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

This evening, a government-parliamentary meeting will be held in the Constitutional Hall to discuss the “exchange rate”.

An informed source reported on Thursday that the House of Representatives will hold a joint government-parliamentary meeting regarding changing the dollar exchange rate.

The source told Shafaq News Agency that “a meeting will be held in the Constitutional Hall inside the Iraqi Parliament at 8 pm.”

He added that “the meeting will be attended by the Prime Minister, the Speaker of Parliament, the heads of the blocs, the Minister of Finance and the Governor of the Central Bank to discuss the issue of raising the dollar exchange rate and its repercussions.”

Today, a parliamentary source reported that the governor of the Central Bank informed members of the parliamentary finance committee that the exchange rate of the dollar would remain fixed at 1,500 dinars, stressing that it could not be changed .

The source told Shafaq News Agency that the Central Bank Governor explained to the committee members that any change in the dollar exchange rate within the general budget law would lead to a change in all the budget tables and items that were built on the basis of an exchange rate of 1,500 dinars per dollar .

He added that the Minister of Finance and the Governor of the Central Bank did not come to the House of Representatives building, while the Governor merely informed the members of the Finance Committee of the Central Bank’s position on the new exchange rate.

The Central Bank announced yesterday, Wednesday, the adoption of new exchange rates, according to which it set the price of buying the dollar from the Ministry of Finance at 1500 dinars, and selling it to banks at 1510 dinars, and to the public at 1520 dinars, starting from October 7, 2026.

Shafaq.com

The new exchange rate is a “double shock”… An economic proposal to freeze customs tariffs for a year

On Thursday, Manar Al-Obaidi, head of the “Iraq Future” Foundation for Economic Studies and Consultations, called on the Council of Ministers and the Parliament to take a temporary economic measure for one year to mitigate the effects of adjusting the dinar exchange rate on commodity prices and to protect commercial and industrial activity from recession.

Al-Obeidi proposed, in a statement received by Shafaq News Agency, freezing the provisions, schedules and rates of the amended Customs Tariff Law No. 22 of 2010 for a period of one year, and resuming during the transitional period the mechanism of Coalition Provisional Authority Order No. 38 of 2003, which adopts a unified fee of 5% of the customs value of the imported goods covered, instead of the current multiple and high rates of tariffs.

He also called for obligating the Ministry of Finance and the General Authority of Customs, immediately upon the amendment taking effect, to issue a unified schedule and instructions for all border crossings, in order to prevent differences in application between them and to ensure clarity of cost for traders and importers.

He suggested that the measure be limited to 12 months, with a review after six months to measure its impact on inflation, prices, import activity, revenues and industrial activity, with the normal tariff to be reinstated after the end of the period or reassessed according to the results of the review.

Al-Ubaidi said that changing the dollar purchase price from about 1300 to 1500 dinars raised, according to his estimate, the dinar equivalent per dollar by about 15.4%, considering that the state had indeed obtained an important additional financial space from adjusting the exchange rate.

He added that applying high customs tariff rates in conjunction with the new price means that the imported goods bear two effects at the same time, namely the rise in the price of the dollar and the rise in customs tariff, indicating that their effect is transferred to varying degrees to the cost of food, medicines, factory inputs, machinery, spare parts and transportation, all the way to the consumer.

He pointed out that the commercial sector faces the risk of declining demand and rising capital requirements for import financing, while the industrial sector faces rising prices for raw materials and imported components.

Al-Ubaidi stressed the need to ensure that addressing the state’s financial imbalance, in his view, does not turn into double pressure on the citizen and the private sector, noting that protecting Iraqi industry and agriculture does not necessarily mean imposing high tariffs in general on thousands of goods.

He explained that the Iraqi Products Protection Law can be activated to protect local products in a targeted manner when they are exposed to dumping, foreign subsidies, or harmful increases in imports, instead of imposing high fees on all goods and consumers.

Al-Ubaidi concluded by saying that the exchange rate decision gave the public treasury a larger dinar resource, considering that it is natural for it to be met with a measure that reduces the burden on the citizen and the private sector, while warning against using the exchange rate and customs tariff at the same time as two tools to increase state revenues, which would burden the citizen and the market with the cost of both tools together.

It is noted that the warehouses of merchants and shops in the Al-Shourja market, and “Alwa Jamila”, and a number of money exchange and transfer companies closed their doors yesterday, Wednesday, following the Iraqi Central Bank’s raising of the official exchange rate of the US dollar against the Iraqi dinar from 1320 dinars per dollar to 1520 dinars. IraqiDinar News

Shafaq.com

Iraq enters the race to regain its oil share in the Gulf markets

Middle Eastern oil producers have entered a race to regain market share lost during the Iran war, as crude exports through the Strait of Hormuz gradually improve, according to a Reuters analysis.

Reuters noted that Iraq and Saudi Arabia were among the producers offering significant discounts to buyers willing to load oil shipments within the Gulf region, in an effort to win back customers who had turned to alternative suppliers during the period of unrest.

Energy Aspects predicted that total crude oil production in Saudi Arabia, the UAE, Iraq and Kuwait would average around 17.3 million barrels per day during October, compared to around 21 million barrels per day in the six months preceding the war.

According to the report, crude oil exports from the Middle East exceeded pre-war average levels of 18 million barrels per day for most of the week ending October 3, as oil flows improved through the Strait of Hormuz and alternative routes.

Shafaq.com

Parliament cancels “dollar session” and settles for a meeting with the Minister of Finance and the Governor of the Central Bank

A parliamentary source reported on Thursday that the Speaker of Parliament decided to cancel the parliamentary session scheduled for today, which was to include hosting Finance Minister Faleh Sari and Central Bank Governor Nizar Nasser Hussein to discuss the repercussions of the decision to raise the exchange rate of the dollar against the Iraqi dinar. IraqiEconomy News

For his part, MP Sipan Shirwani, from the Kurdistan Democratic Party bloc, told Shafaq News Agency that the parliamentary finance committee will hold a meeting this afternoon, in the presence of the Minister of Finance and the Governor of the Central Bank, to discuss the reasons for the change in the exchange rate of the dollar against the Iraqi dinar.

Sherwani added that the meeting will be dedicated to discussing the change in the dollar exchange rate, and it is also likely to address the draft federal budget law.

It is worth noting that the Iraqi Parliament voted yesterday, Wednesday, to postpone the agenda of yesterday’s session and convert it into a general discussion session regarding the decision to raise the exchange rate of the dollar against the Iraqi dinar, while it set a special session for today, Thursday, to host the Governor of the Central Bank and the Minister of Finance to discuss the reasons for the decision and its repercussions.

The Central Bank of Iraq announced (yesterday, Wednesday) a change in the official exchange rate of the Iraqi dinar against the US dollar to be 1,520 dinars per dollar instead of 1,320 dinars per dollar, which generated angry popular reactions.

The Central Bank also described yesterday the decision to raise the exchange rate of the dinar against the US dollar as a “strategic step” to enhance financial stability, reassuring citizens and the economic sector of the adequacy and strength of its foreign reserves.

Shafaq.com

The Central Bank Governor tells Parliament: The new exchange rate is fixed and can never be changed.

A parliamentary source reported on Thursday that the governor of the Central Bank informed members of the parliamentary finance committee that the exchange rate of the dollar would remain fixed at 1,500 dinars, stressing that it could not be changed.

The source told Shafaq News Agency that the Central Bank Governor explained to the committee members that any change in the dollar exchange rate within the general budget law would lead to a change in all the budget tables and items that were built on the basis of an exchange rate of 1,500 dinars per dollar.

He added that the Minister of Finance and the Governor of the Central Bank did not come to the House of Representatives building, while the Governor merely informed the members of the Finance Committee of the Central Bank’s position on the new exchange rate.

The parliamentary finance committee was scheduled to hold a meeting with the finance minister and the central bank governor to discuss the decision to change the dollar exchange rate and its repercussions, in addition to discussing the draft federal budget law, but the officials did not attend parliament.

The Speaker of Parliament decided to cancel today’s scheduled session, which was to include hosting Finance Minister Faleh Sari and Central Bank Governor Nizar Nasser Hussein to discuss the repercussions of the decision to raise the exchange rate of the dollar against the Iraqi dinar, and to settle for holding a meeting of the Finance Committee.

The Central Bank announced yesterday, Wednesday, the adoption of new exchange rates, according to which it set the price of buying the dollar from the Ministry of Finance at 1500 dinars, and selling it to banks at 1510 dinars, and to the public at 1520 dinars, starting from October 7, 2026.

Shafaq.com

Ministry of Finance: The dollar exchange rate has not yet been determined; the proposed rate ranges between 1400 and 1500 dinars.

The Ministry of Finance denied on Sunday that a specific exchange rate for the US dollar had been set in the 2027 budget, while indicating that the proposed rate of 1400-1500 dinars would likely be adopted.

The statement from the ministry, reported by Al-Maalomah News Agency, quoted the Minister of Finance as saying that the exchange rate had not yet been determined and that the proposed rate ranged between 1400 and 1500 dinars. The statement added that the diversification of oil export sources, the coherence of the government program, and the ability to cover the budget deficit were all factors in the budget.

It further explained that all contracts would be made permanent and salaries converted to Contract 315. The statement also noted that 100,000 contracts had been created in the budget, with 50,000 allocated to security forces and another 50,000 to civilian positions.

Almaalomah.me

Economist: Raising the dollar exchange rate in the budget requires legislation, and current statements are merely testing the waters.

Economic researcher Ali Tamr confirmed on Tuesday that the proposal to raise the dollar exchange rate within the budget comes as part of attempts to address the financial deficit. He explained that changing the exchange rate cannot be done through proposals or decisions, but rather requires a law voted on by the Council of Representatives.

Tamr told Al-Maalouma, “The proposal to raise the dollar exchange rate in the budget came as a result of the existing financial deficit, but it will not be implemented unless a law is passed by the Council of Representatives to become an enforceable decision.”
He added, “The data and statements circulating regarding raising the exchange rate may be to gauge public opinion in Iraq and assess reactions and the potential impact of the decision.” He pointed out that “the Iraqi public has become aware of the repercussions of raising the dollar exchange rate, especially since past experiences have not led to a permanent solution to the problem.”

Tamr explained that “the previous increase in the dollar exchange rate also occurred during a financial crisis, but the exchange rate did not return to its previous level after the crisis ended; rather, it negatively impacted the economic and living conditions.”
He pointed out that “all previous attempts aimed at achieving convergence between the official exchange rate and the parallel market rate have failed to close the gap,” noting that “repeatedly resorting to raising the exchange rate may not be the best option for addressing the fiscal deficit.”

He explained that “addressing the deficit should focus on increasing revenues, diversifying income sources, and maximizing state resources, rather than burdening citizens with the consequences of the financial crisis through measures that affect purchasing power. Furthermore, the issue of state funds and revenues must be addressed more effectively.” IraqBanking Reforms

Almaalomah.me

Al-Zaydi: Five factions have agreed to hand over their weapons, and Iraq aims to produce 10 million barrels per day.

Prime Minister Ali Faleh al-Zaidi praised on Monday the tribes’ supportive stance towards the state and their contribution to maintaining order during difficult times, noting that no one who tries to weaken the state or threatens its existence will be allowed to do so.

Al-Zaydi said during his meeting with tribal sheikhs and dignitaries, according to a statement received by Shafaq News Agency, that the government avoided imposing international isolation on Iraq and extended its hand to the world for partnership, stressing the government’s work on establishing a successful economic identity through a budget of programs that focused on electricity infrastructure.

He pointed to the move towards building and strengthening the existence of a state that honors Iraqis, explaining that they are fighting an approach that views the state as an individual benefit at the expense of the interest of all segments of the Iraqi people.

He added that the current economic crisis has greatly affected the Iraqi economy, explaining that Iraq needs a beneficial international partnership, especially with major and economically advanced countries.

Al-Zaydi explained that reforming the Iraqi economy requires attracting foreign investments and the withdrawal of any foreign forces from Iraq, stressing that in 2031 Iraq’s oil production will reach 10 million barrels per day.

He continued, saying, “We established the Generations Fund and allocated 1.5 trillion dinars to it,” adding that “the funds recovered from anti-corruption operations will be added to the Generations Fund account.”

He affirmed: “We spoke with the Turkish side on multiple issues, and there is a withdrawal from the locations where the Turkish army is present inside Iraqi territory,” indicating that “we held talks with the Kuwaitis, and there is a sincere intention to resolve all bilateral problems and obstacles.”

He noted that 5 factions had agreed to hand over weapons, and 3 of them had already handed over their weapons, and dialogue was continuing with the others, pointing out that 500 billion dinars had been released monthly to pay the farmers’ dues.

According to Al-Zaydi, the project of one million residential plots will be completed and will contribute to solving the housing problem with full services, adding that he will start building new cities in each governorate, bearing its identity and history.

He concluded by saying that unifying ranks is required, and we must preserve Iraq’s honorable history and our strength by making decisions Iraqi, noting the effort to keep Iraq away from any consequences of conflicts in the region, and that the stability of our society and our people is our goal.

Shafaq.com

Iraq contributed to the recovery of Gulf oil exports during September.

Data from Vortexa and Kpler showed that crude oil and condensate exports from the Gulf countries recovered during September, supported by increased shipments from Saudi Arabia, the UAE and Iraq. IraqBanking Reforms

According to Kpler, total exports of crude oil and condensates from Saudi Arabia, the UAE, Iraq, Oman, Kuwait, Qatar and Iran rose to about 14.7 million barrels per day in September, compared to 10.8 million barrels per day in August.

Saudi Arabia led the increase, with its shipments rising to 6.6 million barrels per day from about 4.2 million barrels per day in August, while exports from the UAE and Iraq also increased, partially offsetting the decline in exports from Kuwait and Qatar and the halt in Iranian exports.

Vortexa data showed crude oil and condensate flows rising to 91% of pre-war levels of 16.3 million barrels per day, while exports of refined fuels and liquefied petroleum gas remained at 60% of pre-war levels.

Shafaq.com