An economic assessment of the Central Bank’s decision to fix the dollar exchange rate in the 2026 budget.
USD-Iraqi dinarEconomic expert, Nabil Al-Marsoumi, described the decision of the Central Bank of Iraq to fix the exchange rate of the dollar in the 2026 budget as an expected step aimed at strengthening monetary stability and supporting the investment climate in the country.
Al-Marsoumi told Al-Furat News Agency that: “The Central Bank has always sought to stabilize the dinar against foreign currencies,” considering that “any change in the official exchange rate could lead to widespread negative consequences at the financial and social levels.”
He explained that “reducing the exchange rate of the dinar is not a quick solution to the problems of the economy,” noting that “any decrease in the currency must be preceded by comprehensive reform steps that include financial, tax, customs, trade and investment policies.”
He added, “The financial benefits of lowering the exchange rate are limited compared to the significant social and economic impacts that may result from this step.”
The economist explained that “the Central Bank’s decision reflects the desire to maintain stability; however, it faces challenges due to the large gap between the official price and the parallel market, which is exacerbated by the application of the Skoda system to all goods imported into Iraq.”
He stressed that “it would have been better to implement the system gradually on a specific set of goods while working to resolve coordination issues with the Kurdistan Region to mitigate the impact of the measures on traders and markets.”
Al-Marsoumi concluded by saying that “stabilizing the exchange rate is a positive signal for investors and citizens, but it requires parallel steps to ensure reducing the price gap and achieving actual monetary stability in local markets.”
The Central Bank of Iraq addressed the Ministry of Finance on Wednesday, confirming that the official exchange rate adopted in the 2026 budget will be 1,300 dinars per dollar.
Alforatnews.iq