2025-11-28T06:50:59+00:00
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Shafaq News
Economic confusion spread across Iraq in recent days as
claims of “missing funds,” “salary delays,” and “cut livelihoods” circulated
widely on social media and some media outlets.
The speculation focused on allegations that nearly $2B had
disappeared from the Social Protection Fund of the Ministry of Labor and Social
Affairs, coinciding with a brief delay in salary payments for employees in
several state institutions.
Fake News
Financial adviser to the caretaker prime minister, Mudher
Mohammed Saleh, dismissed the claims as unfounded, describing them as part of a
“heated political season” in which negative rumors about Iraq proliferate.
Saleh told Shafaq News that Iraq maintains a strong
financial capacity supported by solid oil revenues and non-oil income. He added
that salaries, pensions, and social protection programs remain at the top of
government priorities, noting that occasional delays can occur for simple
technical reasons.
“The current wave of fear-driven narratives has created
unnecessary public anxiety,” he said, stressing that Iraq is neither under
siege nor at war, and that financial and monetary policies remain focused on
ensuring stable living conditions, from food support programs to salaries and
infrastructure.
Saleh concluded that talk of salary cuts, a devalued dinar,
or economic collapse amounts to “lies built on lies.”
USD Prices Stable
Earlier, the dollar spiked in Iraq’s parallel market as
traders reacted to the government’s upcoming 1 December pre-payment customs
rule. Most traders halted dollar sales shortly, putting immediate pressure on
the parallel rate and causing noticeable volatility across several provinces.
Alaa Al-Fahad, a member of the media office at the Central
Bank of Iraq, affirmed that the bank has no intention of changing the official
exchange rate of 1,320 dinars per US dollar.
Current monetary policy, he explained, aims to protect this
rate, strengthen public confidence in the banking sector, and support Iraq’s
international commitments, noting that exchange-rate stability has pushed
inflation into negative monthly levels, helping stabilize prices.
Al-Fahad added that fluctuations in the parallel market stem
largely from speculation driven by news and rumors, “while the Central Bank
continues to finance foreign trade at the official rate and to meet all
legitimate dollar requests.”
Financial Risks
Economic expert Nawar Al-Saadi warned that public fears
regarding vanished funds or disrupted incomes should not be dismissed as merely
another corruption narrative, arguing that such concerns reflect deeper
vulnerabilities in the national economy.
Al-Saadi told our agency that Iraq faces structural
financial pressures, a diminishing capacity to absorb shocks, as well as
administrative and fiscal burdens that undermine public accounts while eroding
citizens’ trust in the state.
He said that declining transparency and weak governance
increase the cost of public services, raise unemployment, and heighten the risk
of protests. Al-Saadi called for urgent steps, including public disclosure of
disputed financial files, independent investigations, expanded social
protection for low-income families, and reforms to customs and tax systems to
boost non-oil revenues.
Over the medium term, he urged restructuring of wages and
public spending and directing investment toward productive sectors to reduce
reliance on oil and curb waste.
Economic Governance
In a separate assessment, economic expert Karim Al-Halo said
meaningful reform cannot be achieved without comprehensive governance of the
financial system.
He confirmed to Shafaq News that public and societal funds
must be kept within banks and financial institutions to prevent liquidity
crises, arguing that “without this step, no serious reform can take hold.”
Al-Halo said Iraq remains behind in this area “either by
design, as a result of administrative shortcomings, or due to corruption,”
leaving the economy exposed to shocks and vulnerable to any rumor or crisis.
Written and edited by Shafaq News staff.
