Al-Zaidi: Previous Exchange-Rate Gap Was Being Captured by Speculators

Prime Minister Ali Al-Zaidi said on Thursday that the government had managed to secure public-sector salaries despite significant financial and economic pressures, noting that the previous gap in the dollar exchange rate had been benefiting speculators.

Addressing Parliament, Al-Zaidi said public debt had exceeded 208 trillion Iraqi dinars when he assumed office, while the government was required to secure around 10 trillion dinars each month. He said the government opted to maintain salary payments rather than impose compulsory savings, delay salaries or further increase borrowing.

He added that the economy had come under pressure following the suspension of oil exports and the closure of the Strait of Hormuz. Al-Zaidi also highlighted ongoing plans to implement a project providing one million residential plots and develop new cities, with foundation stones for housing projects in Karbala, Najaf and Nineveh expected to be laid on Saturday.

He further said payments owed to farmers and contractors would be increased next month, while accusing what he described as “malicious parties” of attempting to create divisions between the government and different segments of society.