Economic Confusion Spreads in Iraq as Rumors Stir Public Fear
In the past few days, Iraqis have been hit with a wave of confusion. Social media and some news outlets have been flooded with claims about “missing money,” “delayed salaries,” and even “cut livelihoods.”
Most of the rumors focused on an allegation that nearly $2 billion had gone missing from the Social Protection Fund at the Ministry of Labor and Social Affairs. This talk spread fast, especially after salaries were briefly delayed at a few government offices.
Officials: It’s All Fake News
Mudher Mohammed Saleh, the financial adviser to the caretaker prime minister, said these claims are simply not true.
He explained that Iraq is going through a “heated political season,” and that negative stories often spread during times like this.
Saleh told dinaropinions.com that Iraq’s finances are stable and supported by strong oil income and solid non-oil revenues. He said salaries, pensions, and social welfare programs are always the government’s highest priority. Sometimes delays happen, he admitted, but they are usually due to minor technical issues—not because the money is gone.
He stressed that these rumors are creating fear for no reason.
“We are not under siege, and we are not at war,” he said. “Talk of salary cuts, a weaker dinar, or an economic collapse is nothing more than lies piled on top of lies.”
Dollar Prices Steady Despite Market Jitters
Earlier this week, the dollar suddenly jumped in Iraq’s parallel market. Traders were reacting to a new customs rule that goes into effect on 1 December, and many stopped selling dollars for a short time. This pushed the rate up temporarily and caused chaos in several provinces.
Alaa Al-Fahad from the Central Bank’s media office reassured the public that the official exchange rate of 1,320 dinars per dollar is not changing.
He said the Central Bank’s monetary policy is designed to protect this rate, build trust in the banking system, and support Iraq’s commitments with international partners.
Al-Fahad added that the Central Bank continues to fund foreign trade at the official rate and meets all legitimate dollar requests. Most of the market swings, he said, come from speculation and rumors—not real financial problems.
Experts Warn of Real Underlying Risks
Economic expert Nawar Al-Saadi said that even though the recent rumors are false, the public fear behind them is real.
He explained that Iraq faces deeper issues such as weak financial structures, limited ability to absorb economic shocks, and administrative problems that drain public funds.
Al-Saadi warned that these weaknesses erode trust, create unemployment, and make the country more vulnerable to protests.
He called for several urgent steps, including:
- more transparency around disputed financial files
- independent investigations into major financial claims
- stronger support for low-income families
- reforms to customs and tax systems
- increasing non-oil revenues
In the long run, he said Iraq needs to restructure its wage system, reduce wasteful spending, and invest in real economic sectors—not just oil.
Stronger Financial Governance Needed
Another expert, Karim Al-Halo, said real reform will not happen unless Iraq strengthens oversight of its financial system.
He emphasized that public money must remain inside banks and financial institutions. Without this, he said, liquidity crises will continue and any reform plan will fall apart.
Al-Halo added that Iraq is still far behind in this area—whether due to poor administration, weak planning, or corruption—leaving the economy exposed to any rumor or sudden crisis.
