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. 70bn Iraqi Dinar stashed, reserves won’t be touched!
4. Oil: The parliament will discuss the oil and gas law during its meetings next Read more: http://dinarvets.com/forums/index.php?/topic/60518-oil-the-parliament-will-discuss-the-oil-and-gas-law-during-its-meetings-next/#ixzz1I6uvz7YX
5. Iraq considering IMF loan and 3rd extension of SBA

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.