Economist Abdul Rahman Al-Shaikhly confirmed that the decline in the purchasing power of the Iraqi dinar and rising prices have directly and profoundly impacted citizens' living standards, noting that salaries no longer meet basic needs as they once did.
Al-Shaikhly explained that a salary of one million dinars, which previously covered an employee's expenses for an entire month, is now insufficient to cover even half a month's expenses amid the continuous rise in the cost of living. He added that the crisis is not limited to soaring prices alone, but is also tied to a weak level of trust between citizens and financial and banking institutions. This negatively affects market stability and exacerbates economic burdens.
He pointed out that although inflation rates in Iraq have not reached critical levels compared to other countries, their impact remains present and palpable through the continuous increase in the prices of essential goods and services.
Regarding monetary policies, Al-Shaikhly stressed that current measures represent "currency issuance" subject to specific controls, rather than the arbitrary "printing of money." In this context, he clarified that the provisions of Central Bank Law No. (56) of 2004 prohibit the government and the Central Bank from printing currency, restricting the authority to issue it strictly to precise circumstances in accordance with the prevailing legal frameworks.
