๐ฆ๐ช Stronger Foundations, Stronger Dinar ๐ฎ๐ถ๐ต
If Iraq becomes more economically resilient, everything changes.
๐ A more stable and diversified economy means the central bank can support a stronger exchange rate without risking collapse.
This isn’t hype—it’s economic reality.
๐ฐ What the news is really telling us
The recent statements from financial advisor Mazhar Muhammad Salih highlight a critical shift:
- Iraq is focusing on fiscal sustainability ๐ฐ
- Maintaining government operations despite budget delays ๐
- Prioritizing efficient spending and key investments ๐️
- Protecting social programs ๐ก️
- And most importantly… reducing dependence on oil ๐ข️
๐ These are not short-term moves—they are structural reforms.
๐ Why this matters for the dinar
When a country:
- diversifies its income sources
- manages spending responsibly
- strengthens its financial system
- builds resilience against global shocks ๐
๐ it gives its central bank the power to hold and sustain a stronger currency.
๐ Without these foundations, any increase in value would collapse quickly.
๐ง The real takeaway
This news does not signal an overnight revaluation.
But it does confirm something much more important:
๐ Iraq is building the economic backbone required for a gradual and sustainable appreciation of the dinar.
๐ก A strong currency is not declared—it is earned through stability, discipline, and resilience.
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Government advisor: The 2027 Budget Will Enhance Fiscal Sustainability and Support Economic Reform
Money and Business Economy News – Baghdad The Prime Minister’s financial advisor, Mazhar Muhammad Salih, confirmed on Monday that the 2027 budget will enhance financial sustainability and support economic reform, noting that government spending continues in accordance with the Financial Management Law despite the delay in approving the budget.
Saleh said that “Iraqi financial policy is still being managed in accordance with the provisions of the amended Federal Financial Management Law No. (6) of 2019, particularly Article (13) thereof, which regulates the mechanisms of public spending in the event of a delay in the approval of the Federal General Budget Law,” noting that “the aforementioned article allowed the continuation of the work of state institutions by granting the Minister of Finance the authority to authorize ministries and entities not affiliated with a ministry to spend at a rate of (1/12) monthly of the total actual current expenditures for the previous fiscal year after excluding non-recurring expenditures, until the approval of the Federal General Budget.”
He added that “this mechanism contributed to ensuring the financing of the state’s basic obligations, foremost among them salaries, wages, pensions, social protection and welfare benefits, as well as the operational expenses necessary to continue providing public services,” explaining that “the same article allowed for the continuation of financing ongoing investment projects based on actual completion rates or completed equipment, provided that cash liquidity and expected allocations are available within the subsequent budget project.”
Saleh explained that “Iraqi public finances faced exceptional challenges during 2026 as a result of geopolitical and regional developments and the accompanying disruptions in global energy markets, supply chains and international trade, which directly affected oil revenues, which represent the main source of public revenues,” stressing that “these changes imposed increasing pressure on the government’s financial position and its ability to finance operational and investment spending, which prompted the government and the Ministry of Finance to move towards preparing the draft federal general budget for 2027 according to a reformist perspective aimed at maintaining financial sustainability and macroeconomic stability.”
He pointed out that "the anticipated budget will focus on enhancing the efficiency of public resource management and rationalizing operational spending, protecting social spending related to the most vulnerable groups, as well as giving priority to investment projects with high economic and developmental feasibility," noting that "among the budget's priorities is also diversifying sources of public revenues and reducing relative dependence on oil revenues, supporting financial and administrative reform programs and government digitalization, in addition to enhancing the national economy's ability to cope with external shocks and achieve financial stability in the medium and long term."
Saleh affirmed that "these trends are consistent with the objectives of the state's financial strategy and public financial management development programs, as well as the pillars of Iraq's 2035 vision, which aims to build a diversified and sustainable economy capable of achieving comprehensive growth and development and enhancing the resilience of public finances in the face of regional and international changes." https://www.economy-news.net/content.php?id=69992