Shafaq News- Baghdad
The Iraqi government is considering borrowing from US banks as a quick way to address its liquidity crisis rather than print more currency, an informed source told Shafaq News on Sunday.
“The Iraqi government sees this as a practical and quick solution amid the ongoing crises in the region,” the source said, without providing further details.
Read more: Iraq turns to bank borrowing to cover August salaries amid oil-revenue collapse
Iraq is preparing temporary legislation on borrowing, grants and subsidies to cover essential government spending while no federal budget is in place. The parliamentary Finance Committee said Parliament is awaiting the government’s formal submission of the draft law to prevent a funding gap.
Data from the Central Bank of Iraq (CBI) showed that the total value of currency issued rose to 111.189 trillion dinars ($84.5 billion) by the end of June 2026. By the end of June, currency held outside banks accounted for about 91.7% of the total, while the remaining 8.3% was held in bank vaults.