Despite higher oil revenues-consumer price hike and poltical uncetainty unnerve public

Despite higher oil prices filling the central bank with foreign currency reserves, everyday Iraqis worry the ongoing political crisis will lead to an erosion of their standard of living. On Sunday, Ammar Khalaf, the central bank’s deputy governor, announced Iraq’s foreign currency reserves are now above $80 billion and likely to hit $90 billion by the end of the year. But in the marketplaces of Baghdad, citizens say any escalation of the political crisis will cause a significant rise in prices. Resident Jassem Al-Khazraji told A24 that a lack of security leads to confusion, forcing citizens to shop and buy more than needed foodstuffs. The government’s debt as a percentage of GDP is forecast to fall to about 47 percent this year from 66 percent of output in 2021- the biggest of any government in the Middle East and North Africa. But global credit agency Finch echoes the anxiety on the streets of the capital, where there is significant uncertainty about public finance trends – especially regarding electricity subsidies and the public sector payroll.