Iraq faces growing cash crisis
Some committee members allege that the Ministry of Finance has not been transparent about a cash flow issue that could affect the value of the Iraqi dinar.
ERBIL (Kurdistan24) – Iraqi Parliament's Finance Committee members are at odds over claims of a cash shortage within the Ministry of Finance, sparking concerns about its impact on the country's economy.
Some committee members allege that the Ministry of Finance has not been transparent about a cash flow issue that could affect the value of the Iraqi dinar. In response to the alleged shortage, the Ministry of Finance has requested that other ministries reduce spending to mitigate the problem. This financial strain has already led to a 10-day delay in parliamentary salary payments.
However, the Ministry of Finance and the Central Bank deny any cash shortage. They have stated that the financial system is stable, though reports suggest that the Ministry may be withholding information due to the broader economic challenges and market instability facing Iraq.
"There is no clarity about the cash reserves from the Iraqi government; this issue is completely hidden. No one knows how much cash is available," said Iraqi parliamentarian Raid Maliki in an interview with Kurdistan24.
The alleged cash shortage has divided members of the Finance Committee. Ikhlas Sabah al-Dulaimi and Mustafa Garawi, both members of the committee, expressed concerns about the Ministry's ability to maintain sufficient cash reserves. "The Ministry has a serious problem," they said.
Conversely, Atwan Atwani, the head of the Finance Committee, downplayed the concerns. "We have no cash problems, and the Ministry of Finance has sufficient reserves. There is no threat to the salaries of civil servants," he told Kurdistan24.
Iraq's 2024 budget, approved at 211 trillion dinars, includes a deficit of 64 trillion dinars. Economists warn that a continued drop in oil prices could exacerbate the deficit, putting further pressure on the country’s financial situation.
