‘Iraq Exchange rate challenges’ Professor Frank Gunter – IBBC Advisory Council’s member and Professor of economics at Lehigh University, USA, gave an advance presentation to IBBC members of his draft report into the exchange rate situation in Iraq and accompanying insights into the GOI budgets to 2026 and scenarios for investment, business and stocks.

The draft report commends modernising developments in the financial system from the GOI and CBI, particularly in terms of modernising and extending banking facilities, online and ATM cash distribution for Iraqis, while also focused on modernising banks, dollar and dinar access and restraints to foreign exchange and the downsides of a distorting twin currency arrangement.

The report points out areas for improvement, including deposit insurance, a registry of depositors, developing credit agency capability to monitor banks and lending, and the opportunity to develop a more advanced debt market that will support investment and a healthier economy. On the downside, the 37% expansion of the GOI budget over the next 2 years will likely create pressure, curtail investment plans, and extend borrowing, should the price of oil fail to rise. Overall, Professor Gunter points out the good aspects, while counselling awareness of the volatility, potential for ongoing corruption and curtailment of trade and dollars to Iran and Syriah and the twin currency arrangement that distorts the market.

The report will be released in June and presented at the IBBC’s Mansion House conference on 2^nd July.

Christophe Michels, IBBC MD says ’IBBC greatly appreciates Professor Gunter’s insights into the economy of Iraq, as it has enormous impact on our members plans for investment, trade, and productivity, without which it become hard to predict how to budget and allow for business to navigate Iraq’s challenging market. We are grateful to all IBBC Members and indeed Members of our Advisory Council that are actively contributing to this paper by sharing their first-hand experience and expertise with Professor Gunter.’

Previous reports published by IBBC can be downloaded here .