Economist: Raising the dollar exchange rate in the budget requires legislation, and current statements are merely testing the waters.
Economist: Raising the dollar exchange rate in the budget requires legislation, and current statements are merely testing the waters.
10-6-2026
Information/Special…
Economic researcher Ali Tamr confirmed on Tuesday that the proposal to raise the dollar exchange rate within the budget comes as part of attempts to address the financial deficit. He explained that changing the exchange rate cannot be done through proposals or decisions, but rather requires a law voted on by the Council of Representatives.
Tamr told Al-Maalouma, “The proposal to raise the dollar exchange rate in the budget came as a result of the existing financial deficit, but it will not be implemented unless a law is passed by the Council of Representatives to become an enforceable decision.”
He added, “The data and statements circulating regarding raising the exchange rate may be to gauge public opinion in Iraq and assess reactions and the potential impact of the decision.” He pointed out that “the Iraqi public has become aware of the repercussions of raising the dollar exchange rate, especially since past experiences have not led to a permanent solution to the problem.”
Tamr explained that “the previous increase in the dollar exchange rate also occurred during a financial crisis, but the exchange rate did not return to its previous level after the crisis ended; rather, it negatively impacted the economic and living conditions.”
He pointed out that “all previous attempts aimed at achieving convergence between the official exchange rate and the parallel market rate have failed to close the gap,” noting that “repeatedly resorting to raising the exchange rate may not be the best option for addressing the fiscal deficit.”
He explained that “addressing the deficit should focus on increasing revenues, diversifying income sources, and maximizing state resources, rather than burdening citizens with the consequences of the financial crisis through measures that affect purchasing power. Furthermore, the issue of state funds and revenues must be addressed more effectively.”
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