A bundle of Iraqi dinar banknotes prepared for disbursement at a financial institution.
KRG transfers non-oil revenues as Baghdad signals September salaries next week
ERBIL — The Kurdistan Regional Government’s Ministry of Finance and Economy said Thursday it has transferred 120 billion dinars ($85.7 million) in September non-oil revenues to the federal Finance Ministry, a step officials say is required for Baghdad to release last month’s public-sector salaries.
The ministry said the funds were deposited into the federal government’s account at the Central Bank of Iraq’s Erbil branch. It said the Region had already submitted its September revenue-and-expenditure report to Baghdad before transferring the amount.
Federal Finance Minister Taif Sami told Kurdistan24 at the MEPS conference in Duhok that Baghdad will “send the September salaries next week.” She said remaining months will be released once the KRG provides full financial data, including balance reports, oil-revenue figures and continued oil deliveries through SOMO.
On Oct. 26, Baghdad transferred 945.817 billion dinars ($675.6 million) to cover August salaries, depositing the amount into the KRG Finance Ministry’s account.
KRG Cabinet Secretary Amanj Rahim outlined the Region’s current financial arrangements, saying the government now deposits 665 billion dinars ($475 million) each month into the federal account from combined oil and non-oil revenues. He said the Region sells 200,000 barrels of oil per day through SOMO, generating roughly 545 billion dinars ($389 million) monthly at current Brent prices, in addition to 120 billion dinars in non-oil revenues.
Rahim said the Region covers “71% of its monthly payroll with its own cash revenues,” leaving “only 280 billion dinars” ($200 million) for Baghdad to provide out of a total monthly payroll of 945 billion dinars ($675 million).
He added that deposits have increased since the implementation of the trilateral export agreement, with the KRG now sending “665 billion dinars each month in cash” after fully transferring oil sales to SOMO. He wrote that while government accounting separates revenue and expenditure, calculating cost-recovery on oil production shows the federal government effectively shoulders “around 400 billion dinars” of the monthly payroll when oil expenses are factored in, while the Region covers “about 60%” from its own revenues.
Transfers between Erbil and Baghdad resumed in mid-2025 after a renewed revenue-sharing agreement requiring the KRG to deliver 230,000 barrels per day to federal authorities and remit 120 billion dinars in non-oil revenues. Exports restarted on Sept. 25 following a new arrangement handing operational control of oil sales to SOMO after the long suspension of the Iraq–Turkey pipeline.