Baghdad:Iraq has set the dollar exchange rate at 152,000 Iraqi dinars as a precautionary measure, according to a government financial adviser. This move is not an indication of economic disruption, but rather a proactive effort to maintain stability in the face of potential challenges.

According to the National Iraqi News Agency, Mazhar Mohammed Saleh, a government financial adviser, stated that this approach aims to safeguard Iraq’s economic, financial, and monetary stability against possible developments affecting foreign-currency revenues and the ability to finance foreign trade and public spending.

Saleh explained that the stability of the Iraqi dinar’s exchange rate is tied to foreign currency availability and the economy’s capacity to meet foreign trade demands. He highlighted the repercussions of regional and international crises, with specific concern about the impact of instability on oil exports through the Strait of Hormuz. Such potential effects could influence oil revenues, the state budget, and foreign-currency flows, necessitating a cautious strategy.

The adviser emphasized that these measures do not reflect any imbalance in the economy but are preventive steps to protect stability. The monetary policy is focused on managing the foreign-exchange market and ensuring foreign currency availability to maintain stable foreign trade financing.

Fiscal policy also plays a crucial role by managing public spending, revenues, fees, taxes, and government subsidies to mitigate external shocks. Saleh noted that customs and tax measures are part of this precautionary framework, intended to regulate imports, enhance public revenues, and rationalize foreign currency use without burdening consumers or causing price hikes.

He further explained that the state budget includes tools to maintain domestic stability, such as securing spending on essentials like food, medicine, and fuel. Government subsidies serve both social and economic purposes, helping absorb shocks, stabilize prices, and support domestic demand.

Saleh concluded that these financial, customs, and tax measures should be viewed as steps to strengthen Iraq’s resilience against potential declines in oil revenues and foreign-currency inflows. The primary message to citizens and the market is that these actions are not designed to trigger sudden exchange rate changes or impose crisis costs on society. Instead, they aim to build a safety margin to help the Iraqi economy manage exceptional circumstances while ensuring essential goods and services are available and preserving purchasing power and domestic stability.