Liquidity crisis puts pressure on the government… Prime Minister’s advisor reveals options for securing salaries
Liquidity crisis puts pressure on the government… Prime Minister’s advisor reveals options for securing salaries
8-8-2026
The Information/Baghdad…
The Prime Minister’s financial advisor, Mazhar Muhammad Salih, confirmed on Saturday that the government is facing a critical situation regarding securing salaries for employees and retirees, relying on collecting available resources on a monthly basis. He described the proposal to resort to a “digital dinar” to address the crisis as unrealistic.
Salih told Al-Maalouma, “The government and the Ministry of Finance cannot secure salaries through internal borrowing or direct withdrawals from the country’s cash reserves.” He explained that “this contradicts Central Bank Law No. (56), particularly Article (26), which prohibits the government from withdrawing or borrowing.”
He added that “the only viable solutions currently available may push towards external borrowing, which is a very costly option and will burden the state with additional financial obligations due to the high interest rates imposed on loans.”
Salih clarified that “current political and security indicators and realities point to an imminent breakthrough regarding the resumption of regular oil exports through the Strait of Hormuz, which may contribute to alleviating the severity of the current financial crisis.”
Saad al-Awadi, deputy head of the National Approach parliamentary bloc, had proposed securing salaries for employees and retirees through a “digital dinar,” aiming to address the cash liquidity crisis in Iraq.
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