Are the gains from raising the dollar worth all these repercussions for the citizen and the market?
Are the gains from raising the dollar worth all these repercussions for the citizen and the market?
10-8-2026
Information/Special:
Economic expert Jalil al-Lami confirmed on Thursday that Iraq faces a highly sensitive economic decision that goes beyond mere figures in budget tables. It directly impacts the purchasing power of millions of citizens and the cost of their basic needs. He pointed to the necessity of evaluating the financial gains achieved from adjusting the dollar exchange rate against the potential repercussions on markets and citizens.
Speaking to Al-Maalouma, al-Lami stated, “Raising the Ministry of Finance’s dollar purchase price from 1,300 to 1,500 dinars grants the treasury, mathematically, an additional 200 billion dinars for every billion dollars of oil revenues, equivalent to approximately two trillion dinars for every 10 billion dollars.” He clarified that “this increase does not represent a real rise in national wealth, but rather an increase in the value of oil revenues when converted to dinars.”
He added that “the dollar’s selling price to the public rose from 1,320 to 1,520 dinars, an increase of nearly 15 percent, coinciding with market turmoil and a surge in the parallel market exchange rate to levels approaching 1,700 dinars. This could negatively impact commercial activity, prices, and citizens’ purchasing power.”
Al-Lami explained that “the sensitivity of the decision is heightened by the heavy reliance of public finances on oil revenues,” noting that “oil constitutes about 90 percent of government revenues, while the 2027 budget estimates include expenditures of nearly 217 trillion dinars and a deficit exceeding 40 trillion dinars.”
He pointed out that “talk of American or regional pressures related to the decision remains within the realm of research and analysis, especially given the connection of Iraqi dollar transfers to the American financial system and the precedents of suspending cash shipments to Iraq.”
Al-Lami emphasized that “the government is required to clarify the actual financial gains resulting from the decision, along with its economic and social costs, and to disclose the alternatives that were considered before resorting to devaluing the dinar.”
It is clear that “addressing the liquidity crisis should not turn into a cost-of-living crisis that citizens bear the burden of from their income, savings, and purchasing power,” calling for “achieving a balance between the requirements of addressing the fiscal deficit, maintaining market stability, and protecting citizens from the repercussions of rising prices.”
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