Iraq Economic News and Points To Ponder Tuesday Evening 8-4-26
Currency Printing Is Knocking On Iraq's Door... Warnings Of An Economic Catastrophe
August 4, 2026 Last updated: Al-Mustaqilla/- Al-Mada newspaper revealed in a report followed by “Al-Mustaqilla”, the escalation of the financial liquidity crisis in Iraq, after the Parliamentary Finance Committee proposed the option of resorting to printing currency to secure employee salaries and avoid a financial crisis that some MPs described as potentially leading to a “revolt of hungry stomachs”, at a time when economists warn that this option may open the door to a dangerous wave of inflation if it is not accompanied by a real increase in production.
According to the report, Jamal Kojar, a member of the parliamentary finance committee, said that printing currency has become one of the options being considered to overcome the current liquidity crisis, despite the awareness of the economic risks involved. He explained that the government is facing a time gap due to the delay in receiving oil revenues, which are received two or three months after the sales.
Kujer explained that the options available to the government have become limited, noting the difficulty of relying on recovering funds from corruption cases within a short period, as well as the fact that increasing non-oil revenues or activating other resources requires a long time.
He explained that the halt or decline in export activity as a result of security and regional developments has directly affected revenues, noting that Iraq is now facing difficulty in maintaining normal export levels, which has led to significant pressure on government liquidity.
The report indicated that the Finance Committee believes the government faces difficult choices between using part of the cash reserve or taking exceptional measures to provide the necessary funds for operational expenses, primarily employee salaries.
In contrast, economic experts warned of the dangers of printing money without real economic growth, stressing that the problem facing Iraq is not financial bankruptcy, but rather mismanagement of resources and excessive reliance on oil as a primary source of revenue.
Economic expert Jalil Al-Lami said that Iraq possesses significant financial resources, including foreign reserves, gold reserves, and a huge oil wealth, but the problem lies in the structure of the economy, which relies heavily on oil in contrast to weak non-oil revenues and high operational spending.
Al-Lami warned that issuing large quantities of currency without increasing production will lead to higher inflation, a decline in the purchasing power of the dinar, and an increase in demand for the dollar, which may be reflected in the prices of goods and local markets.
He pointed out that the experiences of countries such as Zimbabwe and Venezuela have shown the danger of resorting to printing money as a solution to financial crises, stressing that this measure could turn from an attempt to address a temporary crisis into a cause of a deeper economic crisis.
Economists have suggested other alternatives, including domestic borrowing through government bonds, reprioritizing spending, strengthening tax and customs revenue collection, increasing oil exports, and activating the private sector.
The controversy over printing currency comes at a time when the Iraqi economy is facing increasing pressure due to its heavy reliance on oil revenues and the ballooning wage bill and operating expenses, amid warnings that continuing to address crises temporarily without structural reforms could exacerbate financial challenges in the coming period.
https://mustaqila.com/طباعة-العملة-تطرق-باب-العراق-تحذيرات-م/
An Economist Says Iraq Has Entered A Phase Of "Paying The Price" As A Result Of Accumulated Mismanagement And Corruption - Urgent
Baghdad Today - Baghdad
Economic expert Ziad Al-Hashemi said on Tuesday (August 4, 2026) that Iraq has entered a phase of "paying the price" for what he described as the accumulation of failures, corruption and mismanagement over more than twenty years, considering that the current crisis is the result of the policies of successive governments, in addition to the responsibility of political parties, parliament and oversight institutions.
Al-Hashemi said, in a statement followed by “Baghdad Today”, that financial and administrative losses and failures have accumulated during the past years without real treatment, accusing political forces of being preoccupied with “dividing the spoils”, while the regulatory and legislative bodies were unable or negligent in performing their role in accountability and reform.
He added that, in his view, the responsibility is not limited to governments, but extends to the parliament that approved large budgets, the political forces that dealt with the state according to the logic of power-sharing, as well as regulatory institutions, elites, media and the public, some of whom he said contributed, to varying degrees, to the continuation of the existing approach.
Al-Hashemi pointed out that Iraq is not facing a temporary liquidity crisis, but rather is going through the repercussions of what he described as an economic and political system that relied on quotas, corruption and buying loyalties, considering that the reform opportunities that were available during the years of financial abundance were not invested in building a diversified economy that is more capable of facing crises.
He warned that continuing to address the crisis through borrowing or postponing payments, without implementing structural reforms, could prolong the economic challenges, stressing that the cost of this would be borne by the citizens.
Economic and political experts offer differing views on the causes of the crisis and ways to address it, amid repeated calls for the implementation of financial and economic reforms, diversification of income sources, and a reduction in dependence on oil. https://baghdadtoday.news/304321-.html
Salary Delays Are Putting Pressure On The Iraqi Economy; Warnings Of A Widening Cost-Of-Living Crisis And Market Contraction.
Baghdad Today - Special: The debate in Iraq is renewed with every delay in paying the salaries of state employees, amid warnings of economic and social repercussions that go beyond the employees to affect the markets, the private sector and the entire local economy.
Experts confirm that salaries represent the main driver of financial liquidity in the country, so any disruption in their disbursement directly affects trade and the purchasing power of citizens. Economic expert Nasser Al-Tamimi warned today, Tuesday (August 4, 2026), against the continued delay in disbursing the salaries of state employees, stressing that this crisis has become a direct threat to economic and social stability, with the accompanying negative repercussions on the livelihood of millions of citizens and economic activity in the country.
Al-Tamimi told Baghdad Today that “the delay in paying salaries is no longer just a temporary financial measure, but has turned into a recurring crisis that casts its shadow on the markets, the private sector and trade, in addition to its direct repercussions on the ability of families to meet their basic needs and fulfill their financial obligations.”
He explained that “the continuation of the crisis during the next stage will lead to a decline in the purchasing power of citizens, a contraction of economic activity, and an increase in personal debt rates, as well as an increase in psychological and social pressures on the segment of employees, which represents one of the basic pillars of the national economy.”
He added that "the delay in salaries also affects the performance of government institutions, as a result of the decline in job security and morale of employees, which may affect the level of services provided to citizens and weaken the efficiency of administrative performance."
Al-Tamimi stressed that “the concerned authorities must expedite addressing the causes of the crisis and put in place financial and administrative mechanisms that ensure the regular disbursement of salaries according to the specified dates, as the stability of salaries represents a fundamental factor in strengthening confidence in the economy, supporting local markets, and maintaining social stability.”
He added that "addressing the issue of salaries should be a national priority, given its direct link to economic and social security. We must also be wary that continued delays will double the size of the economic challenges and increase the suffering of citizens in the coming months."
Public sector employees constitute the largest proportion of the workforce in Iraq, and a large segment of families depend on government salaries as a primary source of income, making the regularity of their disbursement a key factor in the stability of local markets.
In recent years, delays in salary payments have become frequent in some months due to financial and administrative challenges and liquidity management procedures, raising concerns about effects extending to the commercial and service sectors, with declining consumer spending and increased living pressures on citizens.
https://baghdadtoday.news/304355-.html
Al-Bayati: Four Files Are On The Table For Hosting The Minister Of Finance, Most Notably Employee Salaries.
Information/Baghdad… MP Mohammed Al-Bayati predicted on Tuesday that the Minister of Finance would be hosted next week, noting that four issues would be on the agenda for the meeting.
Al-Bayati explained in his interview with Al-Maalouma that “the financial situation in the country needs an objective reading to identify its challenges and propose solutions and alternatives, especially securing the salaries of Iraqi state employees and all ministries and institutions, especially with the delay in distributing the salaries of some ministries and bodies.”
He added that "the Minister of Finance may be hosted next week, and four files will be presented during it, most notably the financial balance, what alternatives are available, what the Ministry's approved plan is for the coming period, and solutions to it will be presented."
He stressed that "this file is very important, and the Ministry of Finance's assessment of the country's financial situation is crucial, as it will provide a roadmap for the nature of the current challenges." End/25