Emblems of the Iraqi Federal Government (left) and the Kurdistan Regional Government (right).
KRG transfers 120 billion dinars to Baghdad for January salaries
ERBIL — The Kurdistan Regional Government transferred 120 billion Iraqi dinars ($91 million at the official exchange rate) in non-oil revenue to the federal Finance Ministry for January, the regional Finance and Economy Ministry said Thursday.
The ministry said the amount was deposited in cash Wednesday into the Iraqi Finance Ministry’s account at the Erbil branch of the Central Bank of Iraq.
After the Kurdistan Region transfers its monthly 120 billion dinars to Baghdad, the federal government begins disbursing salaries for public employees and pensioners in the region. Public sector workers have yet to receive their salaries for November and December 2025.
Financial transfers between Erbil and Baghdad resumed in mid-2025 under a renewed revenue-sharing arrangement requiring the Kurdistan Regional Government to provide 230,000 barrels of oil per day to federal authorities and remit 120 billion dinars in monthly non-oil revenue.
Oil exports restarted Sept. 25 under a deal that placed operational control of sales with Iraq’s state oil marketer SOMO, following a prolonged shutdown of the Iraq-Turkey pipeline.
The salary dispute between Baghdad and the Kurdistan Regional Government has persisted for years, rooted in disagreements over revenue-sharing and budget implementation. Federal authorities have at times suspended transfers, citing budget overruns, while Kurdish officials argue the delays violate constitutional entitlements.