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Inflation exceeding the central bank's policy to reduce the value of the dinar would lead to higher prices and disrupting the market
May 19, 2015
Criticized specialists in economic affairs, the central bank's policy to reduce the dinar exchange rate against the dollar as well as on the printed Coins category 50 and 100 thousand dinars to face the federal budget for 2015, which would hurt citizen deficit, and this policy will raise inflation and reduce the power of the dinar, which means Add new rates of inflation that Iraq is still suffering from it, and the devaluation of the dinar will be accompanied by a rise in the dollar, which handles traders value which will reflect negatively on the value of goods and commodities in the Iraqi market, which will rise as a result of this financial policy of the Central Bank, which in turn will increase the suffering of the citizens. Economist nice Ugaili said in a conversation with (Iraqi Controller) that the central bank did not provide a real processors to meet the fiscal deficit in the budget of 2015, Reducing the Iraqi dinar rate against other foreign currencies will contribute to increasing inflation rate in the country, which is already suffering from inflation, as The government handlers economic situation was not properly Sometimes raise electricity fees and impose taxes and at other times trying to raise the prices of oil derivatives, and all these processors do not contribute to the development of the Iraqi economy, but that the state is unable to reach a clear vision in its economic policy.
He Ugaili: that sell the dollar in this way by the central bank will allow the smuggling of the dollar is also helping in the money laundering process and thus the bank did not succeed in dealing with the current crisis, and come a step Print currencies women with fifty-class and one hundred thousand dinars, adding new figures for inflation, and continued: Rising dollar prices and expectations by reaching 1,300 dinars to the dollar, it will leave a negative impact on the Iraqi market, which will see a rise in goods and commodities prices, which would be borne by the consumer, who already suffering from a lack of liquidity and therefore, Suffering continues, especially as the Iraqi factories have been stalled for a long time the government did not resort to operation and support of industrialists in the country, making them importers and are not productive. For his part, a specialist in the Iraqi economy Hamid punitive: the reduction of the Iraqi dinar exchange rate will benefit the budget, because every dollar sold by the central bank at the most expensive of the dollar, which means that before the budget is funded by the difference between the price of two dollars Alambain deficit. He added: "This policy is used on a global scale, turning a blind eye on the level of progress or the availability of resources in the countries, a cure for the problems of the budget deficit and balance of payments deficit at the same time. He pointed out that the measure has immediate and future effects, which can lead to higher prices in the domestic market and thus will pay the price of Iraqi citizens as a result of the Central Bank's policy. He added: "The monthly inflation index rose by 08% .. from the previous month and by 0.5% as well as higher inflation base index by 0.3% from the previous month and by 1.7%, and here we find that Iraq suffers from major economic problems, so the central bank processing This is by supporting the dinar and not reduce its value in order to address the budget deficit on the suffering of the Iraqi account. For its part, it announced the parliamentary finance committee, said the central bank in the process of strengthening of the dinar by printing large local financial currencies. Said committee member Majda al-Tamimi, said that "the reasons for the weakness of the Iraqi dinar against the dollar due to the size of the money supply and the difference great price," pointing out that "the past years there was a project to strengthen the dinar and repaired by deleting three zeros from the Iraqi currency but has been postponed." She explained: "The project can not be implemented at this time because of the economic, political and security situation that the country is living, what gives the possibility of negative things achieved reflected on the financial and economic situation."
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May 19, 2015
Criticized specialists in economic affairs, the central bank's policy to reduce the dinar exchange rate against the dollar as well as on the printed Coins category 50 and 100 thousand dinars to face the federal budget for 2015, which would hurt citizen deficit, and this policy will raise inflation and reduce the power of the dinar, which means Add new rates of inflation that Iraq is still suffering from it, and the devaluation of the dinar will be accompanied by a rise in the dollar, which handles traders value which will reflect negatively on the value of goods and commodities in the Iraqi market, which will rise as a result of this financial policy of the Central Bank, which in turn will increase the suffering of the citizens. Economist nice Ugaili said in a conversation with (Iraqi Controller) that the central bank did not provide a real processors to meet the fiscal deficit in the budget of 2015, Reducing the Iraqi dinar rate against other foreign currencies will contribute to increasing inflation rate in the country, which is already suffering from inflation, as The government handlers economic situation was not properly Sometimes raise electricity fees and impose taxes and at other times trying to raise the prices of oil derivatives, and all these processors do not contribute to the development of the Iraqi economy, but that the state is unable to reach a clear vision in its economic policy.
He Ugaili: that sell the dollar in this way by the central bank will allow the smuggling of the dollar is also helping in the money laundering process and thus the bank did not succeed in dealing with the current crisis, and come a step Print currencies women with fifty-class and one hundred thousand dinars, adding new figures for inflation, and continued: Rising dollar prices and expectations by reaching 1,300 dinars to the dollar, it will leave a negative impact on the Iraqi market, which will see a rise in goods and commodities prices, which would be borne by the consumer, who already suffering from a lack of liquidity and therefore, Suffering continues, especially as the Iraqi factories have been stalled for a long time the government did not resort to operation and support of industrialists in the country, making them importers and are not productive. For his part, a specialist in the Iraqi economy Hamid punitive: the reduction of the Iraqi dinar exchange rate will benefit the budget, because every dollar sold by the central bank at the most expensive of the dollar, which means that before the budget is funded by the difference between the price of two dollars Alambain deficit. He added: "This policy is used on a global scale, turning a blind eye on the level of progress or the availability of resources in the countries, a cure for the problems of the budget deficit and balance of payments deficit at the same time. He pointed out that the measure has immediate and future effects, which can lead to higher prices in the domestic market and thus will pay the price of Iraqi citizens as a result of the Central Bank's policy. He added: "The monthly inflation index rose by 08% .. from the previous month and by 0.5% as well as higher inflation base index by 0.3% from the previous month and by 1.7%, and here we find that Iraq suffers from major economic problems, so the central bank processing This is by supporting the dinar and not reduce its value in order to address the budget deficit on the suffering of the Iraqi account. For its part, it announced the parliamentary finance committee, said the central bank in the process of strengthening of the dinar by printing large local financial currencies. Said committee member Majda al-Tamimi, said that "the reasons for the weakness of the Iraqi dinar against the dollar due to the size of the money supply and the difference great price," pointing out that "the past years there was a project to strengthen the dinar and repaired by deleting three zeros from the Iraqi currency but has been postponed." She explained: "The project can not be implemented at this time because of the economic, political and security situation that the country is living, what gives the possibility of negative things achieved reflected on the financial and economic situation."
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