Iraqi contractors warn Al-Zaidi: Raising the exchange rate threatens the continuation of projects
Iraqi contractors warn Al-Zaidi: Raising the exchange rate threatens the continuation of projects
2026-10-07
Shafaq News – Baghdad
On Wednesday, the Iraqi Contractors Union called on Prime Minister Ali al-Zubaidi to postpone the implementation of Cabinet Resolution No. (544) of 2026, which concerns increasing the exchange rate of the dollar against the dinar, warning of its financial repercussions on government sector contracts and projects.
The Federation said, in a letter addressed to the Prime Minister, published below by Shafaq News Agency, that contracting companies are still bearing the effects of the previous exchange rate adjustment under Cabinet Resolution No. (301) of 2021, while the financial dues resulting from that adjustment have not yet been disbursed.
He pointed out that the repercussions of the decision to raise the exchange rate are not limited to existing contracts, but also include contracts that are still in the study or referral stages and have not yet entered into contracting, which may lead to the conclusion of contracts that do not correspond to the actual costs of implementation.
The union explained that continuing to implement the decision will lead to higher costs for projects, materials, transportation and services, and erosion of the established financial margins, as well as an increased need for liquidity and financing and placing additional burdens on contracting companies that may affect their ability to continue.
He pointed out that the inflationary pressures witnessed by various economic sectors, including the contracting sector, increase the financial repercussions on the continuity of projects and the national economy.
The union called for an urgent and comprehensive solution that takes into account the contractual phase of each project, prevents the accumulation of burdens and financial differences, and ensures the stability of contracts and the continued implementation of government projects, and avoids delays that may lead to an increase in their costs and completion times.
The Central Bank of Iraq has adopted a new price for selling dollars to citizens at 1520 dinars, compared to 1510 dinars for banks and 1500 dinars for buying dollars from the Ministry of Finance, instead of the previous price of 1320 dinars per dollar.
shafaq.com
