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Chapter 1002 Unified Currency (1)

Riyadh, Saudi Royal Palace. Pen "Fun" Pavilion www.biquge.info{{}}

Looking at the luxury cars parked outside the palace, Qusay smiled, thanks to Saudi Arabia's rich oil resources, the life of Saudis is very rich, their luxury cars, villas, are an indispensable part of their daily life.

However, in Iraq, Qusay has always resisted this, and his official car has always been an ordinary mid-class sedan, and Qusay often takes the lead and donates his salary to the national treasury.

Although Iraq has become a country with a high per capita income, there is still a long way to go in the construction of the country and the strength of the country, and in the process of Iraq's development, an important issue is to prevent the ruling class from becoming corrupt and become a privileged class.

Qusay must lead by example.

However, in the Saudi royal family, there are very few people like Prince Waleed who started by their own efforts, and most of the princes are lying on their gold pockets and only know how to spend money. {{}}

However, these are Saudi Arabia's internal affairs, and Qusay has no right to interfere.

After Iraq gradually became stronger, Qusay's behavior became more cautious, surrounded by Arab countries, all his brothers, Iraq, as their leader, led the entire Middle East, together strong, but must not let the surrounding countries have the wrong feeling, thinking that Iraq's strength will threaten them.

It's a balancing point chosen.

Thinking of the purpose of his visit this time, Qusai once again played jingshen, after all, this time his proposal was shocking.

"President Qusay, you're very welcome." At the gate of the royal palace, Prince Sultan had already come out to greet him personally.

"Your Royal Highness, please come and greet you personally," Qusai asked.

Both of them are old acquaintances, Prince Sultan and Qusay, the relationship is very close, Prince Sultan patted Qusay on the back, and the two walked into the palace together.

"President Qusay is here, and I have to give a warm welcome. {{}} "Prince Sultan is very practical.

"Has he read my letter to the king?" Qusay asked, as he walked.

"I've seen it, so, this time, along with the people from Kuwait, are also here, and we need to hold an internal meeting first." Prince Sultan said.

Arriving in a lavishly decorated conference room in the palace, Qusai met with the key members of the meeting, King Fahd of Saudi Arabia, Daoud Abdul, Saudi Finance Minister Prince Fahd Saleh, Saudi Oil Minister, Prince Fahd of Kuwait, and Finance Minister Mustafa Jashim.

Qusay, on the other hand, is accompanied by his finance minister, accompanied by Hekmat, and their meeting will decide a major event in the entire Middle East.

"President Qusay, Iraq has made remarkable achievements." King Fahd said: "Now that we have achieved peace in the Middle East, the war in Persia is finally coming to an end, and the situation in Afghanistan will be finally resolved. ”

"That's what we should do in Iraq." Qusay said: "We in Iraq, we don't like war, peace is the best way to solve the problem, the world's cháo flow, war will become more and more difficult to fight, even the Soviet Union and the United States, isn't it to ease the situation?" ”

Now, the Soviet Union and the United States are both easing the situation with each other, they are both facing economic problems, and neither has the strength to take care of the other, but it does not represent the Middle East, there is complete peace, after all, in the Middle East, there is also a sè column. {{}}

"In order to promote the economic development of our countries, I hope that we can use a single currency in the Middle East." Qusay said.

Unified currency, although they already knew about Qusay's proposal in advance, but they still felt more shocked to hear Cusay say it from his mouth.

At present, only Europe has been trying to achieve economic unity.

The emergence of the euro can be traced back to March 1969, when the Hague Conference of the European Community put forward the idea of establishing a European Monetary Union, and entrusted the then Prime Minister of Luxembourg with the Pierre-? Werner made specific recommendations in this regard.

After two years of preparation, the "Werner Plan" was adopted, and the first step was taken in the construction of a single European currency. This plan calls for the establishment of the European Economic and Monetary Union in three phases over a period of 10 years. However, the ensuing oil crisis and financial turmoil led to the collapse of the plan. Ten years later, with the initiative and efforts of France and Germany, the European monetary system was established, and the European currency unit "Eju" was born.

Two years ago, the EC signed the Single European Document, proposing the establishment of a single market by early 1993 at the latest. It is divided into three stages: the first step is to fully realize the circulation of capital ziyou; The second step is to establish the European Monetary Board (the predecessor of the European Zhongyāng Bank); The third step is to establish and implement an economic and monetary union to replace the currencies of member countries with a single currency.

Europe has been working hard and has not yet achieved any results, and now, in the Arab region, is it also necessary to achieve a unified currency? They all have different opinions, or rather, a certain amount of skepticism.

"There are great benefits to unifying our currency, the main of which is that the economic transactions between our countries disappear the risk of exchange rates, and the cost of transactions between our countries is reduced, for example, the carpet exported from the Iranian region to Riyadh will drop by 10 percent." Qusay said.

In the internal circulation, the use of a unified currency avoids the loss caused by exchange rate fluctuations between each other, and in addition, various commissions and other problems in currency exchange, therefore, the transaction price will fall, which is very beneficial for trade between each other. {{}}

"Moreover, this will allow us to increase the competitiveness of various products produced in-house in the international market when they are exported to the outside world." "This is also the reason why Europe has always wanted a unified currency, we in Iraq, now the industry has developed rapidly, but it is not possible to produce all the parts independently, some of them, need to be subcontracted to other manufacturers, in the future, between our countries, there will definitely be a lot of product cooperation." ”

Although the unified currency is still doubted by many people today, in later generations it is a complete trend, and not only in Europe has successfully achieved the development of the eurozone, but also in Asia and even in North America, the possibilities of a unified currency are being discussed.

Qusay also knows that at this time, there is no euro yet, so skepticism is essential. Although Saudi Arabia and Kuwait are both loyal allies of Iraq, they must first consider their own interests on such an issue that concerns their own vital interests.

The biggest disadvantage is that member countries must abandon the dulixing of monetary policy, which means that countries can no longer use monetary policy as a policy tool to regulate the macroeconomy.

In the financial field, the Kuwaitis are the most vocal, they have been carrying out various financial activities, the Kuwait Investment Authority, Kuwait's oil revenues, international investment, Kuwait's earnings in the financial field, has caught up with the oil revenues, so that when the oil is poor in the future, there is no need to worry about Kuwait's financial resources.

Now, Kuwait mainly uses US dollars, or in other countries, the main foreign exchange held by other countries is US dollars, because when they export oil, they receive US dollars.

After listening to Qusay's words, everyone was silent, thinking about whether the benefits of Qusay's words were worth supporting the plan.

Qusay knows that these are their own powers, and that Iraq cannot force them to join the camp of the unified currency.

In the middle of the ring, it was King Fahd who spoke first, and he asked Qusay: "President Qusay, does this plan you are talking about have any other intentions?" ”

In fact, Fahd has already guessed what Qusai really thinks, but he still wants to get verification from Kusai's mouth.

"What do you say?" Qusay asked rhetorically: "Your Majesty, are there any other benefits to our unification of the currency?" ”

"If we unify the currency, then we don't need to use dollars to pay for oil, we can think about paying in our own currency." At this time, Saudi Arabia's oil minister, Prince Saleh, said.

As soon as his words came out, everyone froze.

Use your own currency to settle your oil!

Qusay smiled, or the oil minister reacted quickly, or rather, the oil minister was a little stupid, in short, this window paper was clear, and everything was easy.

The reason why the United States was able to become such a rampant superpower is that in addition to being militarily powerful, it is an economic giant, and this economic powerhouse is entirely due to the dollar, or rather, the dollar oil system has a lot of credit.

At the beginning, the dollar and gold were decoupled, the Bretton Woods monetary system collapsed, the United States seized the straw of oil in time, and the United States weapon Kissinger persuaded Saudi Arabia to let the oil-exporting countries accept the dollar as the sole denomination and settlement currency for international oil transactions. In the end, the dollar became the only proof of payment, so that the most direct understanding is that the United States can buy oil by printing money, and the rest of the world must exchange real goods and services from the United States for dollars, and then buy essential oil, so these petrodollars will be turned into financial assets such as US stocks and Treasury bonds in the form of repatriation, filling the US trade and fiscal deficits and supporting the US economy.

The fact that the United States can become the world's currency has a lot to do with oil, do you want to buy oil? Then you have to trade with the United States first, and you have to have dollars, because the oil-exporting countries only accept dollars!

However, now it is different, the United States and oil have nothing to do with it, and the Middle Easterners settle oil in their own currency!

Printing your own currency and then using your own currency to settle the oil is the most suitable option.

In this way, the Middle East's own currency will become the world's currency. (To be continued.)