Iraq adopts long-term reform package to protect dinar, official says

BAGHDAD, Iraq — Iraq's government has adopted a long-term reform package aimed at protecting the Iraqi dinar's purchasing power and curbing inflation, according to Mudher Mohammad Saleh, financial advisor to the Prime Minister. Saleh said the national currency's value cannot be strengthened through sudden or short-term administrative decisions and that structural changes are required. The government has directed import financing through the official banking system, a step it says has helped stabilize market prices. The reform process is backed by the state's foreign exchange reserves, and the influence of the informal foreign exchange market has diminished, Saleh said. He noted that regional tensions, pressures on global energy markets, and fluctuations in currency inflows have created downward pressure on the dinar. The government's long-term plan includes increasing reserves, reducing oil dependency, strengthening the banking sector, and expanding digital payment systems.