An economist predicts the next government will change the dollar exchange rate, and explains the reasons.
Economists expect the next government to resort to an official devaluation of the Iraqi dinar against the US dollar as a potential solution to address mounting financial burdens, most notably the massive government payroll.
Economic expert Nabil Al-Marsoumi told Al Furat News Agency that “the salary bill accounts for the largest portion of oil revenues, leaving little for upgrading infrastructure or basic services.”
Al-Marsoumi believes that devaluing the currency will provide greater financial revenues in dinars, which will help the government cover salary expenses.
He added that this option may be one of the necessary measures that the new government may take, especially in light of the current oil prices that threaten to close the country’s economic development prospects.
Experts emphasize that sustainable solutions lie in diversifying sources of public revenue and not relying entirely on oil, in order to ensure the stability of the Iraqi economy in the long term.
Alforatnews.iq