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Monetary policy and the national economy / Muhammad Sharif Abu Maysam
Wednesday, 18 December / 2 January 2012 09:32
Mohammad Sharif Abu Maysam
Since the Central Bank of Iraq began to pursue its monetary policy to create monetary stability in the country by raising the interest rate on bank deposits in order to withdraw money supply and the establishment of a daily auction for the sale and purchase of the dollar .. Were many voices calling for a more flexible bank in order to alleviate this policy deflationary and encouraging banks to raise rates credit toward advancing the development and advancement of sectors and subsequently reduce the inflationary situation by other economic instruments is to create products and a national limit the importation and encourages the government authorities on activating the laws and customs tariffs to protect local product.
And between these sounds and the policy of the Central Bank, "which was able later to achieve success on the monetary level, has created a remarkable stability in the exchange rate over the years," there was a cross insisted he has the votes that the successes achieved by monetary policy, are not really real macroeconomic result of the continued decline in growth rates .. And monetary stability in the country threatened at any moment where the world economies experiencing a rise in inflation by basing on the domestic consumption of imported goods and the opening of the market .. The central bank confirms the statements of its officials that the rises in inflation in the country, due (imported inflation) and to address this type of inflation is the responsibility of other authorities .. The left bank is betting on its ability to control rates of exchange in the domestic market with increasing cash reserves to the extent of $ 60 billion.
The last statement of the bank after the rise in exchange rates on the impact of changes witnessed by the country after the withdrawal of occupation forces, "that these gains are bubbles forming and that the bank is able to adjust the exchange rates in the domestic market," but quickly passed a bank officials after the cessation of banking transactions and banking in two neighboring Iraq to increase bank sales of foreign currency that will cause pressure on the auction the bank and its reserves of hard currency that would be diminished because of that, "calling on the Ministry of Commerce to introduce controls for import through the granting of import licenses, activating the law of customs tariff, saying that he does not can leave the central bank alone in the face of the market and its problems. "
And this statement clearly reveals the inability of monetary policy to maintain monetary stability in isolation from other policies .. Mini said the claims of some of the need to coordinate the organizers of the monetary policy with their peers involved other policies to support the development process was in place, and that the successes achieved in regard cash, which was the subject of boasting by the monetary authority, it was possible to record lower rates if the monetary policy was more flexible in favor of supporting the real sectors and increasing the proportion of bank credit to these sectors and, therefore, what is happening in the countries of the region, which will withdraw definitely on the economic landscape of Iraq will probably be lighter and the aforementioned forms of which can have it now, this does not relieve the responsibility of those who on other economic sectors.
That the parties based on the economic policies of different sectors demand this time - was a testament to the country and the region a lot of repercussions - a joint program of the exit of the national economy from crises present and explore expectations towards a treatment of what can be subjected to the national economy, which may not tolerate any more setbacks.
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Wednesday, 18 December / 2 January 2012 09:32
Mohammad Sharif Abu Maysam
Since the Central Bank of Iraq began to pursue its monetary policy to create monetary stability in the country by raising the interest rate on bank deposits in order to withdraw money supply and the establishment of a daily auction for the sale and purchase of the dollar .. Were many voices calling for a more flexible bank in order to alleviate this policy deflationary and encouraging banks to raise rates credit toward advancing the development and advancement of sectors and subsequently reduce the inflationary situation by other economic instruments is to create products and a national limit the importation and encourages the government authorities on activating the laws and customs tariffs to protect local product.
And between these sounds and the policy of the Central Bank, "which was able later to achieve success on the monetary level, has created a remarkable stability in the exchange rate over the years," there was a cross insisted he has the votes that the successes achieved by monetary policy, are not really real macroeconomic result of the continued decline in growth rates .. And monetary stability in the country threatened at any moment where the world economies experiencing a rise in inflation by basing on the domestic consumption of imported goods and the opening of the market .. The central bank confirms the statements of its officials that the rises in inflation in the country, due (imported inflation) and to address this type of inflation is the responsibility of other authorities .. The left bank is betting on its ability to control rates of exchange in the domestic market with increasing cash reserves to the extent of $ 60 billion.
The last statement of the bank after the rise in exchange rates on the impact of changes witnessed by the country after the withdrawal of occupation forces, "that these gains are bubbles forming and that the bank is able to adjust the exchange rates in the domestic market," but quickly passed a bank officials after the cessation of banking transactions and banking in two neighboring Iraq to increase bank sales of foreign currency that will cause pressure on the auction the bank and its reserves of hard currency that would be diminished because of that, "calling on the Ministry of Commerce to introduce controls for import through the granting of import licenses, activating the law of customs tariff, saying that he does not can leave the central bank alone in the face of the market and its problems. "
And this statement clearly reveals the inability of monetary policy to maintain monetary stability in isolation from other policies .. Mini said the claims of some of the need to coordinate the organizers of the monetary policy with their peers involved other policies to support the development process was in place, and that the successes achieved in regard cash, which was the subject of boasting by the monetary authority, it was possible to record lower rates if the monetary policy was more flexible in favor of supporting the real sectors and increasing the proportion of bank credit to these sectors and, therefore, what is happening in the countries of the region, which will withdraw definitely on the economic landscape of Iraq will probably be lighter and the aforementioned forms of which can have it now, this does not relieve the responsibility of those who on other economic sectors.
That the parties based on the economic policies of different sectors demand this time - was a testament to the country and the region a lot of repercussions - a joint program of the exit of the national economy from crises present and explore expectations towards a treatment of what can be subjected to the national economy, which may not tolerate any more setbacks.
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