Shafaq News- Baghdad
The Central Bank of Iraq (CBI) rejected on Sunday claimsthat it is printing money to cover government salaries, following remarks byForeign Minister Fuad Hussein about printing 25 trillion Iraqi dinars toaddress the country's financial crisis.
Discounting treasury bills differs fundamentally fromissuing currency, the bank stressed, describing the former as a standardmechanism used by central banks to provide temporary liquidity againstgovernment debt that is repaid at maturity. However, issuing money withoutcorresponding assets is prohibited under Iraq’s Central Bank Law No. 56 of 2004because it can fuel inflation and weaken the national currency.
CBI pointed out that its role is to manage monetary policyand protect the financial system rather than serve as a permanent source ofbudget financing, adding that any exceptional measures are implemented understrict controls and according to economic requirements.
“The current circumstances highlight the need for long-termfiscal policies aimed at building financial buffers capable of absorbingeconomic shocks and oil market volatility,” the bank said, calling for greatereconomic diversification, broader revenue sources, and efficient public debtmanagement to reduce the impact of future crises and preserve overall economicstability.
Iraq remains heavily dependent on oil income, whichaccounted for about 84% of budget revenues during the first quarter of 2026. Atthe same time, disruptions to shipping through the Strait of Hormuz during theUS-Israeli war on Iran have sharply reduced exports. According to Eco IraqObservatory, shipments have fallen below 800,000 barrels per day, resulting inestimated daily losses of $128 million.