Mazhar Mohammed Salih, the Financial Advisor to the Prime Minister, clarified on Sunday what some media outlets are reporting about the possibility of selling oil using the dinar rather than the dollar.
In an interview with the, Saleh stated that “the adoption of the dinar in pricing oil, or what is called (petro dinar), especially when the national currency is not one of the international reserve currencies, requires the availability of foreign reserve currencies or gold, as Russia did when it bought Russian oil with gold-backed rubles, which caused problems that we will come to later.” This was in reference to the fact that “the adoption of the dinar in pricing oil, or what is called (petro dinar).”
He went on to say that “these foreign reserves must be available (as a necessary condition) and operate according to a high standard of efficiency that guarantees the stability of the oil-linked exchange rate (the petro dinar) in order to hedge against oil price fluctuations to ensure the stability of the exchange rate (the petro dinar) itself from the beginning.”
