Economic expert Safwan Qusay has warned about the risks of weakening the Iraqi dinar against the US dollar as tensions and conflict continue across the region.
Qusay said the Central Bank of Iraq is currently in a strong position, holding more than $90 billion in foreign currency reserves and over 170 tons of gold. These reserves, he explained, help the bank maintain the current exchange rate and support the value of the dinar.
However, he cautioned that if the Strait of Hormuz remains closed because of the ongoing conflict and tensions continue to escalate, Iraq could face serious economic pressure. A prolonged closure would affect trade and oil exports, putting additional strain on the country’s financial resources.
According to Qusay, if reserves begin to decline under these conditions, the Iraqi dinar could lose value against the dollar. He stressed that no one wants to see this happen, as a weaker dinar would lead to higher inflation and increased costs for citizens.
He added that the future of the exchange rate will largely depend on how long the regional conflict lasts and how severe its economic impact becomes.
