How Gold Prices Impact on The Economy and Budget of Iraq

We have been observing a fall in the gold prices in the international market for a few months and the countries that are trading with gold instead of dollar of any other currency are worried about this continuous fall in the gold prices. Iraq is also one of those countries who are using gold for their international trades instead of dollars or their home currency.

Some of the economists are of the view that this decrease in the value of gold will affect the local market of Iraq and the economy will have to bear extra burden for this decrease and all imported goods will be costly as they were traded with gold. Economists are also talking about its effect on the recent budget of Iraq because revenue of the government was also affected by decrease of gold prices in the global market.

Contrary to this, some economists are not sure that the economy of Iraq would affect a lot with the present value of gold in the global market. The frozen assets of Iraq that valued $82 billion dollars are also included in the budget of 2014 and therefore it created a positive effect on the final balance sheet of Iraq. Iraq has scored very well in the export of oil in the year 2013. Therefore, Iraq had enough money to support its economy at the time of crisis and to fulfill the deficiency of its budget. There will be minor affect of gold price varies on the economy and the final budget of Iraq.

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