Fri. PM KTFA News Articles from Iraq 1-9-26

KTFA

Clare » January 9th, 2026

A Sudanese advisor explains to “Al-Eqtisad News” the repercussions of fixing the exchange rate at 1300 dinars in the 2026 budget.

1/8/2025 Economy News – Baghdad

The Prime Minister’s Advisor for Economic and Financial Affairs, Mazhar Muhammad Salih, revealed on Thursday the impact of the Central Bank of Iraq’s decision to fix the official exchange rate at 1300 dinars in the 2026 budget.

Saleh told Al-Eqtisad News that “the government decided to fix the official exchange rate at 1,300 dinars per US dollar in the 2026 budget project, within the framework of what he described as ‘calculated coordination between fiscal and monetary policies’.”

He explained that this step represents a limited increase in the value of the Iraqi dinar, and is a positive sign that reflects the strength of the country’s foreign reserves and the ability of monetary policy to confidently maintain stability.

He pointed out that fiscal policy is now moving towards maximizing real revenues, moving away from resorting to what is known as “monetary adjustment,” which relies on using the exchange rate as an indirect financing tool, stressing that this trend promotes the use of authentic financial instruments to mobilize resources and control spending.

The advisor stressed that this monetary signal sends a clear message that containing inflation and stabilizing the national economy is a permanent priority, while maintaining the independence of monetary policy, and pushing fiscal policy towards greater efficiency and responsibility, in order to achieve the sustainability of macroeconomic balance in the Iraqi economy.

Earlier today, the Central Bank of Iraq addressed the Ministry of Finance regarding fixing the official exchange rate at 1300 dinars in the 2026 budget. (LINK)

They warned of a “major recession”… Baghdad merchants complain about high taxes and customs duties: the citizen is the one who suffers

1/8/2025

Wholesalers and owners of goods and merchandise warehouses in the capital, Baghdad, expressed their strong dissatisfaction with the government’s recent decisions regarding increasing taxes and implementing the new customs tariff, in addition to imposing a quality mark on all imported goods.

Traders confirmed that these simultaneous measures caused clear disruption in buying and selling, warning that continued tax pressure would lead to a major recession in local markets, as a result of the sudden increase in import and storage costs, and the difficulty for the market to absorb these price increases.

Salem Hassan, a construction materials trader, told Shafaq News Agency that “customs duties have increased significantly to more than 30%, which is equivalent to one-third of the price of some materials,” noting that the average citizen is no longer able to purchase his basic needs.

He added that “this increase has caused a recession in the markets, while wholesale stores have raised prices for traders,” calling on the state to find urgent solutions to this problem.

For his part, a wholesaler of single-use plastic materials in the Jameela Industrial Area pointed out that raising customs duties prompted them to stop import operations, noting that these materials are used daily in packaging food products.

The traders explained to Shafaq News Agency that “the state must find quick solutions, because the citizen will be the v****m as he is the last consumer,” indicating that the imposed customs duties are excessive.

For his part, economist Mohammed Al-Hassani told Shafaq News Agency that imposing customs duties on goods and commodities would lead to higher inflation rates and an economic recession.

He explained that the government imposed these fees at a time when Iraq does not have an industrial sector capable of meeting market needs, and that the available local production is insufficient, warning that this will contribute to increasing unemployment rates among young people. (LINK)

Source: Dinar Recaps

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