US site: the continued decline of oil and the war in Iraq Daash may be forced to reduce its currency

Long-Presse / Baghdad....The number of Iraqi currency in a banking offices in Baghdad Counting economic US site, said on Wednesday that the continued decline in global oil prices, casts a heavy shadow over Iraq and its ability to sustain the momentum of financing military operations against (Daash), while among Iraq's reserves of hard currency fell 20 percent to $ 59 billion , predicted that the value of the dinar weakened by 20 percent over the next year in 2016 unless the government may be forced to reduce its exchange rate against the dollar, and the high cost of living in a country suffering mainly from the protests.

This came in a report published on Bloomberg Bloomberg US economic news, today, all the monetary crisis in Iraq, caused by falling oil prices, and what has caused the problems go beyond the economic side, the more difficult the course of the ongoing war against al (Daash), I followed (range Press).

The Web site said, "Any currency crisis faced by a country often come the consequences of severe and painful it", adding that "the threat to Iraq shows the extent of the impact that could be caused by the crisis to other aspects outside the scope of the market and the economy."

The site Bloomberg, that "the damage to the national reserve of hard currency caused by falling oil prices, could force Iraq to reduce the value of the dinar," he returned that "it can sustain the momentum that makes the financing of the ongoing military operations against al-Daash more difficult."

He explained the site, that "Iraq, which is the second largest oil producer in OPEC, after Saudi Arabia, is entirely dependent on oil imports to fund military operations, and nappy on its economy from the risk of collapse," revealing "landing Iraq's reserves of hard currency by 20 percent to $ 59 billion as of July 23 since the escalation of fighting with Daash a year ago. "
According to Bloomberg, that "the Iraqi financial losses mounting," pointing out that "the Iraqi Central Bank, sold during the 25 first days of August now in 2015, nearly four billions and $ 600 million, with an average daily rate of $ 184 million, to maintain the fixed exchange rate of dinars. "

The website quoted Economic Frank expert Gunter, author of the book (the political economy of Iraq), as saying that "the crisis experienced by Iraq means that he will continue to loss reserves until the government decides devaluation of the dinar," expected to "Iraqi currency weakened by 20 percent over the next year in 2016 ".
He continued by Bloomberg, that "the collapse of the value of the dinar may lead to higher cost of living for Iraqi citizens who cross the now already protesting against corruption in government departments and the scarcity of electricity and drinking water facilities."

The website quoted the Director General of Statistics and Research at the Central Bank of Iraq, Walid Idi, saying that "limited now to meet the needs of a dollar coin bank's policy", stressing that "the bank reserves did not drain to the presence of oil sales, and that the value of the dinar will not cut."
As Jacob Christensen said of Aiczotks Foundation, as quoted by Bloomberg, "the Iraqi authorities will do their best to maintain the exchange value for as long as possible, but it may have to reduce the value of the national currency, if the pressure continued."

The New York Times The New York Times the US, warned in a report, on Tuesday, (the 25th of August now 2015), the fallout from landing "unprecedented" global oil prices on the stability of countries that fully its economy depends on its revenues, including Iraq, while Experts felt that Baghdad is required to spend a lot of money not to fight (Daash) only, but to pass a lot of political deals that need to be decisive in order to preserve the survival of the support of various groups to the government, counting others that bleeding winning the budgets of oil-dependent governments forcing it to make cuts "dramatic" spending or resort to more borrowing options dangerous, if not both together.

The World oil prices fell more than 60 percent compared to last year, the summer of 2014, and it has become without the forty dollars during the past few days, amid expectations of constantly landing as a result of the abundance of production and increase the possibility of Iran produced with ease economic sanctions.