Iraq Economic News and Points To Ponder Wednesday Afternoon 6-10-26
Government Advisor: Exchange Rate Stability Has Boosted Citizens' Purchasing Power
{Economic: Al-Furat News} The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed on Saturday that the government, headed by Ali Falih al-Zaidi, has taken measures to preserve the purchasing power of the dinar and curb inflation.
Saleh said in a press statement followed by Al-Furat News: “The policy of stabilizing the official exchange rate is based on a fundamental goal, which is to protect the external value of the national currency and maintain the stability of the general price level,” noting that “the stability of the exchange rate has contributed to strengthening confidence in the Iraqi dinar and supporting the purchasing power of citizens.”
Saleh added that “the relationship between the stability of the exchange rate and the stability of prices of goods and services in the local market has remained close, given the limited impact of the parallel market on the pricing system and the effectiveness of monetary policy,” explaining that “financing imports through the official banking system and relying on the state’s foreign reserves has contributed to providing imported goods at stable and controlled prices.”
He added that “government policies to maintain stable prices for goods and public services, along with the expansion of modern commercial distribution patterns, particularly cooperative stores and advanced marketing formulas, have strengthened competition and contributed to reducing inflationary pressures and supporting price stability.”
Saleh explained that "among the most prominent factors that put pressure on the value of the national currency are the decline in official reserves, uncontrolled monetary expansion, and excessive reliance on oil revenues, which are currently subject to geopolitical restrictions imposed on the freedom of energy markets, as well as political and regional tensions and their effects on foreign exchange flows and economic confidence."
He stressed that “raising the value of the Iraqi dinar is not achieved through quick administrative decisions, but rather through a long-term reform process based on the stability of monetary and financial policies, diversification of national income sources, and strengthening confidence in the local currency,” noting that “the stability of the dinar remains a direct reflection of the stability of the macroeconomy and its ability to cope with local and international changes, which is what the government is working on through a package of measures to strengthen the value of the Iraqi dinar, including working to strengthen foreign reserves, diversifying the national economy and reducing dependence on oil, achieving stability in the balance of payments, as well as controlling the parallel market, reforming the banking system, expanding the use of electronic payment tools and promoting financial inclusion.” https://alforatnews.iq/news/مستشار-حكومي-استقرار-سعر-الصرف-عزز-القوة-الشرائية-للمواطنين
International Monetary Fund: Iraq Among The Countries Most Vulnerable To Financial Pressures With Rising Debt In 2026
2026-06-06 Shafaq News – Baghdad A report issued by the International Monetary Fund showed that Iraq faces increasing financial pressures during 2026, due to the rising cost of government energy subsidies, increasing public debt, and rising borrowing costs in international markets.
According to the report, which was reviewed by Shafaq News Agency, Iraq is estimated to be among the countries with high levels of energy subsidies, with the cost of subsidies reaching less than 6% of GDP, making the general budget more vulnerable to fluctuations in oil and gas prices, and increasing pressure on public finances if global energy prices continue to rise.
The IMF noted that Iraq is among a group of economies that have seen a significant increase in public debt compared to before the COVID-19 pandemic, as debt levels rose significantly in 2026 compared to 2019, within a regional trend that includes a number of countries with high fiscal deficits.
According to the report, this development coincides with rising sovereign borrowing costs in the region, increasing financing pressures on countries with large financial needs, including Iraq, in a global environment characterized by high interest rates and tighter financing conditions.
The Fund stressed that the continuation of these pressures poses challenges to fiscal policies in Iraq, especially with regard to the need to control spending, redirect subsidies, and enhance fiscal sustainability within medium-term frameworks, while maintaining the ability to finance basic services in light of the fragile regional economic environment. https://www.shafaq.com/ar/اقتصـاد/النقد-الدولي-العراق-ضمن-الدول-ال-كثر-تعرضا-لضغوط-مالية-مع-ارتفاع-الدين-في-2026
A Member Of Parliament Warns Of The "Erosion" Of Iraq's Cash Reserves Due To Operational Expenses.
{Economic: Al-Furat News} Kurdish MP Jamal Kojar warned on Tuesday of the "erosion" of Iraq's cash reserves due to the country's monthly operating expenses.
Kujer told Al-Furat News Agency, “The talk about concerns about the erosion of the cash reserve is due to the existence of facts that confirm the country’s need for at least 8 trillion dinars per month to cover operating expenses.”
He added, "The financial resources are less than this amount, so we will definitely need to borrow, whether internally or externally, and these concerns are realistic under the current circumstances."
The Prime Minister’s financial advisor, Mazhar Muhammad Salih, confirmed in a press statement today that “about 40 million Iraqis depend directly or indirectly on government income,” stressing that any external borrowing should be “smart debt” for productive projects, not for consumption. He added, "Corruption and kickbacks raise the cost of projects in Iraq by up to 45%."
https://alforatnews.iq/news/برلماني-يحذر-من-تآكل-الإحتياطي-النقدي-العراقي-بسبب-النفقات-التشغيلية
PM: Strengthening Coordination And Integration Between Iraq’s Fiscal And Monetary Policies
Iraqi News Agency (INA) Wednesday, 10 June 2026 INA - BAGHDAD 6/10/202 Prime Minister Ali Faleh Al-Zaidi chaired on Wednesday the second meeting of the Financial Stability Council.
The meeting discussed the general framework governing the Council’s work, mechanisms for implementing financial and monetary plans and strategies, and ways to stimulate various economic sectors and enhance their capacity to contribute to economic growth and job creation, according to a statement from the PM Media Office, received by the Iraqi News Agency - INA.
“The Council is important as which will serve as an effective institutional framework for strengthening coordination and integration between Iraq’s fiscal and monetary policies, thereby contributing to economic stability, supporting development efforts, and promoting sustainable economic growth,” said Al-Zaidi.
He noted that “the government is moving forward with the preparation of a comprehensive economic vision for Iraq through 2050, based on diversifying sources of income, promoting investment, and improving the efficiency of resource management.”
The meeting also stressed “the importance of unifying efforts among relevant institutions to ensure financial stability, address economic challenges, and formulate policies that safeguard the national economy and enhance its resilience in the face of domestic and international developments.”