GOLDILOCKS
Restructuring the economy ✔️
Increasing currency movement ✔️
Expanding currency demand ✔️
Eliminating auctions on the black market ✔️
Yes, Iraq is checking these off...
© Goldilocks
---
ANALYSIS ABOUT THE NEWS : "The Central Bank of Iraq is considering establishing a leasing company with local and foreign participation"
A leasing company can indirectly affect a country's currency by influencing the flow of capital within the economy, primarily through its role in facilitating business investments by providing access to assets without large upfront costs, which can impact factors like the balance of trade and demand for the local currency.
Key points to consider:
Stimulating business activity:
By making it easier for businesses to acquire equipment through leasing, a leasing company can encourage investment and stimulate economic growth, potentially leading to increased demand for the local currency as businesses expand operations and make international transactions.
Impact on trade balance:
If leasing facilitates increased production capacity for export-oriented businesses, it can positively affect the trade balance by boosting exports, which can strengthen the currency.
Foreign investment:
When foreign companies utilize leasing services within a country, it can attract foreign capital, further increasing demand for the local currency.
Currency fluctuations due to international transactions:
If a leasing company has significant international transactions, fluctuations in exchange rates can impact their financial results, which could indirectly affect the country's currency.
For Iraq, this could produce stability for their currency values. Normally, this type of opportunity creates minimal exchange rate changes, but Iraq is moving from a programmed rate to a exchange rate that they can defend.
© Goldilocks
No comments:
Post a Comment