Iraqi affairs expert Muwaffaq al-Khattab has shed light on what he says were the reasons behind Iraq’s decision to print around 25 trillion dinars during a period of growing economic pressure.
According to al-Khattab, the move came as Iraq faced serious financial challenges linked to regional tensions and disruptions affecting oil exports. He said Iraq was among the countries most heavily impacted by the closure of the Strait of Hormuz, which led to a sharp drop in oil exports. Since oil remains the country’s main source of income, the decline created significant pressure on government finances.
Al-Khattab argued that the government turned to printing currency to help cover the budget deficit and ensure the continued payment of salaries and pensions. He also claimed that information about the move was not initially made public and only gained attention after comments made by Foreign Minister Fuad Hussein.
He noted that the issue sparked widespread debate, especially after the Central Bank of Iraq later issued a clarification that appeared to differ from earlier statements, leading to further questions and discussions about the country’s financial situation.
Al-Khattab warned that Iraq faces a critical period and said stronger measures are needed to protect the economy. He called for tougher action against corruption, including recovering stolen public funds and holding those responsible accountable.
He stressed that strengthening state finances and addressing corruption are essential steps to support the budget and maintain economic stability. Otherwise, he warned, Iraq could face increasing pressure on the value of the dinar and greater financial uncertainty in the future.
