By Bassam Raad, for the Al-Bayan Center for Planning and Studies. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.
Financial Transformations in Iraq (2014-2024): Money Supply Growth and Rising Domestic Debt
Iraq's fiscal and monetary policy underwent significant changes over the past decade. Figures in the Central Bank's annual statistical bulletins for 2014 and 2024 reflect notable increases in money supply growth and domestic debt, illustrating the economic challenges the country faced during this period.
Currency in circulation - meaning cash issued by the Central Bank for circulation, excluding cash held in its own vaults - recorded marked growth, rising from around 39.8 trillion dinars at end-2014 to more than 100.5 trillion dinars at end-2024.
This growth was not limited to volume alone but also encompassed the structure of banknote denominations in circulation. In 2014, the 25,000-dinar note was dominant, while the 50,000-dinar note - introduced by the Central Bank in 2015 - came to account for more than 38.8% of the money supply by end-2024.
Currency in circulation is considered one of the key factors influencing the Iraqi economy, with the increase in money supply structure reflecting the need to meet market demand. Comparing current expenditures, employee compensation emerged as the primary driver of money supply growth, with salary allocations doubling from 28.4 trillion dinars in 2014 to 60.5 trillion dinars in 2024.
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