Iraq Economic News and Points to Ponder Saturday AM 2-1-25
Are The Large Cash Reserves Really Reassured Or Hide A Future Financial Crisis?
Jan 30, 2025 Last update: Jan 30, 2025 Independent/- Despite the remarkable development in the monetary reserves of Iraq, where he ranked third in the Arab world for 2024 after Saudi Arabia and the UAE, the economic situation in the country is still marred by ambiguity and questions, which makes these numbers a source of controversy instead of pride.
A comfortable number ... but what next?
Some sources have announced that Iraq has cash reserves estimated at about $106.7 billion, which is considered greater than the size of the exported currency.
It is assumed that this is considered a "wall" wall in front of potential crises, and gives positive signals to foreign investors. But the real question is:
Do these reserves really represent a real "stability"?
Do these numbers reflect the reality of the Iraqi economy?
Despite these figures, the Iraqi economy still depends excessively on oil as a major source of income, which exposes it to any fluctuations in global oil prices.
It is true that Iraq has good cash reserves compared to some Arab countries,
but most of its economic projects remain involved in unaccounted risks.
Can we really consider these reserves as an economic stability tool, while
debts are still ongoing, and
non-oil resources are almost non-existent?
Is Iraq ready to deal with future crises?
Although some experts, such as Dr. Nabil Al -Marsoumi, consider that critical precautions are great enough to finance internal projects and protect the Iraqi dinar,
it is not possible to ignore the fact that cash reserves are not the only solution to crises. As Imad Al -Muhammadawi indicated,
diversity in income sources will be the main factor for real financial stability.
Great allocations, where do you go?
With the allocation of 500 billion dinars for service effort projects, the most prominent question remains:
Will this money be optimized?
Iraq has beautiful numbers, but is this enough to stimulate sustainable development?
Or are these numbers only used in projects that are not concluded?
Controversy summary:
In the end, cash reserves remain mere numbers on paper unless they are translated into realistic economic policies that
diversify income,
reduce dependence on oil, and
contribute to achieving real development that touches the lives of citizens.
https://mustaqila.com/هل-الاحتياطيات-النقدية-الكبيرة-للعرا/
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