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Posted 19/06/2011 10:09 AM
BAGHDAD (Babinaoz / Reuters) - A senior official of Iraq's central bank that inflation annual base accelerated to 7.3 percent in May from 6.1 percent in April, driven by the cost of imported goods and services especially in the health care sector. The appearance of Qasim Advisor Bank "there is inflation, some thing this year but still under control. I do not think it will exceed the (single digit). "
The Central Bank of Iraq in April that he expected to keep annual inflation in the single digits by the ration national who helped absorb some price increases. and draws most of Iraq's imports of wheat and rice to the cooking, which provides basic food for millions of citizens.
The economy depends heavily on Iraqi oil, which contributes more than 95 percent in revenue. The Central Bureau of Statistics calculates the rate of inflation and the Bank defines core inflation that does not include spending on fuel.
The Chief Executive of the Iraqi Stock Exchange, Taha Ahmed Abdul Salam said that foreign investment in the stock market jumped this year because the popular uprisings against regimes in the region have made Iraq a more attractive investment alternative.
He added that foreign investors registered net purchases in the first five months of this year, bought shares worth 84 billion Iraqi dinars (72 million dollars).
He said foreign investors sold shares worth ten million dollars since January, after he bought a $ 53 million of the shares in 2010.
Abdel-Salam told Reuters in an interview, "When you see the Arab region now and see what happens you can see the difference between Iraq and the others.
".. We have a government and foreign companies began to rebuild the country with the Iraqis. And also see the oil companies working ... this encourages everyone to invest."
Iraq is trying to stand on his feet again after decades of war and economic isolation and needs to be invested in almost all sectors under reconstruction efforts.
Iraq has seen protests like other countries in the Middle East and North Africa, but focused on the demand for better basic services and provide more jobs than calling for regime change.
There are 85 companies listed on the Iraqi market for securities, which began work in 2004. The market is a center of private investment outside the oil sector in a country dominated by state companies.
Abdel-Salam said he expected an increase of from 40 to 50 percent in the number of shares traded in the current year as a whole.
He added that foreign ownership of shares in the stock market rose to about 19 percent in 2011 from three percent in 2008.
He pointed out that foreigners, especially Americans and Europeans and the Arab Gulf and the Egyptians are interested primarily in bank stocks, and the hotel sector and the industrial sector.
Abdul Salam said that since January has traded 210 billion shares worth $ 326 million. a volume of 255 billion shares in 2010 worth $ 342 million.
He added: "One of reasons for the high index of the last meeting of last year to now is the demand of foreigners ... they buy four times as much selling.
"I do not say that Iraq is not a risk ... but the security situation improved. This type of risk acceptable to investors." The current market value of the Iraqi Stock Exchange, $ 3.2 billion.
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