Al-Mashhadani: No new currency will be printed, and liquidity is linked to dollar imports.
Al-Mashhadani: No new currency will be printed, and liquidity is linked to dollar imports.
2026/06/08
Economic expert Abdul Rahman Al-Mashhadani said that there is no printing of new currency, explaining that the Central Bank finances the government’s need for dinars within a financial mechanism that depends on the availability of dollars in the treasury.
Al-Mashhadani explained in a statement to Al-Furat News Agency that: “There is a three-way cycle that manages the movement of liquidity in the country, based on the government selling oil in dollars and transferring it to the Central Bank to finance the salaries of employees in Iraqi dinars, while the Central Bank works to sell dollars to traders to cover imports, which leads to the withdrawal of dinars from the market through commercial transactions, while citizens buy goods in dinars within the local market.”
He pointed out that “this cycle is disrupted when dollar flows resulting from oil exports decline or are interrupted, which prompts the central bank to compensate for the liquidity in dinars in exchange for treasury bonds, remittances, and government bonds,” stressing that “this does not mean printing a new currency, but rather injecting liquidity within approved financial instruments.”
Al-Mashhadani concluded by saying that “liquidity is still available at the Central Bank, and the monetary process is continuing,” while warning of “a dangerous indicator represented by the decline in dollar imports, which may affect market stability if it continues.”
Foreign Minister Fuad Hussein stated that the government was forced to print 25 trillion dinars to address the current financial crisis and cover employee salaries, warning of a financial catastrophe if the crisis continues.
The Central Bank of Iraq responded Sunday, in a statement clarifying the issue of currency printing, stressing that printing currency is prohibited by law and does not reflect the nature of ongoing operations.
The Central Bank confirmed in a statement that there is no new currency printing process, explaining that what is happening is related to discounting treasury bills as a government debt instrument that provides temporary liquidity that is recovered upon maturity, and it is an internationally recognized financial mechanism that central banks apply within their approved frameworks.
alforatnews.iq
