Iraqi Budgets and the lack of hedging
Newshoggers.com —
... it strongly implies that Iraq did not hedge its oil prices in the same manner as Mexico. Mexico engaged in contracts which guaranteed it the option to sell oil at $70 per barrel for this fiscal year. Those contracts were engaged when oil was above $100. This hedge has given Mexico some fiscal breathing room and stability in its budgeting process. It does not appear that Iraq has engaged in such a hedging strategy so their budget is much less stable and predictable.
Musings on Iraq has been following the Iraqi government budget process and has a couple of ...
Stalled
The Daily Dish | By Andrew Sullivan —
The Iraqi budget hits a roadblock.


