Economic praise for Iraq and Russia’s agreement to deal in dinars and rubles: a masterstroke, 12 OCT

 Economic praise for Iraq and Russia’s agreement to deal in dinars and rubles: a masterstroke, 12 OCT

On Thursday, Bassem Anton, an economic expert, stated that the recent agreement between Iraq and Russia to conduct transactions using their local currencies – dinar and ruble – will lead to the opening of new doors for other countries to trade in local currencies. This will result in a decrease in the demand for the dollar. Anton described the agreement as a “masterstroke”.

Anton stated that raising the issue of transactions between Iraq and the Russian Federation at a high level of discussion played a key role in reaching an agreement with the Russian side to conduct business transactions in the local currencies of ruble and dinar. This is especially important as the volume of Russian investments in Iraq amounts to around 19 billion annually, making it a significant amount.

He said, “As per the agreement, Iraq will establish new avenues of cooperation with significant nations and will conduct transactions in local currency. This will lead to a decrease in the demand for the dollar and result in a rise in the value of Iraqi dinar against the dollar.”

Antoun stated that one of the key measures for the current and future governments is to boost the agricultural and industrial sectors to achieve self-sufficiency. This would reduce the need for purchasing agricultural and industrial products from other countries using the dollar. Ultimately, this will help the country to move away from being dependent on the sale of oil and transition towards a more diversified economy.

On Wednesday, Prime Minister Muhammad Shiaa Al-Sudani announced the government’s interest in investing in gas due to its lack of attention since the discovery of oil.

Prime Minister Muhammad Shiaa Al-Sudani wrapped up his visit to Moscow, Russia, which took place on Tuesday.