Iraq's Central Bank Refutes Dinara Printing, Discusses Currency Revaluation amid New Government

The Central Bank of Iraq issued a clarification stating that reports of "printing 25 trillion dinars" to fund salaries are misleading. It emphasized the legal distinction between discounting treasury bills, which provides temporary liquidity, and printing new money, which is prohibited under the Central Bank of Iraq Law No. 56 of 2004 and would cause inflation.

Commentators linked the currency issue to the formation of a new Iraqi government and a prospective visit by Prime Minister Mohammed Al‑Zaidi to Washington. While some analysts speculated that a revaluation of the dinar could occur, experts highlighted the lack of an economic basis for a rapid rise in the exchange rate and warned that any increase would depend on long‑term monetary reforms, diversification of income, and confidence in the macroeconomy. The central bank reported $97 billion in reserves and 162 tons of gold, underscoring the political nature of any dinar policy shift.

In parallel, Iraq’s prime minister urged international oil firms to resume operations in the Kurdistan Region, but companies demanded security guarantees before returning. Disputes over oil‑revenue sharing and customs between Baghdad and Erbil remain unresolved, adding further complexity to Iraq’s economic outlook.