- 🇮🇶 Special report from WikiLeaks 🤖 on the reasons for the rise of the dollar in Iraq.

- 🇮🇶 Special report from WikiLeaks 🤖 on the reasons for the rise of the dollar in Iraq.

The reason for the rise of the dollar in Iraq is mainly due to the great pressure on the Iraqi economy due to the large number of government employees and salary recipients, since the number of government employees in Iraq is about 8 million people, in addition to the number of retirees and beneficiaries of the social security network.

Most of the revenues of the Iraqi state depend on oil, so the government needs large oil revenues on an ongoing basis to be able to cover salaries and public expenses. In recent years, the country has faced difficulty in covering these expenses, and the exchange rate has previously witnessed an increase as a result of economic and financial pressures.

- After the Straits of Hormuz crisis and the disruption or decrease in Iraqi oil's access to global markets, the rentier Iraqi economy became a bigger problem, because an important part of the income depends on oil exports and the flow of dollars to the country. - With the decrease in the dollar flow and the ongoing need of the government to pay salaries and expenses, the pressure on the foreign currency is increasing, and this is especially noticeable in the parallel market, where the demand for the dollar increases in return for its decrease in supply, and therefore its price increases even if the official price set by the government or the central bank remains constant.

- If oil revenues continue to decrease or if oil exports go wrong for a long period of time, the pressure on the budget and the dollar market may increase, and this may lead to delayed salaries or difficulty in financing government expenses, especially if the country does not have enough reserves and alternative revenues.

- WikiLeaks 🤖 War Leaks