Iraqi economy has been experiencing a number of challenges and considered massive economic & financial crisis in the Iraqi history. Past two years were worst due to low revenues and continuous decline in the global oil prices. An extraordinary amount of expenses for maintaining security also increased financial & economic crisis in the country. Iraqi economy depends entirely on the oil revenues and covers at least 90 percent for Iraqi imports, which created a significant increase in the economic & financial crisis. Iraqi economy received various internal and external threats, so global credit rating agency “Fitch” declared negative credit rating for Iraq. Current Iraqi government is working very hard to overcome economic and financial problems in the country.
As we discussed in our previous articles about the issue of foreign currency auction at the Iraqi Central Bank and a significant amount of decline in the foreign cash reserves at the Iraqi Central Bank. Oil revenues for the first quarter of 2016 were recorded at 3 billion 269 million U.S dollars and total sale of foreign currency at the Iraqi Central Bank in the same period of time was recorded at 5 billion 821 million U.S dollars. The above figures have shown a major difference and it has been considered one of the major problems in the increase of financial & economic crisis in the country. Another major factor was also described by the committees of Iraqi House of Representatives and international reports mentioned about looted money of more than 312 billion U.S dollars over the past years.