Apart from the US shut down crisis, there is another crisis that is shaping up in America, regarding its economic position. The debt ceiling of the US government has reached to new height to record levels reached 10 trillion dollars, an amount much difficult in the absence of indicators of recovery of the US economy, threaten new economic crises threatening the dollar.
In a press release, the economic information center stated that it needs to work out some policies in Iraq in cooperation with the Iraqi Government to move Iraq from the dollar. As the dollar rate can be very fluctuating, Iraq has to get shifted on a currency that is more stable. This is important for Iraqi economy as fall of the US economy will severely affect different policies and plans of the country in near future.
There are a lot of Asian countries that are doing well in terms of their economies and countries like China and Japan should be considered at the ace positions in that list. Chinese Yen is more stable despite the world market condition had fallen in recent time. Hence, it is not at all a bad choice to show some reliance on Chinese currency - Yuan.
Central Member of the parliamentary Finance Committee Naguib urged for Iraqi currency current limited categories don’t harmonize with balancing Iraq and encouraging investors not to trade in foreign currency.
Mr. Najib further remarked, “If there were coins of 200 or 250 thousand for the encouraging motivation improved monetary policy,” adding that, “The current figure is difficult without study and without the reform of the economic and financial system in Iraq and current currency unlink Iraqi dinars to the dollar.”
He stressed on the point that “the disengagement of the Iraqi dinar to the dollar needs to raise the value of the Iraqi dinar and clear plans and strategies and the use of some economists.”
Professor of Economics at the University of Sulaymaniyah Khaled Haidar stated, “Unlink the dinar from the dollar is not possible as the Iraqi economy is one-sided. On the other hand, Iraq exports oil and imports most of its needs from abroad any dollar that exposed Iraq anyway to crises.”
On this Sunday, He further emphasized, “Iraq could seek to reduce a dinar to the dollar through increased domestic production and reduce imports from abroad to fill the growing demand caused by increased purchasing power relative to increase in population in the country.“
On 1st October, the White House issued that the Federal Government has ordered the suspension of work, after Congress failed to reach agreement on the budget for the New Year. The US Congress has approved, on 17 October, a Bill to end the partial closure of the Government departments and avoid debt default Washington, hours before the deadline, to raise the debt ceiling to 16.7 trillion dollars and not face Washington risk defaults.
Several States warned oil effect US Government shutdown on the country’s financial dealings and its income from oil, particularly dealing with us directly. Country like Iraq, which is hugely dependant on its earned petrodollars from the oil exports, is seeking some amount of stabilities with its economy. The country has several new plans for revamping the infrastructure and thus at this point of time, economic liquidity is highly welcomed by Iraq.