Political analyst Qasim Al-Tamimi has warned that Iraq is facing growing financial and economic pressures, citing rising debt levels and challenges in managing the country’s monetary situation.
According to Al-Tamimi, Iraq’s total debt is estimated at around $120 billion, including approximately $90 billion in domestic debt and $30 billion in external obligations. He said much of this debt resulted from borrowing to address shortages in cash liquidity and to meet the country’s financial needs.
Al-Tamimi argued that the government is facing increasing difficulty in stabilizing the U.S. dollar exchange rate in local markets. He noted that Iraq’s financial system remains closely connected to the global dollar-based system, as the country’s oil revenues are processed through international financial channels before reaching Baghdad.
He also pointed to broader regional developments and economic challenges that he believes have affected Iraq’s financial position. According to his assessment, reduced oil revenues and declining liquidity have placed additional pressure on the government’s finances.
Al-Tamimi said the current administration is facing a major test as it works to manage the country’s financial and economic situation amid these challenges. He stressed that maintaining financial stability, managing public spending, and addressing liquidity concerns will be key issues for policymakers in the coming period.
His comments come as concerns continue to grow over Iraq’s budget outlook, debt levels, oil revenue dependence, and the need for economic reforms aimed at strengthening non-oil sources of income and improving long-term financial sustainability.
The debate over Iraq’s economic future has intensified in recent months, with lawmakers, economists, and political figures increasingly calling for reforms to reduce reliance on borrowing and create a more stable and diversified economy.
