Financial expert and former member of the Central Bank’s board, Ahmed Barihi, said on Saturday that Iraq is capable of managing the current financial challenges caused by declining revenues, thanks to the country’s strong cash reserves.
Barihi explained that the sharp drop in oil exports, linked to the closure of the Strait of Hormuz, has significantly reduced the foreign currency revenues flowing into the state treasury. Despite this pressure, he believes Iraq has sufficient financial reserves to meet its obligations and withstand the downturn for an extended period.
According to Barihi, these reserves provide an important safety cushion that can help the government navigate the current economic difficulties without facing an immediate funding crisis.
He also stated that the Iraqi government is not currently considering external borrowing as a solution to the revenue shortfall. Barihi noted that no official announcement has been made regarding plans to seek foreign loans.
His comments come as concerns grow over the impact of disruptions to oil exports and their effect on Iraq’s economy, which relies heavily on oil revenues to finance government spending and public services.
Barihi stressed that the country’s financial reserves remain a key factor in maintaining economic stability and helping Iraq manage the challenges created by lower oil income.
