Financial advisor: Fixing the exchange rate in the budget is a coordinating decision and enhances market stability.
The Prime Minister's financial advisor, Mazhar Muhammad Salih, stated that the exchange rate in Iraq is subject to a fixed official rate system based on integrated coordination between monetary and fiscal policy, and is not an arbitrary decision.
In an exclusive statement to Al-Mirbad, Salih explained that while the exchange rate is a tool of monetary policy, in practice it is the result of an agreement between the Ministry of Finance and the Central Bank of Iraq and is clearly stipulated in the annual budget.
He added that the reported adoption of an exchange rate of 1,300 dinars per dollar in the 2026 budget represents a significant positive indicator that will contribute to strengthening stability, calming the market, and curbing speculation in the black market and parallel market.
He indicated that the Central Bank sent an official letter to the Ministry of Finance to establish this rate as a fixed element of the general budget, noting that setting the exchange rate is essential given that oil revenues constitute approximately 90 percent of public revenues, which are in foreign currency.
He confirmed that the rate currently in effect is the one announced, pending the finalization of the draft budget upon its official release and submission to Parliament for discussion and approval. link
