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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    The euro and its region are under threat of collapse.. How will the world and Iraq be affected econo

    Rocky
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    The euro and its region are under threat of collapse.. How will the world and Iraq be affected econo Empty The euro and its region are under threat of collapse.. How will the world and Iraq be affected econo

    Post by Rocky Fri 15 Jul 2022, 5:20 am


    [size=30]The euro and its region are under threat of collapse.. How will the world and Iraq be affected economically?

    2022-07-15
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    Yes Iraq: Baghdad

    The eurozone is witnessing overlapping political and economic challenges, amid the emergence of government resignations, rising inflation and signs of the collapse of the euro and the European Union.
    While the euro equaled with the dollar to be 1 dollar for each euro for the first time in two decades after one euro was equal to 1.4 dollars, this matter came as the first indication of an economic danger enveloping Europe, as the euro became less attractive to investors with the US Federal Reserve raising interest rates on The dollar, which made the dollar more attractive.
    The euro has been losing ground against the dollar since the start of the year, when it was hovering near $1.13, amid a vigorous anti-inflation campaign by the US Federal Reserve, along with broader global turmoil unleashed by Russia's invasion of Ukraine.
     
    And questions are raised about what the decline in the euro prices means and what its effects are on Europe and the world in general.
    Now a strong dollar has become a good thing for everyone who owns it, especially Americans, as it will help them get a lot of euros for the dollars they own, which will improve their purchasing power there and spend a “rich” vacation.
    On the other hand, the negative effects on Europe due to the decline of the euro will be represented by an increase in inflation, because the decrease in the currency will require printing more euros to buy and import goods from abroad. As for the positive effect, it will be represented in strengthening European exports and industries abroad, which will be cheaper for others.
    Also, it is possible for commodity prices, such as grains, to decline, and it is likely to reduce inflation globally, but it rises in Europe, but experts said in statements to the Washington Post, that the decline in the euro also indicates a slowdown in the pace of global trade, which increases recession fears, especially in Europe Union.
    And while the 27-nation European Union moved to wean itself off Russian oil, as part of the pressure on Russia, while Moscow sharply reduced gas flows, this has raised costs for Europeans who are still already suffering from the Corona epidemic, to add to the Russian war. Ukrainian.
     
    How is Iraq affected?
    On the other hand, Iraq, which lives between “the rise of the dollar and the decline of the euro” globally, its gains and losses will be on the same scale,
    Economist Nabil Al-Marsoumi says, finally, the euro was par with the dollar after the euro was equivalent to 1.6 dollars in 2008, which is an indication of the inability of the euro to withstand the energy crisis and the crisis of supply chains, and also did not clearly withstand the Ukrainian crisis that afflicted many European countries politically and economically.”
    And Al-Marsoumi indicated that "the disadvantages will be more in the coming period, with the approach of winter and the increase in demand for energy products."
    And about the impact of the decline of the euro on Iraq, Al-Marsawy indicates that it can be summarized in 4 points.
    In general, the decline of the euro will not negatively affect the Iraqi dinar, which is linked to the US dollar. In contrast, the return achieved for Iraq from its cash reserves, mostly denominated in dollars and invested in US Treasury bonds, will increase, as the yield on US two-year bonds rose to 3.111%, while the yield on US Treasury bonds with a two-year term reached 3.111%. Ten years duration is 3.088%.
     
    Because of the price of Iraqi oil in dollars, this gives Iraq the advantage of importing European goods, which will become cheaper after the depreciation of the euro exchange rate, in addition to that, the continued rise of the dollar may lead to a decline in global demand for oil and then a decrease in its prices, which will negatively affect the volume of Iraqi oil revenues.
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