By John Lee.
Prime Minister Ali al-Zaidi has addressed parliament to explain the government's decision to change the exchange rate and outline steps to protect living standards and maintain regular payments of salaries and essential expenditure.
According to the Prime Minister's Office, al-Zaidi met with parliament speaker Hibat Hamad al-Halbousi and the heads of parliamentary committees. He told the session that the government had faced three options: compulsory savings, distributing salaries every 45 days, or taking on additional borrowing. He said the government rejected further borrowing to avoid adding to the country's existing debt burden, which he put at more than 208 trillion dinars (approximately $159 billion).
Al-Zaidi said the economy is operating under severe pressure due to the regional conflict and the closure of the Strait of Hormuz, which has disrupted oil export revenues. He noted that the previous exchange rate gap had largely benefited currency speculators.
Key points from his address included:
- Foreign currency inflows are expected in the coming days and will be injected into circulation
- Payments to farmers and contractors will be doubled in the coming month
- Work is continuing on the one-million residential plots project and the construction of new cities
- Foundation stones for residential plot projects in Karbala, Najaf, and Nineveh will be laid in the coming days
- A Generations Fund has been established to finance projects across various sectors
See also:
Iraqi Dinar Devaluation: How Does It Affect You?
(Source: Prime Minister's Office)
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