💡 Frequently Asked Questions (FAQ)
- Q: Why is Iraq devaluing its currency by 13% now?
- A: To offset the risk of lower oil revenues from a possible Hormuz disruption and maintain export competitiveness while balancing a $58 per barrel budget.
- Q: How does the Strait of Hormuz affect Iraq’s exchange rate?
- A: Hormuz carries most of Iraq’s oil exports. A blockade threatens foreign currency inflows, so devaluation is used to preserve budget revenues and import capacity.
- Q: What is Iraq’s oil price budget assumption?
- A: The 2025 budget is built on $58 per barrel. Falls below that, combined with export risks, force fiscal adjustments via exchange rate policy.