🇮🇶💵 IRAQ AND THE DOLLAR: WHY CAN’T SALARIES BE PAID IN DOLLARS? WHAT DOES THIS HAVE TO DO WITH THE DELETE ZEROS PROJECT?
📌 📰 NEWS SUMMARY
Iraqi economist Nabil Al-Marsoumi explained that paying employee salaries in US dollars could put pressure on the Central Bank of Iraq’s foreign reserves, estimated at approximately $76 billion.
According to his estimates, financing imports and paying salaries in dollars could require around $10 billion per month, placing significant pressure on the country’s reserves.
⚠️ He also warned that this measure could weaken monetary policy, increase pressure on the Iraqi dinar, and widen the gap between the official exchange rate and the parallel market rate.
📊 🔎 MY ANALYSIS
Foreign reserves are a fundamental tool for maintaining Iraq’s monetary stability. It is not simply about accumulating dollars; it is about having a strong financial foundation that allows the Central Bank to manage the exchange rate, finance imports, and strengthen confidence in the Iraqi dinar.
Strong reserves are also important in any monetary reform process.
However, maintaining strong reserves alone does not guarantee that a currency redenomination will take place. Other economic, technical, and monetary conditions must also be met.🔥 👀 MY OBSERVATION
Let’s remember that maintaining strong foreign reserves is an important requirement for the possible implementation of the DELETE ZEROS PROJECT — removing zeros from the Iraqi dinar.
That is why I believe we should pay close attention to the evolution of Iraq’s foreign reserves, exchange rate stability, and the decisions made by the Central Bank of Iraq. 🇮🇶📈
💪 WE ARE ON THE RIGHT TRACK!!
The key is to keep monitoring the official economic indicators and remember that strong foreign reserves are a crucial part of preparing for any major monetary reform.
🚨 Of course, this does not mean that the removal of zeros has been officially confirmed or that an implementation date has been announced. We must continue watching the economic signals!
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AN ECONOMIST EXPLAINS WHY IT’S NOT POSSIBLE TO PAY EMPLOYEE SALARIES IN DOLLARS
Economic expert Nabil Al-Marsoumi explained on Friday (October 9, 2026) the reasons why it is not possible to pay employee salaries in Iraq in dollars, noting that this step may deplete foreign reserves and limit the Central Bank’s ability to manage monetary policy.
Al-Marsoumi stated in a clarification followed by “Baghdad Today”, that foreign reserves are not free funds at the disposal of the Ministry of Finance, nor do they represent a financial allocation within the budget, but rather they are external assets managed by the Central Bank to achieve the objectives of monetary policy, foremost among which are price and exchange rate stability, ensuring the financing of imports and external payments, and enhancing confidence in the dinar and the financial system.
He added that the adequacy of reserves is usually measured by their ability to cover imports and external obligations, not by the number of months during which salaries can be funded.
He pointed out that paying salaries in dollars could, in his estimation, deplete the central bank’s cash reserves, estimated at about $76 billion, in just eight months, explaining that financing imports and paying salaries in dollars could require about $10 billion per month.
Al-Marsoumi explained that this step may limit the Central Bank’s ability to control monetary policy and the money supply, as well as it does not guarantee a decrease in demand for the dollar in the currency auction, with continued speculation to achieve quick profits, which may lead to a widening of the gap between the official exchange rate and the parallel rate.
He added that among the possible repercussions are the loss of part of the independence of monetary policy, the impact on one of the symbols of national identity and sovereignty, in addition to the problem of the inconsistency of the currency used in evaluating the assets and liabilities of economic units.
He pointed out that adopting the dollar for paying salaries will entail administrative and technical costs, including readjusting accounting records and converting prices, as well as losing part of the proceeds from issuing currency, and reducing the central bank’s ability to perform the function of lender of last resort for banks.
