Shortage of liquidity…Iraq has been plagued by political instability…the ongoing conflict with the terrorist groups ISIS as well as tensions between Kurdistan and the central government this has disrupted the economic activity and discouraged investors. Iraq’s economy is not diversified enough. This makes the country vulnerable to fluctuations in the global oil prices. Iraq has dealt with inflation which has eroded the purchasing power of the Iraqi dinar…Iraq has limited access to international financial markets…These factors had contributed to the liquidity shortage in Iraq. Of course this has had a negative impact on Iraq’s economy.
