Crisis expert Ali al-Fariji has criticized the Iraqi government’s decision to raise the dollar’s value against the dinar, saying the move alone does not amount to financial reform.
Al-Fariji told dinaropinions.com that changing the exchange rate may provide the government with a quick boost in liquidity, but lasting reform requires broader changes. These include diversifying government revenues, recovering public funds and assets, cutting wasteful spending, and reducing Iraq’s dependence on oil and exchange-rate adjustments.
He said the 19.2 trillion dinars expected from the exchange-rate change should be treated as an estimated increase in recorded revenue, not as a net gain for the treasury. Part of that amount could be offset by higher government spending and increased import costs.
Al-Fariji also stressed the need to recover Iraqi funds and assets that were allegedly transferred abroad illegally after 2003. He called for a specialized institution to identify and track these assets, including those linked to the former Iraqi state.
He said the process should go beyond political statements and involve creating a unified database, verifying asset ownership, tracing financial transactions, and using legal and international agreements to recover or freeze assets where evidence supports action.
According to Al-Fariji, Iraq needs a financial system focused on measurable results and sustainable revenue rather than relying on changes in the dollar exchange rate to address its budget challenges.
