MP warns of continued liquidity shortage: The US Federal Reserve is exacerbating the crisis in Iraq.
MP warns of continued liquidity shortage: The US Federal Reserve is exacerbating the crisis in Iraq.
7-3-2025
Information/Baghdad…
Member of Parliament Firas Al-Maslamawi called on the government and the Ministry of Finance on Thursday to intensify efforts and pressure the US Federal Reserve, where Iraq’s oil sales funds are deposited, to increase hard currency flows. He also stressed the need for urgent measures to address the country’s cash shortage.
Al-Maslamawi told Al-Maalouma News Agency, “Iraq is not a poor country, but its funds are confined to the US Federal Reserve and are not being used to meet the country’s actual needs, whether in financing employee salaries or covering projects.”
He added, “The government and the Ministry of Finance must act more effectively to pressure the US Federal Reserve to increase disbursements from Iraqi funds deposited there in US dollars,” noting that “the lack of funding for government projects and the lack of liquidity require additional solutions.”
In this context, Al-Maslamawi suggested two options: the first is to “move towards concluding contracts similar to the Chinese agreement (projects in exchange for oil),” while the second option suggested adopting a system for transferring money to employees via electronic cards (MasterCard), such that essential goods and commodities are only purchased through this banking system, which contributes to controlling the flow of cash and achieving stability.
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