In light of the liquidity crisis... Why doesn't Iraq resort to printing more currency?
- Author
- Tish Washington
- Published
- Sat 08 Feb 2025
- Episode Link
- https://podcasters.spotify.com/pod/show/tish-washington8/episodes/In-light-of-the-liquidity-crisis----Why-doesnt-Iraq-resort-to-printing-more-currency-e2ujm6j
In light of the liquidity crisis... Why doesn't Iraq resort to printing more currency?
If you'd like to support me: https://www.paypal.com/paypalme/tishwashIraq is facing increasing challenges due to the scarcity of cash liquidity, which negatively affects the markets and daily financial transactions. While some are looking for quick solutions to overcome this crisis, the option of printing more local currency remains controversial, given the serious economic repercussions that may result from it.
The Iraqi government faces challenges in managing cash liquidity in dinars, as it suffers from a chronic shortage of this currency, which affects its ability to meet its financial obligations to pay employee salaries, repay debts, and finance projects.
Since the 1990s, and specifically during the period of the economic blockade, Iraq has witnessed hyperinflation in its national currency (the dinar). This situation prompted the ruling regime at the time to take the decision to print the currency locally.
