Baghdad:Mazhar Muhammad Salih, the Prime Minister’s Advisor for Financial Affairs, confirmed that the adjustment of the exchange rate is part of a strategy to hedge against risks and protect economic and financial stability. He emphasized that foreign trade financing is currently stable and regular.

According to the Iraqi News Agency, Salih highlighted that the exchange rate of the Iraqi dinar against the dollar and other currencies is crucial for the dinar’s external value. He noted that its stability relies on the availability of foreign currency and the economy’s ability to finance foreign trade. Given the regional and international challenges, particularly those affecting oil exports via the Strait of Hormuz, a cautious approach is necessary to protect oil revenues, the general budget, and foreign currency flows.

He stated that the measures taken are proactive, not indicative of an economic imbalance, aiming to safeguard economic, financial, and monetary stability against potential challenges that could affect state foreign currency reserves or trade financing capabilities. Monetary policy is focused on managing the foreign exchange market to ensure a smooth currency supply, while fiscal policy plays a role in stabilizing public finances by balancing spending, revenues, and subsidies.

Salih also mentioned that customs and tax measures are being implemented to regulate imports, increase public revenue, and rationalize foreign currency use without burdening citizens or causing unjustified price hikes. The general budget continues to protect domestic stability by maintaining spending on essential services, with government subsidies acting as a tool to absorb economic shocks and maintain price stability.