The Iraqi dinar or a basket of currencies in the pricing of oil? Which is better for the Iraqi economy?
What if Iraq stipulated that the policy of pricing oil exports in it on the basis of local currency or on the basis of a basket of currencies
How will this affect the Iraqi economy?
I think specialists in the field of administration and economics, more knowledgeable
I think specialists in the field of administration and economics, more knowledgeable
I think I have some level of truth and that is oil is natural resource certainly a source of revenue for Iraq. As far as currency goes it is fixed based on gold . Now , I am not sure which bank has the gold . Also, from what I have seen oil and gold reverse the currency changes . The strength of currency is largely because of its GDP too . Markets are complicated not even stock brokers understand them . I do believe in long term investments be it energy /tech / even gold . Gold has not much of returns though ...
The value of the dinar depends directly on the reserve stock of gold and currency basket so selling oil in a basket of currencies assures increasing the market value of the dinar.
Dear Suad Mohammed Heil
The Iraqi dinar also depends on the International transactions and international contracts if they are in Iraqi dinars because they will be reflected on the purchasing power
Iraq has pegged its currency (dinar) to the dollar's dominance of commercial transactions in world markets, especially crude oil. In light of the recent rapid global economic developments and the financial dimension variables, these variables have raised many questions and dialogue in the region about dealing with the US dollar or basket of currencies (globally, the Iraqi dinar had no any effect without a link to the US dollar) which the decision-makers are interested, but also by the public. Despite some of these dialogues, there is a severe lack of supply and accuracy of information and the importance of economic terms that determine the paths of diagnosis and treatment, but we can say that many reasons justified the use of the dollar and make it a convincing logic of the debate not only at present but in the coming days ( look at the economics of Turkey, Iran, and others to judge on it).
It is not possible to work on the basis of the Iraqi currency because this will lead to huge losses in addition to the difficulty of dealing with other countries
regards
I think it will achieve success when Iraqi government adopt a basket of currencies to pricing Oil
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