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Why the dollar's dominance is declining
in the Middle East

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Posted By: Moritz55, 5/21/2023 12:55:14 AM

Iraq has just banned US-dollar transactions, the Saudis and Emiratis plan to sell oil without it and there are plans to establish a whole new currency to bypass it. To know why, first have a look at the war in Ukraine. Anyone in Iraq who wanted to buy a car or a house this week got a nasty shock. Last Sunday, the Iraqi government announced a ban on doing personal or business deals in US dollars. Ordinary Iraqis usually make big-ticket purchases using dollars. Because of the ongoing devaluation of their own dinar, they'd need several large rubbish bags filled with paper dinar notes to buy a car or house.

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Reply 1 - Posted by: Trigger2 5/21/2023 2:49:57 AM (No. 1474156)
Is there nothing that Joey hasn't ruined?
5 people like this.

Reply 2 - Posted by: plomke 5/21/2023 3:57:01 AM (No. 1474167)
Oh...I dunno...maybe being a billion trillion gazillion dollars in debt and having a military made up of fake generals and freaks,weirdos and the mentally ill might have something to do with a lack of confidence in the dollar...
11 people like this.

Reply 3 - Posted by: mifla 5/21/2023 4:35:26 AM (No. 1474173)
The world sees a declining America and a powerful China ready to fill the void. They are simply picking sides.
10 people like this.

Reply 4 - Posted by: gop_guys 5/21/2023 9:02:57 AM (No. 1474304)
With a 32 trillion deficit, add SS, military and federal pensions, Medicare and Medicaid, the actual debt is 150 trillion. We most likely will default, blame Russia, China, Saudi Arabia, and usher in the CBDC. Hold on to your *hats. *(Precious metals)
3 people like this.

Reply 5 - Posted by: DVC 5/21/2023 11:09:39 AM (No. 1474401)
And somehow, I can't seem to care whether the Iranians can prop up their miserable rolling disaster with US dollars. I just don't see that this is important to me in any way, shape or form. But it certainly is real. I knew many Ukrainians and Russians who used crisp, new US $100 bills as their "bank", keeping them safe somewhere in an envelope since their own currencies were so unstable, and so rapidly losing value. Example: When I first went to Russia, the exchange rate was 22 rubles to a dollar. Currently a dollar will get you can get 79 rubles with a US dollar. So, if you took 3000 rubles and put them in an envelope in the early 2000s, they would now have the purchasing power of 835 rubles, a loss of about 3/4 of their value when used to buy anything not made in Russia - which is pretty much anything. OTOH, if that Russian had purchased dollars with those 3,000 rubles, he'd have
0 people like this.

Reply 6 - Posted by: DVC 5/21/2023 11:17:00 AM (No. 1474408)
hit submit too soon: If the Russian had purchased US dollars with his 3,000 rubles in the early 2000s, and held them he would have $136 back then, and now he could buy back 10,770 rubles with that US money. He's have gained by more than 300% by holding dollars rather than holding rubles. The Ukrainian hryvnia was at about 8 to the dollar when I first visited Ukraine. It is now about 37 to the dollar. A Ukrainian who kept his savings in US dollars would still be able to purchase that European or American made item today, rather than having lost about 80% of their savings. But - as far as how this use of US dollars affects the average American - I don't see that it makes any real difference to us.
1 person likes this.

Reply 7 - Posted by: Kate318 5/21/2023 11:48:52 AM (No. 1474441)
BRICS. The Western Alliance has no one to blame but themselves for this.
2 people like this.

Reply 8 - Posted by: Dodge Boy 5/21/2023 12:48:47 PM (No. 1474484)
Just we wait until congress and the Federal Reserve go live with the central bank digital currency. Enjoy the dollar while it is still legal tender. Brought to you by the house of Rothschild. Enjoy the suck.
3 people like this.

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