Exclusive: Syria's crisis has no impact on Iraq's economy, Finance Committee asserts

Shafaq News/ The government and the Central Bank of Iraq (CBI) have taken several important measures to address the country’s security and economic challenges, particularly amid the deteriorating situation in Syria.

Moeen Al-Kadhimi, a member of the Parliamentary Finance Committee, told Shafaq News Agency, "The situation in Syria does not impact the Iraqi economy or the exchange rate of the dollar in the local market."

“The dollar exchange rate in the parallel market is currently stable, with the government working to narrow the gap between the parallel and official rates to enhance economic stability,” he added.

Notably, currency markets, especially in the Kurdistan region (KRI), have seen a “sudden” rise in the value of the Syrian pound against the Iraqi dinar, sparking discussions among experts and traders about its causes and potential impact on the local market.

Since the fall of Bashar al-Assad's regime, the Syrian pound has been recovering against other currencies, especially the US dollar, which has decreased by 18 to 20% in recent transactions.

Expert Ayman Hisham explained to our agency that "high demand for the Syrian pound caused its sudden rise," adding, "Before the Syrian regime regained control of some areas, one million Syrian pounds was worth just 100,000 Iraqi dinars ($76.3). Now, it has reached 600,000 dinars (approximately $457.8,) stabilizing around 550,000 due to the rising demand."

In turn, expert Jabbar Koran ruled out any direct impact of Syrian pound fluctuations on other currencies, given its local nature. “Nevertheless, prices of agricultural goods imported from Syria could be indirectly affected due to trade ties between the two countries,” he clarified.