An economist warns against printing money, advising domestic borrowing to protect the dinar from collapse.
An economist warns against printing money, advising domestic borrowing to protect the dinar from collapse.
6-7-2026
Information / Baghdad…
Economic expert Hashim al-Haboubi warned on Sunday against resorting to printing money locally to cover the budget deficit, stressing that domestic or foreign borrowing is the best alternative to protect the financial market from the risk of severe inflation.
Al-Haboubi told the Information Agency, “Flooding the market with printed local currency to cover salaries and other expenses will directly lead to higher inflation levels, in addition to causing a sharp decline in the exchange rate of the national currency against hard currencies.”
He added that “adopting a policy of borrowing, both domestically and internationally, is the optimal way to confront the current financial crises,” explaining that “Iraq possesses strong financial backing in the form of hard currency reserves in the state treasury and the Federal Reserve, in addition to US Treasury bonds and a massive gold reserve of approximately 175 tons.”
Al-Haboubi pointed out that “many international financial institutions are ready to lend to Iraq at easy and simple interest rates, given its strong reserves of hard currency and gold,” stressing the need to avoid improvised solutions that threaten the purchasing power of citizens.
almaalomah.me
