Basem Antoun, an economic expert, stated on Thursday that the agreement between Iraq and Russia to conduct transactions using their local currencies, the dinar and the ruble, will create opportunities for other countries to also engage in local currency transactions. This will lead to a decrease in demand for the dollar and Antoun described the agreement as a “masterstroke”.
Anton stated to Al-Maalouma that raising the issue of transactions between Iraq and Russia at the highest level of authority played a significant role in the agreement between the two countries to carry out transactions in local currencies, specifically the ruble and dinar. This is mainly due to the fact that Russia invests approximately 19 billion annually in Iraq, which is a substantial amount.
“In light of the agreement, Iraq will open new avenues of trade with important nations, allowing them to deal in the local currency. This will reduce the demand for the dollar and increase the value of the Iraqi dinar against the dollar,” he stated.
Antoun explained that one of the fundamental and strategic measures for the current and future governments is to promote the agricultural and industrial sectors in order to achieve self-sufficiency. This will also reduce the need for foreign currency to import agricultural and industrial products. Consequently, the country will no longer depend on the monopoly rentier economy that relies solely on the sale of oil.
On Wednesday, Prime Minister Muhammad Shiaa Al-Sudani announced the government’s interest in investing in gas, as this resource has not received much attention since the discovery of oil.
Prime Minister Muhammad Shiaa Al-Sudani concluded his visit to Moscow on Tuesday, 25 AD.
