Iraq Economic News and Points To Ponder Saturday Morning 10-10-26
The Government Chose The Fastest Route, Not The Best One," Masoud Haider criticizes the exchange rate change, asserting that reforming the customs and tax system can generate double the revenue
Baghdad - One News Former Deputy Minister of Finance, Masoud Haider, criticized the Iraqi government's decision to change the dollar exchange rate, considering that resorting to reducing the value of the dinar is the fastest measure to provide financial liquidity and ensure the continued operation of state institutions, but it is not the best economic option, given the existence of alternatives capable of generating greater revenues without imposing additional burdens on citizens.
Haider said that addressing the financial crisis requires a comprehensive review of the external import file, revealing the amount of money that government agencies and the private sector spend annually on imported goods and merchandise, as well as determining the value of customs exemptions granted to companies and institutions linked to the government sector.
He questioned why the government was not moving towards controlling border crossings, canceling unnecessary customs exemptions, and activating tax collection on companies, stressing that these measures could provide revenues up to double the amounts expected to be achieved from changing the exchange rate.
He explained that the government, according to his estimates, seeks to save about 14 trillion dinars as a result of adjusting the dollar exchange rate, questioning whether the concerned authorities have conducted economic studies of alternatives capable of generating greater financial resources, instead of relying on reducing the value of the national currency.
Haider pointed out that changing the exchange rate does not lead to an increase in the volume of oil revenues in dollars, but rather raises their accounting value when converted to dinars, considering that the volume of foreign currency flowing into Iraq remains linked to the quantities of oil exported and its prices in global markets.
He warned of the social and economic repercussions of the decision, noting that, according to his estimates, low-income earners constitute about 80 percent of Iraqis, and predicting a decline in their purchasing power of up to 15 percent, in addition to rising prices of goods and commodities in local markets.
He explained that Iraq’s extensive reliance on imports, and the lack of sufficient local alternatives for many products, make the decline in the value of the dinar an additional factor in increasing the cost of living, especially for low- and middle-income families.
The former Deputy Minister of Finance called on the government to raise customs duties on most imported food items that represent the basic daily needs of citizens, with the aim of reducing price increases and alleviating the living pressures resulting from the change in the exchange rate.
He pointed out that reducing tariffs on basic goods would in turn reduce customs revenues, considering that this paradox reflects the need for a more in-depth study of the financial and social repercussions before making broad monetary decisions.
Haider stressed that adjusting the exchange rate may provide the government with additional resources in dinars to help it finance public expenditures, but it does not address the structural imbalances in the Iraqi economy, nor does it represent a substitute for reforming the tax and customs systems and enhancing non-oil revenues.
He stressed the need for the decision to be followed by an integrated economic program that includes supporting national products, encouraging local industries, regulating imports, activating economic laws, and providing a suitable environment for investment and production.
Haider concluded that managing the financial crisis should not rely solely on changing the dollar exchange rate, but requires reforms that address the root causes of weak revenues and curb waste, stressing that the quickest way to secure funds is not necessarily the best course of action for the economy and citizens. https://1news-iq.net/الحكومة-اختارت-الطريق-الأسرع-لا-الأف/
Economic Experts Told One News: The White Paper Was Not Just A Plan To Save Iraq From The 2020 Crisis, But A Strategic Project That Could Have Spared The Country Its Current Financial Crisis
Baghdad - One News Economic experts confirmed to “One News” that the White Paper for Economic Reform, launched by the government of former Prime Minister Mustafa Al-Kadhimi in 2020, was not merely a temporary response to the financial crisis that Iraq faced at that time, but rather represented a comprehensive strategic project to restructure the national economy and address the accumulated imbalances in the management of resources and public expenditures.
Experts explained that Iraq faced one of its most severe financial crises during 2020, as a result of the collapse of oil prices and the decline in public revenues, which put the government in front of major challenges in securing salaries and financial obligations, before the following years witnessed a remarkable improvement in the financial situation and an increase in cash reserves.
They pointed out that during the Al-Kadhimi government phase, Iraq moved from a severe financial crisis to recording large financial surpluses, with estimates circulating regarding the financial surplus reaching about 150 trillion dinars, in addition to the improvement in the Central Bank’s reserves of foreign currency and gold, stressing that evaluating these results requires taking into account the rise in global oil prices during that phase.
The experts explained that the real importance of the White Paper was not limited to addressing the immediate crisis, but was represented in setting long-term reform paths, which included diversifying non-oil revenue sources, reducing dependence on oil exports, reforming the banking sector and the financial system, supporting the private sector, improving the investment environment, as well as addressing the situation of loss-making government companies, reforming salary and pension systems, and strengthening governance and financial management.
They added that the full implementation of these reforms, in conjunction with investing financial surpluses in productive and developmental projects, could have enhanced Iraq’s ability to cope with fluctuations in oil prices, reduced pressures on the general budget, and lessened the need to take financial measures that affect the purchasing power of citizens.
Experts pointed out that the current economic crisis raises questions again about the fate of the reforms included in the White Paper, and the extent to which successive governments have committed to implementing them, especially with regard to restructuring public spending, maximizing non-oil revenues, and revitalizing productive sectors.
They stressed that Iraq’s possession of large financial resources is not enough on its own to achieve economic stability, unless it is coupled with sustainable institutional reforms and fiscal policies capable of transforming oil revenues into sources of long-term growth.
The experts concluded that the White Paper represented an opportunity to bring about a structural transformation in the Iraqi economy, and that the full implementation of its objectives would have enhanced financial stability and prepared the country to become an important economic and investment hub in the region, instead of continuing to be exposed to crises with every decline in oil revenues. https://1news-iq.net/خبراء-اقتصاديون-لـوان-نيوز-الورقة-ا/
Al-Moussawi: Mps Will Boycott Parliamentary Sessions To Prevent The Passage Of The Exchange Rate Decision
Last updated: October 8, 2026 Al-Mustaqilla/Ali Al-Nasrallah/... MP Hamid Al-Moussawi, representing the holy city of Karbala, announced today, Thursday, the parliamentary and popular rejection of the new exchange rate decision, stressing that it was made without the approval of the Council of Representatives.
Al-Moussawi told Al-Mustaqilla in a press statement that MPs will resort to breaking the quorum in the sessions to prevent its passage, emphasizing that the government will not be allowed to make decisions that affect the livelihood of citizens without consulting Parliament and obtaining its prior approval. https://mustaqila.com/الموسوي-النواب-سيقاطعون-جلسات-البرلم/
Central Bank: The Dollar Will Remain At 1,500 Dinars And Will Not Change Unless The Budget Changes
A parliamentary source reported that the Governor of the Central Bank of Iraq informed the members of the Parliamentary Finance Committee that it was not possible to change the dollar exchange rate set at 1,500 dinars, due to its connection to the accounts and tables of the general budget for the year 2027.
Shafaq News Agency quoted the source as saying that the governor confirmed that any amendment to the exchange rate would require changing all the budget schedules and items that were prepared on the basis of the new rate.
The source added that the Minister of Finance and the Governor of the Central Bank did not attend the House of Representatives building, despite the parliamentary moves to discuss the repercussions of raising the exchange rate and its repercussions on the markets and the purchasing power of citizens
Our correspondent also reported that there is no truth to holding a meeting between the Governor of the Central Bank and the Finance Committee inside Parliament this morning regarding the dollar exchange rate, and the meeting was postponed at the request of the Finance Committee. https://1news-iq.net/البنك-المركزي-الدولار-سيبقى-عند-1500-دينا/