An economist warns of a “cost of living setback” due to exchange rate volatility.
An economist warns of a “cost of living setback” due to exchange rate volatility.
10-26-2026
Information/Baghdad…
Economic expert Abdul Rahman Al-Mashhadani warned on Monday of the significant negative repercussions of exchange rate instability and the current market turmoil. He emphasized that relying on stopgap solutions and manipulating the currency directly harms citizens’ purchasing power and is detrimental to the economy.
In a statement to the Information Agency, Al-Mashhadani said, “The true salvation of the Iraqi economy does not lie in changing the exchange rate or raising the price of the dollar, as these measures may provide quick and temporary liquidity to the state treasury, but they do not constitute financial reform in themselves without comprehensive strategic plans.”
He added, “The Iraqi market is experiencing clear turmoil that necessitates a genuine and urgent review by the Central Bank of the current monetary policy mechanisms.” He pointed out that “true financial reform requires building a genuine, diversified revenue system, reducing wasteful spending within the state apparatus, and making serious efforts to recover smuggled funds and assets.”
Al-Mashhadani stressed “the necessity of immediate intervention by the Central Bank and the injection of sufficient quantities of foreign currency to cover the market’s basic needs and curb speculators who are exploiting the absence of radical solutions to raise prices,” while warning that “the continuation of the current situation without radical solutions will directly exacerbate the crisis and increase the cost of imports, which threatens a decline in living standards and widens the poverty line among citizens.”
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