Basem Al-Gharibawi: The government chose the easiest path by devaluing the dinar.

Former MP Bassem Al-Gharibawi confirmed on Thursday that the measure taken by the government regarding raising the dollar exchange rate was not well thought out, indicating that the difficult economic conditions that Iraq is going through and the delay in salaries require taking multiple measures before resorting to burdening the citizen with the cost of treatment.

Al-Gharibawi told Al-Maalomah that “the citizen has become the primary target of government measures in every crisis the country faces,” noting that “the decision to raise the exchange rate was made without sufficient study of its repercussions, which will put additional pressure on the economy and could lead to a recession in the markets.”
He added that “before resorting to raising the dollar’s value, the government should have worked on controlling border crossings and combating waste and smuggling, in addition to searching for alternative revenue sources to help reduce dependence on oil revenues, instead of taking the easiest solution by raising the exchange rate.”

Al-Gharibawi explained that “Iraqi employees have lost more than a third of their purchasing power as a result of rising prices and exchange rate fluctuations,” questioning the ability of those with limited incomes, daily wage earners, and the poor to cope with the repercussions of the rising cost of living under the current economic conditions.

He pointed out that “there are questions about whether some political parties benefited from raising the exchange rate,” indicating that “the political class was aware beforehand of the possibility of raising the dollar’s value, and that some entities bought dollars before the decision, which led to an inflation of their wealth after the exchange rate increase.”
Al-Gharibawi questioned the rationale behind creating new positions, such as deputy prime ministers or other posts, at a time when the government acknowledges the country is facing difficult economic circumstances and is simultaneously raising the dollar exchange rate. He called for a reduction in government spending and unnecessary expenditures.

He noted that the repercussions of the decision have already begun to be reflected in market prices, warning of continued price hikes and worsening living conditions. He indicated that the continuation of these policies could lead to increased public anger towards the government.

Almaalomah.me