Economist: Iraq needs $ 66 a barrel and resorting to currency reserves is a disaster
Economist: Iraq needs $ 66 a barrel and resorting to currency reserves is a disaster
06/02/2020 21:13:56
{Baghdad: Al Furat News} The economic expert, Ali Al-Fariji, stressed the need for Iraq to price 66 dollars per barrel out of the economic crisis, while warning against resorting to currency reserves.
“The average price per barrel of $ 39 is expected to be at the end of the year or in the first quarter of 2021,” al-Furaiji said, noting that “Iraq is linked to the OPEC agreement to reduce one million barrels per day, so we will face two problems in fluctuating price per barrel with The estimate imposed on Iraq is to face the same operational budget and the same numbers for years. ”
He added, “In the sense that the exchange rates in the government will be very large against a deficit in oil revenues because the price per barrel of oil is 34 dollars and Iraq needs from 62 to 66 the price of a barrel to meet the budget if compared to the 2019 budget, so it will be more than 55% deficit in the price of a barrel.”
Al-Furaiji pointed out that “the financial crisis in the country depends on the type of plan or strategy and the urgent need for the prime minister’s attention on the team leading this crisis; but if we rely on the same minds that caused the disaster and the economic crisis, we will fall into a quagmire that is suppressed than we are.”
He also stressed “the need for Iraq to have very exceptional minds and experienced expertise worldwide to lead economic construction in a manner that differs in the nucleus of the crisis.”
The economist warned against “resorting to the state’s treasury,” returning him “a catastrophe and a depletion of the country’s energy,” explaining that “Iraq possesses an average of 60 billion dollars, 30 billion of which is in bonds, therefore there is a limit allowed by the state that can be dealt with and almost according to decisions from 9″ To 11 billion dollars. ”
He noted at the conclusion of his speech that “if the deal exceeds this figure is too big glitch will happen in the economic structure of Iraq”, warning the government of “special operations leveraged and Iraq are currently subject to $ 80 billion in debt negative” .anthy
alforatnews.com
