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.

Related posts:

1. Iraq losing MILLIONS per day due to oil export bans
2. Ministry of Finance blames Ministry of Oil for lack of funds
3. CBI cancels T-Bill auctions, Allawi to form Iraqi FCC, Iraq to quadruple oil production
4. Iraq considering IMF loan and 3rd extension of SBA
5. 70bn Iraqi Dinar stashed, reserves won’t be touched!

This entry was posted on Thursday, June 11th, 2009 at 5:47 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.