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The implications of continuing high price of gold on the Iraqi economy
20.07.2011
Mohammad Karim
Market saw gold in Iraq during the past few days, like markets, regional and international substantial rise in the price of gold, as the price of Almthagal (about 5 grams) of it to a $ 231 U.S. and that in less than seven days left its impact on sales and purchases, which it suspended in almost entirely.
The jeweler said Hisham mind that "the recession affecting the gold market will pay Balsagh and gold traders in the short term to close their shops, especially the continuing high price and that is be expected for sure."
Cdo other jewelers in conversations with Radio Free Iraq that the state of the continuous rise in the price of gold began nearly a year, but its price has risen since the days of growing.
He attributed the jeweler Turki Nasser reasons for the sharp rise in the price of gold to the sharp rise in the rate of global demand, particularly from countries such as China as an investment safe in all circumstances, let alone enter the gold in the most modern electronic industries.
Iraqi economists have warned of the consequences of their own, which they described as "bad" for the continued high price of gold.
He said economics professor Mustansiriya University Dr. Abd al-Rahman al-Mashhadani, "The continued high price of gold will expand the cycle of damage, direct economies of the ordinary citizen, as it will cause this rise in prices of goods and to inflation, which was confirmed by the latest report of the Central Bank of Iraq, who said that the rate of inflation reached 6.4%.
To the so called oil experts Iraqi government to finally abandon the principle of relying on the U.S. dollar as the base currency from the sale of Iraqi oil, which constitutes the backbone of the country's economy.
Stressed and former oil minister Ibrahim Bahr al-Ulum the need to "speed up the ministries of finance and oil in a basket of currencies to hedge against economic crises that cause the U.S. dollar in a number of them and the continuing decline of its value in global markets.http://gdb.rferl.org/19E1B949-3C5C-4D80-8936-162A36C41CC0_mw800_mh600_s.jpg
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