Iraq has printed 25 trillion dinars, worth roughly $19 billion, to help deal with growing financial pressure caused by declining oil revenues, according to Foreign Minister Fuad Hussein.
Speaking in a television interview, Hussein said the move increased Iraq’s financial capacity from around 100–104 trillion dinars to approximately 125 trillion dinars. He also noted that the Central Bank of Iraq did not publicly announce the measure.
However, Hussein warned that printing money is not a long-term solution to the country’s financial problems. He said it could lead to higher inflation, rising prices, and weaker purchasing power for ordinary citizens.
According to Hussein, the government is currently relying on financial reserves, borrowing, and domestic debt to cover expenses because state revenues are no longer sufficient. He warned that if disruptions to oil exports continue through the end of 2026, Iraq could face even greater financial difficulties.
One of the biggest concerns remains the impact of tensions affecting shipping through the Strait of Hormuz. Hussein warned that a prolonged disruption could push Iraq toward a serious financial crisis and potentially affect the government’s ability to pay salaries.
To reduce the pressure, the government is working to increase oil exports to between 500,000 and 700,000 barrels per day and expand exports through tanker shipments. However, Hussein described these measures as temporary solutions that cannot fully solve the underlying problem.
He also stressed the importance of strengthening cooperation with Gulf countries and Western partners, saying Iraq may need international support if current challenges continue.
Iraq’s oil exports have fallen sharply compared to levels seen before regional tensions intensified. Official figures show exports dropped from around 93 million barrels per month before late February to roughly 10 million barrels during April and May because of disruptions affecting maritime routes through the Strait of Hormuz.
Economic analyst Nabil Al-Marsoumi estimated that Iraq exported about 329,000 barrels per day in May. This included approximately 233,000 barrels through the Kurdistan-Turkey pipeline and around 96,000 barrels through the Strait of Hormuz, generating close to $1 billion in revenue.
The decline is particularly concerning because oil provides between 90% and 95% of Iraq’s government income. At the same time, the country needs around 9 trillion dinars every month to cover salaries, pensions, and social welfare payments.
With revenues under pressure and spending obligations remaining high, officials continue to search for ways to stabilize public finances and avoid a deeper economic crisis.
