An economist warns of a severe financial crisis and suggests adjusting the dollar exchange rate.
An economist warns of a severe financial crisis and suggests adjusting the dollar exchange rate.
2026/05/05
Economic expert, Nabil Al-Marsoumi, warned of the seriousness of the financial situation in Iraq, pointing to a large financial gap and escalating challenges that threaten economic stability in the coming period.
Al-Marsoumi said, during his appearance on the “On the Ruler” program broadcast by Al-Furat satellite channel, that “Iraq’s balance at the Central Bank is likely to decrease by up to $5 billion per month,” considering that “the continuation of this decline in the medium term represents a great danger.”
He pointed out that “the new government may be forced to make a decision to adjust the dollar exchange rate, despite it being one of the worst means of financing the budget, in addition to raising fuel prices.”
Al-Marsoumi added that “the recent statements by the Undersecretary of the Ministry of Oil regarding the export of between 160,000 and 200,000 barrels per day through the Kurdistan Region pipeline were disappointing, as exports were supposed to reach about 300,000 barrels per day,” noting “the slowness in the procedures of the Ministry of Oil for exporting crude.”
He explained that “export operations through the south are facing challenges, with the absence of clear figures and the possibility of a decline in oil exports during April compared to March, which will negatively affect the Iraqi economy.”
Al-Marsoumi explained that “Iraq is one of the countries most affected in the oil production file as a result of the closure of giant fields for long periods, which leads to complex technical damage, especially in fields that depend on water injection, which makes it difficult to restore their production capacity later.”
Regarding the truth about the arrival of the dollar shipment to Iraq, Al-Marsoumi explained that “the American embassy announced that no dollar shipment was sent to the country, denying the narrative that attributes its delay to air traffic or the atmosphere of war, and confirming that this came by an American decision, which is a dangerous indicator.”
He added that “the market responded to this development with a slight increase in the dollar exchange rate, considering this a clear message to the Iraqi government, indicating that the Central Bank’s cash dollar balance currently stands at only about $612 million.
Al-Marsoumi stressed that “Iraq cannot sell its oil in anything other than dollars at present and that alternatives will take years,” warning that “delaying the release of cash shipments will lead to higher exchange rates,” calling on the government to “act quickly to address the crisis,” noting that “the current economic challenges require realistic solutions that are commensurate with the size of the crisis.”
alforatnews.iq
