After a couple of months down the COVID-19 lane, it is now undeniable how many countries have been economically strained. In fact, economists from all around the world, including the WBG, are predicting a serious economic recession across the world, should the pandemic keep escalating. So in this piece, we sought to address the current state of economic affairs in Iraq and the US, and the possibility of Global Currency Reset (GCR). Read along.
The economic state of Iraq during COVID-19
Iraq has always been a top exporter of oil in the world, and about 90% of its revenue comes from it. However, this season seems to be driving things in a different course. Severally, state corporations and energy companies in Iraq have raised concerns about the decline of the oil industry during this season. For instance, FatihBirol, an executive director in the International Energy Agency (IEA), recently stated that Iraq is the most economically strained country in all the Middle-East oil-dependent countries.
With oil selling at almost half the price it did about three months ago, it can be concluded the crisis in Iraq is real. Mr. Birol attributes this fall to the ongoing price war between Russia and Saudi Arabia during this COVID-19 season. So in Iraq, the economic struggle is getting worse by the day.
The economic state of the US during COVID-19
As a developed country, I am pretty sure you wouldn’t expect the US’s economy to go into recession soon. And of course, it is yet. However, some industries like travel and transportation, warehousing, hospitality, oil and gas extraction, and leisure have really experienced a huge blow.
The collapse of such industries implies the loss of jobs, right? So, many companies have been compelled to issue layoffs to their employees, leading to loss of jobs. Actually, according to research done by Moody’s Analytics, over 20% of the employees in most states have filed for unemployment during this season.
Owing to the fact that it remains unclear when the pandemic is ending, many people have cut off their spending costs, and turned to hoard the funds, which is expected to worsen the situation in the near future.
So, this just reflects how dire the situation is becoming every day.
The future of Iraqi Dinar (IQD)
So with this daunting crisis, should there be hopes about Dinar revaluation? Well, according to Ali Allaq, the Governor Central Bank of Iraq, all is not lost. Amid the crisis, Allaq said although there is some anxiety, it is not acute.
Before COVID-19, about February 2020, oil prices were rising rapidly, the Iraqi dinar was increasing in value, and the GOI had recorded massive revenues, which raised serious questions about dinar revaluation. It was a promising revaluation in the very near future. However, as Ali Allaq hopes, the future is still green.
Finally, most leaders are predicting the possibility of the Global Currency Reset. And actually, this is evident in how they are managing the COVID-19 pandemic and working together socially, politically, and economically. So going forward, we can be hopeful that it will eventually come to pass.