Former MP Baqir Al-Saadi said there is currently no government decision to raise Iraq’s official dollar exchange rate, despite recent concerns caused by fluctuations in the parallel market.
Al-Saadi explained that the rise in the dollar’s value over the past few days was mainly driven by speculation in the parallel market, as some traders attempted to make quick profits. According to him, this created public concern, but the Central Bank has the tools and policies needed to control such situations and maintain stability.
He noted that the exchange rate has already started to decline over the last 24 hours, which he believes is a sign that the recent increase can be contained. He stressed that the government does not currently intend to change the official exchange rate.
However, Al-Saadi said future economic and financial pressures could force officials to review this position. He explained that if difficult conditions continue, raising the exchange rate could be considered as a way to generate additional revenue for the state treasury.
At the same time, he emphasized that any such move would need to be accompanied by strong measures to protect low-income families and vulnerable citizens. He warned that the government would also need to prevent major increases in food prices and the cost of essential goods.
Al-Saadi added that any decision to raise or lower the exchange rate must carefully consider its impact on markets and the public. He pointed out that the Central Bank is responsible for shaping Iraq’s monetary and financial policies, making exchange-rate decisions a sensitive issue that requires precautionary measures to protect both the economy and citizens from negative consequences.
