TNT:
Tishwash: Academics call for support for productive projects and protection of the currency.
Harmony and coordination between fiscal and monetary policies are fundamental to ensuring financial stability and supporting sustainable growth in the country. Economic experts emphasize that the current structural and institutional challenges necessitate strengthening cooperation mechanisms between executive bodies and the Central Bank of Iraq.
This will ensure efficient management of monetary liquidity, mitigate external shocks, and achieve the desired balance between stimulating economic activity and curbing inflationary pressures.
Spending Management
In this context, academic and economic researcher, Dr. Abdul Karim Al-Issawi, considered the harmony between the two policies to be one of the basic rules for directing economic activity in the right way and addressing imbalances resulting from external or internal conditions.
Al-Issawi explained in an interview with Al-Sabah that the government seeks, through fiscal policy, to manage public spending and tax tools with the aim of positively influencing aggregate demand, investment, and the provision of services, while monetary policy is managed by the Central Bank through multiple tools, most notably the interest rate, money supply, and open market operations, to maintain the stability of the general price level and achieve monetary stability.
He added that the importance of coordination is highlighted in creating a stable environment in which government decisions are consistent with the directions of the central bank, whether when formulating an expansionary or contractionary fiscal policy, indicating that the absence of full coordination may lead to a weakening of the effectiveness of economic measures and an increase in the costs of achieving stability.
He pointed out that successful harmony is based on a strategic plan based on clear priorities, which are represented in stimulating economic activity, maintaining the stability of the national currency, and directing government spending and cash liquidity towards productive and investment projects to enhance economic growth.
Al-Issawi reviewed a number of challenges facing the Iraqi economy in this regard, foremost among them external shocks such as fluctuations in global oil prices and rising international interest rates, noting that the heavy reliance on oil revenues may sometimes cast a shadow on the implementation of future monetary objectives, which requires addressing the weakness of institutional coordination in managing liquidity and controlling the expansion of current spending to facilitate achieving harmony between public spending and monetary policy.
Central Bank Independence
For his part, academic Dr. Amr Hisham stressed the importance of regulating the institutional relationship between the two policies to avoid any discrepancy in objectives or the dominance of one side over the other, stressing the need to support and strengthen the independence of the Central Bank of Iraq to enable it to continue to perform its legal duties in maintaining acceptable levels of inflation, exchange rate stability, and achieving general monetary stability.
Hisham told Al-Sabah that the rentier economy makes the balance of financial flows structurally tilt in favor of financial channels, as dollar oil revenues are transferred to the Central Bank’s account to be liquidated in dinars for the benefit of government spending. He explained that fiscal policy undertakes necessary social tasks and derivations, such as expanding employment opportunities, alleviating poverty, and providing support to the electricity, farmers, and vulnerable segments, which are basic obligations of the state despite the burdens they place on the general budget.
Addressing the effects of inflation
He pointed out that increased government spending often generates inflationary pressures that necessitate monetary policy intervention to mitigate them, recalling the oil price surges the country experienced in previous years (such as 2006 and 2008), when public spending accelerated. He emphasized that activating frameworks for coordination between fiscal and monetary policies in such circumstances ensures flexible control over inflation rates at minimal cost and protects the country’s key economic gains.
Institutionalizing coordination
It is worth noting that, amidst these economic visions, the government continues to take practical steps to solidify this harmony through regular high-level meetings between the Ministry of Finance and the Central Bank. The current government strategy focuses on strengthening ongoing coordination to address current challenges and ensure the efficient management of public finances, enabling the state to meet its obligations without compromising monetary policy targets.
These joint efforts are centered around activating the reform of the financial system, upgrading the tools for managing public funds, in addition to intensifying the exchange of data and periodic reports and accelerating the comprehensive digital transformation between the Ministry and the Central Bank, which contributes to the smooth disbursement of financial returns and raising the efficiency of the response to any changes or emergency economic shocks. link
Tishwash: America is banking on the judiciary and investment to strengthen its partnership with Iraq.
The United States of America affirmed its commitment to deepening its strategic partnership with Iraq and expanding bilateral cooperation to include judicial institutions, the rule of law, energy, investment, and economic development, within the framework of an American approach to strengthening relations with Baghdad and moving towards a more comprehensive partnership that goes beyond traditional security dimensions to long-term economic and institutional interests.
This came in statements by the US Presidential Envoy to Iraq, Tom Barrack, on Tuesday, following a meeting he said he held in the British capital, London, with Iraqi officials headed by the President of the Supreme Judicial Council, Judge Faiq Zaidan, to discuss the future of relations between the two countries and opportunities to develop cooperation in a number of vital sectors.
According to what Barak stated in a post on the “X” platform, the meeting witnessed an important exchange of views on the future of American-Iraqi relations, at a stage he described as historic for the people of both countries and the region, stressing that there is an opportunity to build a long-term partnership based on judicial cooperation, strengthening institutions and expanding investments.
The US envoy indicated that the proposed areas of cooperation include the rule of law, energy, economic development, institutional partnerships, security and regional stability, considering that the potential available to develop relations between Washington and Baghdad is great, and can be used to achieve common interests and enhance stability.
These statements reflect the desire of the US administration to redefine the priorities of its relations with Iraq, by giving economic, legal and institutional issues more space in the bilateral dialogue, in parallel with continued coordination on security challenges and regional developments.
Barak stressed the importance of strong and independent judicial institutions, considering that strengthening cooperation between the Iraqi and American legal systems is a fundamental pillar for building trust, consolidating the rule of law, and providing a more stable environment for investment and development.
The judicial cooperation file is of particular importance in light of Iraq’s efforts to develop its investment environment and enhance the confidence of foreign companies in government institutions, as long-term investment decisions are linked to the clarity of legislation, the effectiveness of the judiciary, dispute resolution mechanisms, and the protection of contractual rights.
The head of the Supreme Judicial Council, Faiq Zaidan, received Barak in Baghdad on November 5, and discussed with him the follow-up to the results of the dialogues related to strengthening judicial relations with the American counterparts, according to an official statement issued by the Supreme Judicial Council.
The two sides had previously discussed, during a meeting on October 12, ideas for developing bilateral relations in the legal and judicial fields, indicating that this issue continues to be addressed within the channels of communication between Baghdad and Washington.
On the economic side, energy and investment stand out as the most prominent sectors poised to expand cooperation between the two countries, especially given Iraq’s need to develop its infrastructure, raise the efficiency of electricity production, modernize the oil and gas industries, and enhance the contribution of the private sector to economic activity.
Partnerships with American companies can contribute to providing technology, technical expertise, and financing for strategic projects, but turning political understandings into actual investments remains contingent on having clear agreements, a stable regulatory environment, and appropriate legal guarantees.
These moves come at a time when Baghdad is seeking to expand its international economic relations and reduce dependence on oil revenues by revitalizing the productive and service sectors and attracting foreign capital.
Barak’s meetings with Iraqi officials in Baghdad last week focused on expanding trade and investment relations, as well as discussing regional challenges and the transition to a broader bilateral partnership after the end of the international coalition’s mission in Iraq on September 30, 2026.
The American focus on economic development reflects a trend towards linking Iraq’s stability to its ability to build effective institutions and a more diversified economy, rather than limiting the bilateral relationship to military and security cooperation.
Conversely, the success of this approach remains contingent on the ability of both sides to address the challenges related to project implementation, the investment environment, and administrative procedures, as well as ensuring respect for Iraqi sovereignty and the independence of constitutional institutions within the framework of joint cooperation.
At the regional level, Barak’s statements come amid continuing political and security tensions in the Middle East, and the challenges they pose to Iraq due to its geographical location and its relations with the United States, Iran and neighboring countries.
Washington views Iraq’s stability as an important element of the regional security system, while Baghdad seeks to maintain balanced relations with its international partners and avoid involvement in conflicts that could affect its internal security and economic interests.
In this context, expanding economic and institutional cooperation with the United States can be a supportive factor for stability, provided that it is accompanied by respect for the privacy of Iraqi decision-making and the requirements of the national interest, and that understandings are translated into implementable projects and programs.
According to statements attributed to him, Barak stressed that strengthening relations between the judicial and legal institutions of the two countries can contribute to building trust and opening new horizons for shared prosperity, emphasizing the United States’ desire to continue working with Iraqi partners in the next phase.
These messages indicate that the US administration is seeking to present a more comprehensive vision for the future of its relations with Baghdad, based on the integration of legal, economic and security cooperation, at a time when Iraq is facing challenges related to institutional reform, economic diversification and attracting investments.
However, talk of broad opportunities for cooperation does not necessarily mean the existence of new executive agreements, as the information available about the London meeting did not include an announcement of specific investment contracts, financial commitments, or a timetable for implementing the proposed projects.
Thus, the political importance of the meeting lies in confirming the continuation of high-level communication between the two countries, and identifying the areas that Washington and Baghdad seek to develop during the next stage, while measuring the results remains dependent on what will be issued in terms of agreements and practical measures.
These developments raise questions about the future of the American economic presence in Iraq, and the possibility of judicial and institutional cooperation becoming a broader entry point for improving the business environment and attracting foreign companies, in conjunction with the requirements for strengthening national sovereignty and regional stability.
Between Washington’s aspirations to build a long-term strategic partnership and Baghdad’s need for more effective investment and economic and institutional cooperation, Iraqi-American relations appear to be entering a new phase, the measure of whose success will be the transition from diplomatic statements to projects and agreements that achieve tangible results for both countries. link
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Tishwash: Foreign Minister reveals the objectives of Al-Zaidi’s visit to Iran
Foreign Minister Fuad Hussein confirmed on Tuesday that Prime Minister Ali Faleh al-Zaidi’s visit to Tehran was aimed at bridging the gap between Iran and the United States, stressing that Iraq seeks calm and peace in the region, not war.
Hussein told the official agency, on the sidelines of his participation in the Paris Peace Forum, that “bilateral relations between Iraq and France are strong,” explaining that “his participation in the forum came in response to a desire to attend this global event, which witnessed discussions about the Strait of Hormuz and the changes and effects resulting from it on energy and mineral resources.”
He explained that “the Prime Minister’s visit to Tehran, along with the ongoing communication with the American side, represents an attempt to bring the two sides closer together,” noting that “Iraq has strong relations with Iran and excellent relations with the United States, which allows it to play a role in this process, along with other countries.”
Hussein pointed out that “Iraq has a direct interest in calming the conflict, as the closure of the Strait of Hormuz has negatively affected its financial and economic situation, in addition to the casualties and the expansion of the war to include Iraq and the Gulf states,” warning that “the continuation of the escalation will negatively affect global energy prices, including oil and minerals.” link
Tishwash: Iraq and the IMF conclude talks to prepare a 3-year reform plan
A reform program for the years 2027-2029… Conclusion of Iraqi talks with the International Monetary Fund
On Wednesday, November 11, 2026, the Iraqi Ministry of Finance revealed an agreement on a reform program for the years 2027-2029, following the conclusion of Iraqi talks with the International Monetary Fund.
The Iraqi Finance Minister and the IMF conclude joint talks on financial reform and agree on a reform program for the years 2027-2029
Iraq’s representative, Finance Minister Faleh Sari, concluded his talks with the International Monetary Fund in the Jordanian capital, Amman, on Wednesday, “making progress in the negotiation process towards a reform program supported by the Fund during the coming years,” according to a statement from Sari’s office seen by “Ultra Iraq”.
At the conclusion of the talks, the Minister of Finance stated that “the discussions addressed the development of a medium-term reform plan for the years (2027-2029), which will enhance financial sustainability and support the ability of the Iraqi economy to face future challenges.”
The reform program aims to improve the performance of public finances in Iraq, along with establishing a clear monetary framework that helps stabilize monetary policies and enhance their effectiveness and better reflection on economic activity, according to the Ministry of Finance.
The talks also addressed “plans to develop the banking sector, including public and private banks, and to strengthen the anti-money laundering and counter-terrorism financing system, as well as reforming the electricity sector, improving governance and combating corruption.”
The minister affirmed that “negotiations will continue at the expert level during the next phase, in preparation for the preparation of a joint document between Iraq and the International Monetary Fund, which includes a framework for financial reforms and a timetable for their implementation over three years.”
In the past period, talk about the issue of borrowing has increased as the economic crisis in Iraq continues, in light of the closure of the Strait of Hormuz and the decline in Iraqi oil exports for more than half a year, with particular controversy regarding the government’s denial of the idea of borrowing on the one hand, and the hypothetical budget figures for the year 2027 and the statements of International Monetary Fund officials on the other hand.
Some estimates indicate that the deficit has reached about 43 trillion dinars, 88% of which is covered by borrowing, distributed between 16 trillion from external financing and about 22 trillion dinars from local sources.
Experts believe that the decline in oil revenues and the lack of alternatives have forced the state to resort to the International Monetary Fund for borrowing and to fulfill its obligations towards citizens, despite the lack of transparency in announcing the details of the request. Others warned that the conditions of the International Monetary Fund are often harsh and almost impossible to meet, given the difficulty of stopping appointments or reducing employee salaries in light of the current rise in prices.
Last June, Prime Minister Ali Faleh al-Zaidi said in a press interview: “We will not enter into a loan program from the International Monetary Fund, and there is no longer a need for it.”
The head of the Supreme Islamic Council, a leader in the ruling coalition, Humam Hamoudi, said about 10 days ago that “external borrowing is a sensitive issue and shackles the country to the policies of the World Bank. The coalition has rejected it, and Parliament will not allow it either.” link
