Iraq Economic News And Points To Ponder Monday Morning 4-20-26
Currency Printing In Iraq: Between Financial Need And Economic Risks To The Dinar
Today 14:26 Information/Report... Concerns are mounting in Iraqi economic circles about the possibility of the government resorting to printing money without real backing in gold or dollar reserves. Experts describe this as an "unsound option" due to its direct negative impact on the value of the national currency and economic stability.
Additional money printing means increasing the money supply while the supply of goods and services in the economy remains stagnant or slows. In such cases, prices tend to rise because more money competes for the same quantity of goods, generating inflation that can turn into hyperinflation if it persists and economic conditions worsen, as happened in other countries like Zimbabwe and Venezuela.
In this context, the experiences of many countries have proven that printing money to finance budget deficits or cover current expenditures without achieving equivalent productive growth leads to a decrease in the currency's value and a loss of confidence in it.
The central bank plays a pivotal role in controlling inflation and maintaining the currency's value through monetary policy tools such as setting interest rates and monitoring liquidity.
In advanced economies, the central bank maintains its independence from the government to avoid its decisions becoming tied to financing budget deficits through money printing.
In Iraq, experts emphasize that any unplanned printing of money, coupled with the deficit in foreign reserves and the budget, could place the Central Bank in a difficult position, forcing it to balance its responsibilities to support public finances with its duty to maintain the stability of the dinar.
Economist Nabil al-Ali called on the Central Bank of Iraq to develop an urgent plan to contain the repercussions of monetary inflation, warning of a significant decline in the Iraqi dinar's exchange rate as a result of current monetary policies.
In a statement to the Al-Maalomah news agency, al-Ali said, "The government is currently relying on printing money to secure salaries and expenditures under the guise of the borrowing law."
He explained that "the continuation of this mechanism will put the Central Bank in a difficult position and may force it to deplete its reserves to cover the shortfall."
Al-Ali stressed the necessity for "the Central Bank to withdraw the printed currency from circulation as soon as it is no longer needed, and to destroy or store it instead of recycling it."
He indicated that "this measure is the only way to maintain exchange rate stability and prevent monetary inflation that threatens the purchasing power of citizens."
Furthermore, the crisis can worsen when the public loses confidence in the currency, leading them to convert their savings into foreign currencies or other assets. This negatively impacts the flow of liquidity into the economy and weakens the banking system.
Experts and analysts argue that economic solutions do not lie in printing more money, but rather in reforming fiscal and monetary policies to address the deficit.
According to economic analysts, sound monetary policies and central bank restrictions on money issuance are fundamental pillars for maintaining currency stability and preventing its collapse in the face of external shocks. End/25m
An Economist Warns Of The Decline Of The Iraqi Dinar Due To Currency Printing Policies.
Today 13:39 Information / Baghdad... Economic expert Nabil Al-Ali called on the Central Bank of Iraq on Sunday to develop an urgent plan to contain the repercussions of monetary inflation, warning of a significant decline in the Iraqi dinar's exchange rate as a result of current monetary policies.
Al-Ali told the Information Agency that “the government is currently relying on printing money to secure salaries and expenditures under the guise of the borrowing law,” explaining that “the continuation of this mechanism will put the Central Bank in a difficult position and may force it to deplete its reserves to cover the shortfall.”
Al-Ali stressed the necessity for "the Central Bank to withdraw the printed currency from circulation as soon as it is no longer needed, and to destroy or store it instead of recycling it."
He indicated that "this measure is the only way to maintain exchange rate stability and prevent monetary inflation that threatens the purchasing power of citizens." End/25
Al-Saadi: The Connection To The US Federal Reserve Reflects A Flaw In Financial Management.
Today 15:24 Information/Special.. Economic expert Rashid Al-Saadi confirmed today, Sunday, that the connection with the US Federal Reserve reflects a flaw in the management of money and requires reform, not a break.
Al-Saadi told Al-Maalouma News Agency that “Iraq’s continued involvement with the US Federal Reserve reveals a clear weakness in the management of funds and financial authority,” noting that “this file has not been professionally managed throughout the past years.”
He explained that “the heavy reliance on the US Federal Reserve reflects a flaw in the management of financial policy and a weakness in the institutions concerned with this aspect, which has made Iraq restricted by external procedures that control part of its funds.”
He added that "a sudden disengagement at the present time is not possible because that could lead to serious repercussions and economic disasters, especially since Iraqi funds are protected under the American decree, in addition to the existence of numerous international lawsuits related to the stage of Iraq's entry into Kuwait, which may be activated and lead to the freezing of funds."
He explained that "what raises questions is the US government's interference in the mechanisms for protecting these funds, even though Iraq has the ability to manage its resources if the ability and proper management are available."
It should be noted that this matter requires serious follow-up and gradual correction of errors, and that improving management is the most important step at present to avoid any future crises. End/25s
Gold Losses Mount On Dollar Strength
2026-04-20 Shafaq News Gold prices fell on Monday as the dollar firmed, while news the Strait of Hormuz is closed again pushed oil prices higher, reviving inflation fears.
Spot gold was down 0.7% at $4,794.21 per ounce, as of 0537 GMT, after hitting its lowest since April 13 earlier in the session. U.S. gold futures for June delivery fell 1.3% to $4,813.70.
"Gold prices are lower today after the U.S.-Iran war ceasefire that markets celebrated last week appeared to be breaking down," said Ilya Spivak, head of global macro at Tastylive.
"That has revived the now-familiar 'war trade' dynamics we've seen since the beginning of the conflict. Crude oil prices gained, which echoed into inflation expectation and drove up both yields and the U.S. dollar."
The dollar index opens new tab strengthened, making greenback-priced bullion more expensive for other currency holders. Benchmark 10-year U.S. Treasury yields gained 0.6%.
Oil prices jumped and stock markets wobbled as rising tension in the Middle East kept shipping in and out of the Gulf to a bare minimum.
The U.S. has seized an Iranian cargo ship that tried to run its blockade and Iran said it would retaliate, raising the possibility that the ceasefire between the two countries might not last for even the two days it is set to remain in force.
Tehran said it would not participate in a second round of negotiations that the U.S. had hoped to kick off before the ceasefire expires on Tuesday.
Gold prices have fallen about 8% since the U.S. and Israel launched strikes on Iran in late February, on concerns that higher energy prices could stoke inflation and keep global interest rates higher for longer.
While gold is considered an inflation hedge, higher interest rates crimp demand for the non-yielding asset.
Meanwhile, gold demand during one of India's key buying festivals stayed muted on Sunday as record prices curbed jewellery purchases, offsetting a modest uptick in investment demand.
Among other metals, spot silver lost 1.3% to $79.75 per ounce, platinum fell 0.8% to $2,086.90, and palladium was down 0.4% at $1,553. (Reuters) https://www.shafaq.com/en/Economy/Gold-losses-mount-on-Dollar-strength
Gold Prices Slide In Baghdad, Erbil
2026-04-20 Shafaq News- Baghdad/ Erbil On Monday, gold prices hovered around 1.02 million IQD per mithqal in Baghdad and Erbil markets, according to a survey by Shafaq News Agency.
Gold prices on Baghdad's Al-Nahr Street recorded a selling price of 1.026 million IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 1.023 million IQD. The same gold had sold for 1.046 million IQD on Sunday.
The selling price for 21-carat Iraqi gold stood at 996,000 IQD, while the buying price reached 962,000 IQD.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 1.025 million and 1.035 million IQD, while Iraqi gold sold for between 995,000 and 1.005 million IQD.
In Erbil, 22-carat gold was sold at 1.068 million IQD per mithqal, 21-carat gold at 1.020 million IQD, and 18-carat gold at 875,000 IQD.https://www.shafaq.com/en/Economy/Gold-prices-slide-in-Baghdad-Erbil
USD/IQD Exchange Rates Fall In Baghdad And Erbil
2026-04-20 Shafaq News- Baghdad/ Erbil The US dollar opened Monday’s trading lower in Iraq, hovering around 153,000 dinars per 100 dollars.
According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 153,100 dinars per 100 dollars, down from the previous session’s 153,200 dinars.
In the Iraqi capital, exchange shops sold the dollar at 153,500 dinars and bought it at 152,500 dinars, while in Erbil, selling prices stood at 152,950 dinars and buying prices at 152,850 dinars.
https://www.shafaq.com/en/Economy/USD-IQD-exchange-rates-fall-in-Baghdad-and-Erbil-3