Economist: Cash liquidity is available, and the currency auction is further strengthening it at banks.
Economist: Cash liquidity is available, and the currency auction is further strengthening it at banks.
5-4-2025
Al-Maalouma/Baghdad…
Economic researcher Diaa Abdul Karim said on Sunday that Iraqi dinar liquidity is available at banks and the Central Bank, as the currency auction works to boost it domestically.
Abdul Karim told Al-Maalouma, “The currency auction sells approximately $300 million daily, which increases the liquidity in Iraqi dinars, as Baghdad receives oil revenues from the Federal Reserve monthly in dollars. However, this bank sometimes fails to deliver these revenues to Iraq, which is a clear violation of financial agreements.” He
added, “The process of securing liquidity in its entirety does not occur through rotation between dollars and dinars, but rather through printing more denominations of currency by deducting a percentage of the oil revenue dollar in exchange for printing Iraqi currency abroad.”
He explained that “the issue of the impact of oil prices on employee salaries and the lack of liquidity will not have clear consequences at the present time, but rather its repercussions will begin to appear after about six months if oil prices continue to decline in global markets.”
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