Economist lays out solutions to get rid of the dollar’s ​​dominance: moving towards a currency baske

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[size=52]Economist lays out solutions to get rid of the dollar’s ​​dominance: moving towards a currency basket[/size]

[size=45]Financial and economic researcher Diaa Al-Mohsen put forward several solutions to get rid of the dominance of hard currency over the Iraqi economy, while stressing that we must deal with importers in settling their commercial transactions through a basket of currencies.[/size]
[size=45]Al-Mohsen explains that “the dollar is not the only currency used in commercial transactions between Iraq and the countries of the world. There are quite a few currencies that Iraq uses to settle its commercial transactions, whether by the government or the private sector, taking into consideration that most imports are with countries that have strong currencies such as China, India, Brazil and the European Union.” He points out that “there are those who work to keep Iraq under the umbrella of the US Federal Reserve and behind it the US government in one way or another, and these people work within the monetary authority.”[/size]
[size=45]Al-Mohsen added that “the stability of the dollar exchange rate is not a problem as much as it is part of a deeper problem, and here we are talking about the volume of imports in all fields without any economic benefit for these imports, as they are futile imports that work to smuggle foreign currencies primarily to parasitic figures who spread corruption in the Iraqi economy, especially since there are those who work to neutralize the economic sectors that could contribute to reducing the volume of imports and increasing commodity exports other than the fossil sector, which contributes to increasing the percentage of contribution of other economic sectors to the gross domestic product and financing the general budget, knowing that the high inflation rate also contributed to the rise in the dollar exchange rate against the Iraqi dinar, as the purchasing value of the Iraqi dinar decreased by more than 33% during the past two years, due to the confusion of monetary policy in reducing the price of the Iraqi dinar and trying to return it to its previous state without taking into account the economic and psychological aspects of the Iraqi citizen.”[/size]
[size=45]“The intervention of the Central Bank of Iraq through the foreign currency selling window contributed to the decline in the value of the Iraqi dinar against other currencies, because if we look around us, we will not find a country that respects its sovereignty, economy and currency that intervenes in this way in selling foreign currencies. Yes, Iraq may have needed this method in the first years after the occupation in 2003 to reduce inflation and the illogical rise in the dollar exchange rate against the Iraqi dinar, which is what the Central Bank administration succeeded in doing when Mr. Sinan Al-Shabibi was the governor of the Central Bank of Iraq, but after that there was no longer any justification for the window to continue operating,” he continued.[/size]
[size=45]The financial and economic researcher continued, “We do not believe and will not have the slightest doubt about the strength of the Iraqi economy for many reasons, including the existence of a huge amount of untapped natural resources, and this is due to mismanagement in dealing with these resources and not investing them by amending the mineral investment law.” He stressed, “If we want to get rid of the dominance of the dollar, we must deal with importers in settling their trade transactions through a basket of currencies, and as we said at the beginning, Iraq’s inter-trade with various countries of the world that have strong currencies such as the Chinese yuan, the Indian rupee, the Turkish riyal and the European euro, with the presentation that our trade with the United States is not like other countries.”[/size]
[size=45]The dollar “dominates the global financial system and global trade,” and is likely to continue to maintain its “dominance as a reserve currency” in countries around the world, according to data published in a study by the International Monetary Fund.[/size]
[size=45]The roots of the US dollar’s ​​dominance over the global financial system go back to the Bretton Woods Agreement of 1944. This initiative came from 44 countries to regulate global trade and achieve a kind of international financial stability. At the time, it stipulated “the adoption of the US dollar” as the main currency to determine the prices of other countries’ currencies. At the time, the dollar was linked to gold at a price of $35 per ounce, and many countries began to fix the exchange rate of their currencies against the dollar.[/size]
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