{"id":12937,"date":"2026-07-14T11:45:44","date_gmt":"2026-07-14T08:45:44","guid":{"rendered":"https:\/\/www.bayancenter.org\/en\/?p=12937"},"modified":"2026-07-14T11:45:44","modified_gmt":"2026-07-14T08:45:44","slug":"financial-transformations-in-iraq-2014-2024-growth-of-the-money-supply-and-increase-in-internal-debt","status":"publish","type":"post","link":"https:\/\/www.bayancenter.org\/en\/2026\/07\/12937\/","title":{"rendered":"Financial Transformations in Iraq (2014 – 2024): Growth of the Money Supply and Increase in Internal Debt"},"content":{"rendered":"

Bassam Raad \/ Researcher in Economic Affairs<\/em> <\/strong><\/span><\/p>\n

Fiscal and monetary policies in Iraq have witnessed major changes over the past decade. The figures in the annual statistical bulletins of the Central Bank for the years (2014) and (2024) reflect noticeable increases in the growth of the money supply and internal debt, illustrating the economic challenges the country faced during this period.<\/p>\n

The currency issued, which means “cash issued by the Central Bank for circulation, excluding cash in the Central Bank’s vaults,” recorded remarkable growth. It rose from about 39.8 trillion dinars at the end of 2014 to more than 100.5 trillion dinars at the end of 2024. This growth was not limited to volume alone, but also extended to the structure of the circulating monetary denominations. In 2014, the 25,000-dinar denomination was dominant, while the 50,000-dinar denomination, issued by the Central Bank in 2015, came to constitute more than 38.8% of the money supply by the end of 2024.<\/p>\n

The currency issued is considered one of the primary factors affecting the Iraqi economy, as the increase in the structure of the money supply reflects the need to meet market demand. By comparing current expenditures, we find that employee compensation was the primary driver for the growth of the money supply, as salary allocations doubled from 28.4 trillion dinars in 2014 to 60.5 trillion dinars in 2024. This expansion in government spending reflects the government’s reliance on oil revenues to cover expenditures, leading to an increase in the money supply. It is noted that a large part of this supply is circulated outside the banking system, as estimates indicate that about 87% of the money supply in Iraq circulates outside the banking system. This means that out of every 10 printed dinars, only one dinar returns to the banking system, reflecting inefficiency in cash liquidity management. Consequently, the relationship between government spending, money supply growth, and the change in its structure is a complex one.<\/p>\n

Download PDF<\/a><\/strong><\/span><\/h2>\n","protected":false},"excerpt":{"rendered":"

Bassam Raad \/ Researcher in Economic Affairs Fiscal and monetary policies in Iraq have witnessed major changes over the past decade. The figures in the annual statistical bulletins of the Central Bank for the years (2014) and (2024) reflect noticeable increases in the growth of the money supply and internal debt, illustrating the economic challenges […]<\/p>\n","protected":false},"author":6,"featured_media":12938,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1733,6,19,1731],"tags":[758,1913,1910,1912,1152,45,1914,1911],"class_list":["post-12937","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economic-studies","category-economics","category-opinions","category-research-department","tag-al-bayan-center","tag-bassam-raad","tag-financial-transformations-in-iraq","tag-hard-currency","tag-inflation","tag-iraq","tag-price-fluctuations","tag-the-dollar"],"jetpack_featured_media_url":"https:\/\/www.bayancenter.org\/en\/wp-content\/uploads\/2026\/07\/Financial-transformations-in-Iraq.webp","jetpack_shortlink":"https:\/\/wp.me\/p6Y2nv-3mF","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/posts\/12937","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/comments?post=12937"}],"version-history":[{"count":1,"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/posts\/12937\/revisions"}],"predecessor-version":[{"id":12940,"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/posts\/12937\/revisions\/12940"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/media\/12938"}],"wp:attachment":[{"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/media?parent=12937"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/categories?post=12937"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/tags?post=12937"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}