to revive the Iraqi economy experts: the diversity of the currency basket is the best solution

Posted by on May 19, 2014 | Leave a Comment

Mushtaq Al-Jassem
Confirmed a number of specialists and economists that there is diversity in the basket of currencies of the Iraqi order to develop and activate the economic process in the country, while the student a number of specialists structural reforms to work the economic sector. Says economist Faraj Saad Allah of the best solutions to address the low value Aldenarabraghi against other currencies is the diversity of the reserve with the Central Bank «reasoned that it« will make us deal with the exchange rate of the dinar according to the real value of it.
But he pointed out that there are procedures that must be taken before getting to the basket of currencies in the forefront of non-dependence of the economy on oil, but on all economic activities so that they are all one block ».
And a basket of currencies means that the selection of a range of currencies with average weights as a measure of value. And is commonly used in contracts as a means to avoid or minimize the risk of currency fluctuation., And expressed his conviction that it would «activation of these sectors to be of effect in the recruitment of GNP of Iraq, noting that this is not taken only through the support of industry and agriculture in all its aspects, in addition to supporting the primers Small. And that this support «will generate economic activity in the market and will give a tributary of New noting that« in the case of the interaction of all sectors
.. then we disengagement dinar to the dollar. promised Saadallah, Iraq’s dependence entirely on oil revenues and put them in the future fund or cash reserve , is not enough. said we must give ourselves the chance a year or two even interact sectors because Iraq active on the regional and international level then say NFC link and make a basket of currencies ».while industrial Mohammed fair has called for speeding up to be a basket of currencies,« on the grounds that it would float the Iraqi dinar to the dollar for the purposes of import case if other currencies. 
expressed his objection to talk about the dominance of the dollar on the Iraqi economy because the dollar is not dominant only in Iraq, but in all the regions of the Middle East, being the currency of a major task. stressed that «this decision (basket) takes time and effort, and it needs a decision by the Central Bank of Iraq because it is primarily responsible for this subject. noteworthy that the last five years have seen a continuous decline of the dollar against the various major international currencies
like the euro, which is the second most important international currency after the dollar and the pound sterling and the Japanese yen. encourages the administration devaluation of the dollar in order to increase U.S. exports and reduce the trade balance deficit, which means reducing the external debt rising to the United States of America, and on this basis, the phenomenon of the dollar’s decline is a way intended to enhance the competitiveness of U.S.
exports at the expense of exports of competition for foreign markets , especially exports, European, Japanese and Chinese. considers the magnitude of the trading volume in dollars around the world in which up to about three trillion in year one of the main reasons that make any fluctuation in the exchange rate affecting the assessment of the rest of the currencies, as reflected fluctuations and disorder in the price of the dollar on the prices of goods and services .

For his part, pointed out the economic researcher peace problem he should we as a country that Anatmd on only one coin,. believes he must hasten also hastened the Gulf States and China, which maintains a reserve of up to about a trillion and a half to diversify the majority of their currencies, and pointed out that the United States itself maintains currencies other than the currency come about from their manufacturers Aldkhmon belonging to General Motors Corporation in Korea and Japan.


Regarding the impact of fluctuations that occurred in the U.S. dollar exchange rate on the movement of import and export in Iraq, says the researcher as Abdul Hadi: the fluctuations that occur at the level of major currencies (dollar, euro) greatly affect all countries of the world at different rates, and this applies to Iraq, especially as he associated economic relations with the countries of Europe dealing in euros and other countries dealing in dollars.


dded that affected Iraq fluctuations in international exchange rates increased after the lifting of the siege, and his return to the international arena due to the international economic relations existing through imports, exports and cash reserves that are kept. Therefore put on the scene the idea of switching to a basket of currencies or the policy of adhering to constantly linking the local currency to the dollar.


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