Iraq seeks $3.5 billion from US Treasury to stabilize exchange rate

Iraqi Prime Minister Ali al-Zaidi is working to secure $3.5 billion from the US Treasury to stabilize the parallel market exchange rate, according to Mansour al-Baeeji, a member of the Reconstruction and Development Bloc.

Al-Baeeji stated that the government has taken a bold political step by adjusting the exchange rate before submitting the budget to Parliament to avoid potential complications. The new strategy aims to inject foreign currency into the market to curb speculation. It is anticipated that the exchange rate in the parallel market will stabilize between 155,000 and 160,000 Iraqi dinars per 100 US dollars.

The proposed budget is based on exporting 4.3 million barrels of oil at a price of $58 per barrel. To protect citizens, the financial committee has proposed exempting food and medicine from customs duties and ensuring the stability of social welfare salaries within the budget.