Sudanese orders on selling prices after dollar stabilization

On Monday, Iraqi Prime Minister Mohammed Shia al-Sudani directed the departments responsible for combating economic crime to pursue and hold accountable those who manipulate prices, particularly food and medicine vendors, bakeries, and ovens, given the “stability of the dollar exchange rate against the Iraqi dinar.”

According to the directive, which Shafaq News Agency has seen, it included: “Given the stability of the exchange rate (dollar) against the Iraqi dinar, it has been observed that some companies, traders and weak-willed individuals are exploiting prices or keeping them as they were without taking into account the stability in the markets, especially food and medicine owners, bakeries and ovens, due to their failure to adjust the selling prices of the materials that citizens need on a daily basis, as there is no clear oversight role by the economic departments to follow up on these cases.”

The directive also stated that, “After the Prime Minister reviewed the above content, he ordered the departments responsible for combating economic crime to monitor and hold accountable those who manipulate prices, take the necessary legal action against them, and coordinate with the Ministries of Commerce, Agriculture, and Health to ensure the stability of the price ratio of items that affect citizens’ lives on a regular basis.”

Shafaq.com

A “black” trick and banking loophole generate millions of dollars for Iraqi factions.

A US report revealed that Iranian-backed Iraqi militias have been exploiting a loophole in the Iraqi banking system, namely Visa and MasterCard, to withdraw dollars from Iraq. Transactions have rapidly increased to $1.5 billion per month.

A report by the American newspaper “The Wall Street Journal,” translated by Shafaq News Agency, explained that loopholes and weak oversight have allowed the militias to benefit from manipulating the credit card system. It added that the small market that appeared for Visa and Mastercard in early 2023 has suddenly transformed into a financial transfer operation worth $1.5 billion per month. American and Iraqi officials say that behind it stand Iranian-backed militias exploiting American payment systems to circumvent sanctions and reap huge profits.

Noting that “a new loophole has replaced the old one,” the report explained that after the US Treasury and the Federal Reserve Bank of New York halted fraudulent international bank transfers conducted by Iraqi banks in late 2022, Iraqi militias quickly shifted to using another mechanism, namely Visa and Mastercard credit and prepaid cards.

The report noted that the card system emerged with the dismantling of the previous system of bank transfers, which lacked anti-money laundering controls. This flawed system was introduced by the United States after the Iraq War and allowed militias and Iran access to billions of dollars. It added that the sudden shift to bank cards occurred almost immediately after the shutdown of that tap.

The report stated that by mid-2023, cross-border transactions using Iraqi cards had increased by nearly 3,000%, indicating that a significant portion of this volume was related to the exploitation of the gap between the official exchange rate and its high black market rate.

The report explained that the militias and their partners load the cards in Iraq, then use them to withdraw dollars from neighboring countries. They then return the cash to Iraq and exchange it for dinars at a profit that has sometimes reached 21%.

The report quoted officials as saying that the profits were substantial, with cardholders linked to the militias generating an estimated $450 million in profits in 2023 alone from this fraud. They added that Visa and Mastercard, which charge fees on international transactions, together generated approximately $120 million from these practices.

According to the report, despite repeated warnings from the US Treasury Department since mid-2023, Visa and Mastercard delayed taking action for several months. It added that after Treasury officials revealed that individuals linked to militias were flooding ATMs in Dubai with their Iraqi bank cards, the two companies postponed major action until March 2024.

In addition, the report noted that the militias have expanded their operations by using fictitious transactions with foreign merchants, point-of-sale devices that operate via VPNs, and smuggling networks to transfer money.

According to the report, some merchants accepted fake purchases in exchange for cash, a portion of which was returned to the seller, while others helped launder these transactions through jewelry stores and shops in free trade zones in the UAE and Turkey.

Additionally, the report stated that Iraqi government-backed cards were also used, as Qi cards, designated for paying the salaries of government employees and militia members, were a key part of the fraud scheme. Militias seized the cards of ordinary fighters, and the names of fictitious employees were inserted onto payrolls to obtain more cards, which were then used in this transaction cycle.

Under mounting pressure, Mastercard and Visa finally implemented sweeping measures in early 2024, according to the Wall Street Journal. Mastercard cancelled more than 100,000 cards and removed 4,000 UAE merchants from its network. Visa followed suit, identifying 70,000 suspected fraudulent cards and temporarily banning thousands of foreign sellers.

The US report indicated that Iraqi regulatory authorities imposed a monthly maximum of $300 million on cross-border transactions, and a maximum limit of $5,000 per cardholder.

In addition, the report noted that the Central Bank of Iraq hired a New York-based financial crimes firm to monitor the system and required all card issuers to operate through banks with correspondent relationships with the United States, while many Iraqi card issuers were excluded from the Visa and Mastercard networks.

The US report noted that the Treasury Department blacklisted three card companies suspected of having ties to militias, including a company affiliated with the Imam Abbas Shrine in Karbala, a major destination for Iranian pilgrims.

He considered this case to reveal significant weaknesses in global payment systems, particularly in fragile or poorly regulated markets. He noted that Iraq’s economy remains heavily reliant on cash transactions, while oversight is weak. The transition to digital payments occurred without adequate safeguards, allowing armed groups subject to US sanctions to exploit Western infrastructure to circumvent restrictions.

He concluded that despite Visa and Mastercard’s assertions of their rapid response and strong cooperation with authorities, US and Iraqi officials believe the companies’ delay allowed the fraud to expand and reach billions of dollars.

The Wall Street Journal report concluded by noting that while the United States seeks to preserve the global integrity of the dollar and strengthen the implementation of sanctions, the Iraqi payment system and the companies operating within it have become a stark warning of what can happen when financial innovations bypass oversight.

Shafaq.com

With over $70 billion, Baghdad offers dozens of investment opportunities to Tehran.

Iraqi Ambassador to Tehran Nasser Abdul Mohsen Abdullah revealed on Monday that Iraq offers dozens of investment opportunities to Iranian companies in vital sectors, including renewable energy, oil and gas, heavy industries, free zones, and industrial complexes.

Iran Front Page reported, in a report translated by Shafaq News Agency, that “the head of the Iranian Chamber of Commerce, Samad Hassan Zadeh, called during his meeting with the Iraqi ambassador to expand the volume of Iranian investments in Iraq,” explaining that “Baghdad seeks to strengthen the economic partnership between the two countries and push the wheel of bilateral trade towards higher levels through wide-ranging investment facilities.”

The Iraqi ambassador indicated, according to the newspaper, that “his country is offering 27 investment opportunities in the field of renewable energy distributed across 14 governorates, in addition to two major projects in the oil and gas sectors, along with 22 opportunities in heavy and medium industries, nine investment opportunities in industrial zones and free trade zones, and 10 opportunities in the agricultural sector, most of which are concentrated in the governorates near the Iranian border, in addition to 10 opportunities in the healthcare sector and 25 opportunities in the housing sector.”

He added that “investment prospects in Iraqi free zones and industrial complexes alone could exceed $70 billion,” adding that “expanding Iranian participation would contribute to achieving a trade balance between the two countries.”

For his part, the head of the Iranian Chamber of Commerce stressed “the importance of removing obstacles facing Iranian investors, most notably bank guarantees and legal procedures,” asserting that “joint production projects are a priority for Tehran at this stage.”

The Iranian official also called for “providing a transparent legal environment that preserves investors’ rights and encourages increased engagement in the Iraqi market.”

Shafaq.com

Al-Nujaifi: The role of forces linked to Iran in the next parliament will not exceed 30%

Former Nineveh Governor and leader of the United Alliance, Atheel al-Nujaifi, predicted on Monday that the role of Iranian-backed political forces would decline in the upcoming parliamentary session. He indicated that these forces would only obtain 30% of the seats, due to regional and domestic changes.

Al-Nujaifi said in a Facebook post, “There are four factors that clearly indicate that the next parliament will be further removed from Iranian influence, and that Tehran’s supporters will not exceed, at best, 30% of parliamentary seats.”

Al-Nujaifi explained that “the first reason is that a large portion of the votes in central and southern Iraq oppose Iranian influence. This was evident in the last elections, when they voted for the Sadrist movement and forces associated with the October protests.”

He continued, “With the Sadrist movement’s withdrawal from the political process, the current composition of parliament has emerged. Consequently, many of those votes will be directed toward other opposition candidates in the upcoming elections.”

He added, “Regional changes have given us a firm conviction that Iranian influence has declined significantly, and that those who still seek refuge in it are facing crises and problems, and have lost influence and gains. The situation is not the same as it was four years ago.”

Al-Nujaifi pointed out that “the performance of the winning political blocs in the current parliament was not satisfactory to their constituencies, which led to a decline in their popularity.” He emphasized that “the division within the pro-Iranian forces and the attempts of some of them to adapt to regional changes and avoid clashing with international will represent an additional factor in the decline of their influence.”

Al-Nujaifi concluded by saying, “I am fully convinced that change in Iraq will be gradual and will occur through the ballot box, with one party’s influence diminishing in favor of another. This does not mean the demise of a particular party, but rather the tipping of the scales in favor of another.”

Shafaq.com

Iranian Trade: Our Electricity Is a “Strategic Mission,” Otherwise We Will Lose Iraq “to Saudi Arabia”

Considered Energy Committee In the Iranian Chambers of Commerce, today, Wednesday, that Iran Generate electricity itself and supply it to Iraq so that it does not become a problem Saudi Arabia Iran’s place, considering that the presence of Iranian electricity in Iraq “Strategic mission.”

The president said Energy Committee in Iranian Chamber of Commerce Arash Najafi, “Saudi Arabia May Allah provide for you. Iraq With electricity and do so immediately.”

He added, “Today, we are in danger of losing Iraq, and the right thing for us to do is to generate our own electricity and supply it to Iraq.” He considered that “the presence of our electricity in the Iraqi market is a strategic task, otherwise Saudi Arabia will replace us.”

Alsumaria.tv

Central Bank Governor: Iraq is committed to combating money laundering at the international level.

The Governor of the Central Bank of Iraq, Ali Al-Alaq, affirmed on Wednesday Iraq’s commitment to combating money laundering and terrorist financing in cooperation with international partners.

In a speech delivered at a conference held in Baghdad on combating money laundering and terrorist financing, Al-Alaq said, “We in Iraq are cooperating effectively with our international partners, particularly with the Middle East and North Africa Financial Action Task Force, to implement international treaties on combating money laundering and terrorist financing and to eradicate them completely.”

He added, “Iraq has a distinct set of strengths in the areas of transparency in financial data and accessibility by relevant authorities in monitoring funds transferred outside the country,” noting that “we have international coordination and cooperation in exchanging information through deep communications networks in this area.”

Al-Alaq also noted, “We had a number of weaknesses that needed to be reviewed and addressed, which we addressed effectively and immediately by taking appropriate measures to reduce the risks of money laundering and ensure it is not used to finance terrorism.”

The Central Bank Governor continued, saying, “Iraq is committed, at the highest levels, to ongoing cooperation with the Financial Action Task Force, which is concerned with the issue at the member state level, to combat money laundering and terrorist financing.”

Shafaq.com

A government advisor responds to Parliament: There is no financial crisis in Iraq, and hedging is a necessity.

The advisor to the Iraqi Prime Minister, Mazhar Mohammed Salih, confirmed on Wednesday that talk of a financial crisis in the country is nothing more than “mere rumors,” stressing the need for “cautionary” economic policies in light of the current international circumstances.

Saleh told Shafaq News Agency, “The country relies on oil revenues to finance public expenditures, accounting for up to 90% of total revenues, while government spending constitutes approximately 50% of GDP, which translates into approximately 85% of total demand, or spending on economic activity.”

He added, “All these indicators so far do not point to a crisis, as rumored, thanks to the wisdom of fiscal policy. However, there are concerns that must be addressed within the framework of general economic policy, especially in light of the repercussions of trade wars and the stumbling global energy markets, in order to preserve the country’s state of prosperity.”

Saleh explained that “the oil market is at the beginning of a downward asset cycle, and close coordination is taking place between fiscal and monetary policies to confront external challenges, by tightening fiscal discipline on both revenue and expenditure, in addition to cooperating with monetary policy to finance the deficit without affecting expenditures, and in a stable climate supported by financial leverage that partially compensates for the decline in oil revenues, within what is called the ‘policy of good fiscal management’, until the global energy market stabilizes and the temporary effects disappear.”

He pointed out that “the talk of a financial crisis is merely a rumour. Since 2014, Iraq has been accustomed to dealing with such oil cycles and has successfully managed economic stability smoothly by ensuring the provision of salaries, pensions and social welfare, supporting agricultural prices, and strengthening partnerships with the private sector in development projects through financing guarantees and sovereign guarantees monitored centrally, in line with the vision of the government’s reform programme.”

Saleh emphasized that “securing public liquidity to meet the country’s needs is a top priority, and there is successful central management of this issue, and there are no concerns about this matter.”

The Parliamentary Finance Committee had previously warned of a potential financial crisis facing Iraq in the future, given the decline in oil prices and the lack of adequate preventative measures to avert economic crises.

The Parliamentary Finance Committee affirms that Iraq’s financial hedging tools are limited and insufficient for more than two years, emphasizing the need to diversify non-oil revenues.

For their part, experts blamed the Ministry of Finance and the Central Bank for the weak monetary cycle and the loss of confidence in banks. This comes at a time when the money supply in circulation has reached approximately 127 trillion dinars, 70% of which is outside the banking system. Official data also showed a 15% decline in oil revenues in April, deepening the crisis and increasing pressure on the strategic reserve.

Shafaq.com

The Silent Landing… The Hidden Factors That Led to the Dollar’s Fall in Baghdad

May 2025 witnessed one of the most exceptional periods of volatility in the US dollar exchange rate against the Iraqi dinar. The dollar’s value declined gradually and dramatically, sparking a wave of questions in the market and prompting experts to deconstruct the reasons behind this sudden shift.

In this context, Nawar Al-Saadi, a professor of economics at Cihan University in Duhok Governorate, presented a detailed analysis of this decline to Baghdad on Tuesday (May 27, 2025), explaining that the phenomenon cannot be attributed to a single cause, but rather is the result of a combination of monetary, commercial, behavioral, and even regional political factors.

The market is saturated with dollars. Where did the surplus come from?

Al-Saadi says that the most notable thing is that “the supply of dollars has become higher than usual, but not because of the increase in oil revenues, as is believed, but rather as a result of other factors, most notably the increase in remittances from foreign companies and non-oil investments, in addition to reverse dollar smuggling operations from neighboring countries facing a shortage of hard currency.”

This “temporary flood” of dollars, as he described it, created a state of saturation in the Iraqi market, making the dollar more available than demand, thus driving its price down.

Citizen behavior has changed. Has the dollar lost its place in savings?

But the situation isn’t solely explained by the traditional supply and demand equation, but also by people’s behavior, as Al-Saadi explains, adding that “Iraqi citizens are beginning to lose confidence in the dollar as a savings instrument, not because it is weak globally, but because the dinar has begun to show stability and tangible gains.”

This shift prompted many to sell their dollars and convert them into dinars or gold, which contributed to increasing the supply of dollars and reducing demand for them, thus indirectly supporting the dinar.

The Central Bank intervenes… and absorbs liquidity

Al-Saadi believes that “the Central Bank of Iraq’s policy played a pivotal role in the situation,” explaining that the monetary institution reduced the money supply by more than 6 trillion dinars in just a few months, a move that falls within what is known as “liquidity absorption.”

This policy, according to his analysis, led to a reduction in the amount of dinars available in the market, which increased its value against the dollar and created a deflationary environment that helped control inflation and boost citizens’ confidence in the local currency.

Imports shrink… and the trade map changes

According to Al-Saadi, a significant part of the exchange rate decline is also linked to a decline in imports from some major countries, such as India, Turkey, and the United States, despite a notable exception in imports from China. This decline can be explained either by a decline in domestic consumption or by a reshuffling of spending priorities.

In both cases, demand for the dollar used to pay for imports declines, creating a relative surplus in the domestic market and putting downward pressure on the price.

Behind-the-scenes negotiations: Has demand for the dollar declined in Iranian trade?

What’s striking about Al-Saadi’s reading is his analysis of what he calls the “silent regional factor,” suggesting the possibility of unannounced negotiations between Tehran and Washington that have eased financial restrictions, leading to a decline in the need for dollars in some informal trade (between Iraq and Iran).

This decline, he said, reduced demand for hard currency, which was used to finance shadowy and opaque activities, which was reflected in the local market, resulting in an abundance of dollars and a decline in their value.

Will the decline continue? The future depends on two factors.

Despite this significant decline, Al-Saadi is not certain that the trend will continue in the long term, stating that the future of the dollar’s value in Iraq “depends on two factors”: the continuation of the current strict and stable monetary policy, and the Iraqi market’s ability to maintain the flow of hard currency, free from speculation or regional crises.

Al-Saadi concludes his analysis by warning that any disruption to these equations could send the market back to zero, emphasizing that “trust is built not only through policies, but also through continuity and transparency.”

Burathanews.com

Iraq to be OAPEC’s second-largest oil exporter by 2025

The Organization of Arab Petroleum Exporting Countries (OAPEC) announced on Tuesday that Iraq ranked second among the largest crude oil exporters among member states during the first quarter of 2025.

According to a report reviewed by Shafaq News Agency, Iraq’s exports reached 3.35 million barrels per day, placing it second after Saudi Arabia, which topped the list with exports reaching 5.89 million barrels per day. The UAE came in third place with a total of 2.86 million barrels per day, followed by Kuwait with exports amounting to 1.32 million barrels per day.

He added that “Libya ranked fifth with average exports of 1.18 million barrels per day, while Qatar came in sixth with 605,000 barrels per day, and Algeria ranked last with exports of 378,000 barrels per day.”

Regarding global oil trade, the report indicated that the United States maintained its position as a net importer of crude oil, but continued to be a net exporter of petroleum products, with its net exports of crude oil and its derivatives reaching approximately 2.7 million barrels per day during the first quarter of the year.

In contrast, China’s net oil imports fell by approximately 385,000 barrels per day, settling at 10.7 million barrels per day, while India’s imports rose by 3.3% quarter-on-quarter, reaching 4.6 million barrels per day.

It is worth noting that OAPEC was established on January 9, 1968, by agreement between Saudi Arabia, Kuwait, and Libya. Its headquarters are in Kuwait, and its founding members include Algeria, Iraq, Qatar, the United Arab Emirates, Bahrain, Syria, and Egypt.

Shafaq.com

Erbil-Washington agreements revive hopes for reviving the Iraq-Turkey oil pipeline.

Following the energy agreements concluded by the Kurdistan Regional Government with American companies, attention is turning to the tense relationship between Erbil and Baghdad. A breakthrough between the two could accelerate the resumption of the Iraq-Turkey pipeline, which has been halted for years, amid the momentum of regional energy diplomacy, according to the Turkish Anadolu Agency.

After a report by the Turkish agency, translated by Shafaq News Agency, indicated that Kurdistan Regional Government Prime Minister Masrour Barzani had announced, during recent talks in Washington, the signing of energy deals worth $110 billion with the American companies HKN Energy and Western Zagros, the report said that these agreements constitute an important step in strengthening economic relations between the United States and the region.

While the report noted that Baghdad rejected these agreements on the grounds that all investment decisions related to natural resources must be coordinated with the government, as stipulated by the constitution. Therefore, the agreements were deemed invalid, it noted that Kurdistan Regional Government officials assert that these agreements are based on legal precedents.

Meanwhile, the report quoted analysts as saying that the importance of these agreements lies not only in the context of US-Kurdish relations and regional energy security, but also as a potential catalyst for resuming stalled negotiations between Erbil and Baghdad, which could lead to the resumption of oil flows through the Iraq-Türkiye pipeline.

The report addressed the long-standing disputes between Erbil and Baghdad over control of oil revenues, authority over the energy sector, and the region’s share of the federal budget. It added that ongoing political and legal disputes between the two continue to hamper oil exports, resulting in losses estimated at approximately $20 billion.

However, the report noted that a reconciliation between Erbil and Baghdad could open the door to broader cooperation in the energy sector. It quoted Sercan Çalıkan, a researcher on Iraqi affairs at the Center for Middle Eastern Studies (ORSAM), as saying, “Such a reconciliation, following recent agreements between the United States and the region, could pave the way for resolving broader regional energy-related conflicts.”

While Çalıkan noted the strategic importance for Turkey of resuming oil exports via the Kirkuk-Ceyhan pipeline, the report quoted Çalıkan as saying, “Agreement on energy sharing and export infrastructure could accelerate negotiations between Baghdad and Erbil and help resume the technical operations necessary for the resumption of oil flow.”

According to Çalıkan, it is likely that if an agreement is reached, Turkey will continue its support for resolving these disputes and promoting political stability in Iraq, while resuming exports through Turkish territory will enhance regional energy security. He added that “achieving the goal of $30 billion in trade between Turkey and Iraq requires political consensus, along with technical and institutional coordination.”

The report quoted Çalıkan as saying, “Ensuring internal political stability and achieving economic sustainability in Iraq is crucial to advancing major strategic initiatives such as the ‘Development Road’ project, which is considered a significant strategic gain for Turkey.”

The report also quoted Brik Montgrenier, Executive Director of the European Energy Security Initiative, as saying that the recent energy agreements between the United States and the Kurdistan Region are important for energy security in the region. He noted that developing these fields could lead to a significant increase in gas production, and thus in electricity generation, and could allow the region to “sell surplus energy to other parts of Iraq.”

According to Montgrenier, this $110 billion investment reflects strong investor confidence in the region and could open the door to additional foreign investment.

However, the Executive Director of the European Energy Security Initiative warned that the Baghdad government’s rejection of these deals could complicate ongoing negotiations regarding oil exports via Turkey. He explained that “if these deals are threatened or canceled, this will not only harm the negotiations but will also negatively impact investor confidence and threaten electricity security in the region.”

Yassar Al-Maliki, a Gulf affairs analyst for the Middle East Economic Bulletin, was quoted in the report as saying that Baghdad’s rejection of recent energy agreements between Erbil and American companies stems from the lack of a comprehensive energy agreement between the two parties. He also noted that the Iraq-Turkey pipeline agreement, last amended in 2010, is due to expire this year, which presents an opportunity to renegotiate it.

The report quoted Maliki as saying, “This also coincides with the parliamentary elections in Iraq, and we may see a comprehensive political settlement before or after the elections as part of the government formation process.”

The report concluded by recalling that the current agreement regulating the Kirkuk-Yumurtalik pipeline, with a protocol, was signed between Türkiye and Iraq on September 19, 2010, and has been extended for 15 years.

Shafaq.com