An economist says that changing the dollar exchange rate will negatively impact the economy, and that the Ministry of Finance must find other solutions to address the budget deficit.
An economist says that changing the dollar exchange rate will negatively impact the economy, and that the Ministry of Finance must find other solutions to address the budget deficit.
10-9-2026
Economic expert Safwan Qusay confirmed: “The sudden change in the exchange rate of the dollar against the Iraqi dinar will negatively affect the Iraqi economy and will create a large gap in the social classes.”
Qusay said in a press statement: “The Ministry of Finance is trying to reduce the effects of the deficit in the 2027 budget by proposing a change in the exchange rate. The Central Bank is also trying to defend its reserves by not continuing to reduce them. However, transferring the problem from the Ministry of Finance and the Central Bank to the segments of society with limited income in Iraqi dinars will contribute to higher inflation rates, reaching 5%, and an increase in prices and a decrease in the ability of the Iraqi economy to be sustainable. We may witness the withdrawal of some investors as a result of this fluctuation.”
He explained that: “It would have been better to go towards other solutions, away from financing the deficit, which is accompanied by the Ministry of Finance’s desire to increase spending in the 2027 budget to reach 217 trillion.”
The economist questioned the justifications of the Ministry of Finance and the Central Bank, and who was behind this consultation that led to the Iraqi economy being placed in a risk zone, expressing his hope that the House of Representatives would, tomorrow, carefully examine who made this decision and which entity passed this proposal.
He pointed out the need for genuine justifications for this change and the possibility of providing relief to low-income groups, because making such a decision without genuine justifications would have a negative impact on the Iraqi economy.
burathanews.com
