Expert: Iraq undermines the justification for changing the dollar exchange rate by borrowing from the IMF
Expert: Iraq undermines the justification for changing the dollar exchange rate by borrowing from the IMF
2026-10-17
Shafaq News – Baghdad
Economic expert Ziad al-Hashemi confirmed on Saturday that Iraq, after submitting a request for loans from the International Monetary Fund, has become the first country in the Middle East and North Africa to take this step, noting that negotiations between the two sides have already begun, amid expectations that the Fund will support Iraq’s access to financing.
Al-Hashemi added in a post on Facebook, which was followed by Shafaq News Agency, that sources in the IMF reported that negotiations had begun between Iraq and IMF officials, and that the latter would strongly support the country obtaining financial support.
He considered that the move towards borrowing raises questions about the government’s position on the decision to reduce the exchange rate of the dinar, noting that the Prime Minister had justified reducing the exchange rate by avoiding resorting to more painful measures, including external borrowing.
Al-Hashemi said that resorting to the IMF contradicts those justifications and reflects the continuation of what he described as financial mismanagement, calling on the government to be transparent with citizens about its move towards borrowing and to clarify the reasons that prompted it to take this decision, especially after the reduction in the value of the dinar a few weeks ago.
He warned that potential loans might be linked to conditions related to managing public spending and maximizing revenues, and possibly reducing government support for several sectors, primarily fuel, electricity, and other high-spending sectors.
He pointed out that the cost of borrowing from the IMF may appear gradually after the government receives the first installment of funding, considering that the IMF recommendations that were put forward during the past period may turn, in the event of an agreement, into binding conditions for the government to implement during the next stage.
The head of the International Monetary Fund, Kristalina Georgieva, announced on Saturday morning that the Fund intends to “strongly” support Iraq through a much-needed loan program, noting that the Fund “will provide Iraq with financial and policy support.”
shafaq.com
