Experts: Fall in oil price will lead to financial crisis in Middle East

Baku. 3 November. REPORT.AZ/ If oil prices on the world market begin to fall again, oil-rich countries of the Middle East will start a financial crisis that will spread throughout the region.

Analytical Group of Report News Agency informs, dependance of currencies of the Gulf countries on dollar creates significant economic difficulties during the fall of oil prices.

"Regularly these countries are discussing how to change the system of forming exchange rates. Although, the current increase in oil prices has reduced the threat of devaluation, there is always a danger, If devaluation occurs in any of these countries, the chain reaction in all countries of the region is inevitable”, analysts said.

Notably, even current price of oil does not help to balance the budget of some countries. According to IMF estimates, balanced budget needs oil prices to be $ 73.1 per barrel in Saudi Arabia and $ 99 per barrel in Bahrain.

According to Bloomberg, authorities of Bahrain applied for financial assistance to Saudi Arabia, the UAE and Kuwait. In Bahrain for first time in three years dollar has risen from 0.3770 to 0.3780. During this period, currency reserves fell 4 times and amounted to $ 1.4 billion.

Notably, daily oil production in Bahrain is 40,000 barrels, in terms of per capita country occupies one of the first places in the world.