Baghdad (IraqiNews.com) – The financial advisor to the Prime Minister, Mudher Mohammad Saleh, announced on Saturday, June 6, 2026, that the government of Ali Falih al-Zaidi has adopted a comprehensive package of long-term reformative measures designed to shield the purchasing power of the Iraqi dinar and curb inflation.
Saleh explicitly ruled out any possibility of raising the national currency’s value through abrupt, short-term administrative decrees, stating that sustainable monetary strength relies on deep structural overhauls rather than quick political fixes.
According to Saleh, the current government strategy has successfully stabilized market prices for consumer goods by channeling import financing through official banking systems, backed heavily by the state’s foreign currency reserves. This monetary control has been further reinforced by the physical expansion of modern, state-backed cooperative grocery networks and advanced marketing frameworks. These parallel commercial steps have significantly diminished the influence of the informal shadow exchange market on the domestic pricing system, helping cap inflationary pressures.
However, the financial advisor issued a stark warning regarding active macroeconomic variables putting downward pressure on the dinar. Chief among these threats are rigid geopolitical constraints imposed on global energy markets, escalating regional conflicts, and the resulting volatility in foreign currency inflows and overall economic confidence. Saleh noted that an over-reliance on volatile crude oil revenues, unchecked monetary expansion, and any future drops in official reserves pose direct risks to the country’s fiscal health.
To permanently secure the currency, Saleh emphasized that the government is actively working on a long-term economic transition plan. This framework focuses on aggressively building up foreign exchange reserves, diversifying national income streams away from oil dependence, and stabilizing the country’s balance of payments.
Furthermore, the administration’s roadmap relies heavily on accelerating commercial banking sector reforms, rapidly expanding digital and electronic payment tools, and widening national financial inclusion to systematically dismantle the parallel market’s leverage over the national economy.
