Tishwash: US warning: The Federal Reserve is considering cutting off the dollar to Iraq!
Exclusive sources revealed to Al-Mustaqilla on Monday that the US Federal Reserve is studying imposing economic sanctions on Iraq, which could include cutting off the dollar from the country, if what it described as “the smuggling of hard currency to Iran” continues.
Sources confirmed that US warnings were communicated to the Iraqi government and central bank some time ago, demanding an end to dollar smuggling. However, according to the sources, “the government has not yet taken any practical steps to comply with US directives, and smuggling has continued unabated.”
Sources indicate that previous meetings were held between Iraqi officials and American parties, where the danger posed by continued currency smuggling to the Iraqi economy was highlighted. However, “the issue has not been resolved, and no signals of compliance have been sent by the current government.”
Economic analysts view these developments as a direct blow to the government and the Central Bank of Iraq, warning that continued smuggling could lead to a major economic crisis, weaken the country’s ability to secure basic needs in hard currency, and increase pressure on the dollar price in the local market.
The question now arises: Will the Iraqi government take urgent action before US threats turn into actual sanctions that cut off Iraq’s dollar lifeline, or will the smuggling issue continue to fuel the country’s economic crisis? link
Tishwash: Oman welcomes Al-Sudani… What’s behind the meeting?
Iraqi Prime Minister Mohammed Shia al-Sudani is preparing for an official visit to the Sultanate of Oman tomorrow, Wednesday, in a move described by some as “regular diplomacy,” while others see it as an attempt to rearrange the political and economic cards in the region.
According to the Oman News Agency, which Al-Mustaqilla monitored, Al-Sudani will hold official talks with Sultan Haitham bin Tariq, accompanied by an official delegation including senior Iraqi government officials. However, the question that arises is: Is this visit limited to strengthening bilateral relations, or are there ulterior motives related to sensitive economic and political issues?
Observers point out that Iraq faces major challenges regarding the economy and the stability of the local currency, in addition to international pressures related to investments and energy. This visit may be an opportunity for Al-Sudani to secure Omani support or open new doors for Gulf investments, especially in light of the regional tensions plaguing the region.
From a political perspective, some analysts believe this visit comes at a critical time ahead of Iraq’s upcoming elections. This could raise questions about whether Baghdad is seeking to bolster its domestic image or whether it is simply an attempt to showcase diplomatic achievements ahead of the elections.
Ultimately, Al-Sudani’s visit to Oman carries numerous political and economic dimensions, and the coming days may reveal the real issues being discussed by Iraqi and Omani officials, and whether this visit will be merely a diplomatic protocol, or whether it will impact the course of Iraqi politics and the economy in the coming months. link
************
Tishwash: Kurdistan announces the start of distributing June salaries Tuesday.
The Ministry of Finance and Economy of the Kurdistan Regional Government announced that the distribution of June salaries will begin tomorrow, Tuesday (September 2, 2025), and will end on Thursday.
A statement from the Ministry of Finance, received by Al-Eqtisad News, stated that “after the funds arrive from Baghdad, the process of disbursing employees’ salaries will continue for three days.”
The June salary disbursement comes after a delay of more than 80 days, amidst significant hardship for employees and other sectors, and a near-total paralysis of markets in the region’s cities. link
************
Tishwash: Oliver Wyman…and the guillotine of laws
Iraq witnessed a radical transformation after 2003, requiring a comprehensive restructuring of its legislative and economic systems in line with the principles of a market economy and a modern state.
With the beginning of the change phase, specifically since 2006, a committee was formed to review the laws, which was metaphorically called the “Guillotine of Laws,” with foreign support and guidance. It included seasoned experts in legal reform, politics, and economics. Its mission was to review and refine the existing laws and legislation dating back to the previous era, and to abolish and amend anything that conflicted with the regime’s philosophy.
Although the committee was able to cancel hundreds of laws and legislation, it failed in some laws.
As I watch and follow, within my interest and specialization in economic and banking affairs, what the international company Oliver Wyman is doing today to correct the declining performance of banks and laws came to my mind, just to compare the mission of the previous Laws Guillotine Committee and the Oliver Wyman Company, not to compare, but to discover the connection between the different missions in two different times.
Now let us examine the tasks that Oliver Wyman carries out through a reform document to advance the Iraqi banking reality, as it is considered a banking guillotine that works to correct and refine errors in banking operations and rectify their paths in accordance with what is practiced in developed countries.
As usual, this reform document was met with objections from the banks, as it conflicted with their capabilities and potential to implement its provisions.
The Association of Banks has made exceptional efforts, in cooperation with the Central Bank of Iraq, to meet the banks’ requirements and overcome the difficulties they face. The desired results were achieved by reconsidering the contested paragraphs and extending the implementation periods, particularly regarding the issue of increasing capital.
So far, the results seem good and give hope for facilitating the implementation process by banks.
As someone interested in banking as an important sector of the economy, and out of ethical and professional responsibility, I must pursue the results to the end.
In this context, I had a conversation with a seasoned, knowledgeable expert who was close to the event, so I took the initiative to ask him:
How do you view this document? And what is your assessment of its future results?
He replied, “We agree on the importance of the Central Bank, the Association, and the government working to achieve economic reform. Hence, the importance of the document in promoting our banks to keep pace with changes.”
As for my assessment of the results, I record my reservations about the fact that what was achieved was limited to reducing its concerns to the challenge of the paragraph on raising capital and time periods only. However, it did not delve into the rest of the paragraphs of the document, which include difficulties that are no less important than raising capital and time periods, and may even be more serious.
This requires re-reading the remaining paragraphs of the document with the help of legal, economic, and financial experts to determine whether the banks are capable of implementing the agreement.
Therefore, I advise you to be careful when signing the contract to know the banks’ capabilities and potential to provide the other requirements and implement them easily and smoothly so that the losses are not doubled.
This expert opinion or warning is important because the decision to implement the document and its amendments is binding and final.
I feel a sense of professional and ethical commitment and concern for my country and its economy, which requires me to be vigilant and evaluate reform paths whenever necessary. link
