{"id":13142,"date":"2026-10-18T10:45:13","date_gmt":"2026-10-18T07:45:13","guid":{"rendered":"https:\/\/www.bayancenter.org\/en\/?p=13142"},"modified":"2026-10-18T10:47:57","modified_gmt":"2026-10-18T07:47:57","slug":"devaluation-of-the-currency-and-raising-the-dollar-exchange-rate-a-tool-to-avoid-the-dilemma-is-the-timing-feasible","status":"publish","type":"post","link":"https:\/\/www.bayancenter.org\/en\/2026\/10\/13142\/","title":{"rendered":"Devaluation of the Currency and Raising the Dollar Exchange Rate: A Tool to Avoid the Dilemma.. Is the Timing Feasible?"},"content":{"rendered":"

Dr. Muhanad Muneer Al-Salman – College of Administration and Economics \/<\/strong><\/span>
\nUniversity of Mosul<\/strong><\/span><\/h4>\n

Economic policymakers often resort to searching for out-of-the-box solutions to address the intractable problems facing the economy. Among these solutions is the attempt to influence the currency’s value and utilize the savings generated from its devaluation to support the expenditures burdening the state, in exchange for the dollar-denominated oil revenues it collects. However, this approach often lacks precise forward-looking studies, as it leads to the erosion of the purchasing power of fixed-income earners and increases the risks of domestic inflation; furthermore, the deliberate devaluation of the exchange rate does not achieve the desired objectives unless accompanied by sustainable fiscal discipline and a genuine diversification of revenue sources away from the fluctuations of oil prices.<\/h4>\n

Since the collapse of the Bretton Woods system in the early 1970s and the unpegging of the world’s currencies from a strict tie to gold or the dollar, the fundamental question facing the monetary decision-maker has become: when is devaluation feasible, and what difference does its timing make between containing the crisis and complicating it? The Iraqi case carries a special constraint in answering this question; the linkage of the currency’s value to the oil Iraq exports and its global prices means its value is determined from outside the economy. Consequently, problems arise linked to global oil markets and the difficulty of controlling the money supply and its value. More dangerously, Iraq is a net importer of all products and services, offset by a modest contribution to the export of some primary goods, within a trade structure where the rentier nature of the economy and the weak productive capacity of the rest of the sectors are clearly evident. Does this measure, therefore, represent a sustainable economic solution or merely a temporary means to alleviate budget pressure at the expense of citizens’ purchasing power?<\/h4>\n

 <\/p>\n

Download Here<\/strong><\/span><\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"

Dr. Muhanad Muneer Al-Salman – College of Administration and Economics \/ University of Mosul Economic policymakers often resort to searching for out-of-the-box solutions to address the intractable problems facing the economy. Among these solutions is the attempt to influence the currency’s value and utilize the savings generated from its devaluation to support the expenditures burdening […]<\/p>\n","protected":false},"author":6,"featured_media":13144,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1733,6,1739,1731],"tags":[1220,45,1943,1944,1942,471,1918],"class_list":["post-13142","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economic-studies","category-economics","category-policy-papers","category-research-department","tag-central-bank-of-iraq","tag-iraq","tag-removing-zeros","tag-the-illusion-of-consumption","tag-the-iraqi-currency","tag-the-iraqi-economy","tag-the-statement-center"],"jetpack_shortlink":"https:\/\/wp.me\/p6Y2nv-3pY","jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.bayancenter.org\/en\/wp-content\/uploads\/2026\/10\/Devaluation-of-the-Currency-and-Raising-the-Dollar-Exchange-Rate.webp","_links":{"self":[{"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/posts\/13142","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/comments?post=13142"}],"version-history":[{"count":1,"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/posts\/13142\/revisions"}],"predecessor-version":[{"id":13145,"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/posts\/13142\/revisions\/13145"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/media\/13144"}],"wp:attachment":[{"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/media?parent=13142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/categories?post=13142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bayancenter.org\/en\/wp-json\/wp\/v2\/tags?post=13142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}