Eco
The Prime Minister of Iraq has confirmed ongoing efforts to restore the dollar exchange rate to 155,000 dinars or lower in the near future. In a televised interview, he clarified that the mistake was not in the decision to raise the exchange rate, but rather in the previous decision to reduce it, noting that the reduction was not a correct decision from the outset. He pointed out that the financial gap related to exchange rate measures approaches 60 trillion dinars, emphasizing that citizens were not obtaining dollars at the previous official rate but were buying them in the market at significantly higher prices. He added that the situation was similar in previous years, and that lowering the rate from 145,000 to 132,000 dinars did not benefit the public but rather benefited market speculators. He noted that the previous government relied on inaccurate estimates from some specialists, leading to decisions that did not yield the desired outcomes. He stressed that some specialists may confuse economic hopes with facts, resulting in wrong decisions for which the government bears the consequences. He mentioned having a good understanding of the economic file and its mechanisms, and that the government is quietly working to address the gap between the official and market exchange rates. He indicated that the government aims to increase the amounts of physical dollars entering Iraq to reduce the gap between the two rates. He explained that the dollar rate could have reached 152,000 dinars if not for current regional circumstances, pointing to concerns from the U.S. Federal Reserve about supplying Iraq with large amounts of physical dollars. He added that these concerns stem from mistaken perceptions about the possibility of dollars reaching certain factions and being used for prohibited activities, a perception he described as incorrect. He affirmed that the government has clarified the internal situation to the U.S. side, though some concerns remain. He noted that the U.S. side resumed sending physical dollars after a halt before the current government took office. He stated that upon assuming office on May 17, he found that dollar supplies had been halted for months. He added that negotiations with the U.S. resulted in resuming supplies at about $140 million monthly, though he pointed out this amount was insufficient. He confirmed that the quantities increased to half a billion dollars monthly, and the government is currently working to raise this to one billion dollars. He indicated that the government seeks to obtain more than one billion dollars and plans to inject amounts reaching two and a half billion dollars into the market to close the gap between the official and market rates. He expressed hope that the gap will close soon despite the impact of regional events on the pace of resolution. Regarding the economic effects of raising the exchange rate, he affirmed that an increase in the dollar price against the dinar could support the local industrial and agricultural sectors by enhancing the competitiveness of Iraqi products.
