Economist Warns: The Dollar Will Explode If Iraq Enters The War With Israel And Iran - Urgent

 
Economy Yesterday, | 1157  economic hell  Baghdad Today – Baghdad   As regional tensions between Israel and Iran escalate, Iraq stands at a dangerous juncture,
 
the repercussions of which could extend beyond politics and security to the heart of the fragile economy, burdening ordinary citizens who still yearn for a lost stability.

Whenever the drums of war beat in the region, Iraqi markets are the first to tremble, as fear turns into a frenzied race for the dollar, and the dinar becomes a burden rather than a security.
 
In a scene that is repeated with every crisis, anxiety levels rise among traders and citizens, and the dollar begins to rise, as if reflecting the pulse of fear in the streets.
 
As news of the potential for the conflict to expand continues, economists warn of an impending catastrophe,

warning that any Iraqi involvement in the conflict will 
     mercilessly ignite the foreign exchange market and 
     push the prices of basic commodities to levels beyond the reach of ordinary citizens.
 
From this standpoint, the warning issued by economic expert Othman Karim,
on Sunday (June 15, 2025),
reflects a worrying reality,
speaking clearly about the scenarios that could destabilize the dinar and threaten food security,
if Iraq becomes embroiled in a war that is not its own, but one that will cost it dearly.  Karim told Baghdad Today,
 
"The rise in the dollar exchange rate immediately after the Israeli strikes is a normal occurrence in the market,
due to the fears of traders and those who own dinars and who resorted to quickly converting their currency into dollars."  He added,
 
"The exchange rate will remain below 150,000 dinars for the time being,
 
but if Iraq enters a state of war, prices ill reach more than 160,000 dinars, and may rise further, significantly impacting food prices,  especially if the seaports on which Iraq relies are completely closed."
 
The Middle East is witnessing an unprecedented escalation in tensions between Israel and Iran,
amid an exchange of threats and military strikes that threaten to expand the conflict to neighboring countries.
 
Iraq, due to its geographical location and its intertwined relationships with the parties to the conflict, faces the possibility of slipping into a war, either directly or indirectly, raising widespread popular and economic concerns.

Iraq is a country that relies heavily on imports, particularly food, which arrive via seaports.
 
This makes it vulnerable to fluctuations in regional and international markets.
 
The Iraqi economy also suffers from structural fragility, 
making it highly susceptible to political or security unrest.
 
This was evident in previous crises that led to sharp fluctuations in the dinar's exchange rate against the dollar, directly impacting the prices of goods and services.
 
With recurring geopolitical tensions, Iraqi markets are in a state of constant suspense, 
with the dollar exchange rate being more influenced by sentiment and anxiety than economic data.
 
This makes any military escalation in the region a direct cause of significant fluctuations that could impact citizens' daily lives.     https://baghdadtoday.news/276440-.html