Former member of the Parliamentary Economy and Investment Committee, Yasser al-Husseini, said on Thursday that Iraq can address the dollar exchange rate problem by eliminating the gap between the official exchange rate and the parallel market rate.
Al-Husseini stated that corrupt individuals played a major role in creating the difference between the two rates, adding that the cost of this gap is ultimately borne by ordinary citizens.
He explained that the main problem is not the exchange rate itself, but the difference between the official and parallel market rates. According to him, stabilizing prices and protecting consumers requires unifying the two rates and eliminating the gap completely.
Al-Husseini also stressed the importance of supporting and revitalizing local industries. He noted that changes in the dollar exchange rate have created significant challenges and losses for foreign companies exporting consumer goods to Iraq.
He believes the private sector can take advantage of the current situation by increasing local production and investing in different industrial sectors, reducing dependence on imported goods.
According to Al-Husseini, closing the gap between the official and parallel dollar rates will not happen overnight and may require two to three years of gradual reforms.
He said these reforms should include expanding electronic payments, reducing reliance on cash transactions, increasing the use of digital banking services, and deploying more ATMs across the country.
Al-Husseini explained that wider use of electronic transactions would help improve transparency, reduce unofficial currency trading, and limit the influence of the parallel market.
He added that the long-term goal should be to ensure that currency circulation takes place through the Central Bank and the formal banking system, helping create a more stable exchange rate environment and reducing pressure on Iraqi citizens.
