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The central bank's monetary policy and lack of transparency threaten the Iraqi economy
July 13, 2024 Last updated: July 13, 2024
Independent / Follow-up / - Economic and media sources revealed that the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, refused to publish the financial tables of the Central Bank for the year 2023, as the list published on the bank’s website showed that the last published table dates back to November of last year.
The sources confirmed to the Independent that the reasons for the governor’s refusal to publish financial schedule data are due to the large volume of new currency issuance.
The sources explain that a state of inflation in liquidity has reached enormous numbers due to the absence of oversight by the House of Representatives over the work of the Central Bank, in addition to clear corruption in the file of the dinar exchange rate against the dollar.
In this context, independent politician Hussein Al-Falluji warned against excessive issuance of new currency and its impact on the Iraqi economy. In his article published by Al-Mustaqila, Al-Faluji said:
“In light of the economic challenges facing Iraq, the importance of issuing new currency as a monetary policy tool to achieve economic growth and financial stability appears.
Unfortunately, these funds were ineffectively directed towards consumer sectors rather than productivity, leading to increased inflation and depletion of hard currency balance.”
According to available statistics, the volume of cash issued at the end of 2017 amounted to more than 44 trillion Iraqi dinars, while the volume of the monetary mass exceeded 103 trillion Iraqi dinars at the end of 2023.
Al-Falluji indicated that these funds were directed towards the salaries and subsidies sector instead of being directed towards sectors Productivity. He stressed that
if these funds had been directed wisely towards the industrial, agricultural, tourism and mining sectors, the economic situation in Iraq would be much better than it is now. Al-Falluji concluded by
stressing the need to reconsider the use of new cash and adopt a strategy that focuses on directing funds towards productive sectors that generate income in hard currencies and supporting the private sector, to improve the economic situation in the country in a sustainable manner.
Does inflation continue to threaten the Iraqi economy?
This case highlights the urgent need to carry out radical reforms in the monetary and supervisory policy of the Central Bank, and to find effective mechanisms to reduce corruption and ensure transparency in the management of public funds to achieve real and sustainable economic development in Iraq.
https://mustaqila.com/السياسة-النقدية-للبنك-المركزي-وغياب-ا/
July 13, 2024 Last updated: July 13, 2024
Independent / Follow-up / - Economic and media sources revealed that the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, refused to publish the financial tables of the Central Bank for the year 2023, as the list published on the bank’s website showed that the last published table dates back to November of last year.
The sources confirmed to the Independent that the reasons for the governor’s refusal to publish financial schedule data are due to the large volume of new currency issuance.
The sources explain that a state of inflation in liquidity has reached enormous numbers due to the absence of oversight by the House of Representatives over the work of the Central Bank, in addition to clear corruption in the file of the dinar exchange rate against the dollar.
In this context, independent politician Hussein Al-Falluji warned against excessive issuance of new currency and its impact on the Iraqi economy. In his article published by Al-Mustaqila, Al-Faluji said:
“In light of the economic challenges facing Iraq, the importance of issuing new currency as a monetary policy tool to achieve economic growth and financial stability appears.
Unfortunately, these funds were ineffectively directed towards consumer sectors rather than productivity, leading to increased inflation and depletion of hard currency balance.”
According to available statistics, the volume of cash issued at the end of 2017 amounted to more than 44 trillion Iraqi dinars, while the volume of the monetary mass exceeded 103 trillion Iraqi dinars at the end of 2023.
Al-Falluji indicated that these funds were directed towards the salaries and subsidies sector instead of being directed towards sectors Productivity. He stressed that
if these funds had been directed wisely towards the industrial, agricultural, tourism and mining sectors, the economic situation in Iraq would be much better than it is now. Al-Falluji concluded by
stressing the need to reconsider the use of new cash and adopt a strategy that focuses on directing funds towards productive sectors that generate income in hard currencies and supporting the private sector, to improve the economic situation in the country in a sustainable manner.
Does inflation continue to threaten the Iraqi economy?
This case highlights the urgent need to carry out radical reforms in the monetary and supervisory policy of the Central Bank, and to find effective mechanisms to reduce corruption and ensure transparency in the management of public funds to achieve real and sustainable economic development in Iraq.
https://mustaqila.com/السياسة-النقدية-للبنك-المركزي-وغياب-ا/
