Iraqi Dinar 123 News:– The Central Bank of Iraq has admitted the most critical financial condition in Iraq. CBI said that Iraq is facing a challenging financial situation and it will be continued in the future due to the instability in the global oil prices, which was also recognized by the Iraqi Finance Committee in the House of Representatives. The CBI also confirmed that deficient planning of budget 2014 made the Iraqi financial condition more severe. A spokesman from the Iraqi Central Bank Ali Mohsin also said in his statement that there are a number of problems in the Iraqi financial area, but we hope that the recent crisis would be the facilitator for reforming in rebuilding the balance between revenues of the state and expenses, which will provide an opportunity to resent its financial conditions.
Most of the economic and financial experts predicted that instability in the global oil prices will remain in the future and it would be a major challenge for Iraq. The Iraqi financial condition is becoming more difficult to manage due to lack of perfect planning in their mechanisms for budget and payment of salaries. The Iraqi budget 2015 also approved more than 125 trillion Iraqi dinars but it depends on the suggested oil price that was fixed in the budget at 56 U.S dollars per barrel, but we have experienced that oil prices are decreasing significantly and that is reflecting a negative impact in managing Iraqi financial institutions. Iraq is much dependant on its revenues generating by its oil exports, but Iraqi government should need to focus on other non-oil sectors such as agriculture and industry.