Politics/Economy |Yesterday, 17:09 |
Baghdad today - Baghdad
Many questions have been raised since the Central Bank and the Iraqi government announced that they had concluded agreements with a number of banks and other countries to deal in local currencies in commercial exchange,
but the most prominent question raised is what will be done or how will other countries, especially those that export large sums of money to Iraq annually, benefit from the Iraqi currency, the dinar, Which is supposed to be paid by Iraq or merchants for the purpose of importing goods instead of the dollar.
The Central Bank of Iraq concluded agreements with banks in Turkey, the Emirates, and China for the purpose of dealing in the local currency instead of the dollar, as well as dealing with Iran in the binary (dinar-toman) for trade exchange,
but this problem will emerge clearly with countries with which trade exchange between Iraq is “non-existent or non-existent.” From one direction,” meaning that Iraq imports more from it than it exports to it, especially Iran and Turkey.
Economic expert Abdul Rahman Al-Mashhadani reviewed today, Sunday (December 3, 2023), the obstacles to adopting the national currencies of Iraq and Iran in trade exchange.
Al-Mashhadani said in an interview with "Baghdad Today",
"Iran exports to Iraq more than 10 billion dollars annually, while
Iraq exports to it only approximately 570 million dollars, meaning that
the latter's percentage in the exchange process reaches 5%, meaning that
trade between Baghdad and Tehran is unequal." In terms of import volume. He added,
"The lack of parity will lead to the accumulation of the dinar among the Iranians, which is not a leading currency and faces many restrictions in the process of exchanging it, even in some neighboring countries, which means that the
Iranians will be forced to buy the dollar from the parallel market in Iraq through the financial liquidity they have because they need He is desperate to cover their needs for paying money in foreign transactions.” He added,
"Even the Iranians are not in favor of the idea of proposing dealing according to the (dinar-toman) principle.
They are looking for any leading currency or one that has a large scope of dealing, as is happening now in the Emirates by adopting the dirham due to the parity of the trade process between Abu Dhabi and Tehran." He pointed out that
"the problem between Baghdad and Tehran can be solved by agreeing to adopt an acceptable third currency that bypasses all complications,
in addition to the possibility of increasing the export of black oil in exchange for gas, which was approved months ago because Tehran urgently needs it to operate many of its factories, and
through an agreement, the private sector can be covered and accounts opened."
It addresses the principle of creating balance in trade exchange.