An economist warns: Raising the dollar will take from the citizen’s pocket and ignite prices.
An economist warns: Raising the dollar will take from the citizen’s pocket and ignite prices.
6-11-2026
Information / Exclusive…
Economic expert Diaa Al-Muhsin warned on Thursday that any government move to raise the exchange rate of the US dollar against the Iraqi dinar will have direct economic repercussions on local markets, stressing that citizens will be the first to suffer from such measures.
Al-Muhsin told Al-Maalouma, “The government of Mustafa Al-Kadhimi was the first to take the step of raising the exchange rate of the dollar against the Iraqi dinar under the pretext of providing financial liquidity and addressing the pressures on public revenues resulting from the repercussions of the Coronavirus pandemic.” He explained that “any new economic measures must be in line with the requirements of the local market and take into account the living conditions of citizens.”
He added that “raising the exchange rate will lead to a decrease in citizens’ purchasing power and weaken the real value of employees’ salaries,” in addition to causing “a rise in the prices of goods and foodstuffs, which will negatively affect the standard of living of Iraqi families.”
Al-Muhsin pointed out that “addressing financial crises should not rely on placing additional burdens on citizens, but rather on revitalizing productive economic sectors, primarily the agricultural, industrial, and manufacturing sectors, in a way that contributes to diversifying sources of income and reducing dependence on oil revenues.”
Al-Muhsin pointed out that “the government may resort to other measures beyond raising the exchange rate, including reducing or eliminating some forms of subsidies for fuel, food, and medicine in order to increase public revenues,” stressing that “such steps will directly affect citizens because they target their daily spending and living standards.”
He added that “government banks have financial surpluses that can be utilized by directing them towards investment and financing development projects, thus achieving sustainable economic returns, far removed from solutions that affect citizens’ purchasing power.”
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