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Iraq’s Currency Devaluation May Not Be Enough to Salvage Sinking Economy
Iraq’s currency devaluation will add inflation to the list of hardships facing a population recovering from a devastating war with Islamic State. Without deep spending cuts, it won’t be enough to prevent even deeper economic pain. The government announced Saturday it was devaluing the currency for the first time since the U.S.-led invasion in 2003, lopping off 23% of the dinar’s value to reduce pressure on public finances as it tries to secure billions of dollars in foreign aid. But the move, part of a broader plan to overhaul Iraq’s oil-dependent economy and trim its bloated public payroll, has already met ... (full story)