Tishwash: The Central Bank extends bank working hours and directs them to open during official holidays.
The Central Bank of Iraq directed banks with outstanding remittances to work on Fridays to avoid delays caused by official holidays, while it completed covering all remittances before the exchange rate change, with a total amount of $3 billion. link
Tishwash: Parliamentarian: The 2027 budget has not yet reached the House of Representatives and is still with the government.
MP Khaled Seido Azir confirmed on Tuesday that the 2027 budget bill has not yet reached the House of Representatives.
Azir explained, in a statement to (Al-Mada), that the draft budget law is still being prepared and reviewed in the Cabinet and the Ministry of Finance.
Jamal Kojar, a member of the parliamentary finance committee, had previously revealed to Al-Mada that the committee had been informed by Finance Minister Falih Sari that the draft law would be sent to the House of Representatives on October 15, according to the timelines established in the Financial Management Law.
This is the deadline that was exceeded by five days without the budget reaching the halls of parliament. link
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Tishwash: The Iraqi dinar is the second worst-performing Arab currency; dollar pressures pose a difficult test for monetary policy.
The classification of the Iraqi dinar among the Arab currencies that have declined the most against the US dollar has raised widespread questions about the future of monetary stability in Iraq, and the ability of the Central Bank to contain the increasing pressures on the exchange market, at a time when the economy is facing challenges related to oil revenues, government spending and the heavy reliance on imports.
Data circulating and attributed to Bloomberg indicates that the Iraqi dinar ranks second in the Arab world in terms of poor performance, after the Libyan dinar. This development reflects the magnitude of the challenges facing monetary policy, but it does not necessarily mean that Iraq has the second weakest currency in the world in terms of its nominal value.
These indicators are of particular importance given the sensitivity of the Iraqi economy to dollar movements, due to the country’s reliance on oil revenues denominated in US dollars, while local markets depend on imports to meet a large part of citizens’ needs.
According to a report published by Asharq Bloomberg on October 19, 2026, the currencies of four Arab countries were among the worst-performing currencies since the beginning of the year. Data reports indicated that the Libyan dinar declined by 15.6%, followed by the Iraqi dinar at 14.2%. However, this ranking alone is insufficient to prove that the Iraqi dinar is the second worst-performing currency globally.
This classification comes after the decision taken by the Iraqi authorities on October 7 to amend the official selling price of the dollar to the public from 1320 to 1520 dinars, in response to the economic and financial conditions the country is going through, particularly the disruptions that have affected oil exports through the Strait of Hormuz.
Under the new pricing, the Ministry of Finance set the dollar purchase price at 1,500 dinars and the selling price to banks at 1,510 dinars, reaching 1,520 dinars for the end user. This represents an increase in the official dollar exchange rate of approximately 15.2%, while the dinar’s value, when calculated in dollar terms, has decreased by about 13.2%.
From an economic standpoint, devaluing the dinar gives the government greater ability to convert dollar-denominated oil revenues into larger amounts in the local currency, which could help it finance salaries, operating expenses, and public obligations. However, these financial gains are offset by a cost borne by the consumer, due to higher prices for imported goods and a decline in the purchasing power of incomes denominated in dinars.
The danger of this shift lies in the fact that the Iraqi economy is heavily reliant on imports, including food, medicine, electrical appliances, and production inputs. Therefore, the increased cost of obtaining dollars could gradually be passed on to the prices of goods and services, even in sectors that do not directly deal in US currency.
In this context, economic experts who spoke to Asharq Bloomberg warned of the transfer of the effects of the exchange rate adjustment to local markets, with the possibility that some traders may resort to raising prices as a precaution in anticipation of further fluctuations, which may lead to increases that exceed the direct impact of the exchange rate change.
The challenges do not stop at the official rate, as the difference between the rate adopted by the central bank and the rates traded in the parallel market is an important indicator of the level of demand for the dollar and the extent to which official banking channels are able to meet market needs.
The wider the gap between the two exchange rates, the greater the pressure on traders, importers, and citizens, and the higher the likelihood of speculation and price volatility. Conversely, narrowing this gap requires consistent financing of foreign trade, strengthening confidence in banks, and providing clear mechanisms for obtaining foreign currency within legal frameworks.
Despite these pressures, the Central Bank of Iraq, when announcing the exchange rate adjustment, affirmed that its foreign reserves were sufficient to finance foreign trade, settle international bank card transactions, and meet the cash needs of travelers. This assertion indicates that the exchange rate adjustment does not necessarily mean that reserves have been depleted or that the country is unable to finance its imports.
Recent developments reveal a deeper economic problem: Iraq’s financial stability is linked to oil price movements and export volumes, while non-oil productive sectors contribute only to providing sustainable sources of foreign currency.
The heavy reliance on government spending also means that any decrease in oil revenues is quickly passed on to the general budget, and puts decision-makers in front of difficult choices regarding spending, borrowing, monetary policy and the exchange rate.
The future trajectory of the dinar is expected to depend on a number of key factors, most notably the regularity of oil exports, the volume of dollar revenues, the level of foreign reserves, the central bank’s ability to manage demand for dollars, and the government’s success in controlling spending and boosting non-oil resources.
If pressure on oil revenues persists and the gap between the official and parallel exchange rates widens, markets could face increased volatility and higher living costs. However, improved dollar inflows, stable exports, and strengthened confidence in the banking system could help alleviate these pressures without necessarily requiring a further adjustment to the exchange rate.
The ranking of the Iraqi dinar among the worst-performing Arab currencies during 2026 puts economic policy to a test that goes beyond simply defending the value of the currency, to include the state’s ability to protect the purchasing power of citizens and achieve a balance between the requirements of the budget and monetary stability.
The most important question remains: Does the decline of the dinar represent an exceptional measure imposed by economic circumstances, or is it an indication of structural imbalances that call for deeper reforms in the management of public finances, the banking sector, and the Iraqi economy?
Between these two possibilities, the movement of the dollar, commodity prices, and the level of oil revenues during the coming months will be crucial indicators for assessing the results of the decision and its repercussions on the economy and the citizen link
Tishwsh: Kurdistan Region Government Bans Digital Currency Trading And Electronic Forex Exchange
The directive is addressed to all internet service providers for immediate implementation and is based on a Council of Ministers Diwan decision from September and a Central Bank of Iraq directive banning forex company operations in the Kurdistan Region
The Kurdistan Regional Government’s Ministry of Transport and Communications issued a directive banning transactions in digital currencies and electronic exchange known as forex, addressed to all internet service providers in the Kurdistan Region for immediate implementation, in a move that applies a Central Bank of Iraq regulatory framework to the Region’s digital financial sector.
According to an official document signed by Minister of Transport and Communications Anno Jawhar, all internet service providers have been asked to block all platforms operating in electronic exchange and digital currency trading. The decision falls within the framework of implementing the directives of the Central Bank of Iraq.
The Ministry’s step is backed by a decision issued by the Presidency of the Council of Ministers Diwan in September 2026 aimed at preventing forex company operations in the Kurdistan Region. On October 9, 2026, the Presidency of the Council of Ministers Diwan formally instructed the Interior Ministry to immediately close all electronic exchange companies and offices operating in the Kurdistan Region, simultaneously emphasizing a complete ban on digital currency transactions to prevent illegal trading in currency.
The ban on digital currency trading and electronic forex exchange reflects a broader Iraqi and Kurdish effort to align the Region’s financial sector with Central Bank of Iraq regulations designed to reduce illicit dollar flows and curb currency speculation.
Kurdistan 24 previously reported that the US Treasury imposed sanctions on Iraq’s International Development Bank for facilitating Iranian access to US dollars, and that the Central Bank of Iraq has sanctioned more than 14 Iraqi banks in coordination with Washington to prevent dollar transfers to sanctioned parties. The KRG’s digital currency ban is consistent with that enforcement direction, closing a channel through which currency could move outside the formally regulated banking system. link
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Tishwash: In a surprising move, Al-Zaydi orders the closure of Al-Shaib and intends to gradually close Iran’s border crossings.
An Iraqi government source told Al Jazeera, as reported by Al Sa’a Network, that Prime Minister Ali al-Zaidi ordered the closure of the al-Shaib border crossing with Iran, without announcing the reasons .
The source added that “the closure will include the movement of people and goods starting Wednesday until further notice,” noting that “a number of other border crossings with Iran will be gradually closed in the coming days
Iraqi authorities are preparing to close more border crossings with Iran. link
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Tishwash: An Iraqi government source reported on Wednesday that authorities have begun procedures to close the Al-Shaib border crossing with Iran, and are preparing to close other border crossings in the coming days.
The source told Al Jazeera, as reported by Al Sa’a Network, that the closure of the Al Shaib crossing includes the movement of people and goods, and will continue until further notice, noting that the closure of other crossings will be carried out gradually.
No official announcement has been issued clarifying the final number of outlets that will be covered by the decision or the detailed reasons behind these measures.
Earlier today, Iraqi authorities closed the Al-Shaib border crossing in Maysan province with Iran to all passenger and cargo traffic until further notice. Government and security sources stated that the closure aims to review security arrangements at the crossing and verify screening procedures to prevent the smuggling of prohibited materials. The decision took effect at 6:00 AM.
Iraqi authorities have previously announced, on several occasions, the thwarting of attempts to smuggle drugs across border crossings with Iran, the seizure of shipments of narcotics, and the arrest of those involved in smuggling operations, as part of measures aimed at combating drug trafficking and tightening control over the movement of people and goods across the borders. link