CBI Denies Printing Money following public debate over how Iraq plans to manage its financial challenges. The Central Bank of Iraq issued a statement to address claims that it had printed new currency to cover government salaries. Officials stressed that the bank has not taken such action and remains committed to protecting monetary stability.
The controversy emerged after comments by Foreign Minister Fuad Hussein about printing 25 trillion Iraqi dinars to help tackle financial pressures. Those remarks sparked questions among economists, lawmakers, and citizens. Many wondered whether the government had turned to currency creation as a solution to budget difficulties.The central bank responded by explaining how its financial tools work. Officials said people should not confuse treasury bill discounting with printing money. The two processes serve different purposes and produce different economic outcomes.
Treasury bill discounting allows the central bank to provide temporary liquidity. Governments use treasury bills as short-term debt instruments. The central bank can support liquidity needs by purchasing these instruments under specific conditions. Later, the government repays the debt when the bills mature.
Officials noted that central banks around the world use this mechanism. They described it as a routine financial practice rather than an emergency measure. The bank emphasized that such transactions do not amount to unrestricted currency issuance.The CBI also highlighted the legal framework that governs its operations. Iraq’s Central Bank Law No. 56 of 2004 places strict limits on currency issuance. The law prevents the creation of money without supporting assets.
Bank officials warned that uncontrolled money creation can damage economic stability. Inflation often rises when governments increase the money supply without proper backing. Currency values can also weaken under those conditions. For that reason, the law requires strict oversight and discipline.
CBI Denies Printing Money while reaffirming its role as Iraq’s monetary authority. The institution manages monetary policy and works to maintain confidence in the financial system. Officials explained that the bank cannot serve as a permanent source of government financing.
Instead, the bank supports stability through responsible policy measures. It seeks to control inflation, strengthen the banking sector, and preserve the value of the Iraqi dinar. These goals remain central to its mission.
The statement also addressed Iraq’s broader economic challenges. Officials urged policymakers to adopt long-term fiscal strategies that can withstand future shocks. They argued that stronger financial reserves would help the country navigate periods of uncertainty.The bank stated that it follows those rules in every monetary policy decision. Officials said they carefully evaluate economic conditions before implementing any exceptional measures. They also stressed that every action must support long-term financial stability.The central bank encouraged Iraq to diversify its economy and expand non-oil revenue sources. Greater diversification could reduce the country’s dependence on energy exports. It could also provide more stability during periods of oil market volatility.
Officials also called for better public debt management and stronger fiscal planning. They said these reforms would improve resilience and support sustainable growth. Effective financial management remains essential as Iraq faces changing economic conditions.
CBI Denies Printing Money and continues to reject claims that it created currency to fund government salaries. The bank maintains that treasury bill operations follow established financial principles and legal requirements. As debate continues, officials insist that responsible monetary policy remains the best path toward economic stability and long-term growth.