From The Central Bank: Initial Indications Of An Impending Economic Recession In Iraq

 
Baghdad Today – Baghdad  Economic expert Manar Al-Obaidi revealed on Thursday (June 26, 2025) that the  Central Bank of Iraq recorded a 4% decline in total US dollar sales during the first five months of 2025, compared to the same period in 2024. He warned that this decline could be an early indicator that the Iraqi market is entering a recession.

Al-Obaidi said, in a clarification followed by "Baghdad Today," that "the Central Bank's total dollar sales amounted to $31.5 billion during the first five months of 2025, a decrease of approximately $1.3 billion compared to sales during the same period in 2024, which amounted to $32.9 billion." 

He pointed out that "the decline was primarily concentrated in cash dollar sales, which fell by 17%,
reaching only $1.3 billion compared to $1.55 billion last year, while dollar sales via the "Currency Balances Enhancement" mechanism saw a 38% increase, reaching $30.2 billion, compared to $21.9 billion in the corresponding period."

 Al-Abidi added, "The direct foreign transfer mechanism, previously used under what is incorrectly known as the 'auction,' has completely halted this year, after recording $9.4 billion in the same period in 2024." 

He explained that "dollar sales used to settle international payments via electronic cards declined from $1 billion in January to just $261 million in May, due to restrictions imposed by the Central Bank and the inability of some banks to complete settlements." 

Al-Obaidi emphasized that "this decline in sales, despite the decline in the exchange rate on the parallel market, reflects a decline in commercial demand and economic activity, which increases the likelihood of an economic recession, especially with inflation rates falling to 1.1% in April 2025, the lowest level in years."      https://baghdadtoday.news/277366-.html