IRAQ TO DEAL WITH OTHER COUNTRIES WITH LOCAL CURRENCIES IN COMMERCIAL EXCHANGE
Baghdad Today – Baghdad
Many questions have been raised since the announcement of the Central Bank and the Iraqi government to conclude agreements with a number of banks and other countries to deal with local currencies in commercial exchange, but the most prominent questions raised is what will they do or how other countries, especially those that export to Iraq in large amounts annually, benefit from the Iraqi currency dinar?
The dinar, which is supposed to be paid by Iraq or traders for the purpose of importing goods instead of the dollar.
The Central Bank of Iraq has concluded agreements with banks in Turkey, the UAE and China for the purpose of dealing in local currency instead of the dollar, as well as dealing with Iran with a bilateral (Dinar-Tuman) for trade exchange, but this problem will clearly arise with countries where trade exchange between Iraq and them is “non-existent or from one direction”, meaning that Iraq imports more of them than it exports to them, especially Iran and Turkey.
(Yes, what would they do with all the dinars if they are only worth 1/6 of a penny? Who would want them?)
More news….
FITCH AFFIRMS IRAQ AT ‘B-‘ OUTLOOK IS STABLE
(What criteria does Fitch use to rate? I included a review of the criteria in the Articles Section of today’s Newsletter. )
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