Economic Expert Explains Repercussions and Risks of Paying Salaries in Dollars

mniraq - An economic expert explained the reasons preventing the payment of employees' salaries in Iraq in US dollars, noting that this step could deplete foreign reserves and limit the Central Bank's ability to manage monetary policy successfully. The expert stated that foreign reserves are not free funds at the disposal of the Ministry of Finance, but rather external assets managed to achieve financial stability and secure import financing, explaining that paying salaries in dollars could lead to the depletion of vast amounts of the Central Bank's reserves within a few months. He emphasized that this measure would limit the monetary authority's ability to control the money supply and does not guarantee a decrease in demand for hard currency due to ongoing speculation, warning of the loss of monetary policy independence and the state incurring exorbitant administrative and technical costs.