Iraqi Dinar: Peg to a Basket of Foreign Currencies Improves the Economy
|July 3, 2014||Filled under Iraqi Dinar News|
Iraqi Dinar News –
Called on the Finance Committee and an expert in economic affairs the central bank to the need to activate the financial trading by linking the Iraqi dinar to a basket of foreign currencies and not rely mainly on the U.S. dollar to build a diversified economy and a flexible retractable face of economic crises present and future.
Said a member of the parliamentary Finance Committee Abdul-Hussein al-Yasiri The the main currency in the country is among the dinar offset by the U.S. dollar, which is considered the base currency in the trading process locally and globally because of its economic power on the most influential countries in the world.
He added that having a basket of multiple foreign currencies greatly help to ensure resilient economy can cope with financial crises and their impact on the dinar National, where he owns a currency trading many advantages, including maintaining the rate of real exchange in the face of financial shocks and the decline in the value of the currency and avoid any exaggeration in the rate of exchange as well as the relative stability of the exchange rate of the currency, as the rise in the value of a particular currency in the basket means lower other currencies for that currency and vice Yasiri that the general acceptance and how widespread the circulation of the U.S. dollar put data by which dispense with the other currencies such as the Japanese yen and the euro European and other, which helped on their laurels citizen in a single currency more assurance than others.
Confirmed Yasiri that the central bank bears the responsibility of turning financial dealings of the monopoly of a particular currency for the stock market to the entry of foreign currencies competition through the activation of its own laws and the Order for more than 5 different currencies representing the states leading economic and economically strong and pointed to the necessity of diversifying reserve national from various world currencies in addition to the coins of other private gold to support the Iraqi dinar and increase Rsanth financial and reflected significantly on the level of improvement in the economy of the country.
He pointed out that the exchange rate in any state depends on the balance of payments which arise from factors affecting the presentation of the national currency and the demand for them, any surplus in the balance of payments of the state leads to increased demand for the national currency, which leads to higher disbursement versus other foreign currencies and vice versa. turn the economic expert Abbas Bahadli that choose Other currencies represent a basket of global economic must be on the basis of serving the national economy and the movement of trade and mutual investment with countries with an economy strong financial, and considers this step to enhance the value of the Iraqi dinar, and reduce the potential risks to the local currency as opposed to linking them in a single currency as dollar.
Added that increase and diversify foreign currency and use it as a reserve pick it economically by the Central Bank of Iraq represents the addition of monetary policy and help to enhance the value of the dinar by increasing dealing with other countries.
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