The financial advisor to the Prime Minister, Mudher Muhammad Saleh, confirmed today, Tuesday, that the 2023 budget will adopt the exchange rate approved by the Council of Ministers, stressing that the decision is proportionate with the rise in the current account of the balance of payments, as well as supporting the increase in foreign reserves, which reached 115 billion dollars.
Saleh told the Iraqi News Agency (INA): "The decision to adjust the exchange rate of the Iraqi dinar to the dollar today is proportionate with the current rise in the current account of the Iraqi balance of payments to Iraq's gross domestic product, which currently amounts to about (positive 15%)," which prompted monetary policy to the need to adjust the exchange rate and raise the external value of the Iraqi dinar.
He added, "The decision supports the availability of official foreign reserves supporting Iraq that have reached 115 billion dollars, and it provides standard coverage for Iraq's total foreign trade for about 20 import months, while the global average is three months."
Saleh continued, "The decision to raise the value of the Iraqi dinar will also lead to combating inflationary activities and expectations that have exacerbated in the last three months, as the Central Bank of Iraq followed this time a strict monetary policy way that combats inflation by maximizing the external value of Iraqi cash, in order to impose stability in the general prices level and its importance in the stability of the monetary income of the public and the preservation of living standards.
He pointed out, "With the offer, the federal general budget for the year 2023 will adopt the new exchange rate of 1,300 dinars for one dollar for the purposes of evaluating its revenues and expenditures in foreign currency."