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Hirmuz dispute costs Iraq billions
The article discusses the economic crisis faced by Iraq as a result of the geopolitical repercussions of the war between the United States and Iran, especially after escalating tensions in the Strait of Hormuz. Iraqi oil exports have been affected, and the country has experienced a sharp decline in revenues, dropping to approximately 2.6 million barrels per day from the previous level of 3.5 million barrels. This has led to the depletion of the Central Bank's reserves and a devaluation of the dinar, with the country relying on domestic borrowing to meet essential needs, including employee salaries and food imports. The International Monetary Fund has pointed to the fragility of the Iraqi economy, with a plan to diversify income sources to reduce reliance on oil and increase non-oil revenues from 10% to 45% by 2037, aiming to protect the country from the impacts of conflicts and international energy market fluctuations.
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