ARTICLE AD BOX
ECONOMIST: LOWER OIL PRICES MAY PUSH IRAQ TO REDUCE EXCHANGE RATE AND CUT EXPENSES
Economic expert Nabil Al Marsomi warned today, Monday, that the continued decline in oil prices will put the Iraqi government before difficult choices, including those that may include reducing the exchange rate to confront financial challenges.
(Mnt Goat- by reducing the exchange rate they mean to devalue the currency. Get it? It does not mean a revaluation. Again they do not mean taking 1310 and making for instance 1200, which would be a literal reduction.
But they do not mean literal reduction instead they mean a reduction in the value of the dinar, meaning it would take more dollars to buy a dinar and thus the dinar would be worth less in Iraq than it is today. Think, Think and Think! Gosh….
Stop listening to these idiot intel gurus. Why else would Iraq tell us it would be a “difficult decision”. If it was a revaluation, it would not be difficult, it would be easy. The difficulty comes in a devaluation.)
Al-Marsoumi told Al-Furat News Agency that “the government may be forced to take austerity measures that include reducing public expenditures and increasing non-oil revenues,” noting that “the oil market is currently suffering from significant weakness, with a decline in oil policy that may include imposing fees on some countries such as China, Canada and Mexico, in addition to the possibility of canceling the OPEC Plus agreement, which stipulates reducing production by two million barrels per day.”
He added, “These expectations indicate further declines in oil prices in the coming weeks, which will negatively affect the Iraqi economy.”
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