An economic expert, Bassem Anton, has described the agreement made between Iraq and Russia to conduct transactions in their local currencies, the dinar and the ruble, as a “masterstroke”. This agreement is expected to open up new opportunities for other countries to trade in local currencies, which will reduce the dependence on the US dollar. The expert believes that this move could lead to significant changes in the global financial market.
Anton stated that highlighting the matter of transactions between Iraq and the Russian Federation to the highest level of authority played a key role in reaching an agreement with the Russian side to carry out transactions between the two countries using their respective local currencies, namely the ruble and dinar. This decision was made mainly due to the fact that Russian investments in Iraq amounted to $19 billion annually, which is a significant figure.
He stated, “As a result of the agreement, Iraq will have the opportunity to establish new relationships with significant countries and conduct transactions using the local currency. This will lead to a reduction in the need for the dollar and an increase in the value of the Iraqi dinar against the dollar.”
Antoun explained that one of the key goals for both the current and future governments is to bolster the agricultural and industrial sectors in order to achieve self-sufficiency and reduce the dependence on importing agricultural and industrial products from other countries which requires dollars. By achieving this, the country will be able to move away from a one-sided economy that is heavily reliant on oil sales.
Prime Minister Muhammad Shiaa Al-Sudani announced on Wednesday the government’s interest in investing in gas. This is due to the fact that gas has been neglected since the discovery of oil.
Prime Minister Muhammad Shiaa Al-Sudani concluded his visit to Moscow on Tuesday.