Iraq Earning 7+ Billion USD a Month Spending in IQD, Massive Profits
Iraq Earning 7+ Billion USD a Month Spending in IQD, Massive Profits
Edu Matrix: 11-7-2025
The global economy is a complex interplay of currencies, and few situations are as intriguing—or as critical for those watching future financial shifts—as the ongoing dynamics between the Iraqi Dinar (IQD) and the US Dollar (USD).
For years, analysts have monitored the fundamental economic shifts within Iraq, driven by massive energy revenues and simultaneous government reforms. To truly understand where the IQD is heading, you need to go beyond the charts and look at the actual flow of money on the ground.
That’s precisely why we are announcing a focused investigation trip planned for early 2026—a commitment to travel to the region and gain firsthand insights into how these two currencies interact daily.
Here is a deep dive into the compelling economic data that is driving this investigation and why the next few years will be crucial for Iraq’s currency future.
The core of Iraq’s economic stability lies in its massive oil resources. The latest figures reveal a staggering disparity between the currency flowing into the country and the currency used for its internal obligations.
In the first half of 2025 alone, Iraq generated $43.5 billion USD in oil revenues. This averages out to an incredible $7.25 billion USD entering state coffers every single month. This revenue is, naturally, denominated in the US dollar, the standard for international oil trade. This enormous and consistent inflow forms the powerful foundation of Iraq’s currency reserves.
Contrast this robust external income with the domestic necessity of paying the vast government workforce.
The monthly government payroll is substantial, amounting to approximately 3.92 trillion IQD. At current exchange approximations, that is roughly $2.8 billion USD distributed primarily to government employees.
The math is compelling: The incoming USD revenue ($7.25 billion/month) dramatically exceeds the internal IQD obligation ($2.8 billion/month). This massive surplus of USD provides the central bank with significant liquidity and exchange rate management power, setting the fundamental stage for the IQD’s long-term stability and potential revaluation.
Another critical factor we must investigate in 2026 is the duality of Iraq’s payment systems.
Over the past few years, the Iraqi government has pushed to modernize, implementing a digital banking system for payroll distribution. Government employees now receive their monthly salaries (the 3.92 trillion IQD) directly into digital accounts.
However, the transition from a cash-dominant society is slow. While the money is paid digitally, the vast majority of these funds are immediately withdrawn as physical IQD cash.
This reveals an essential truth: Cash remains the dominant medium of exchange within Iraq’s internal economy. Understanding the friction and flow between the digital banking sphere and the physical cash markets is vital to assessing the true velocity and health of the Iraqi dinar within its own borders. Our 2026 trip aims to explore these distribution hubs directly.
The dynamics of global finance, exemplified by the intricate currency flows in Iraq, underscore the need for sound, ongoing financial education in our personal lives.
Just as the Iraqi government must manage trillion-dinar payrolls and billion-dollar revenues, you must manage your personal wealth, investments, and tax obligations with precision.
The $7.25 billion USD pouring into Iraq monthly is a powerful economic engine. The complex system of digital IQD payrolls leading to physical cash withdrawal creates a fascinating internal market structure. Monitoring these indicators is not just an academic exercise; it is crucial for anyone interested in the future of the Iraqi dinar.
We look forward to bringing you detailed, on-the-ground reports from our 2026 investigation into these currency dynamics.