🇮🇶💵 Iraq’s Contradictory Signals on the Dinar Are Getting Harder to Ignore

🇮🇶💵 Iraq’s Contradictory Signals on the Dinar Are Getting Harder to Ignore

One day, officials and financial voices in Iraq explain why the dinar supposedly cannot increase in value yet…

Then suddenly, another statement emerges openly discussing the possibility of raising the exchange rate in order to sustain Iraq’s economic model and avoid deeper financial pressure.

So what is really happening behind the scenes?

To me, this reveals something very important:

The discussion is no longer about WHETHER monetary change is needed.

The real conversation appears to be about WHEN and HOW it should happen.

A former member of Iraq’s parliamentary finance committee recently stated that the government faces only two paths:

• external borrowing,

• or adjusting the exchange rate to increase revenues.

What stands out is that he described exchange rate adjustment as the “less dangerous” option compared to debt.

That alone speaks volumes.

For years, Iraq has been:

• modernizing its banking sector,

• reducing dependence on cash,

• implementing digital payment systems,

• pushing de-dollarization efforts,

• and restructuring its financial framework.

These are not random reforms.

They are the kind of structural preparations countries make when transitioning into a new economic phase.

Yesterday’s article attempted to explain why the dinar could not yet rise in value.

Today’s article discusses the possibility of changing the exchange rate to preserve economic stability.

Do you see the contradiction?

Because I do.

And contradictions like these usually appear when governments are balancing public messaging while internally debating major economic decisions.

🇮🇶🔥

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Former MP: The government faces two paths: borrowing or raising the exchange rate

Former member of the parliamentary finance committee, Abdul Hadi Mouhan, confirmed that the new government faces two paths: either external borrowing or increasing the exchange rate domestically in order to increase revenues under the current circumstances.

Mohan told Al-Maalomah, "There are two paths for the new government led by Ali Al-Zidi to ensure the securing of expenses, especially operational ones, by moving towards external borrowing, which is the most dangerous path that Iraq will face if it goes in this direction."

He added that "the second path that the government may resort to in order to increase its revenues is to go towards raising the exchange rate, which is the least dangerous path compared to going towards external borrowing, which is a double-edged sword for Iraq. "

He indicated that "the government will most likely move towards raising the exchange rate in the upcoming budget in order to address the existing inflation and the deficit in the federal budget, and to ensure that the economic situation does not collapse." link