Iraq Dinar Speculation

Followers of the Iraqi Dinar no doubt remember how the budget has been affected over the last couple months by the instability of oil prices. In fact, a large portion of the Iraqi government budget was simply lopped off on three separate occasions as oil plummeted from $150 per barrel to the $30 range.

This obviously puts a stress on the value of the Iraqi economy, and also on the value of the Iraqi Dinar. Good change may be on the way, however.

Yesterday, oil hit $70 per barrel, and many experts are insisting that it will go higher… with the impending decline of the USD, prices could hit $250 per barrel. A spokesman from BP states that they have reserves enough to last 42 years, but others who subscribe to “peak oil” – the theory that the maximum rate of oil production has been reached – believe supplies will run out much sooner because of growing demand.

Previous budget was based on oil prices of $62.50.

Maliki said at a meeting with provincial governors in Baghdad,

The rise in oil prices and production could allow us, God willing, to present a supplementary budget…

According to the Iraqi Oil Ministry on Monday, oil prices are around 70 dollars a barrel and oil revenues rose 8.1 percent in April compared to  March, with lower exports being offset by the higher prices.