Latest news with #MudhhirMuhammadSalih
Shafaq News
29-07-2025
- Business
- Shafaq News
Iraq's financial revenues exceed 46 trillion dinars in 5 months
Shafaq News – Baghdad On Tuesday, Iraq's Ministry of Finance announced that total federal revenues exceeded 46 trillion dinars between January and May 2025. According to the data and financial tables released by the Ministry of Finance in June, the total revenues reached more than 46 trillion Iraqi dinars (Approx.. $35.08 billion). Of that amount, oil revenues amounted to 42 trillion (Approx. $32.05 billion), comprising 91% of total income, while Non-oil revenues stood at more than 4 trillion Iraqi dinars (Approx. $3.05 billion). The ministry's data also showed that total public sector salaries exceeded 27 trillion Iraqi dinars (Approx. $21.1 billion), while pension payments totaled about 8 trillion (Approx. $6.1 billion), and Social welfare payments climbed above 2 trillion (Approx. $1.78 billion). Overall, current expenditures reached about 44 trillion Iraqi dinars ($33.55 billion), according to the federal budget records. In March 2021, the Prime Minister's Financial Advisor, Mudhhir Muhammad Salih, told Shafaq News that Iraq's continued dependence on oil stems from decades of war, economic sanctions, and the ongoing political conflicts that have fragmented the country's economic resources.
Shafaq News
08-05-2025
- Business
- Shafaq News
Multiple forces drive Iraq's dollar drop
Shafaq News/ After months of stability at around 150,000 dinars per $100, the US dollar has begun a gradual decline in Iraq's parallel market, dropping between 5,000 to 6,000 dinars per $100 in recent week. Adviser to the Prime Minister for Financial Affairs, Mudhhir Muhammad Salih, told Shafaq News that the drop is partly due to 'a reduced demand for cash dollars, driven by increased use of electronic payment cards, especially among travelers,' adding that greater flexibility in foreign trade financing for the private sector has also played a role. 'Iraqi banks are now using correspondent banking at the official exchange rate of 1,320 dinars per dollar, with consistent access to foreign currency after the removal of the previous payment platform,' he explained, pointing to the Central Bank's new mechanisms emphasizing compliance and strong governance. 'These factors together have eased pressure on the parallel market, shifting demand toward official, lower-cost, and more flexible payment alternatives,' he said. Financial expert and former Central Bank official Mahmoud Dagher cautioned against interpreting the decline as a sign of improved monetary performance. 'It's too early to attribute this to stronger domestic monetary policy,' he told Shafaq News. 'The drop reflects broader volatility, including global factors like the trade war initiated under Trump and the weakening of the US dollar internationally.' Financial and banking expert Mustafa Hantoush stated to Shafaq News that both internal and external developments are behind the dollar's decline. 'US-Iran negotiations have contributed to easing dollar demand, especially for trade with Iran.' He further pointed out that the recent allocation of $5,000 in MasterCard funds to small traders for digital payments has also helped reduce reliance on the cash dollar. Moreover, the decision to provide cash dollars to Hajj pilgrims—by air and land—sent a positive signal about Iraq's dollar liquidity. Economist Hilal Al-Taan noted that the Central Bank of Iraq has taken active steps to stabilize the dinar and maintain local price stability. 'Policy tools have gradually lowered the dollar's exchange rate,' he said, but warned that 'continued instability in the Middle East could quickly reverse those gains.'
Shafaq News
08-05-2025
- Business
- Shafaq News
Iraqi dinar rises as US dollar demand drops: PM advisor explains
Shafaq News/ The Iraqi dinar has gained ground against the US dollar in parallel markets, driven by a significant drop in demand for the foreign currency. According to Mudhhir Muhammad Salih, the financial and economic advisor to the Prime Minister, three key factors contribute to the dinar's recent appreciation, with the exchange rate improving by an average of 15% in recent weeks compared to the official rate. The first major factor is the Central Bank of Iraq's increased efficiency in financing foreign trade. By accelerating dollar transfers through top-rated international correspondent banks (rated AAA), the bank has made it easier for large private-sector traders to access foreign currency. Additionally, expanding transactions in euros, UAE dirham, and Chinese yuan with reliable correspondent banks has facilitated trade with Iraq's key partners—namely the UAE, Turkiye, and China. The second factor, according to Salih, is the easing of restrictions on small-scale trade, which accounts for about 60% of Iraq's private sector imports. By reducing intermediary costs and allowing direct access to foreign currency through accredited Iraqi banks, small businesses now rely less on black-market channels. A third is the rising use of digital payment cards by Iraqi travelers to obtain foreign currency. Each traveler can access up to $3,000 in cash monthly at the official rate of 1,320 dinars per dollar, in addition to larger amounts via debit, credit, or prepaid cards. This has sharply reduced the need for travelers to turn to unofficial currency dealers. Salih also noted that legal scrutiny surrounding black-market dollar transactions has deterred many from participating, while increased volatility in the dollar's value, especially compared to gold, has pushed individuals toward safer investments. These include gold purchases and government bonds, which offer guaranteed semi-annual interest and can be traded on Iraq's secondary market. Furthermore, the growing network of hypermarkets across Iraq has played a role in stabilizing consumer prices, undercutting the influence of parallel market rates on daily goods. Finally, Salih highlighted the surge in gold purchases as a hedge against speculation about potential US moves to retire certain dollar denominations, a rumor circulating in Iraqi financial circles. This trend, he said, further illustrates a shift in public confidence away from the dollar toward more stable stores of value.
