Al-Morsoumi reveals correct mechanism for calculating financial impact of exchange rate adjustment

Economic expert Nabil Al-Morsoumi provided a detailed explanation on Thursday regarding how to calculate the financial repercussions resulting from changing the dinar exchange rate. He emphasized that the process of estimating additional revenues should not rely on the total sum of oil proceeds, but rather must be limited to the actual net after excluding all payments and foreign obligations paid in the US currency. Al-Morsoumi clarified that relying on multiplying the new exchange rate by the overall oil revenues yields inaccurate results. He drew attention to the necessity of deducting the fees of oil licensing companies, foreign debt amounts along with their interests, in addition to other commitments including state imports of gas, electric power, petroleum derivatives, and ration card items, all of which are settled in dollars. He affirmed that the remaining amounts after deducting these financial commitments are the real standard that must be adopted when applying the new currency rate. He gave an example by assuming oil revenues reach 80 billion dollars annually, against government commitments worth 20 billion dollars, making the actual net settle at 60 billion dollars. He stated that evaluating the 60 billion dollar amount based on a new exchange rate estimated at 1500 dinars per dollar will result in about 90 trillion dinars, while the output records about 78 trillion dinars when adopting the previous rate of 1300 dinars per dollar. He pointed out that the financial difference between the two rates reaches 12 trillion dinars annually, which constitutes, according to his calculations, approximately 5.5 percent of total public expenditures within the general budget for the year 2027. He concluded by stressing that this calculation methodology reveals with complete accuracy the true financial consequences of currency value adjustment, attributing this to the exclusive reliance on net oil profits after stripping them of expenses and external commitments that the government undertakes to pay in hard currency.