A crisis expert identifies several ways to generate revenue instead of increasing the value of the dollar.
A crisis expert identifies several ways to generate revenue instead of increasing the value of the dollar.
10-9-2026
Information/Baghdad…
Crisis management expert Ali Jabbar Al-Fariji outlined several paths the government could pursue instead of increasing the dollar exchange rate against the Iraqi dinar and placing the brunt of such decisions on the citizens.
Al-Fariji told Al-Maalouma, “Raising the dollar exchange rate from approximately 1,300 to 1,500 dinars gives the government more dinars in oil revenues. According to estimates in the draft 2027 budget, this could generate around 19.2 trillion dinars as a book increase in oil revenues. However, this is not entirely new economic revenue; it is essentially a revaluation of the oil dollar itself, while the economy and citizens bear part of the cost through higher prices for imported goods, services, and inputs.”
He added, “There are ways the government can generate real revenue or reduce the deficit without relying solely on the exchange rate. For example, customs reform, automation, and the implementation of comprehensive digital monitoring at border crossings, linking them to tax and banking systems, can prevent invoice manipulation and leakage, and transform customs into a stable source of revenue instead of relying on partial collection.”
He continued, “The government can broaden the tax base and move from relying on a limited number of taxpayers to a digital tax system based on the volume of activity, sales, and profits, while combating tax evasion and the informal economy, without increasing the burden on those with limited incomes.”
He emphasized the importance of “maximizing revenues from state assets and reviewing the returns of public companies, ports, airports, telecommunications, and government real estate, linking their management to clear performance indicators and financial returns. Government assets should be productive, not a burden on the budget. Furthermore, spending and waste can be reformed by reviewing government contracts, subsidies, salaries, and operational expenses with limited returns. Reducing waste is equivalent to revenue for the treasury, but it does not impose new taxes or reduce citizens’ purchasing power.”
He added, “There is potential to digitize the economy and revenue collection by expanding electronic payments and linking sales, imports, taxes, and banks to a single information system. This would help uncover unauthorized activity, reduce financial leakage, and increase the real return from oil by focusing on improving production and marketing efficiency, reducing discounts and costs, and developing refining, petrochemicals, and gas. An increase in the real value of the dollar is better than an increase in the number of dinars resulting from dollar revaluation.”
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