⚠️ “Iraq’s Soaring Internal Debt: A Ticking Time Bomb?” ๐งจ
๐️ Mawazine News – August 23, 2025
๐ Key Highlights:
๐ Debt Explosion Warning
Economist Nabil Al-Marsoumi warns that Iraq’s domestic debt jumped from 70.5T IQD in 2023 → to 92.2T IQD by mid-2025 — a sharp increase in just 18 months.
๐ฆ 47% of That Debt is now held via remittances deducted by the Central Bank, signaling tighter monetary control but rising risk.
๐ธ Debt Is Covering Operating Expenses — Not Investments
Instead of financing growth, this debt funds government salaries and administration, worsening Iraq’s rentier economy structure.
๐ Alarming Consequences Ahead:
๐ Weakened ability to repay and shrinking real government assets
๐ฅ Rising inflation risks without monetary coordination
๐ชซ Slower economic growth due to banks preferring debt over lending to the private sector
⚖️ Confirmed on Live TV – Announced Exchange Rate: $6.02! – Take Advantage!๐Domestic debt servicing (9.34T IQD in 2024) may reduce funding for essential social services
๐ข️ And with most revenue still oil-dependent, any drop in oil prices could trigger a financial shock.
๐ง Why It Matters for RV Watchers & Investors:
๐ Debt without productivity = economic instability
๐ธ Iraq’s monetary future depends on managing both reserves and debt wisely
๐️ For the IQD to revalue sustainably, Iraq must fix its fiscal discipline and investment gaps
This is a reminder: reform must be real — not just cosmetic.
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