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Sunday, January 15, 2012

Baghdad ~ Exchange Rates ~ Rid the National Currency of the Dominance of the Currencies of Neighboring Countries is Important for Economic Stability

Sunday, 15-01-2012

Economists: rid the national currency of the dominance of the currencies of neighboring countries is important for economic stability

Baghdad, AMSA Iraqi economy vulnerable to shocks and fluctuations in exchange rates of neighbouring States as Iran and Syria against the US dollar as it would on a market economy, local prices because most of them imported.

With economists advised the need to work on the development of all economic sectors to spare the Iraqi economy regional and external variables.

Decision of the Finance Committee, said Deputy/Iraqi/coalition Ahmed got (News News Agency): the commercial exchanges between Iraq and Iran and any impact of the Iranian currency affects or Iranian economy will affect trade and commodity prices in local markets that are mostly imported from Iran.

Pointed out: the US dollar has a major impact on the economies of the world and on the movement of commercial exchanges, both when price rises or falls, and continued to decline in Iranian currency would affect the Iraqi economy.

He added: there are several signs of rising US dollar before the Iranian currency, notably the international threat to impose an economic blockade on Iran and maybe provinces Iranian oil in world markets, adding that Iraq cannot interfere in Iranian to emerge from economic crisis imposed on it, as he wants Iraq to Iran is not interfering in its internal affairs.

And said the appearance of the Central Bank's Deputy Governor Mohammad Saleh (News News Agency): that the changes in financial exchange rate for the currency of Iran towards the US currency would affect the Iraqi economy and particularly the financial sector, because prices will rise somewhat Iranian in local markets as a result of the deterioration of the Iranian currency.

He said that the deterioration of the currency exchange rate is faster than the deterioration of commodity prices, meaning the currency exchange rate is influenced directly while prices take time to adjust to declining or rising exchange rate.

He said: the problems and economic crises occurring in Syria and Iran will affect the economy in terms of trade and import of goods from these two neighbors.

Revealed: in a world economy there is term called "beggar thy neighbour" any economic crises that occur in one of the neighbouring States will give negative results to a neighbouring country, and particularly the financial sector that money moved significantly, stressing that regional security and economic stability is essential for neighbouring States in order to not affect one another.

While economic analyst finds cute Abdel Salem announcing: variables that occur in exchange rates Iraq's neighbouring States would affect the US dollar trade of Iraq because Iraq supported suspended imports of foreign neighboring countries, in addition to the absence of local commodity products, goods in the Iraqi market, mostly imported, indicating that Iraq does not have anything from abroad only oil, leading to affected by any change in the economic or neighboring countries.

"Announcing (News News Agency): the low exchange rate of US dollar Iranian rial would impact directly on the Iraqi economy as a result of Iraqi economic alkotaat idle, in addition to the absence of other exports to Iraq other than oil, these differences in currency would lead to Iranian artkaa prices, although they are poor and do not match specifications.

He said Iraq has significant trade with Iran and most of the goods displayed in the local market decline in the price of Iranian origin Iranian rials to the dollar will increase prices in local markets.

The Iranian currency exchange rate to the US dollar has fallen as a result of the economic situation imposed on Iran by the United Nations.