{"id":56092,"date":"2020-12-19T16:44:51","date_gmt":"2020-12-19T21:44:51","guid":{"rendered":"https:\/\/olduvai.ca\/?p=56092"},"modified":"2020-12-19T16:44:51","modified_gmt":"2020-12-19T21:44:51","slug":"cash-strapped-iraq-drastically-devalues-dinar-as-fears-of-nationwide-unrest-grow","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=56092","title":{"rendered":"Cash-Strapped Iraq Drastically Devalues Dinar As Fears Of Nationwide Unrest Grow"},"content":{"rendered":"
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Cash-Strapped Iraq Drastically Devalues Dinar As Fears Of Nationwide Unrest Grow<\/a><\/h3>\n<\/header>\n
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According to the latest IMF forecasts,\u00a0Iraq’s GDP will contract 12% this year,<\/strong>\u00a0more than that of any other OPEC member under a production quota.<\/p>\n

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A global pandemic-induced demand slump (among other domestic issues) has pushed Iraq – under its OPEC membership – to\u00a0slash oil production by over 12% year-over-year\u00a0<\/strong>(however, Iraq, along with other nations such as Nigeria, has pumped above its quota on several occasions since then).<\/p>\n

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In the most recent sign of Baghdad’s growing desperation for cash as its economy unravels,\u00a0Iraq sought an upfront payment of about $2 billion in exchange for a long-term crude-supply contract\u00a0<\/strong>as state coffers dwindle and\u00a0school\u00a0teachers go unpaid.<\/strong><\/p>\n

As Bloomberg reports, the letter from SOMO, the Iraqi state-owned agency in charge of petroleum exports, was\u00a0first reported\u00a0by the Iraq Oil Report.<\/p>\n

\u201cSOMO, on behalf of the Ministry of Oil, has the interest to propose a long-term crude-supply deal in exchange for prepayment for a fraction of the total allocated quantity,\u201d according to the letter, which was marked strictly confidential.<\/p><\/blockquote>\n

The anxiety is rising as officials fear a repeat of the\u00a0upheaval last year that brought down the government and saw hundreds of protesters killed<\/a>.<\/strong><\/p>\n