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Economic: the Iraqi stock market is weak and traded gold, minerals and oil
On: Wednesday 07/03/2012 19:33
Gold prices rise in the local markets to link Iraq's economy in the world
Baghdad - Mostafa Hashemi
Economic expert said that the rise in gold prices in local markets resulting from the global economy's vulnerability to crises. Because of the openness of the economy of Iraq to the world after years of isolation.
She explained the economic peace Sumaisem told (the citizen) was the economy of Iraq in the past and the freedom of a closed drainage and free trade in gold is limited and monitored by the state. The economy is now open to the outside and is linked to global markets when those markets experiencing any rise in the prices of gold and silver is reflected on the rise in local markets.
And the relationship of that attachment to the world markets, the Iraqi Stock Exchange said that the Iraqi Stock Exchange Sumaisem weak due to the limited number of companies as well as contribute to the non-traded gold, metals, oil, food and other economic sectors in it. Pointing out that prices of materials and the areas listed in international stock markets are liable to rise and fall For example, when dealing with the price of sugar, it is subject to international exchange rate.
And confirmed that the Iraqi Stock Exchange is limited to the participation of local companies at home and only the contribution of very modest by foreign shareholders as partners in these companies Valborsh world is witnessing a rise in the price of oil, especially there is an important issue must be taken into account is that the more the global economy's vulnerability to a crisis that threaten the international monetary system on the issue of liquidity or an issue price of the dollar increases in global demand towards gold, leading to increasingly high prices. It is well known that after the global economic crisis that occurred in 2008 shook confidence in the global monetary system, therefore we note that gold prices have not fallen, but remained on the rise.
In the same context, an economist attributed the cause of Ismail Radi volatility of gold prices in international markets to the economic crisis taking place in the world, prompting the owners of wealth to convert their money into real gold Jawdat.
Radi said to (newsletter) that the reason for the fluctuation of gold prices and instability in global markets due to the economic crisis taking place in the continents of America and Europe, making the owners of wealth to remit their money and the real Jawdat including gold as a safe haven for their money.
He explained: As the price of gold is subject to supply and demand so it is less than when displayed in the market price rises, while if put in large quantities in the market price at least.
He pointed out that local markets are affected by crises of the global economic and indirectly through the continued importation of the country for materials and goods from abroad, and the fact that Iraq today is based on diversity of import of goods from abroad, any change in the prices of these materials in the world, the Iraqi market are affected in terms of increasing its price or decline. He said the indicators that make the price of gold is constant global economic stability, which is a balance between supply and demand, therefore it can lead to reduce prices to fluctuations in the world.
He added that the owners of stocks and money in Iraq when they see interest rates at less than their shares are heading toward financial or real estate to buy gold to keep their money, leading to increase the price of gold.
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