of gold reserves increased from 17.8 trillion dinars to 21.2 trillion dinars.
The Central Bank’s report stated that these statistics covered the first quarter of this year, specifically the months of January, February, and March.
The report indicated that the overall inflation rate in Iraq fell by 21% in the first quarter of 2025, reaching 2.2%, compared to the last quarter of 2024, when the inflation rate was 2.8%. The
Central Bank’s report stated that this decline indicates a decline in the general price level and an improvement in the purchasing power of individuals and institutions in Iraq.
The report stated that the volume of Iraqi currency transfers abroad by the Central Bank decreased by 0.6% in the first quarter of this year, reaching 99.9 trillion dinars.
This comparison is with the fourth quarter of 2024, when the volume of foreign currency transferred abroad at that time was 100.5 trillion dinars.
Money transfers abroad in Iraq are linked to the conversion of Iraqi oil revenues into dollars, which the bank provides to importers at the official exchange rate.
The Central Bank of Iraq indicated in its report that this decline played a role in reducing inflation and maintaining the stability of the general price level in Iraq.
The report stated that the total money supply granted by banks to the private sector in the first quarter of this year grew by 1.1%. link
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Tishwah: Iraq gold surges, inflation dips as deficit grows: Central Bank
Iraq’s economy showed signs of stabilization in the first quarter of 2025, with inflation dropping by 21 percent and gold reserves seeing a significant increase, according to a report from the Central Bank of Iraq (CBI). This comes as the country grapples with a persistent budget deficit despite rising overall revenues.
The CBI report seen by Rudaw, covering January to March 2025, revealed that the average inflation rate fell to 2.2 percent from 2.8 percent in the last quarter of 2024. “This reduction indicates a decrease in the general price level and an improvement in the purchasing power of individuals and institutions in Iraq,” the report said.
The latter is seen as a good sign for the economy as it means that the cost of goods and services is rising at a slower pace, or even decreasing for some items, thus increasing the purchasing power.
The CBI report also noted a slight decrease in the circulation of Iraqi dinars, down 0.6 percent in the same period, reaching 99.9 trillion dinars (about $76.3 billion) from 100.5 trillion dinars (roughly $76.7 billion) in the final quarter of 2024. This decline, linked to better management of USD oil revenues, is seen as a factor in curbing inflation and stabilizing prices.
Further bolstering economic indicators, lending to the private sector rose by 1.1 percent in the first quarter of 2025, with total credit reaching 44.1 trillion dinars (about $33.7 billion). This increase suggests growing support for private sector projects and a potential diversification of the oil-dependent economy.
Significantly, Iraq’s gold reserves Iraq’s gold reserves surged by 19 percent in value, reaching 21.2 trillion dinars (approximately $16.2 billion). This dramatic rise is a positive sign for the country’s financial stability and its resilience against economic shocks.
However, the positive economic news is tempered by fiscal challenges.
Iraq’s finance ministry on Wednesday reported revenues of 28 trillion dinars (about $21.3 billion) in the first four months of 2025, a 34 percent increase compared to last year. Yet, expenditures also rose, contributing to a deficit of nearly 900 billion dinars (about $690 million) in the first three months of the year, a 12 percent increase compared to the same period last year.
Oil revenues continued to dominate, accounting for 88.9 percent of total state income. The ongoing deficit, despite higher revenues, highlights Iraq’s heavy reliance on oil prices and the substantial spending outlined in its $152 billion federal budget for 2023-2025. The budget, passed in June 2023, had raised concerns about financial stability should oil prices fall below the $70 per barrel threshold set in the legislation.
Iraqi Prime Minister Mohammed Shia’ al-Sudani had previously stated that the record-high budget aimed to address social needs, enhance infrastructure, and foster economic progress. link
