The Dollar Is Declining In Iraq. The Reasons Start With The Citizen’s Pocket.
May 22, Information / Baghdad.. The Iraqi foreign exchange market has recently witnessed a significant decline in the dollar exchange rate, due to a combination of economic and social factors that have directly impacted demand in the parallel market.
Iraqi traders have begun to delay imports, driven by expectations that global prices may decline as a result of the decline in oil prices.
This has made many of them refrain from entering into large-scale commercial commitments until the economic picture becomes clearer. https://aja.ws/gh1ewq.
In the same context, Iraqi families have begun adopting a more cautious economic approach,
rationalizing spending and reducing consumption in anticipation of any unexpected financial developments that could impact their livelihood stability.
This new social behavior has also contributed to reducing demand for goods,
thereby reducing the need for hard currency.
In addition, government measures have played a significant role in narrowing the gap between the official and parallel dollar rates,
by expanding the network of banks that provide dollars at the official rate and facilitating import procedures in accordance with regulatory frameworks.
This has contributed to reducing reliance on the informal market,
especially after large shopping centers (hypermarkets) began to spread,
relying on imports according to official prices,
which provided consumers with reliable and stable alternatives https://www.ina.iq/229009–.html.
In this context, economic expert Safwan Qusay confirmed to Al-Maalouma News Agency that
the decline in demand from Iraqis, particularly traders,
is due to expectations of a decline in global prices due to the decline in oil prices,
which has prompted them to postpone import operations.
He explained that there is a near-state of hesitation regarding the import of various goods, and that
Iraqi families have begun adopting a more rational spending policy in anticipation of any future economic developments. He noted that
this behavior has directly contributed to reducing demand for the dollar in the informal market. Qusay added that
government efforts to expand access to the official dollar exchange rate through a network of banks,
traders’ familiarity with the mechanism for importing at the official rate, and the
proliferation of major shopping malls that import goods at the official rate
have all contributed to the decline in the dollar exchange rate on the parallel market. He explained that
these measures represent important steps towards achieving relative stability in the exchange market
and reducing the gap between the official and parallel rates,
which enhances confidence in monetary policy and the local economy https://alssaa.com/post/show/34076.
This decline in the dollar exchange rate is a positive indicator of the
effectiveness of current economic and monetary policies and
reflects a growing degree of economic awareness among citizens and traders alike.
If these factors continue to combine, the market is expected to witness greater stability in exchange rates in the coming period, which will enhance confidence in the national economy and support financial reform efforts in Iraq https://almaalomah.me/news/99427/economy/الدولار-يتراجع-في-العراق-الأسباب-تبدأ-من-جيب-المواطن
Minister Of Finance: We Are Working To Modernize Systems And Enhance Transparency And Financial Discipline
Economy May 20, 2025, 9:14 PM Baghdad – INA Finance Minister Taif Sami confirmed on Tuesday that the ministry is working to
modernize administrative and financial systems and
enhance transparency and financial discipline,
in line with the priorities of the government program and to consolidate economic stability.
The ministry said in a statement received by the Iraqi News Agency (INA):
“Minister of Finance Taif Sami received the economic team at the US Embassy in Baghdad to discuss ways of joint cooperation within the FSVC program to enhance economic and financial capabilities in Iraq.”
The statement added that “the two sides discussed mechanisms to support the general budget and aspects of technical cooperation between the ministry and the US side in the areas of budget preparation and government accounting, through the mechanism for implementing the program and performance budget.”
According to the statement, the Minister of Finance stressed “the importance of leveraging international expertise to support ongoing reforms,” noting that
“the Ministry is working to
modernize administrative and financial systems,
enhance transparency and financial discipline,
in line with the priorities of the government program, and consolidate economic stability.”
The statement continued, “The American team expressed its willingness to
provide technical and advisory support, particularly in
developing tools for preparing program and performance budgets,
improving accounting systems, and
developing financial information systems.” The statement concluded by saying,
“The two parties agreed to
continue coordination and organize training workshops for Ministry employees in a number of technical specialties, to
support the implementation of best practices in public finance management and
achieving sustainable development.” https://www.ina.iq/234695–.html
Foreign Minister: Iraq Is Witnessing An Influx Of Domestic Foreign Investments Estimated At $87 Billion
Economy May 19, 2025, Tehran – INA Foreign Minister Fuad Hussein confirmed on Monday that Iraq is currently witnessing an influx of domestic foreign investments estimated at $87 billion, while noting that Iraq is playing an active role in bringing the views of opposing countries closer together.
In a speech during his participation in the “Tehran Dialogue Forum” organized by the Iranian Ministry of Foreign Affairs, Hussein said, as received by the Iraqi News Agency (INA):
“The transformations taking place in Syria are an internal affair that concerns the Syrian people alone,”
stressing “Iraq’s respect for the will of the Syrian people.”
He pointed to the “existing security interdependence between Iraq and Syria,” expressing his hope that
“Syria will emerge from the cycle of fighting and sanctions toward a better future.”
He stated that “stabilization in the region can only be achieved through a comprehensive political process that includes all components of the Syrian people,” calling for “the
necessity of adopting dialogue as a means of resolving conflicts.”
Regarding Iraq’s role in the regional scene, the Minister emphasized that
“Iraqi foreign policy is based on the principle of dialogue and communication,” noting
“the effective role Iraq has played in bringing the views of opposing countries closer together.”
Regarding the recent Arab Summit hosted by Baghdad, the Minister explained that
“Iraq is dealing realistically with the challenges facing the Arab world, as
several countries are experiencing internal conflicts and wars.”
He emphasized that “Iraq, through its current presidency of the Arab Summit,
has taken it upon itself to play the role of mediator and propose future mechanisms for crisis management.”
He noted “there is an intention to launch initiatives in Yemen, Sudan, Libya, and other countries experiencing crises,” explaining that
“security is the foundation of development, and development cannot be achieved without stability.”
He explained that “the leaders’ presence in Baghdad during the summit sent a clear message about the
stability of the situation in Iraq and the success of its development path.”
On the economic front, Hussein reviewed the Iraqi government’s plans to diversify the economy, noting that
Iraq has begun investing in natural gas and expects to reach full domestic gas production by 2028. He explained that
the government is moving toward
developing the petrochemical sector,
activating tourism, particularly religious tourism, and
supporting the agricultural sector. He noted that
Iraq is currently witnessing an influx of domestic foreign investment estimated at $87 billion,
reflecting growing international confidence in the Iraqi economy. https://www.ina.iq/234593–87-.html
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