IRAQ DEVALUES CURRENCY AS HORMUZ DISRUPTION HITS OIL EXPORTS

IRAQ HAS DEVALUED ITS CURRENCY BY AROUND 13%, RAISING THE PUBLIC DOLLAR-SELLING RATE TO 1,520 DINARS FROM ROUGHLY 1,320. THE MOVE COMES AS DISRUPTIONS IN THE STRAIT OF HORMUZ SHARPLY REDUCE IRAQ’S OIL EXPORTS AND PUT PRESSURE ON GOVERNMENT REVENUES.

IRAQ’S CRUDE EXPORTS HAVE AVERAGED ABOUT 1.25 MILLION BARRELS A DAY SINCE MARCH, FAR BELOW THE NEARLY 3.5 MILLION BARRELS A DAY RECORDED LAST YEAR. WITH LOSSES ESTIMATED AT AROUND $80 BILLION AND THE ECONOMY PROJECTED TO CONTRACT SHARPLY, BAGHDAD FACES GROWING PRESSURE TO PROTECT PUBLIC-SECTOR SPENDING WHILE SUPPORTING THE DINAR. ...