Iraqi Fears Over US Economy

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)

Tags: ,

2 Responses to Iraqi Fears Over US Economy

  1. Ray August 16, 2011 at 9:00 am #

    Iraq needs…desperately needs to get it’s currency revalued so it can be used in the world market place. Do that and everything else will fall into place. It’s really that simple. It is not rocket science. Example: If you need something, lets say a house to be built and I have the know how , materials, tools and manpower to build it. You have to offer me money that is worth something that I can use in my country. No one works for free. We have a saying in my country it refers to hitch hikers: “No gas, No ass, no cash No one rides for free”.

  2. Stew August 16, 2011 at 11:48 am #

    Iraq has the following denominations.
    50 worth 4 cents
    250 worth 21 cents
    500 worth 42 cents
    1000 worth 85 cents
    5000 worth $4.25
    10,000 worth $8.50
    25,000 worth $21.25

    Looks to me like the Iraqi currency is remarkably the same as the US currency
    They have basically just like us:
    Nickel
    Dime
    Half Dollar
    Dollar
    5 dollar
    10 dollar
    20 dollar

    This whole idea that Iraqi currency is worthless is pure nonsense.