Baghdad (IraqiNews.com) – The financial adviser to the prime minister, Mudhhir Mohammed Saleh, confirmed on Saturday that Iraq’s official exchange rate remains firmly set at 1320 dinars per US dollar. He noted that recent movements in the parallel market carry no meaningful economic impact.
Saleh explained that the fluctuations seen over the past days were temporary and caused by what economists describe as colored noise. This refers to uncertain or misleading information that fuels short-term speculation in the unregulated cash market.
He added that transitional periods often witness similar volatility. This is especially true as the country progresses through the post-election phase and continues implementing a modern customs governance system.
The new customs system includes digital tracking tools and international-standard procedures designed to strengthen transparency. These reforms also enhance discipline in both commercial and financial environments.
Saleh stressed that recent changes in the parallel exchange rate have not affected price stability in Iraq. Monetary policy continues to meet its operational goals, maintaining stable prices and supporting the fixed official exchange rate.
This approach has contributed to a noticeable decline in inflation. The annual inflation rate has dropped to around 2.5 percent, reaching what Saleh described as a natural and healthy level.
He emphasized that the fixed exchange rate policy relies on strong fundamentals. Chief among them is the strength of Iraq’s foreign reserves, which support the official rate of 1320 dinars per dollar.
According to Saleh, international institutions such as the World Bank and major global financial organizations view Iraq’s recent reforms positively. These institutions see progress in the banking and financial sectors and increased confidence in the country’s investment environment.
He also highlighted the government’s continued push to strengthen the partnership between the state and the private sector. This direction is considered essential for building a diverse and sustainable economy, aligned with the long-term goals of Iraq Vision 2050.
