Iraqi premier says Iraq lacks strict penalties against currency speculators

Shafaq News/ Prime Minister Mohammad Shia al-Sudani on Tuesday promised "strict" legal penalties against currency speculators, hinting at the involvement of powerful domestic and foreign entities in manipulating the forex market.

Speaking to reporters in a weekly press conference, al-Sudani admitted that his government faces “massive challenges” in reforming the banking system. “Moreover, the exchange rate is driven by currency speculators.”

"There are domestic and foreign entities, traders, and currency exchange companies working to sustain the current dollar exchange rate."

"We support certain banks that we trust and that have achieved successes to be part of the solution." He noted, "Iraqi law lacks strong and strict penalties for those who are apprehended for currency exchange rate manipulation."

Despite the surge in the dollar exchange rate, the Prime Minister assured that food prices remain stable in cooperation with some traders. “There are initiatives in place to provide essential medications from international sources at subsidized prices, as well as construction materials offered at supported rates.”

Prime Minister al-Sudani praised the establishment of a Development Fund as a vital project since it ushers the enaction of its own law. “The fund has been included in the budget law, and it is set to serve as an exclusive platform for the private sector, creating investment opportunities. Initially, its focus will be on constructing approximately a thousand schools, with plans to extend its involvement to other sectors such as industry, the environment, and housing.”

"On October 27, it will be a full year since the formation of the government. We have requested the Council of Representatives to host a session to discuss the achievements and failures that have occurred since the government was established up until now."