Al-Hashemi: The government will resort to borrowing despite the change in the exchange rate… a contradiction in Al-Zidi’s statements
Al-Hashemi: The government will resort to borrowing despite the change in the exchange rate… a contradiction in Al-Zidi’s statements
10-17-2026
Information / Baghdad –
Economic expert Ziad al-Hashemi criticized the Iraqi government’s move to borrow from the International Monetary Fund (IMF) on Saturday, arguing that this step raises questions about the justifications for devaluing the Iraqi dinar, which was presented as a measure to avoid resorting to more painful financial options, including external borrowing.
In a post on his Facebook page, al-Hashemi stated that the negotiations with the IMF for financial support reveal, in his opinion, a contradiction in the government’s position, especially after justifying the exchange rate change as a means to avoid external borrowing.
He added that resorting to IMF loans may be linked to conditions related to managing public spending and maximizing revenues, as well as the possibility of reviewing government subsidy policies, particularly in the fuel and electricity sectors and other high-spending sectors.
Al-Hashemi pointed out that “the government should have explained to citizens the nature of its move towards external borrowing and the reasons that prompted it to take this step, despite changing the dinar’s exchange rate just a few weeks ago.”
He warned that “borrowing could impose additional burdens on Iraqi fiscal policy,” noting that “recommendations related to IMF programs could, if a financing agreement is reached, become obligations tied to the loan terms and implementation mechanisms.”
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