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10 Reasons for the Decline in the Dollar Exchange Rate Against the Iraqi Dinar

By: Manar Obeidi – Economic Expert Recently, the exchange rate of the US dollar against the Iraqi dinar has witnessed a significant decline. This drop can be traced back to a combination of economic factors and governmental measures, each with varying degrees of impact, but collectively contributing to the strengthening of the dinar. The most notable of these factors are: Economic Stability and Restoration of Public Confidence The uncertainty in Iraq’s market due to economic stagnation led to a loss of confidence among individuals and institutions in spending. This negatively impacted overall demand, especially for the dollar as a tool for trade, causing a decline in its demand. Reduction in Government Spending and Investment The government's focus on reducing operational expenses over capital investments has contributed to slowing down economic activity. Since public spending is a major driver of economic activities, its reduction has led to decreased general demand, including the demand for dollars. Tightening Border Controls Government actions to curb smuggling and regulate trade relations with the Kurdistan Region have helped limit the illegal outflow of dollars through the black market, reducing unregulated demand. Shift of Traders to the Formal Banking System Many traders have moved to the formal banking system and now rely on official exchange rates via approved platforms. This has shrunk the size of trade in the black market, thereby reducing pressure on the dollar. Decline in Re-export Activities The slowdown in re-exporting goods to neighboring countries has led to reduced demand for imported goods. Consequently, this reduced the need for dollars used in acquiring assets for such trade. Payment in Oil Instead of Cash to Foreign Companies The government has compensated some foreign companies with crude oil and naphtha instead of cash. This reduced the volume of dollars that the Central Bank needs to sell, lowering their market presence and exchange pressure. Preparation for the Election Process As the election season starts, campaign expenses have increased. Since much of this spending is converted from dollars, the process creates a need to exchange large amounts of dollars for dinars, which increases dinar demand and reduces dollar value. Increase in Number of Foreign Visitors The rise in the number of foreigners entering Iraq has injected a significant amount of foreign currency into local markets. This became an alternative source of dollar liquidity outside the central bank’s sales, contributing to dollar surplus. Cessation of Illicit Trade Due to Border Closure with Syria The closure of border crossings with Syria has led to a decrease in smuggling and illicit trade, which largely relied on black market dollars. This directly reduced illegal dollar demand. Withdrawal of Excess Cash from the Market The Central Bank of Iraq has pulled back part of the cash dinar in circulation. This created a relative increase in demand for the dinar against the dollar, helping to elevate its value and stabilize the exchange rate in parallel markets. These are the primary factors contributing to the decline in the exchange rate of the dollar against the Iraqi dinar. The question remains: to what extent does each factor influence the official exchange rate? It’s possible that other, less visible factors may also play a role. In my opinion, categorizing these causes by their level of influence could help in evaluating their specific impact on the exchange rate in both official and parallel markets.

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"KRG officials are experienced in leveraging their ties with the U.S. to gain concessions from Baghdad"

Former Iraqi Minister of Justice: 🔻 The oil agreement between Baghdad and Erbil is temporary and hasn’t resolved the deep-rooted disputes. 🔻 KRG officials are experienced in leveraging their ties with the U.S. to gain concessions from Baghdad. Statement: Hassan al-Shammari, the former Iraqi Minister of Justice, stated that the oil agreement between Baghdad and Erbil is a temporary solution tied to the current phase, especially as Iraq approaches elections. He stressed the need to stabilize the situation. In an interview with Al-Ahd TV channel, Shammari said the agreement has not addressed the underlying major disputes between the two sides. He also pointed to the potential influence of American pressure, as the U.S. reportedly played a role in facilitating the agreement. He explained that KRG officials are adept at strengthening their relations with the U.S. to extract political or financial gains from Baghdad. He further emphasized: Iraq’s current financial restrictions are genuine, not merely excuses, and the country’s internal debt has reached 47 trillion dinars. Regarding corruption, he noted that the rapid spread of corruption has become a serious challenge, to the extent that it has even affected the position of some political forces, making them reluctant to support the Popular Mobilization Forces (PMF) law.

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More than 6 billion dollars... Iraq’s oil revenue for last month

The Iraqi Ministry of Oil has announced the final data on oil exports and revenues for June. According to the data released by the State Organization for Marketing of Oil (SOMO), Iraq exported a total of 98,882,613 barrels of oil during the past month. The total revenue from oil sales in the previous month was more than $6,698,021,000 (approximately USD 6.69 billion). Oil exports during June were distributed across Iraq’s oil-producing regions as follows: From central and southern Iraq fields: 97,718,994 barrels From the Gyara field: 946,741 barrels Oil exported to Jordan: 216,878 barrels

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Iraq's Federal Supreme Court Rejects Lawsuits to Dissolve Kurdistan Parliament

The Federal Supreme Court of Iraq has dismissed two lawsuits calling for the dissolution of the Kurdistan Parliament. The first lawsuit was filed by Omar Abdullah Fattah, known as "Omar Gulpi," a leadership member of the Kurdistan Justice Group (KJG). In his complaint against the President of the Kurdistan Region and the Speaker of the Parliament, Gulpi had requested the Federal Court to dissolve the sixth session of the Kurdistan Parliament. The basis for his claim was that the first session of this term, held on December 2, 2025, failed to elect a parliamentary presidency within the 45 days stipulated by the internal procedures following the ratification of the election results. Omar Gulpi, himself a winning candidate in the Kurdistan elections who did not take his seat due to his party's decision, also demanded that the court order the recovery of all material benefits received by the 97 winning candidates after they took their oaths. The Kurdistan Parliament has 100 seats in this term, but Gulpi counted only 97, as he, Abdulstar Majid of the KJG, and Lahur Sheikh Jangi have not yet taken their legal oaths. Furthermore, he requested the Federal Court to compel the commission to prepare for new parliamentary elections in the Kurdistan Region as soon as possible. The second lawsuit was filed by Sarwa Abdulwahid, head of the New Generation Movement's faction, along with parliamentarians Kawa Abdulqadir and Kurdawan Jamal. The plaintiffs filed their case against the President of the Kurdistan Region, requesting that the court overturn the President's decision not to dissolve the parliament. They argued that the parliament's failure to elect its leadership and grant confidence to the Council of Ministers constitutes a violation of Article (10/Fourth/3) of the Kurdistan Region's Presidency Law No. (1) of 2005. This article states: "The Kurdistan National Assembly - Iraq shall be dissolved by decree in the following cases: 3- If the assembly fails to grant confidence to the Council of Ministers in three different and consecutive ministerial formations." The Federal Court rejected all the lawsuits, stating that the matter does not fall within its jurisdiction. This is the second ruling in favor of the two ruling parties in the Kurdistan Region since the new president of the Federal Court took office. Yesterday, the same court rejected two lawsuits seeking to annul the oil contracts signed by Masrour Barzani in the United States.

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The agreement is initial and subject to further review

In total, the Iraqi federal government will spend 1 trillion and 100 billion dinars monthly for the Kurdistan Region, including salaries and company costs. The Kurdistan Region, in return, will provide revenues totaling 270 billion dinars, consisting of: 230,000 barrels of oil per day 120 billion dinars from internal revenues Initially, the federal government will cover salaries for May and June, which will be transferred through the “My Account” system. This agreement is preliminary, not final. It is part of an understanding between Erbil and Baghdad to open the door for salary payments for Kurdistan Region employees. Agreement Details: KRG will transfer 230,000 barrels of oil daily to SOMO (Iraq's oil marketing company) for one month. KRG keeps 52,000 barrels per day for local use. A joint committee from Erbil and Baghdad will later determine the quantity of oil allocated for local use. The estimated cost per barrel for production and transportation is $16. Key Transfers: KRG will provide: 230,000 barrels per day to SOMO 120 billion dinars per month from local revenue Iraq will provide: $16 per barrel for oil production costs (to be paid to companies) 1 trillion and 30 billion dinars per month for salaries (but 60–65 billion dinars will be deducted monthly to repay debts and tax advances) This means that about 958 billion dinars will be sent to the Kurdistan Region each month. Oil Revenue Calculation: Oil price assumed: $65 per barrel Daily revenue: 230,000 × $65 = $14.95 million Monthly revenue: $14.95 million × 30 = $448.5 million, approximately 600 billion dinars Oil cost (paid by Baghdad to companies): $16 × 230,000 barrels/day = $3.68 million/day Monthly: 9.9 million barrels × $16 = $158.4 million, approx. 150 billion dinars Summary of Financial Flows: KRG gives: 230,000 barrels of oil/day = approx. 600 billion dinars/month 120 billion dinars from local revenues Iraq gives: 958 billion dinars in net salary payments 150 billion dinars to oil companies for production costs Net benefit for Baghdad: Receives 720 billion dinars in total value Spends 1 trillion and 108 billion dinars Net deficit for Baghdad: about 400 billion dinars According to KRG officials, this is a preliminary agreement and a step toward a broader long-term deal. The federal government will send salaries for a few months as a start, and both sides will continue negotiating a more comprehensive financial settlement.

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Ministerial Committee Meeting Ends Without Results

The ministerial committee of the Iraqi Council of Ministers reached no result or decision and ended its meeting. Yesterday, the ministerial committee held its first meeting, and according to a statement from the Ministry of Planning, chaired by Minister Dr. Mohammed Tamim, the meeting discussed both drafts (of the agreements). However, there was no indication of any agreement or progress. A well-informed source told Draw Media that during yesterday’s meeting, no agreement or outcome was reached, and there was no consensus on either draft. This is because Baghdad disagreed with one of the key articles in the draft, particularly regarding the handover of oil and the Kurdistan Region's commitment to the federal budget law and decisions of the Federal Supreme Court of Iraq. Today’s meeting was also cancelled, even though it was scheduled to be completed within 48 hours—meaning the committee was supposed to submit its final report to the Prime Minister of Iraq for a final decision. In last Tuesday’s meeting of the Iraqi Council of Ministers, a decision was made to form a ministerial committee to resolve the salary and oil dispute. The committee members are: Mohammed Tamim – Minister of Planning (Committee Chair) Khalid Shwani – Minister of Justice Salih Mahdi Hasnawi – Minister of Health Bangin Rekani – Minister of Reconstruction Naeem Aboudi – Minister of Higher Education  

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Salaries and Revenues of the Kurdistan Regional Government After Oil Export Halt

Following the Paris court’s decision to halt the Kurdistan Region’s independent oil exports, significant financial changes have occurred in the Region’s relationship with Baghdad. 🔹 Baghdad's Funding to the KRG: From March 25, 2023, to June 2025 (27 months), the Iraqi government transferred around 19.6 trillion IQD to the Kurdistan Regional Government (KRG). This amount covered 21 months of salaries in full (100%). 🔹 Oil Revenues of the KRG: During the same period, the Region generated about 9.94 trillion IQD from oil revenues. Only 6% of this amount (598.5 billion IQD) was returned to the Iraqi government, while the remaining 94% (over 9.3 trillion IQD) stayed within the KRG. 🔹 Monthly Oil Sales Estimate: Based on unofficial data, the KRG's oil sales currently generate approximately $297 million per month, of which: 72% (about $213 million) goes to the KRG, 28% (around $84 million) goes to the oil companies. None of this revenue is returned to the KRG's Ministry of Finance officially. 🔹 Oil Production & Pricing: The Region operates eight oil fields producing around 300,000 barrels daily, totaling roughly 9 million barrels monthly. The average sale price per barrel is estimated at $34. 🔹 Backstory – Paris Court Ruling: Though the Paris court ruling barred the KRG from exporting oil via Turkey’s Ceyhan port, the KRG continued producing and selling oil, mostly via unofficial or domestic channels, often below the global market price. This lack of transparency has deepened fiscal disputes with Baghdad. 🔹 Federal Budget Allocations: Due to the export halt, Baghdad was forced to allocate KRG’s share from the federal budget. Official documents confirm: In 2023, Baghdad sent 4.7 trillion IQD to the KRG. In 2024, the total rose to 10.78 trillion IQD. In early 2025, 4.1 trillion IQD was sent. However, in May and June 2025, no payments were made. 🔹 Missed Salary Months: Despite receiving full funding for 21 months, the KRG failed to pay salaries for six specific months

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Iraqi Army Seeks Control of Qambar Oil Field in Disputed Area

The Iraqi army is reportedly preparing to take control of the Qambar oil field, located within the disputed area near the border between Diyala and Sulaymaniyah provinces, currently under Peshmerga control. According to the pro-Asaib Ahl al-Haq TV channel "Al-Ahd", citing security sources, tension and unrest have escalated around the Qambar oil field, which lies between Diyala and Sulaymaniyah in the area known as Dwanza Imam village. An Iraqi army unit has reportedly moved toward the area, with preparations underway to establish federal authority over this strategic location. Peshmerga leaders view this move as provocative and warn that it could trigger a crisis. Sources noted that the area is currently under the control of forces affiliated with the Patriotic Union of Kurdistan (PUK). Amid warnings of potential armed clashes in one of the most disputed areas between the federal and regional governments, local villagers have expressed concern over recent unusual military activity, including the presence of unidentified troops. Political sources familiar with the situation predict the crisis could escalate in the coming days if Baghdad and Erbil fail to take coordinated steps to de-escalate tensions and prevent any armed conflict—raising fears of a broader threat to the stability of the disputed boundary between Diyala and Sulaymaniyah.

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Iraq and Kurdistan Region Near Final Deal on Salaries, Oil Exports, and Internal Revenues

The Kurdistan Region and Baghdad have reached a preliminary agreement on salaries, the budget, and oil. Today, the Iraqi Council of Ministers for Economic Affairs will prepare the final report on the agreement. Baghdad is requesting the delivery of 280,000 barrels per day to SOMO and a monthly transfer of 150 billion dinars in internal revenues. The Kurdistan Region, in turn, wants Baghdad to cover salaries, operating expenses, and investment spending for the Region, with $16 allocated per barrel for costs and 125,000 barrels designated for local use. The Iraqi Economic Affairs Council, chaired by Dr. Fuad Hussein and including the Ministers of Finance, Planning, and Oil, will finalize the agreement. A final decision will be made at the Council of Ministers' meeting. According to the information: Baghdad demands around 150 billion dinars per month in internal revenue and the delivery of 280,000 barrels of oil daily via SOMO. In return, Baghdad would cover the Region's public sector salaries, operational costs, and oil company expenditures. The Kurdistan Region’s demands include: Baghdad to send salaries of the Region’s public servants. Coverage of operational and investment costs. Salaries to be paid from actual expenses. Oil company debts to be paid. The Region to provide 280,000 barrels to SOMO and 115,000 barrels for local use. $16 to be spent per barrel. Oil companies also have several demands: No changes made to their contracts. Their debts amounting to about $1 billion should be paid. Revenues from their projects in the oil fields to be settled. According to follow-ups: The Iraqi government requests 50% of total internal revenues, estimated at 300 billion dinars, which means 150 billion dinars monthly to be delivered to the Ministry of Finance. The Kurdistan Region is to deliver 280,000 barrels of oil daily via SOMO, with the revenue returned to Iraq’s Ministry of Finance. In return, Baghdad will initially pay the May salaries this week as a goodwill gesture and, following a complete agreement, will cover the June salaries as well. For each barrel, Baghdad will pay $16 to the producing companies. With the daily delivery of 280,000 barrels to SOMO and the international market price of around $65 per barrel, the daily revenue would be $18.2 million, and the monthly (8.4 million barrels) revenue would reach $546 million. Of this, $16 per barrel (totaling $134 million monthly) will go to the companies, meaning the Iraqi government retains $412 million. If the Region sells the 280,000 barrels daily at its local price of $33 per barrel, it would generate $277 million monthly—$269 million less than the $546 million possible through SOMO.

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KRG to Supply 280,000 Barrels of Oil Daily via SOMO

A technical delegation from Baghdad returned after meetings in the Kurdistan Region, while the KRG delegation also arrived in Baghdad. Baghdad demands a monthly transfer of 150 billion Iraqi dinars from the KRG’s internal revenues and the daily delivery of 280,000 barrels of oil through SOMO. In return, Baghdad will cover public salaries and oil company expenses. Over two days, a technical delegation from the Iraqi government visited the Kurdistan Region and met with the KRG Ministry of Finance, the Ministry of Natural Resources, the Council of Ministers’ Presidency, and oil companies. The Iraqi delegation has now returned to Baghdad. Today, a delegation from the KRG’s Ministry of Natural Resources and the Council of Ministers arrived in Baghdad and held meetings with Iraq’s Ministry of Oil and SOMO, indicating progress toward an agreement. According to follow-up information: The Iraqi government is requesting 50% of the KRG’s internal revenues. These revenues are estimated at 300 billion IQD monthly, meaning the KRG must transfer 150 billion IQD monthly to Iraq’s Ministry of Finance. The KRG must export 280,000 barrels of oil daily through SOMO, and the revenue will go to Iraq’s Ministry of Finance. In return, Baghdad is expected to pay the salaries for May within this week and will pay June’s salaries after a final agreement is reached. For each barrel, $16 is allocated to oil production companies. With a global market price of approximately $65 per barrel, 280,000 barrels generate about $18.2 million per day, or 8.4 million barrels monthly would yield $546 million in monthly revenue. Out of this, $134 million is spent on production companies ($16 per barrel), meaning the Iraqi government retains about $412 million monthly. If the KRG were to sell the oil independently at its current price of $33 per barrel, the monthly revenue would be $277 million—$269 million less than selling through SOMO at global prices.

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General Revenues and Expenditures of Iraq in Q1 2025

🔻 The Iraqi Ministry of Finance released three monthly reports detailing revenues and expenditures during the first quarter of 2025. According to these reports: As of March 2025, Iraq’s total public revenue from both oil and non-oil sources reached approximately IQD 27.249 trillion. Of this: IQD 24.912 trillion (91%) came from oil revenues. IQD 2.337 trillion (9%) came from non-oil revenues. Total expenditures, including both operational and investment spending, exceeded IQD 28.139 trillion, broken down as: 95% for operational (recurrent) expenses. 5% for investment (capital) expenditures. The Ministry of Finance transferred more than IQD 3.086 trillion to the Kurdistan Regional Government (KRG), allocated as: About IQD 2.355 trillion for salaries of public servants. Around IQD 2.856 billion for emergency assistance and other expenditures. Over IQD 728.6 billion for social protection programs. After comparing total expenditures with total revenues, expenditures exceeded revenues by 3%, resulting in a deficit of more than IQD 890.7 billion. Around IQD 2.210 trillion was spent on Iraq’s three top presidencies: The Council of Representatives (Parliament): over IQD 144 billion. The Presidency of the Republic: more than IQD 11.4 billion. The Council of Ministers (Cabinet): over IQD 2.054 trillion. 1. KRG Funding Breakdown (Q1 2025) According to the Ministry of Finance’s reports for January–March 2025, the Iraqi government provided the KRG with a total of IQD 3.086 trillion, divided as follows: IQD 2.355 trillion (76.3%) – Salaries for public employees. IQD 2.856 billion (0.1%) – Emergency, grants, and other assistance. IQD 728.6 billion (23.6%) – Social welfare programs. 2. Iraq’s Total Revenues (Q1 2025) Total revenue reached IQD 27.249 trillion, composed of: IQD 24.912 trillion (91%) – Oil revenue. IQD 2.337 trillion (9%) – Non-oil revenue. 3. Iraq’s Total Expenditures (Q1 2025) Total spending amounted to IQD 28.139 trillion, broken down as: Operational (recurrent): IQD 26.662 trillion (95%) Investment (capital): IQD 1.477 trillion (5%) 4. Investment Spending by Sector (Q1 2025) From the IQD 1.477 trillion spent on capital projects: Agriculture: IQD 40.1 billion (3%) Industry: IQD 291.3 billion (20%) Transport & Communication: IQD 255.9 billion (17%) Public Services & Roads: IQD 740.6 billion (50%) Education: IQD 149.1 billion (10%) 5. Revenue vs. Expenditure Comparison Total Revenue: IQD 27.249 trillion Total Expenditure: IQD 28.139 trillion Deficit: IQD 890.7 billion (≈3%) 6. Expenditures of Iraq’s Three Presidencies (Q1 2025) Combined expenditures reached IQD 2.210 trillion, detailed as: Council of Representatives: IQD 144.4 billion Only IQD 164,000 was for investment. Presidency of the Republic: IQD 11.4 billion Only IQD 14,000 was for investment. Council of Ministers: IQD 2.054 trillion Operational: IQD 1.865 trillion (91%) Investment: IQD 189.1 billion (9%) Sources: Monthly budget execution reports published by the Iraqi Ministry of Finance: State Account – January 2025 State Account – February 2025 State Account – March 2025 📎 https://www.mof.gov.iq/pages/MOFPublicReports.aspx

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Dispute between court and council heads leads to withdrawal of top federal judges.

🔻Shiite factions attempt to control domestic politics Source: Asharq Al-Awsat Newspaper — The withdrawal of members from Iraq’s highest constitutional court threatens the timely conduct of parliamentary elections scheduled for the end of this year, due to the lack of a legal framework to endorse the results. The withdrawal of six judges from the Federal Supreme Court triggered strong reactions. Local media reported that the move followed a request by the court’s president, Jassim Muhammad, urging Iraqi authorities to convene a meeting to address disputes between the Court of Cassation and the Federal Court. However, politicians cited by the newspaper pointed to a deeper cause: a rift between the president of the Federal Supreme Court, Judge Jassim Omeri, and the head of the Judicial Council, Judge Faiq Zaidan. The Coordination Framework alliance — a coalition of ruling Shiite groups — is actively trying to manage the internal political situation and prevent instability, particularly amid ongoing regional tensions between Iran and Israel. Sources familiar with the matter said the alliance fears that the judges’ withdrawal could create a legal vacuum and political uncertainty.

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Iraq begins initiative to enhance gasoline standards

As part of its broader efforts to upgrade the refining sector and boost the output of high-quality petroleum products, Iraq has initiated trial operations for a gasoline hydrogenation and improvement project with a daily capacity of 12,000 barrels. Adnan Hamoud, the Oil Ministry’s Undersecretary for Refining Affairs, announced the launch of the trial phase on Saturday. He noted that the project aligns with the Ministry’s strategy to enhance and expand petroleum product output. This development was highlighted during Hamoud’s visit to the Kirkuk refinery, which is considered a vital part of Iraq’s refining infrastructure. He also emphasized that the government’s long-term strategy involves modernizing the refining sector, increasing domestic production of oil derivatives, satisfying internal demand, and exporting any surplus. Although Iraq continues to face rising fuel consumption and a widening gap between supply and demand—as seen last June—Oil Minister Hayan Abdul-Ghani has outlined the country’s path to achieving gasoline self-sufficiency. Abdul-Ghani reported that Iraq’s daily gasoline consumption stands at about 28 million liters, while domestic production ranges between 21 and 22 million liters per day. However, he affirmed that Iraq is on track to become self-sufficient in gasoline by 2025.

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Iran's non-oil export to Iraq can rise to $20b

Tehran Times The chairman of Iran-Iraq Joint Chamber of Commerce said that the value of Iran's annual non-oil export to Iraq can be increased to $20 billion. Iran and Iraq have a strategic relationship that can grow and develop with an economic focus, Yahya Al-e Eshaq noted. Iran and Iraq have a strategic relationship that can grow and develop with an economic focus, Yahya Al-e Eshaq noted. Last year, the value of our non-oil export to Iraq was about $12 billion, and it is predicted that this figure will increase to $20 billion in the coming years, which we believe is achievable and possible, he reiterated. According to an official with the Islamic Republic of Iran Customs Administration (IRICA), Iran exported non-oil commodities valued at $11.9 billion to Iraq in the past Iranian calendar year, which ended on March 20, 2025. Abolfazl Akbarpour, the deputy head of IRICA for planning and international affairs, said that Iraq was Iranís second top non-oil export destination in the previous year. Considering Iran's vast export capacity and Iraqs large market for Iranian goods, both sides want to expand the volume of bilateral economic exchanges. Iran and Iraq have set a target of $20 billion in annual trade, and businessmen and authorities of both countries are determined to meet that target. In late May 2024, the head of the Department of Spatial Planning and Regional Planning of the Iranian Planning and Budget Organization (PBO) said that Iran exports some 2,200 products, valued at $12 billion, to neighboring Iraq annually. Speaking in a meeting entitled ìReviewing opportunities and challenges of attracting Iraqi investors and strengthening trade relations between the two countries in line with demarcating Iran in the regional value chain, Jafar Hosseini said that Iraq, benefiting from $85 billion foreign currency reserves, 130 tons of gold reserves, and 147 billion barrels of proven reserves of crude oil, is among the richest countries in West Asia. Currently, Iran exports over 2,200 various types of goods and products to Iraq, he said, adding that more than half of the active Iranian traders are present in the Iraqi market. Developing the trade infrastructures to facilitate trade between the two countries, encouraging traders to invest in Iraq, promoting trade through dispatching and admitting trade delegations and participating in exhibitions of the two countries, etc. are suggested to strengthen the trade and economic relations between Iran and Iraq, he underlined. In an interview in mid-December last year, the ambassador of Iran in Iraq praised the economic relations between the two sides and expressed hope that these relations will be more and better. Mohammad Kazem Ale-Sadeq announced the value of commercial exchanges between the two countries, and stated that economic relations between Iran and Iraq are very good, and expressed hope that these relations will improve. The envoy further noted: Iraq is an important country in the region, and we have very important economic, political, and social relations with this neighbor. In early May 2024, Tehran hosted the 6th meeting of the Iran-Iraq Joint Economic Committee. The two-day event was co-chaired by the former Iranian Finance and Economic Affairs Minister Ehsan Khandouzi and Iraqi Minister of Commerce Atheer Daoud Al-Ghurairi. On the first day of the meeting, specialized committees including commercial, industrial, agricultural, standardization and quality control, energy, finance, banking, investment and Insurance, shipping, transport, and Customs, scientific, educational, tourism, health, as well as sports consulate held meetings to discuss areas for cooperation. Increasing non-oil exports to the neighboring countries is one of the major plans that the Iranian government has been pursuing in recent years. Iran shares land or water borders with 15 countries namely the United Arab Emirates (UAE), Afghanistan, Armenia, Azerbaijan, Bahrain, Iraq, Kuwait, Kazakhstan, Oman, Pakistan, Qatar, Russia, Turkey, Turkmenistan, and Saudi Arabia.

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Iraq reaches diesel milestone, eyes end to gas flaring

Shafaq News Iraq has reached self-sufficiency in gas oil (diesel) and aims to eliminate gas flaring by 2028, Oil Minister Hayan Abdul Ghani said on Sunday, while warning that the halt in Kurdistan’s oil exports is costing the country 300,000 barrels per day. Speaking in Basra during a visit to the Oil Training Institute, Abdul Ghani said gas capture rates improved from 53% at the start of Prime Minister Mohammed Shia al-Sudani’s government to 67% today, and are expected to reach 70% by the end of 2025. “We will fully end flaring and utilize all associated gas by 2028,” the minister said. He added that Iraq is diversifying its gas imports beyond Iran. A 40-kilometer pipeline has been completed in Basra, and another 75-km line from Mahmudiya to Bismayah will be finished this month despite delays. Iraq is in talks to import 500 to 750 million cubic feet of liquefied gas to power electricity stations. Diesel reserves now exceed 1 million cubic meters—five times previous levels—according to Abdul Ghani. The minister noted that fuel imports, which once cost $5 billion annually, have dropped sharply, with only gasoline still being imported. “Gasoline imports will end by the close of this year,” he said. On stalled oil exports from the Kurdistan Region, Minister Abdul Ghani said Baghdad had agreed with Erbil to amend the federal budget law to facilitate exports via Turkiye’s Ceyhan port. However, unexpected conditions imposed by the Kurdistan Regional Government (KRG) on oil company payments stalled the deal. “We proposed appointing a consulting firm to determine per-barrel production costs, but the KRG rejected this,” he said. “The continued suspension of exports is costing Iraq 300,000 barrels per day—barrels that count against Iraq’s OPEC quota without generating any revenue.”

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