The Kurdistan Regional Government Sends $65 Million to Baghdad
Today, the Ministry of Finance of the Kurdistan Regional Government (KRG) announced that it had transferred approximately 85 billion dinars (around $65 million) in domestic income to the federal government in Baghdad. This significant payment, representing half of Iraqi Kurdistan’s customs and tariff earnings for February 2024, was made in cash into the Federal Ministry of Finance’s bank account at the Central Bank of Iraq’s Erbil branch.
The transfer of funds follows a decision from the Supreme Federal Court of Iraq, requiring the KRG to provide Baghdad with access to all oil and non-oil income. This move comes after a recent agreement between Erbil and Baghdad to send half of Iraqi Kurdistan’s non-oil earnings to the Federal Ministry of Finance.
This payment marks the first time since 2003 that Iraqi Kurdistan has provided cash income to Baghdad and signals the KRG’s commitment to adhering to federal budget laws. By proactively turning over their non-oil revenue, the KRG aims to facilitate the seamless flow of funds from the federal government.