“To withstand change and fluctuation and be recognized internationally” .. The government lists the difficulties of replacing the dinar with the dollar through oil sales
“To withstand change and fluctuation and be recognized internationally” .. The government lists the difficulties of replacing the dinar with the dollar through oil sales
8-18-2024
The Prime Minister’s Advisor for Financial Affairs, Mazhar Mohammed Salih, clarified today, Sunday, what is being circulated in some media outlets regarding the possibility of using the dinar instead of the dollar in oil sales.
Saleh said in an interview with the official agency, followed by (Al-Rabia), 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.”
He added 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 exchange rate linked to oil (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.”
faceiraq.org
