Member of the Parliamentary Finance Committee, Mudhar al-Karawi, said on Saturday that there are currently no government plans to raise the dollar exchange rate in Iraq, despite ongoing rumors and speculation.
Al-Karawi explained that recent discussions in political and economic circles have suggested the government might consider increasing the exchange rate to help reduce the country’s growing financial gap. These concerns have intensified as Iraq faces financial pressure from lower oil export revenues.
He noted that oil export levels have declined significantly over the past three months, which has negatively affected state revenues and placed additional pressure on the general budget.
However, al-Karawi stressed that no official discussions have taken place so far regarding changing the exchange rate as a solution to the financial shortfall.
According to him, any decision to increase the dollar exchange rate would have direct consequences for local markets. Higher exchange rates could lead to rising prices for goods and services, increasing the cost of living and placing a heavier burden on low-income families and vulnerable groups.
He emphasized that there is currently no government direction toward such a measure and that other options are available to improve public finances.
Al-Karawi pointed to the need to strengthen non-oil revenue sources as one of the most important alternatives. He also highlighted the importance of fighting corruption, describing it as a key step in reducing the loss of large amounts of public funds within state institutions.
He concluded that improving revenue collection and tackling corruption could help support the treasury without resorting to policies that might negatively affect citizens through higher prices and inflation.
