An economic vision on linking the dinar to the US dollar: a weak point for Iraq

An economic vision on linking the dinar to the US dollar: a weak point for Iraq

On Wednesday, economic expert Diaa Al-Mohsen stated that the Iraqi economy’s Dependence on the US dollar was a weakness and suggested solutions to this issue.

In an interview with the [publication name], Al-Mohsen stated that tying the local currency to the US dollar indicates a vulnerability in the country’s economy. This is because the value of the green currency fluctuates based on changes in the US economy, such as an increase in interest rates by the Federal Reserve, which could lead to a rise in the value of the dollar.

He said, “Dependence on the dollar for all purchases could have either a positive or negative effect. This problem can be solved by using a basket of currencies, which allows the government to switch to another currency when the value of a particular currency is low.”

The economic expert explained that Iraq’s sufficient balance of currencies allows for smooth conversion to the euro, Russian ruble, and Chinese yuan.

Earlier, the head of the Diyala Chamber of Commerce, Muhammad Al-Tamimi, confirmed that the United States used the power of the dollar four times in 2023 to put pressure on Baghdad in order to further their own political agenda. This resulted in the provocation of multiple crises and a sharp increase in prices, particularly for essential commodities, with rates reaching up to 10%. The reason behind this was the dollar’s overwhelming liquidity, which accounted for around 90% of all transactions, thereby giving it a significant control over the market.

The United States of America is exerting its influence on Iraq in various critical areas, such as depositing the proceeds from the sale of Iraqi oil into the US Federal Bank. This is happening amidst clear attempts at blackmailing the Iraqi government by passing several files, including the dollar bill, which is putting significant pressure on the Iraqi government.