Financial advisor Mohammed Saleh said the Iraqi government’s plan to rely on domestic borrowing rather than external loans will not affect the foreign currency reserves held by the Central Bank of Iraq.
Saleh explained that the government intends to manage its financing needs through two main channels. The first involves treasury transfers and the issuance of government bonds, which are handled through the domestic financial market under the supervision of the Central Bank.
The second approach focuses on improving revenue collection by reducing tax evasion and expanding the use of electronic government systems to make financial collections more efficient and transparent.
He also dismissed concerns that the government may introduce new taxes to deal with current financial challenges. According to Saleh, existing tax rates will remain unchanged, and the government’s efforts are centered on improving the enforcement and collection of taxes already required by law.
Saleh stressed that citizens should not be concerned about higher taxes, noting that the current tax structure remains stable and that reforms are aimed at strengthening collection mechanisms rather than increasing tax burdens.
His remarks come as Iraq faces financial pressures linked to lower revenues and broader economic challenges, prompting officials to explore alternative funding methods while seeking to maintain financial stability.
