Will Iraq go to Dollar Revaluation in Response to Oil Price Crash?

Plunging Oil Prices Jeopardize Iraq’s Budget: Will the Government Resort to Dollar Revaluation?
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Iraq is bracing for renewed economic turbulence as oil prices fall below the critical $65 per barrel mark—five dollars short of the benchmark adopted in the country’s federal budget. The slide in global crude markets threatens to erode the very foundation of Iraq’s oil-dependent economy, prompting speculation over potential fiscal and monetary policy shifts.

According to economic analyst Salah Boushi, the continued depreciation in oil prices could severely undermine the state’s ability to fund essential institutions and public services. “The longer this drop persists, the more pressure the government will face,” he told Kurdistan24. “A flexible, carefully calibrated strategy is imperative. Increasing oil production may become necessary to offset lost revenues.”