Specialists: You must diversify the central reserve currency to avoid 'global war'

Specialists: You must diversify the central reserve currency to avoid 'global war'





BAGHDAD - World

Warned a number of economists specialists in the matter of financial damage "currency war" between Japan and some European countries on the national economy, being a yield dependent on oil, and has a cash reserve in dollars, calling to diversify the basket of currencies in the reserves the central bank and rely on international currency with high-value, as well as gold.

Said Majid picture financial expert, "international currency war caused by the presence of the differences balance of payments, if depreciated currency rising exports and if increased the value of the currency goes down and exports are resorting to import."

The currency war is through various means, such as the sale of the local currency and buying foreign currencies, and interest rate cuts, and quantitative management policies is printing more currency to reduce its value, and the goal is to support exports and the labor sector of the state itself.

Suri said the agency "News", "Iraq must take advantage of this war between those countries for the benefit of its economy through the development of the oil sector and a good policy to manage the money in the state and the Iraqi economy."

He stressed the need to strengthen economic and trade relations with all countries of the world and not be limited to a few countries, and must also diversify foreign Amlath because oil is sold in dollars, bringing the sovereign reserve located at the Central Bank in the dollar.

Suri added that he "must invest part of the currency to exploit changes in the economies of countries in the world to increase the monetary reserves, and enhance the development process of the country through the activation of the sectors of agriculture, industry and tourism."

And escalated war currency recently among the advanced industrial countries in the world, such as Japan, China and some European countries, through the establishment of the state to deliberately weaken its currency.

And open the sharp decline of the yen last month a new currency war front between Europe and Asia, where the accused among European Japan seeking to take action designed to allow its currency to further decline to increase the competitiveness of its exports in foreign markets.

Where it began some Third World countries take precautions and Ahtrazha fear the impact of this war on the national currency and economies.

For his part, Abdul-Sattar al-Hashemi warned economic analyst, the vulnerability of a currency war on the national economy, calling for taking care of by the central bank to avoid impact.

Hashemi said ("unilateral Iraqi economy dependent on oil revenue, and also does not have either oil exports also, as a result of the deterioration of vital economic sectors in the country."

He continued that "you must activate the sectors of agriculture, industry, tourism and enhance the confidence of the Iraqi dinar in the Regional and neighboring countries, and not to rely on the dollar, because the crisis may hit the dollar, and this will cause painful economic problems of the country."

In turn, said Bassem Jamil Anton, senior economist said that "currency war" is the wrong term for countries that are trying to reduce its currency to achieve high production growth and to protect the economy, they are truly commercial competition between industrialized countries and not war.

Anton explained that "industrialized countries when weaken trade in global markets as a result of the increase in prices of goods due to the high cost of production, so it is hard to play export goods Vtlji to reduce its currency to create temptations for importers."

He added that "these countries despite the strength of its economy, but it has a basket of currencies variety and gold did not keep a single currency in order to provide protection for the economy in the event of lower other currencies, so its purpose is not currency war and dropping economies of other countries, but to provide protection to the national economy."

He pointed out that "this commercial competition between the states will be reflected in third world countries, including Iraq, because they depend Bastiradathm of goods and services to those countries, but Iraq has a strong currency Mcnamh strength reservoir of cash than (68) billion dollars, as well as oil reserves estimated at ( 143) billion barrels, in addition to the central bank for asylum to retain gold, these are all dissipated from the seriousness of the global currency crisis on the Iraqi economy. "

Anton advised "the central bank to diversify foreign Amlath and not rely solely on the dollar, because if the devaluation of the dollar in global markets will cause economic problems in the country, and also must retain large quantities of gold to protect the national economy."

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