An Economist Predicts The Next Government Will Change The Dollar Exchange Rate, And Explains The Reasons.
Time: 2025/08/20 Read: 1,860 times {Economic: Al Furat News} Economists expect the next government to resort to an official devaluation of the Iraqi dinar against the US dollar as a potential solution to address mounting financial burdens, most notably the massive government payroll.
Economic expert Nabil Al-Marsoumi told Al Furat News Agency that “the salary bill accounts for the largest portion of oil revenues, leaving little for upgrading infrastructure or basic services.”
Al-Marsoumi believes that devaluing the currency will provide greater financial revenues in dinars, which will help the government cover salary expenses.
He added that this option may be one of the necessary measures that the new government may take, especially in light of the current oil prices that threaten to close the country’s economic development prospects.
Experts emphasize that sustainable solutions lie in diversifying sources of public revenue and not relying entirely on oil, in order to ensure the stability of the Iraqi economy in the long term. LINK
The Dollar Rises Again, Reaching Around 142,200
economy | 08/20/2025 Mawazine News – Baghdad – The dollar exchange rate rose on Wednesday (August 20, 2025) on the Iraqi Stock Exchange and money exchanges.
The US dollar exchange rate recorded 142,200 dinars for every $100 in morning trading on the main stock exchange in the capital, Baghdad.
The exchange rate in local markets in Baghdad reached 143,250 dinars for sale, while the purchase price reached 141,250 dinars. https://www.mawazin.net/Details.aspx?jimare=265412
The Central Bank Is Witnessing Foreign Transfer Operations In All Currencies.
Economy | 08/20/2025 Mawazine News – Baghdad – The Governor of the Central Bank, Ali Al-Alaq, confirmed today, Wednesday, the coverage of almost all major currencies, while indicating that the Central Bank is witnessing foreign exchange operations in all currencies smoothly and with high fluidity.
Al-Alaq said, “The foreign exchange process has witnessed significant development during the past two years, whether in terms of method, approach, and organization, or through direct communication and direct transfer between Iraqi banks and approved correspondent banks.”
He added, “This expansion is not only in the number of correspondent or transferring banks, but also in the number of currencies,” noting that “the Central Bank covers almost all currencies used by Iraq for the purpose of large-scale trade.”
He stressed that “the Central Bank is today witnessing transfer operations in almost all major currencies, and they are carried out smoothly and with high fluidity.” https://www.mawazin.net/Details.aspx?jimare=265410
An Expert Warns Against Adjusting The Dollar Exchange Rate And Outlines A Solution To Address The Decline In Oil Prices.
Time: 2025/08/20 Reading: 945 times {Economic: Al Furat News} Economic expert Salah Nouri confirmed on Wednesday that adjusting the dollar exchange rate falls within the purview of the Central Bank of Iraq, noting that this measure is a monetary policy tool aimed at achieving economic stability and combating inflation or deflation.
Nouri stressed to Al Furat News Agency “the need to achieve harmony between the monetary policy managed by the Central Bank and the fiscal policy undertaken by the Ministry of Finance through the general budget.”
The economic expert explained that raising the dollar exchange rate—i.e., devaluing the dinar—increases the amount of Iraqi dinars the Ministry of Finance receives from the Central Bank to cover budget expenditures. However, he warned that this measure leads to a decline in the purchasing power of citizens, especially those with limited income.
In contrast, Nouri explained that depreciating the dollar—i.e., increasing the purchasing power of the dinar—reduces the amount of dinars the Ministry of Finance receives, creating difficulties in implementing the general budget, particularly the operational portion. He pointed out that the decline in global oil prices further complicates this problem, as it impacts the state revenues needed to finance the budget.
The economic expert noted that many governments around the world are adopting austerity measures in public spending, particularly regarding unnecessary benefits, to ensure the sustainability of the general budget and meet only basic needs. Nouri concluded his statement by emphasizing that such measures are a necessary solution to support the budget in light of the current economic challenges. LINK
Al-Sudani Directs The Formation Of A Joint National Team To Prepare An Integrated Strategy For The Financial And Banking Sector.
Wednesday, August 20, 2025, | Politics Number of readings: 350 Baghdad / NINA / Prime Minister Mohammed Shia Al-Sudani directed the formation of a joint national team to prepare an integrated strategy for the financial and banking sector.
A statement from the Prime Minister’s Office stated that in line with the government’s directives aimed at strengthening Iraq’s financial and economic position at the international level, the Prime Minister directed the formation of a joint national team, headed by the Governor of the Central Bank of Iraq, and including representatives from the Ministries of Finance, Oil, and Planning, specialized economic and financial institutions, in addition to the Prime Minister’s Office, the Securities and Exchange Commission, and representatives of the Iraqi banking sector.
He explained that this national team will work to prepare an integrated strategy that includes clear and measurable goals, with periodic reports being submitted to the competent authorities, and direct coordination with major international credit rating agencies, especially (Fitch, S&P, Moody’s) with the aim of improving Iraq’s sovereign credit rating.
The team will also pay special attention to strengthening governance tools, managing financial risks, and developing the business environment in line with the economic reform plans adopted by the government.
He added that this directive comes within the framework of the government’s vision to adopt a comprehensive national strategy aimed at improving Iraq’s sovereign credit rating, which contributes to enhancing international confidence in the national economy, and opening broader horizons for direct and indirect foreign investments.
The government affirms that this step represents a clear commitment to its reform approach and its keenness to achieve economic stability, support the stability of the financial system, and provide an attractive investment environment that contributes to diversifying sources of income and reducing dependence on oil as the sole main resource. /End https://ninanews.com/Website/News/Details?Key=1247349
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