Economist: Lower oil prices may push Iraq to reduce exchange rate and cut expenses
Economist: Lower oil prices may push Iraq to reduce exchange rate and cut expenses
2025/03/10
Economic expert Nabil Al Marsomi warned today, Monday, that the continued decline in oil prices will put the Iraqi government before difficult choices, including those that may include reducing the exchange rate to confront financial challenges.
Al-Marsoumi told Al-Furat News Agency that “the government may be forced to take austerity measures that include reducing public expenditures and increasing non-oil revenues,” noting that “the oil market is currently suffering from significant weakness, with a decline in oil policy that may include imposing fees on some countries such as China, Canada and Mexico, in addition to the possibility of canceling the OPEC Plus agreement, which stipulates reducing production by two million barrels per day.”
He added, “These expectations indicate further declines in oil prices in the coming weeks, which will negatively affect the Iraqi economy.”
alforatnews.iq
