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  1. #1
    News Hound Investors Iraq News's Avatar
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    Post Time to Bite the Bullet

    If Iraq didn’t face enough challenges already, the slump in the price of crude oil is another unwelcome development for the new Abadi government to deal with.
    At a current price of $81.78, the benchmark West Texas Intermediate (WTI) crude is down nearly 25 percent from its June high, driven in part by a strong US dollar and weak Chinese demand.
    This comes at a time when Iraq needs all the funds it can get to bolster its defences and eventually eliminate the existential threat from the Islamic State.
    As difficult as it will be, Iraq’s parliament must finally agree a budget for this year based on the unpalatable reality that it is now facing.
    It must also bite the bullet and accept that in order to fund the war for its survival, public sector cuts will be needed in 2015, and that it may have to run a budget deficit.
    A devaluation of the Iraqi dinar is one possible consequence of a budget deficit, but this would also help the balance of payments and leave Iraq in a more competitive position.
    Ignoring the budget problem won’t make it go away.
    (Flag image via Shutterstock)


    Source: Iraq-BusinessNews.com.

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  2. #2
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    So they are actually lobbying for a drop in the dinar ???!!!

  3. #3
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    Typical

    just as the stocks are about to get a massive boost, the currency used to buy them becomes worthless !!!

  4. #4
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    Not sure how stocks are going to get a massive boost when many won't report their earnings due to losses and are suspended from trading.
    "ISC has decided to suspend the following companies for failure of disclosing 6M2014 financial results starting on Oct. 15, 2014: Babylon Bank (BBAY), Commercial Bank of Iraq (BCOI), Economy Bank for Investment (BEFI), Electronic Industries (IELI), Iraqi for General Transp. (SIGT), Baghdad Motor Cars Servicing (SBMC), Baghdad Passengers Transport (SBPT) and Al-Khair for Financial Inv. (VKHF)".
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  5. #5
    Supporter and Investor! oldskiier's Avatar
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    These lower Oil Prices are a blessing to the USA !!! the fastest way to a economic recovery would be $1.80 a gal gas !!!!...should have done this years ago !!! .... more money in the pockets of US citizens and lower prices at the stores via less cost to deliver goods !!! ..... FACT ! .... and the US Gov. should make it a law to lower goods prices due to this !! .... theses are direct costs !

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