Iraq's Parliamentary Finance Committee Affirms No Plans for New Currency Printing
On August 22, 2024, the Parliamentary Finance Committee in Iraq confirmed that there are no intentions to print a new paper currency. Committee member Moeen Al-Kazemi stated, "There is no intention to print new paper currency at the Central Bank," emphasizing that the Ministry of Finance had already begun funding ministries and governorates with salaries two days prior.
Cash Requirements for Salaries
Al-Kazemi further explained that the cash requirement for monthly payments of employee salaries is estimated to cover approximately four million employees, four million beneficiaries of the Retirement Authority, and two million social care recipients, totaling around 7 trillion and 500 billion dinars. He confirmed that the current export of approximately 3 million and 400 thousand barrels of oil at a price exceeding $75 per barrel ensures the provision of necessary liquidity.
Delivery and Distribution of Cash
The provision of liquidity is handled by the Central Bank, which delivers the required funds to the Ministry of Finance. The Ministry, in turn, distributes these funds to the relevant ministries and governorates. Al-Kazemi assured that there is no acute problem concerning cash liquidity.
Stability in Currency Circulation
The confirmation from the Parliamentary Finance Committee highlights the stability in the circulation of the Iraqi dinar, which has been the official currency of Iraq since it replaced the Indian rupee in 1932. Despite facing challenges post-1990 due to UN sanctions, the dinar has maintained its role in the Iraqi economy.
No Plans for Currency Overhaul
The statement from the Parliamentary Finance Committee indicates that there are no plans for a significant overhaul of the currency system, such as the introduction of new banknotes.
This contrasts with recent urban legends and misinformation circulating on social media about the Central Bank of Iraq planning to print new banknotes featuring famous Iraqi-born architect Zaha Hadid.
The Central Bank has clearly denied these rumors, confirming that no such banknotes have been produced.
Conclusion
The confirmation from the Parliamentary Finance Committee provides clarity regarding the current state of Iraq's currency policy.
It reassures that the Central Bank and the Ministry of Finance are managing the monetary requirements effectively, without the need for the introduction of a new paper currency.
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