Former MP: The government faces two paths: borrowing or raising the exchange rate.
Former MP: The government faces two paths: borrowing or raising the exchange rate.
5-27-2026
Information/Baghdad…
Former member of the parliamentary finance committee, Abdul Hadi Mouhan, confirmed that the new government faces two paths: either external borrowing or increasing the exchange rate domestically in order to increase revenues under the current circumstances.
Mohan told Al-Maalomah, “There are two paths for the new government led by Ali Al-Zidi to ensure the securing of expenses, especially operational ones, by moving towards external borrowing, which is the most dangerous path that Iraq will face if it goes in this direction.”
He added that “the second path that the government may resort to in order to increase its revenues is to go towards raising the exchange rate, which is the least dangerous path compared to going towards external borrowing, which is a double-edged sword for Iraq.”
He indicated that “the government will most likely move towards raising the exchange rate in the upcoming budget in order to address the existing inflation and the deficit in the federal budget, and to ensure that the economic situation does not collapse.”
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