Shafaq News- Baghdad

Iraq’s Coordination Framework (CF), an alliance of major Shiite political forces, proposed a package of measures on Thursday following the increase in the dollar exchange rate against the Iraqi dinar.

The proposals include tighter control of the parallel currency market and measures to curb speculation, stabilize the exchange rate, and prevent the decision from being exploited to raise prices for goods and services, according to a CF statement.

The bloc also proposed a protected price basket covering essential food, medicine and construction materials, with customs duties waived for six months from the cabinet decision. Reference prices would be published regularly on a public platform, with regulators required to act against unjustified price increases.

Another measure calls for a 15% reduction in tuition fees for the current academic year across public and private schools, universities, private colleges and evening and parallel study programs. The CF presented the cut as direct compensation for families affected by the exchange-rate change.

For alternative revenue, the bloc proposed full tax assessments for telecommunications companies, banks and major corporations, along with a publicly available list every three months showing which companies had met their tax obligations and which had not.

The package also calls for an exchange-rate stabilization fund financed by additional oil revenue when prices exceed the level assumed in the federal budget. The fund would be used solely to support the dinar and strengthen reserves instead of relying on further currency devaluation when government revenues fall. Part of the additional dinar revenue generated by the exchange-rate change would go toward interest-free, low-cost loans for agricultural and industrial projects that replace imports, with another portion allocated to employment opportunities for graduates.

The CF also called for a review of contractor agreements and government projects affected by the exchange-rate change, including financial adjustments intended to keep projects running without imposing additional costs on the state or citizens. Similar measures would address commitments made by suppliers and investors under the previous exchange rate.

Under the proposal, Prime Minister Ali Al-Zaidi would form a committee of relevant ministries and agencies to oversee a transitional period ending on December 31, 2026. Obligations settled before that deadline would use the previous exchange rate, while those after it would fall under the new rate.

Earlier today, Al-Zaidi told parliament that the government had faced three options: compulsory savings that would leave employees relying on promises of future payment, paying salaries every 45 days, or taking on additional debt.

The cabinet decided on October 6 to set the dollar purchase rate from the Finance Ministry at 1,500 dinars, the rate for banks at 1,510 and the rate for end users at 1,520, compared with the previous 1,320-dinar rate —an increase of 20,000 dinars for every $100.

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