The impact of Iran's detente in the Iraqi economy

The impact of Iran's detente in the Iraqi economy

1/25/2016 0:00

Mohammed Sharif Abu Mayssam

of the current urgent necessities that employs variables and data that surround us - the crises was the mother of Anfrajat- in favor of collapsing our economy, which is exposed to a series of external and internal pressures due to wagering Bria in achieving the revenue side of poor financial and economic management,

and from this perspective can be built to imagine what Can him to seek after the lifting of the economic embargo on its neighbor Iran in order to invest the expected data and using them as much as possible to push the economic wheel

for the country.

Based on an initial reading of the contexts of events from which to say: The lifting of the economic embargo on Iran will reflect positively on the Iraqi economy, as the launch About 50 to $ 100 billion of Iranian funds frozen, and lift the ban on trade and the flow of foreign investment on the inside Iran, all will contribute to obtain recovery will be the first to raise the Iranian Altoman exchange rate against the US dollar, and the rise in Iran's local currency, will have reflections on the Iraqi economy by virtue of the social interference imposed by the case of geographical and historical neighborly relations between the two countries, as this effect will stop at high incomes Iranians that will contribute to its role in the possibility of higher religious tourism and increase the flow of visitors to the Holy thresholds rates, but will contribute to the rise in production costs in the productive sectors Iran, which is found in the Iraqi market, a large window for the marketing of these products and have contributed greatly to the dumping policy that have impeded the growth of the real sectors in the country, and therefore, the high cost generating unit in Iran, the production will contribute to raise the selling price in Iraq, and then the increasing likelihood of reduced demand for These goods in conjunction with low incomes of the middle class by the financial crisis in our country, what will drive the direction of the search for alternatives domestic production to satisfy the needs of the market, which will support local producers and facilitate the task of the government's drive in support of the private sector and contribute to the increase of investment opportunities inside Iraq, and in the the same context, it is likely to turn the Iranians producers who Genoa a lot of money from marketing their products to Iraq during the past years to enter the Iraqi labor market and invest in them to reduce the production and marketing cost and ensure the continuation of the domination of a large segment of consumers, which will contribute to providing more jobs for the unemployed , if managed local governments in the candidate provinces for this investment to manage intelligently and responsibly this file, if required on the Iranian investor to run the project for 90 percent of the workforce

local.

On the other hand, the lifting of the ban on Iran's banking sector will ease the pressure on the Iraqi market It witnessed an increasing demand for hard currency by Iranian traders who have contributed over the years the blockade on Iran in the fluctuation of the dollar's exchange rate against the Iraqi dinar due to the increasing demand for hard currency to finance their external trade, as well as prospects for the low tourist activity from Iraq rates to Iran, which has seen a surge great over the past years due to rising incomes of the middle class and the decline in Iranian Altoman exchange rate against the US dollar, which would mean a decline in the money supply flow rates of the Iraqi market to the Iranian market as well as the expected rise in wages of medical services in Iran, which saw a large turnout during the last years of the before the Iraqi public due to lower prices, and therefore, the Iraqi market and is looking forward to a new phase of adjustment Stmeliha conditions of the financial crisis and steps of reform will be in front of her supportive opportunity as a result of these changes can be crystallized into a new reality is witnessing more investment available to national energies and employ the data resulting from the changes in the form of trade and economic relations with neighboring

Iran.

The impact of some of the data resulting from the economic and political changes in the region and the world, can be employed for the benefit of the national economy if Maasttmrt energies and opportunities more fully, as some of these data were compatible with several aspects of the government trends relating to leave the total reliance on oil revenues and the trend towards real sectors to raise their contribution rates in the gross domestic product, but the real dilemma now is not confined to the negative fallout from the drop in oil prices, but also in the weakness of the economic file management, and if unless we recognize our failures in the management of this file in abundance time Finance and then make urgent reforms, we can not overcome failures in financial scarcity stage, and wasted opportunities favorable as bellowed others, In this sense, the local governments to come out of the coat monotony and bureaucracy in performance and are more eager to create an atmosphere of investment as the government Central can not overlook the reasons for failure of the weakness of the government apparatus as a result of corruption and sag and bureaucracy, and that depends on economic performance to find the added potential of the energies of the list as it moves toward a market economy, as the domestic demand will remain on the full needs of the public sector and the private sector, not from privatize public for the benefit of potential spoilers without adding

new ones.