New dinar rate threatens Iraqi medicine prices

Shafaq News- Baghdad

Iraq's Pharmacists Syndicate on Thursday warned that the country's new official dollar exchange rate could drive up medicine and medical supply prices, urging the government to retain the previous rate for pharmaceutical imports.

"The change could have wide economic, and social consequences for healthcare," the Syndicate said in a statement, calling on the relevant authorities to protect patients, particularly the elderly, pregnant women, children, people with chronic illnesses, cancer patients and those with serious diseases.

According to the Syndicate, medicine prices for consumers are currently calculated using an exchange rate of 1,320 Iraqi dinars per dollar, while a higher rate for import transactions could disrupt the pharmaceutical supply chain.

It also called on Baghdad to address the country's financial pressures through clear economic and fiscal policies, backed by specific measures and a timetable. "Such steps should avoid creating further economic problems that would ultimately place the greatest burden on citizens," it added.

Iraq's Cabinet on Tuesday approved a new official exchange-rate structure following an emergency recommendation from the finance minister and Central Bank governor. The new rates set the dollar at 1,500 dinars for purchases from the Finance Ministry, 1,510 for sales to banks, and 1,520 for sales by banks and non-bank financial institutions to end users. The adjustment raised the official rate for the public by 20,000 dinars per $100, from the previous 132,000 dinars.

The Central Bank of Iraq (CBI) has described the move as a "strategic step" to strengthen financial stability, while reassuring citizens and businesses that its foreign reserves are adequate and strong.

Read more: Can Iraq’s economy weather a wider regional shock? Experts differ