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 the world economy, Iraq
Baghdad - Mostafa Hashemi
said an economist 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.
and economic peace Sumaisem explained in a statement (the citizen) Iraq's economy was closed in the past and free drainage and free trade in gold is limited and monitored by the state. But now the economy is open to the outside and is linked to global markets when experiencing these markets 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 Iraqi Stock Exchange world markets Sumaisem said that the Iraqi stock market is weak because of the limited number of companies contribute as well to 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 the price of international exchange.
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 experiencing 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 threatens the global 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 system the world monetary therefore note that gold prices have not fallen, but remained on the rise.
in the same context attributed economist Ismail satisfied the cause of the 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 to Jawdat real gold.
said Radi's (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 net worth remit their money to Jawdat real, including the gold being a safe haven for their money.
explained: As the price of gold is subject to supply and demand so it is when at least currently in the market is up by one, while if put in large quantities in the market, the price at least.
He pointed out that local markets are affected by crises of the global economic and indirectly through continued import Country of materials and goods from abroad, and the fact that Iraq today depends on the diversity of goods imported from abroad, any change in the prices of these materials in the world, affected by the Iraqi market in terms of increase or decrease its price. He said the indicators that make the price of gold stable world is the economic stability which is a balance between supply and demand, therefore it can lead to reduce oscillations prices to the world.
He added that the owners of stocks and money in Iraq when they see interest rates at least on their equity finance tend to buy gold or real estate to keep their money, leading to increase the price of gold.


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