ERBIL, Kurdistan Region of Iraq – Iraq’s trade ministry on Saturday announced the launch of direct sales of construction materials to citizens, offering cash and installment payment options under directives from Prime Minister Ali al-Zaidi, as the government seeks to ease the impact of the dinar’s depreciation.

The general company for trading building materials, part of the trade ministry, has started “direct sales of construction materials to citizens,” company director Areej Hussein al-Jumaili told state media.

The initiative was launched under Zaidi’s direction to provide citizens with “affordable construction supplies and boost their purchasing power, particularly amidst fluctuations in exchange rates and their impact on local market prices,” according to Jumaili.

Jumaili stressed the company’s “commitment to helping stabilize prices and sparing citizens from additional financial burdens caused by dollar exchange rate volatility, in line with government directives.”

The initiative comes amid growing economic pressure following a government decision to weaken the dinar. On Tuesday night, Iraq’s Council of Ministers changed the official exchange rate from 1,320 to 1,520 dinars per dollar, with the measure taking effect on Wednesday.

The decision sparked widespread backlash as Iraqis are grappling with rising prices and inconsistent public-sector salary payments.

The dinar’s market value subsequently fell sharply, with the exchange rate climbing above 170,000 dinars per $100, compared with 163,000 dinars per $100 the previous night.

The dinar initially weakened following the onset of the Iran war but later stabilized after Zaidi’s government was elected. Since then, it has continued to gradually lose value.

Zaidi defended the official exchange-rate adjustment in an address to parliament on Thursday, saying the measure was necessary to avoid worsening the country’s financial crisis.

A weaker dinar makes imported goods, including food, medicine and consumer products, more expensive, adding to the pressure on Iraqi households already struggling with rising living costs.

The materials available through the trade ministry’s initiative include construction, plumbing and electrical supplies stocked by the company, Jumaili said, adding that it is working with private-sector firms to offer products at competitive prices.