Concerns are growing among Iraqi economists over the idea of printing more money without strong backing from reserves like dollars or gold.
Experts say this is a risky move. The reason is simple: when more money is printed but the amount of goods and services stays the same, prices start to rise. That leads to inflation—and if it continues, it can spiral into something much worse.
History shows this clearly. Countries that relied heavily on printing money to cover spending gaps often saw their currencies lose value and public confidence collapse.
In Iraq, the issue is especially sensitive. The economy depends heavily on oil revenues, and the flow of dollars plays a key role in keeping the financial system stable. (Riadi)
Economists warn that printing money without proper planning could weaken the dinar and create long-term problems. Some say it could even force the Central Bank into a difficult position—trying to support government spending while also protecting the currency.
Nabil al-Ali, an economic expert, warned that continuing this approach could put pressure on reserves and lead to a drop in the dinar’s value. He stressed that any extra money issued should be pulled back out of circulation once it’s no longer needed to avoid inflation.
At the same time, maintaining stability depends heavily on the Central Bank. Its role is to control inflation, manage liquidity, and protect the value of the currency. In fact, careful monetary policy has helped Iraq keep inflation relatively low in recent years. (شفق نيوز)
Another risk is public confidence. If people start to lose trust in the dinar, they may shift their savings into dollars or other assets. That can weaken the banking system and make the situation worse.
Because of this, many experts agree on one point: printing more money is not a real solution. The focus should instead be on stronger economic policies, better spending control, and real growth.
In simple terms, printing money might solve short-term problems—but it can create much bigger ones if not handled carefully.
