IRAQ: Decline of the Euro Will Give a Major Boost for Iraqi Currency
|May 29, 2010||Filled under All Dinar Trade Articles|
Economist on behalf of Abdul-Hadi, the decline witnessed by the euro in global markets will have a positive impact and negative at the same time the Iraqi economy.
Abdul-Hadi said the positive impact lies in the fact that the foreign reserves in Iraq as a whole dollar, adding that the price of the dollar against the depreciation of the euro will increase the purchasing power of the dollar, which constitutes the basis of precautions foreign in turn is likely to import more goods through price swap and exchange the same purchasing power especially goods from the European Union.
“Either the negative impact of the decline of the euro is limited in the price of a barrel of oil priced in spite of the dollar, but no link between the dollar and the euro being the two underlying currencies in the global economy leading to a possible decline in oil prices affect negatively on imports of Iraqi oil.
He noted that the decline of the euro is not atheism, pointing out that the treatment methods pursued by the European Union found promising pumped through and customize the size of subsidies to 120 billion dollars.
Abizaid and Abdul Hadi waiting for the impact of treatment by the European Union and can be reflected in the global economy and oil prices generally, because the long-term decline rates without the natural oil will affect the Iraqi budget.