(MENAFN- Gulf Times) Dollar appreciation was also responsible for a fall in prices in the commodity market, said Doha Bank Group CEO, Dr R Seetharaman.
He was delivering a lecture on 'Economic integration towards a borderless world' to at the College of the North Atlantic - Qatar (CNA-Q) yesterday.
Speaking on the fall in oil price, Seetharaman said, "People today are worried about the plunging oil price, which however, is not a reflection of demand and supply alone. In the last six months, we have seen oil prices come down by 50% - this does not mean that supply has increased by 50%, or that demand has reduced by 50%.
"Yes, there indeed is excess supply, but what really has changed is the currency. The Dollar Index, for instance, has moved from 79 to above 94, and has also contributed to fall in prices in the commodity market. When the dollar is weak, people hedge their risks by buying commodity futures, and when the dollar is strong they unwind their positions."
Sharing his insights on the concept of global economic integration, Seetharaman said, "We live in a changing world - the world is changing on account of several factors, with globalisation, deregulation and consumerism being foremost among them. We also live in a world that is technologically-driven, a world that is interconnected and increasingly interdependent.
Today, there is greater recognition that, as we move towards a borderless world, politics and economics have to converge at a global level and that territorial integrity is merely incidental. Global governance structures that transform the dynamics of policy-making are becoming imperative to achieving sustainable economic growth."
On global economy, he said "In its recent World Economic Outlook, IMF said the global economy is expected to grow by 3.5% in 2015 and 3.7% in 2016. United States has been upgraded to 3.6% in 2015 and 3.3% in 2016.
"Eurozone annual growth projected at 1.2% in 2015 and 1.4% in 2016. UK growth has been estimated at 2.7% in 2015 and 2.4% in 2016. Japan is expected to grow at 0.6% in 2015 and 0.8% in 2016. China's growth in 2015 is put at 6.8% and 6.2% in 2016. India is expected to grow at 6.3% in 2015 and 6.5% in 2016.
Brazil growth has been brought to 0.3% this year and 1.5% in 2016. Russia will have contraction of 3% in 2015 and 1% in 2016."
A question-answer session followed, which was keenly attended by CNA-Q students.
Doha Bank has a long history of supporting the education and training of high school, college and university students through scholarship and internship programmes, and frequently collaborates with leading educational institutions in the country including CNA-Q.
This year alone, some 18 Qatari students graduated from the College of the North Atlantic.
Ten of them are completing their studies at overseas campuses - as part of Doha Bank's Qatari Scholarship Programme, which encourages national students to pursue their higher education in banking and business management/administration.
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