Different number of economic experts on the idea of using gold instead of dollars to buy Egyptian products and natural gas, so the grounds that it will lead to higher gold prices internationally and reduce the cash reserve of the dollar, after Iran announced the decision to accept “gold” as a means to pay for the purchase oil, due to the U.S. and European sanctions, which have been applied recently, because of its nuclear tests, leading to the difficulty of converting dollars to the banks of Iran, has been lifted from the gold reserves in the country.
The question here is what if the application of this principle to Egypt, under the current economic situation, which is suffering from a deficit of an adult, since the revolution of January 25 last year, with low cash reserves, threatening danger, do you save that idea, which re-“how to barter” of the economy Egyptian, or will have other risks involved in foreign reserves, and the difficulty of obtaining hard currency, at the same time you will increase the gold reserves, leading to higher prices globally.
For his part, economist says Abdul Muttalib Abdul Hamid, Director, Center for Economic Research Sadat Academy, of the most important reasons which will lead to a catastrophe in the case of universal experience Eraana is the disparity between the production of gold and the growth of international trade, at a time to grow the production of gold per annum rate of 2% are growing international trade by 11%, he said, adding that this will lead to a very large rise in gold prices globally, and of course will impact on the domestic market in Egypt.
In his view, the economist Ibrahim Essawy Advisor National Planning Institute, the dollar is no longer the currency reliable and should be replaced with a system more stable, pointing out that the voices demanding a return to a system of gold is increasing across the countries of the world, believing that a return to a gold is the solution the suffering of the world financial and economic crises, the only way to reduce the inflationary pressures arising from excessive issuance of money legal, and to help limit the growth of sovereign debt, as well as ensuring economic stability, which could prevail in the world if he returned to the system.
The Essawy, that the last of these claims launched by President Robert Zoellick World Bank, which suggested that is linked to the global economy, gold installer, to help stabilize the currency, reducing inflationary expectations in the global financial markets, where he called Group of Twenty to study the use of gold as a reference point of an international market expectations about inflation and deflation, the value of currencies, saying that despite the fact that gold is one of the ancient coins but it is still used today as an asset to a financial alternative.
Iran has refused for a long time payment in local currencies has led, especially in 2011 to the accumulation of billions of dollars in arrears of payment on India, which exports small quantities to Iran and was unable to continue to convert their dollars to Iran through banking channels, which were used previously, and made Tehran, including more than 140 billion worth of products in 2011, including more than $ 100 billion of oil and 25 billion from oil derivatives, on the other hand the Assistant Secretary of Iran’s oil Ahmed Castle Banny yesterday, an increase in the number of foreign customers to buy Iranian crude oil, to coincide with the tightening of sanctions, the European Iran.