Mazhar Muhammad Salih denied reports claiming that the Central Bank of Iraq is printing local currency outside legal controls, saying the claims are false and misleading.
Salih explained that the process of printing Iraqi currency is strictly regulated under legal and financial rules. He said there are only two reasons for printing money: meeting actual market demand and covering any shortage in cash liquidity.
According to him, neither process can happen without full financial backing through hard foreign currencies and gold reserves.
He stressed that the Central Bank’s reserves are mainly used to maintain exchange rate stability and confirmed that Iraq’s reserves remain in very strong condition and have not been depleted.
Salih also spoke about the country’s budget situation, saying that preparing a budget for the remaining months of the year depends largely on whether the ongoing conflict involving the Islamic Republic of Iran comes to an end.
He explained that if the war stops soon, the government could move toward preparing an emergency or temporary budget for the rest of the year.
