Economist: Trump Oil Policy may Harm Iraq, Devalue Iraqi Dinar
A leading Iraqi economist has predicted that US President Donald Trump's pressure to reduce oil prices will harm the Iraqi economy, and could lead to a devaluation of the Iraqi dinar.
In a post on Facebook , Dr Nabil Jaafar Al-Marsoumi, former Professor of Economics at Basra University, and member of the Advisory Board of the Iraqi Economists Network (IEN), said:
" Following Trump's demand for Saudi Arabia and OPEC to reduce oil prices to provide cheap energy and expedite the end of the Russian-Ukrainian war, OPEC Plus's abandonment of its cuts amounting to 4.650 million barrels will be implemented within a few weeks. Oil prices will decrease as Trump planned, and oil revenues for oil-exporting countries will decline.
"However, the greatest harm will be to Iraq. Although its production will increase by approximately 220,000 barrels per day, the drop in oil prices to 60 dollars will put Iraqi finances in severe distress, as it financially means a reduction in Iraqi oil revenues by about 15 billion dollars, which will need to be secured through domestic borrowing.
"If prices drop to 50 dollars, devaluing the dinar will become one of the important options to increase public revenues denominated in dinars to reduce the deficit gap in the general budget!"
(Source: Nabil Jaafar Al-Marsoumi) Tags: cl, dinar, Dinar Exchange Rate News, Dinar Revaluation News, Donald Trump, featured, IQD, Iraq Oil Production News, Iraqi Dinar News, Iraqi Economists Network (IEN), OPEC, re-denomination, re-valuation, Redenomination, United States
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