Economist: Low oil prices may push Iraq to reduce the exchange rate and reduce expenses
Economist Nabil Al-Marmi warned on Monday that the continued decline in oil prices will put the Iraqi government in front of difficult choices, including those that may include reducing the exchange rate to face financial challenges.
Al-Masri told {Euphrates News} that “the government may have to take austerity measures that include the pressure of public expenditures and increasing non-oil revenues,” noting that “the oil market is suffering from a significant weakness at the moment, with a decline in oil policy that may include imposing tariffs on some countries such as China, Canada and Mexico, in addition to the possibility of canceling the “OPEC Plus” agreement that requires reducing production by two million barrels per day.”
“These expectations indicate further declines in oil prices in the coming weeks, which will negatively affect the Iraqi economy,” he added.