Sterlingcg

Iraq is observing a great financial pressure because of the increasing demand of US dollar. The central reserve bank of Iraq has already declared that the economy of Iraq is under a great currency attack. Moreover the great demand of US dollars has created a lot of pressure on the central reserves of Iraq as well.

Mudher Salih, the governor of the central bank of Iraq, told the media about the matter and expressed his thoughts. He said that the high demand of US dollars is highly affecting the dollar sale auction and it is not in the right interest of Iraqi economy. He also said that the high demand of US currency will suck all the foreign reserves from the Iraqi central reserve bank and then it will badly devalue the Iraqi dinar. Salih also told that the foreign currency reserves in Iraq have reached to sixty billion US dollars and it is happening for the first time in the history.

In the month of January 2011, the central bank of Iraq sold more than two hundred and fifty two million notes at a fixed selling price of 1170 Iraqi dinars for one US dollar. He further added that a lot of money which was invested in Iraq is now being exchanged in to US dollars and it is being funded to the neighboring countries of Iraq.

But still the conditions of Iraq are not very weak as it is an oil rich country. With the increase in the production of crude oil, the economy of Iraq and the revenue of Iraq will increase in a real manner. For the people who are unaware of the matter, it is to be informed that the new Iraqi government has declared to increase the production of crude oil from 2.6 billion barrels to 3.6 billion barrels. This increase in the production of crude oil will highly benefit the economy of Iraq and it will drag Iraq out of the financial pressure. Moreover the trade and business sanctions on Iraq have been removed by many countries and now Iraq is free to do business with the foreign countries. All these factors are a proof that the economy of Iraq will shine in the very near future.