Iraq prints 25T dinars after oil revenues collapse

Shafaq News- Baghdad

Iraq printed 25 trillion dinars (around $19 billion) to confront mounting financial pressure caused by falling oil revenues, Foreign Minister Fuad Hussein revealed on Saturday, warning that continued disruption to exports through the Strait of Hormuz could push the country toward a “financial disaster” and affect the government's ability to pay salaries.

Speaking to Al-Sharqiya TV, Hussein said the measure raised Iraq's nominal financial capacity to 125 trillion dinars from between 100 trillion and 104 trillion dinars, adding that the Central Bank of Iraq had not announced the step.

Printing money is not a solution to the crisis, he cautioned, as it could fuel inflation, raise prices, and weaken purchasing power. Salaries are currently being financed through reserves, borrowing, and domestic debt because revenues remain insufficient, while a continuation of the war through the end of 2026 would deepen the country's financial difficulties.

The government is seeking to raise oil exports to between 500,000 and 700,000 barrels per day and expand tanker-based exports, Hussein states, but described those measures as partial remedies that would not resolve the underlying problem. He also called for greater engagement with Gulf and Western countries, as Iraq may need external assistance to manage current conditions.

Iraq's oil exports remain far below pre-Iran war levels. Oil Ministry figures show that monthly exports fell from about 93 million barrels before February 28 to around 10 million barrels in April and May following disruptions to maritime navigation in the Strait of Hormuz.

Economist Nabil Al-Marsoumi estimated May exports at about 329,000 barrels per day, including 233,000 barrels through the Kurdistan-Ceyhan pipeline and 96,000 barrels through the Strait of Hormuz, generating roughly $1 billion in revenue.

Oil accounts for about 90% to 95% of Iraq's budget revenues, while salaries, pensions, and social welfare payments require roughly 9 trillion dinars per month.