THE NEW YORK TIMES: Oil-rich Iraq, its economy hobbled by neglect and corruption, has devalued its currency and had its imported electricity cut off for nonpayment.
BAGHDAD — In a stall off a narrow, winding alley of Baghdad’s oldest market, Ahmed Khalaf sells the smallest luxuries: nail polish, plastic hair barrettes, colored pencils.
Even during the pandemic, by midmorning the stalls in Shorja market would normally be thronged with shoppers buying food staples and household goods. But last week the aisles were nearly empty.
“Our customers are mostly government employees, but as you can see they’re not coming,” said Mr. Khalaf, 34.
His troubles are a ground-level indicator of what economists say is the biggest financial threat to Iraq since Saddam Hussein’s time. Simply put, Iraq is running out of money to pay its bills, threatening the country on several fronts.
The financial crisis holds the potential to destabilize the government, which was ousted a year ago after mass protests over corruption and unemployment, touch off fighting among armed groups, and empower Iraq’s neighbor and longtime rival, Iran. » | Jane Arraf | Monday, January 4, 2020
