Baghdad:The Central Bank of Iraq has announced that the recent adjustment to the exchange rate is a component of a broader set of economic reforms. This move comes as the Bank assures that the monetary situation remains stable and affirms its capability to meet the demand for foreign currency necessary to finance foreign trade.

According to Iraqi News Agency, Samir Al-Waili, Director of the Statistics Department at the Central Bank, emphasized the importance of the exchange rate mechanism to Iraq’s economy. He explained that the adjustment of the exchange rate from 1,300 to 1,500 dinars per dollar is part of a package of economic and financial measures prompted by exceptional circumstances affecting state revenues and financing needs.

The objectives of these measures are to enhance fiscal sustainability and preserve foreign reserves, thereby strengthening the Central Bank’s ability to support foreign trade. Al-Waili noted that maintaining monetary and banking stability is crucial for meeting the requirements of overall economic balance. He highlighted steps being taken to stimulate the private sector and domestic production, including support for competitiveness to manage inflationary pressures, which ensure that monetary policy supports the macroeconomy.

Additionally, an agreement has been reached with the banking sector to support the private sector through various channels. This includes the Trade Bank of Iraq with 1 trillion dinars, the Housing Fund with 500 billion dinars, and an increase in support for the Industrial Bank from 500 billion to 1 trillion dinars. These measures aim to stimulate the private sector, complementing the Central Bank’s earlier initiatives that remain active.