Economic expert Abdul Rahman Al-Mashhadani said that Iraq’s Central Bank can support the country’s economy for a whole year without causing the price of the dollar to rise.
Al-Mashhadani told dinaropinions.com, “The ongoing closure of the Strait of Hormuz is affecting Iraq’s economy, so the Central Bank took a close look at the situation, especially after its recent meeting on this long-term crisis.”
He added, “The crisis seems serious. Even the Supreme Leader pointed out that the Strait of Hormuz is still closed, oil exports are down, and this is putting pressure on Iraq’s economy with very few options to make up for the loss.”
Al-Mashhadani explained, “Right now, Iraq is exporting about 200,000 barrels of oil through the Ceyhan pipeline, plus some domestic oil. But the Central Bank is in a good position. It has enough reserves to fund Iraq’s trade for 12 months. That’s reassuring. This means the bank can keep selling dollars even if it doesn’t get more from the government for a year. Plus, the bank is ready to lend money to the government if needed.”
