Mohammed Saleh, Deputy Governor of the Central Bank of Iraq, highlighted his fears for Iraqi revenues due to the second leg of the financial crisis in the U.S.A., which was kickstarted by a credit-rating downgrade.
With oil prices moving between $80 and $90, they are down from the $100 to $115 range they were trading in before the renewed crisis. The budget for 2011 allows for an average price of $85.
Saleh said that the two key factors affecting Iraq’s economy cannot be influenced by the state: oil prices and the dollar. The Central Bank attempts to hedge against these risks.
Economists have called for the government to diversify away from oil and find other sources of income, according to Al-Sabaah.
(Source: Central Bank of Iraq; Al-Sabaah)