An economist says Iraq’s reserves are capable of supporting the dinar despite the risks.

Economic expert Safwan Qusay warned against devaluing the Iraqi dinar against the dollar, coinciding with the ongoing conflict in the region.
Qusay told Al-Maalouma, “The Central Bank possesses dollar reserves exceeding $90 billion, along with more than 170 tons of gold, enabling it to maintain the current exchange rate.”

He added, “If the Strait of Hormuz remains closed due to the regional war and its continuous escalation, without accountability for those responsible for this closure, which has caused significant damage to the Iraqi economy, the dinar will undoubtedly depreciate against the dollar due to the depletion of reserves.”

He explained, “No one desires the continuation of the current situation, which would force the government to devalue the dinar against the dollar, as this would increase inflation rates. This matter is directly linked to the depth and duration of the conflict.”

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