Al-Fariji: The revenue generated from the change in the exchange rate does not represent a profit.
Crisis expert Ali Al-Fariji confirmed that the revenue generated from the increase in the dollar exchange rate against the dinar does not represent a net gain added to the state treasury.
Al-Fariji told Al-Maalouma that “raising the exchange rate of the dollar against the Iraqi dinar in the local markets may provide quick liquidity, but it does not represent a financial reform in itself.”
He added that “real reform lies in building a multi-source revenue system, recovering funds and assets, reducing waste, and transforming the economy from dependence on oil and dollar pricing to financial management that measures results and creates real and sustainable revenues for the state.”
He explained that “the 19.2 trillion dinars expected to be generated from the dollar’s revaluation should be viewed as an approximate total book revenue, not a net gain added to the state treasury, because part of its impact may rebound on the state itself in the form of increased spending and import costs.”
Almaalomah.me