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KTFA
Tink » June 14th, 2026
The events of the region determine the economic paths of Iraq. A financial crisis, a rise in prices and a change in the value of the dinar
Information/Report…
The events of the region directly affect the economic situation of Iraq, which is at the heart of the hurricane witnessed by the countries of the so-called Middle East, after the war invented by America against the Islamic Republic and the repercussions of this on the Strait of Hormuz, are all factors that may lead governments, especially in Iraq, to take decisions that mitigate the extent of the damage, but make the people pay the tax, by reducing the value of salaries in case of going towards devaluing the dinar, and following the policy of austerity and raising the amounts of fees in various sectors, which will harm the citizen.
“Everyone, whether in Iraq, its government and the rest of the world, is monitoring the developments of the current scene in the region, and awaits the outcome of the indirect negotiations between the American and Iranian sides,” says Imran Karkoush, a member of the State of Law Coalition.
He added that “the Iraqi economy has been affected by the developments in the region and military escalation, as Iraq is awaiting the results of negotiations between Washington and Tehran in order to restore the situation to what it was before in the Strait of Hormuz.”
He pointed out that “Iraq was directly affected by the ongoing war in the region, as the government is waiting for the end of this file and closing it and work to strengthen relations within the region and build strong economic ties through the railway and commercial link between the countries of the region, Iraq and the world, as Iraq is currently in the heart of the storm and is directly affected by current events.”
For his part, the economist Zia Al-Mohsen explained to /Al-Malma/, that “the government of Mustafa Al-Kazimi was the first to take the step of raising the exchange rate of the dollar against the Iraqi dinar under the pretext of providing financial liquidity and addressing the pressures on public revenues as a result of the repercussions of the C****a pandemic, and therefore any new economic measures must comply with the requirements of the local market and take into account the living conditions of citizens.”
He added that “raising the exchange rate will lead to a decrease in the purchasing power of the citizen and weaken the real value of employees’ salaries, in addition to causing a rise in the prices of goods and food, which reflects negatively on the standard of living of the Iraqi family.”
Al-Mohsen pointed out that “addressing financial crises should not depend on burdening the citizen with additional burdens, but rather through the activation of productive economic sectors, foremost of which are the agricultural, industrial and manufacturing sectors, which contributes to diversifying sources of income and reducing dependence on oil revenues.”
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He pointed out that “the government may resort to other measures beyond raising the exchange rate, including reducing or canceling some forms of subsidies provided for fuel or food and medicine in order to increase public revenues,” stressing that “such steps will be directly reflected on the citizen because they target his daily spending and living capacity.”
On a related level, the political researcher Qassem Al-Tamimi said in his interview with /Al-Malama/, that “Iraq has internal debts of up to 90 billion dollars and foreign affairs of the limits of 30 billion dollars obtained by Iraq through borrowing due to the decline in cash flow inside.”
He added that “there is a difficulty that the government will face in the process of controlling the dollar currency in local markets, especially since this currency is directly linked to the US Federal Bank, as Iraq depends on oil sales that reach the said bank before being sent to Baghdad.”
He added that “Iraq suffers from many problems caused by the current situation in the region after the significant decline in oil sales, and this clearly affected securing liquidity, and therefore the Zaidi government faces a great challenge with regard to the financial and economic situation.”
Source: Dinar Recaps
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