Eco
The Prime Minister's financial advisor, Mazhar Mohammed Saleh, confirmed that the government, led by Ali Faleh Al-Zaidi, has implemented measures to preserve the Iraqi Dinar's purchasing power and curb inflation. Saleh explained that the official exchange rate stability policy primarily aims to protect the national currency's external value and maintain general price stability. This exchange rate stability has significantly boosted confidence in the Iraqi Dinar and supported citizens' purchasing power. He added that the strong link between exchange rate stability and local market prices for goods and services persisted, attributing it to the parallel market's limited impact on pricing and effective monetary policy. Financing imports via the official banking system, utilizing state foreign reserves, ensured imported goods were available at stable, regulated prices. He also noted that government policies for stable general commodity and service prices, coupled with the expansion of modern commercial distribution (like cooperative stores and advanced marketing), have enhanced competition. This contributed to reducing inflationary pressures and supporting overall price stability. Saleh identified key factors pressuring the national currency: declining official reserves, uncontrolled monetary expansion, and excessive reliance on oil revenues, which are currently subject to geopolitical constraints. Political and regional tensions further impact foreign currency flows and economic confidence. He emphasized that strengthening the Iraqi Dinar is a long-term reform path, not quick administrative decisions. This path relies on stable monetary and fiscal policies, diversifying national income, and deepening local currency confidence. Dinar stability directly reflects overall economic strength and its ability to handle internal and global changes. The government's measures to boost the Dinar include increasing foreign reserves, diversifying the economy away from oil, achieving balance of payments stability, controlling the parallel market, reforming banking, expanding electronic payments, and enhancing financial inclusion.
