Iranian nuclear deal cast a shadow on the Iraqi economy

by **Ponee** Sat Apr 11, 2015 12:01 pm

Iraqi economists said that the recent agreement between Western countries and Iran on the nuclear issue and the lifting of economic sanctions on Iran, will impact negatively on Iraq, through lower market share of Iraqi oil and declining terms of trade between Iraq and Iran.

He says economist just peace, to the island, the market share of Iraqi oil will drop after the lifting of economic sanctions on Iran, especially since the two countries depend on the Asian market in the export of oil, adding that Iraqi oil would drop the price about $ ten or more in order to sell the Asian market easily .

Financial collapse
shows that large interests between Iran and China will reduce demand for Iraqi oil, and therefore, Iraq will be forced to reduce the selling price, pointing out that Iraq now suffers from a lack of arrival to the desired output as identified in the budget to 3.3 exported millions of barrels per day during the current year, while not export up to three million. He stressed that Iraq is currently suffering from a major economic crisis, exacerbated expected in case of lifting sanctions on Iran.

He adds that the most affected by the lifting of sanctions on Iran is the banking sector in Iraq, where he has become in the last period is to sell the currency only place, and you are transferring to Tehran to ease the economic burden of it, and therefore the fiscal policy will witness an unprecedented collapse in the coming period.

He points out that "the country needs to redraw the economic plan and activation of other productive sectors, because in the event of continuing the status quo would result in a major disaster in the near future."

For his part, says the international economic expert, Dr. Ali Chihod Sudanese, to the island, said that Iran was an important and influential economic partner for Iraq during the past four years, and this is reflected in the escalating volume of intra-trade between Iraq and Iran, as it was in 2013 more than $ 12 billion to rise to more than twenty billion dollars in 2014, and is expected to reach more than $ 25 billion this year.

Iranian partner
adds that the recent agreement will impact on the Iraqi economy from two aspects: the first is the low volume of trade between the two countries to Iran's drive into new markets, as well as the loss of Iraq to an important economic partner, which will leave an impact on the Iraqi market as a result of adoption of semi-wide on partner Iranian in many sectors.

He continues that the second factor that Iraq will miss part of its oil exports for Iran, for being a member of OPEC and is subject to the decisions in this area, which would leave a significant impact on the current and future economic and put it in the light of the current crisis is going through.

For his part, says the President of the Economic Information Center, Dargham Muhammad Ali, to the island, he did not expect damage to Iraq from Iran's oil exports to return, and if that happens it will be temporary and will not last long. "In the case of export or resume pumping new oil will get replies price action, but do not be effective in the long run because of lower oil prices for oil speculation game."

He adds that Iran return the oil market will force OPEC to reprogram their production is not adversely affect the prices, Iran will sell its oil at the official rate and not at discounted prices through intermediaries, as was the case during the last period because of the sanctions.

And on the opinion of the Iraqi government, says the appearance of Mohammed Saleh, an economic advisor to the Prime Minister, to the island, there was no better than the peace economies, the region was filled with the economics of the war, and if you reach the West to deal with Iran is expected reflected positively on Iraq and the region. He adds that the trade and commodity prices will stabilize in the long term.

http://goo.gl/xKtIX1

2015-04-11