Tishwash: 45 trillion outside the banks… Parliamentary Finance Committee reveals the extent of the crisis of confidence in banks
The head of the parliamentary finance committee, Uday Awad, revealed the existence of a cash mass ranging between 40 and 45 trillion dinars outside the Iraqi banking system, attributing this to the weak confidence of citizens in banks, while stressing the work to find solutions to return these funds to the banking cycle .
Awad said during a televised interview followed by Al-Sa’a Network that “there is a cash mass estimated at about 40 to 45 trillion dinars outside the banking system,” noting that “the lack of confidence in banks has led citizens to keep their money away from them.”
He explained that “addressing the problem requires restoring the citizen’s confidence in the banking system and developing its working mechanisms,” noting that “automating the banking sector represents one of the main paths to moving from traditional collection methods to a more organized financial system.”
The head of the Finance Committee addressed the exchange rate crisis, explaining that “the Central Bank pledged to take measures to reduce the gap in dollar prices, including raising the sales ceiling to cover citizens’ needs related to travel, study and treatment.”
Awad’s remarks come in conjunction with the financial pressures facing the state, as he revealed that “the budget was prepared based on an oil price of $58 per barrel, with a deficit exceeding 50 trillion dinars,” stressing that “the Finance Committee will work on making transfers and reducing unnecessary expenditures to reduce the size of the deficit without putting pressure on the Central Bank’s reserves.”
According to Awad, “Addressing financial imbalances is not only related to the budget, but also includes reforming the banking sector and bringing funds outside banks back into the financial system, allowing for the expansion of banking activity and reducing reliance on traditional cash transactions link
Tishwash: The US Treasury lifts restrictions on a number of exchange companies
The Central Bank decided yesterday, Sunday, to raise the value of the amounts allocated for the purchase of housing units to 3 trillion dinars through the Real Estate Bank.
While the bank announced the introduction of a new electronic system for replacing damaged currency,
it confirmed that the US Treasury Department lifted restrictions on a number of Iraqi exchange companies.
According to a document addressed to the Real Estate Bank, which was received by “Al-Sabah”, the bank stated that “Based on this bank’s role in supporting the housing sector, and based on the provisions of Law No. (56) of 2004 amended, it was decided to increase the allocation amount referred to in paragraph (1/A) of our letter No. (H S/4451/6/11) dated 8/22/2024, by an amount of (1) trillion dinars, in order to meet the requests of citizens wishing to purchase housing units within residential complexes, so that the total allocation amount becomes (3) trillion dinars, according to the same conditions mentioned in our letter referred to above.”
The Central Bank of Iraq also announced, in a statement received by Al-Sabah, that it “has introduced a new electronic system for replacing damaged currency, as part of its efforts to simplify procedures and make it easier for citizens to access this service in a faster and more organized manner.”
He added that “the system allows citizens to submit requests to replace damaged currency electronically through the ‘Ur’ platform, by entering and verifying the required data. The relevant departments at the Central Bank of Iraq will then complete the necessary procedures to finalize the replacement process.” He explained that “the development of this system is part of the Central Bank of Iraq’s efforts towards digital transformation and improving services provided to citizens,” and added that “citizens wishing to benefit from the service can submit their requests through the Ur electronic platform.”
In another statement, the bank said: “The US Treasury Department has lifted restrictions on a number of Iraqi exchange companies, after verifying that they meet the compliance standards approved by the Central Bank of Iraq, allowing them to return to participating in dollar sales to travelers.”
He added that “this step comes within the framework of strengthening compliance with regulatory controls and regulating foreign currency sales operations in accordance with the approved frameworks.”
In addition, the Central Bank of Iraq called on Sunday for all licensed banks to facilitate foreign transfers to streamline foreign transfer procedures for customers with completed transactions.
A statement from the Central Bank added that “the bank will boost the balances of banks’ accounts abroad as needed, and exempt banks from the deposit period requirement via the RTGS system.” link
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Tishwash: Iraqi economic reforms: International praise awaits tangible results
The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed that the Iraqi economic reforms enhance confidence in the economy and improve the management of public finances, but he stressed that their success is measured by sustainable results that include spending efficiency, financial stability, and reducing the impact of oil price fluctuations.
Financial pressures on Iraq are increasing as the budget deficit widens, amid a move towards external borrowing after the International Monetary Fund announced its readiness to provide financial support to Baghdad at the official request. This development raises questions about the effectiveness of government economic measures, particularly the decision to raise the dollar exchange rate, which Prime Minister Ali Faleh al-Zaidi had previously confirmed was aimed at avoiding external borrowing and doubling debts.
While no decisive government position has been issued confirming or denying the continuation of the lending program, economic specialists warn of the consequences of the potential reform conditions, interest costs and their impact on the livelihood of citizens.
Amid talk of an imminent borrowing plan, the Prime Minister’s financial advisor, Mazhar Muhammad Salih, presented a vision that addresses international praise for economic reforms, without confirming or denying Baghdad’s actual intention to borrow from the International Monetary Fund, a matter on which, as of the writing of this report, no official statement has been issued by the Iraqi government clarifying its position.
IMF praise
Saleh said that “the praise from IMF officials for the efforts made by the Iraqi government in implementing financial and economic reforms reflects the importance of the reform path adopted by Iraq to enhance economic stability, consolidate the foundations of sound public finance management, and raise the efficiency of financial and monetary policies.”
He explained that “this praise represents a positive indicator of the importance of the measures taken to enhance confidence in the Iraqi economy and develop its relations with international financial institutions.”
He added that “the true measure of the success of these reforms depends on their ability to achieve tangible and sustainable results that reflect on the strength of the financial situation, improve the efficiency of government spending, enhance economic stability, and reduce the repercussions of oil price fluctuations on the general budget.”
Saleh added that “the reforms being worked on by the Ministry of Finance are of strategic importance, as they are a fundamental pillar for restructuring the national economy, diversifying revenue sources, and reducing excessive dependence on oil resources,” explaining that “this requires developing the tax and customs system, raising collection efficiency, expanding the base of non-oil revenues, enhancing digital transformation and transparency, in addition to rationalizing public spending and directing resources towards development priorities and economically viable projects.”
He pointed out that “the success of these reforms is linked to creating a stable and attractive investment environment based on clear legislation, simplified procedures, development of the banking sector, and expanding financing opportunities for small and medium enterprises, which enhances the contribution of the private sector to economic activity, supports productive sectors, provides real job opportunities, and paves the way for a transition towards a diversified economy that is more capable of growth and sustainability.”
Updating financial policies
The financial advisor stressed “the importance of continuing cooperation with the International Monetary Fund as a partner in providing technical advice, developing institutional capacities, supporting the modernization of financial and economic policies, and benefiting from international experiences in managing public resources and addressing economic challenges.”
He pointed out the possibility of “employing this cooperation effectively by accelerating the implementation of priority reforms, setting clear and measurable goals, enhancing governance and transparency, improving public financial management, and developing oversight and performance evaluation mechanisms, in order to ensure that recommendations are transformed into practical actions with a sustainable impact.”
Saleh added that “financial steps must be accompanied by directing investments towards the industrial, agricultural, infrastructure, energy, education and health sectors, in a way that contributes to raising productivity, stimulating growth and expanding the economic base, while maintaining social protection for low-income groups and achieving a balance between the requirements of financial reform and social justice.”
He added that “the real challenge for Iraq is not limited to passing reforms or obtaining praise from international institutions, but rather lies in establishing them as a sustainable approach to managing the economy, and turning them into tangible results that citizens feel in their daily lives, through improving public services, expanding job opportunities , enhancing purchasing power, raising income levels, and providing a more stable and confident economic environment.”
He stressed that “the more fiscal discipline is linked to diversifying income sources and revitalizing the private sector, the stronger Iraq’s ability to cope with shocks and achieve comprehensive development will be.” link
Tishwash: The Central Bank of Iraq resolves the issue of merchants’ remittances and confirms the continuation of import financing in dollars.
The Central Bank of Iraq confirmed on Tuesday, October 20, 2026, the continuation of financing imports and providing foreign currency through official banking channels, announcing the completion of fulfilling external transfer requests that were suspended before the adjustment of the dinar exchange rate on October 7, in a step aimed at addressing outstanding issues, protecting the rights of traders and ensuring the smooth flow of foreign trade.
The Central Bank explained in an official statement that the applications covered by the procedure are those that meet the approved conditions and controls, calling on traders and companies to review the banks they deal with to ensure that their foreign transfers are carried out and the procedures related to them are completed.
The bank stressed the need to report any unjustified delays in the execution of transfers, or demands from merchants for additional amounts that violate the approved instructions, confirming its readiness to take the necessary measures against violating banks, by following up on complaints submitted through its official electronic platform.
This confirmation comes in the wake of the adjustment of the official exchange rate on October 7, 2026, from 1320 to 1520 dinars per dollar, and the accompanying questions in business circles regarding the fate of remittances that were submitted or financed before the new rate came into effect, particularly the financial obligations related to import and external supply contracts.
The Central Bank had explained in a previous statement, issued on October 10, that it had strengthened bank accounts to cover transfers due before the exchange rate adjustment, stressing the need not to charge traders financial differences for transfers that were proven to have been purchased and covered at the previous rate.
In a related development, the Parliamentary Investment and Development Committee announced on Monday, October 19, that the issue of exchange rate differences for previous remittances had been resolved, noting that banks are obligated to implement remittances covered by the old rate and not to require customers to pay differences resulting from the adjustment, in exchange for adopting the new rate for remittances accepted starting from October 7.
On the economic level, the statement carries two main messages; the first is directed to traders and importers regarding the continued provision of dollars to finance commercial operations that meet the regulations, and the second is to banks regarding the need to adhere to the instructions and not exploit the change in the exchange rate to impose additional unjustified costs.
These measures are of particular importance given the Iraqi market’s extensive reliance on imports to provide food, consumer goods, medicines, and raw materials, as the regularity of foreign transfers is a key factor in companies’ ability to meet their obligations to suppliers and maintain supply chains.
From a monetary perspective, continued financing of foreign trade through official banks could help reduce the reliance of some traders on the parallel market for dollars, which could alleviate some of the pressure on exchange rates. However, achieving this effect remains contingent on the speed of transfers, the efficiency of banks, and the capacity of official channels to absorb actual trade demand.
The Central Bank’s announcement that it will continue to provide foreign currency does not necessarily mean the end of fluctuations in the parallel market, given that exchange rates are affected by other factors including traders’ expectations, speculation, the size of cash demand, and economic and regional conditions.
The Central Bank had confirmed in a previous statement during September that it had sufficient foreign reserves to meet the demands related to financing foreign trade through the approved channels, stressing the continued provision of the market’s needs for foreign currency.
Economic analysis suggests that the real test of the recent measures will not be limited to announcing the completion of funding for delayed remittances, but will extend to the extent of banks’ commitment to actual implementation, settling traders’ complaints, and ensuring that importers are not burdened with illegal financial burdens that may later be passed on to the prices of goods and services.
In this context, banking supervision is a crucial factor in the success of the central bank’s policy, especially since any delay in the arrival of foreign payments may affect the cost of imports and shipping and supply dates, thus impacting the movement of local markets.
The data indicates that the central bank is seeking to separate the repercussions of adjusting the exchange rate from the continuity of foreign trade, while preserving the rights of previous remittance holders and preventing the emergence of additional obligations as a result of changing the official rate.
In conclusion, the statement reflects a trend towards containing the effects of the exchange rate adjustment on the commercial sector and enhancing confidence in official banking transactions. However, its repercussions on market stability and dollar prices will remain linked to practical implementation, the speed of completing transfers, and the continued flow of goods to Iraqi markets.
Traders and companies can submit their complaints through the official complaints platform of the Central Bank of Iraq , in case of an unjustified delay or a demand for additional amounts that violate regulations link