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Experts (range): government actions and spending power behind the rise in inflation
Date: Thursday, 04.19.2012 7:53
BAGHDAD / Ahmed Abed Rabbo
said a number of experts, governmental action, spending power of current and behind the high levels of inflation, in light of the weakness of the productive base. The economist said Basil al-Obeidi's (long): The actions taken by the government is currently working on a high index of inflation during the launch of loans to employees and retirees,
He pointed out that it is working to increase liquidity and offset the lack of supply of commodity local, what confuses the domestic market and raise the rates of inflation, indicating that the government reduced the interest rate in banks through bid farewell to their money in banks, governmental organizations.
Obeidi said: that the cluster large cash must be turned to save by raising the interest rate on funds deposited in state banks what drives people to bid farewell to the money in the banks
as well as the trend towards investment, noting that the last semi-disabled and the movement of construction stalled.
He Obeidi: that the criticism is going on in a vicious circle either smuggled out or turns to the requests for work to raise the rates of inflation.
stressed the need to expand the production base through the creation of an economic plan long term to be developed by specialists in the economic aspect.
For his part, economist Salim al-Bayati, the difficulty of addressing the problem of inflation currently, noting that the local product can not afford to fill the need for college with no real remedies for this serious phenomenon.
Bayati said (range): The inflation of the phenomena that affect the most vulnerable economies that do not have a policy of work and production, indicating that the country continues to suffer the lack of local product markets can rely on expected high inflation at high levels in the coming years.
Al-Bayati said: that tackling inflation is through the work to build a base of agricultural and industrial as well as the need to support the private sector over GDP and reduce the smuggling of currency abroad, pointing out that the process of deleting the zeros is one of the solutions of form to eliminate inflation.
In the meantime, the committee said in the House of Representatives on the lack of "meaningful and realistic" on government action to stop the economic inflation, noting that the central bank proposed to delete the zeros from the currency and raise its value against other currencies as a solution to inflation.
A member of the Committee of Economy and investment representative Amer winner for "Twilight News" that "the government had previously made promises to take action to stop the economic inflation, but we did not have any impact on the ground."
and noted that the Committee on the economy hosted earlier in the Central Bank Governor Sinan Shabibi and his deputy, the appearance of Mohammed Saleh to discuss ways to stop the inflation or reduce the effects of economic, as made clear that inflation can be stopped by deleting the zeros of the Iraqi currency and raise its value against other currencies.
revealed the Ministry of Planning and Development Cooperation for obtaining a new high in the index to the annual overall inflation for the month of March increased by 8.3% compared to the same month of 2011.
attributed the ministry spokesman Abdul Zahra al-Hindawi, the reasons for the rise to two main factors are the first in the high average prices of vegetables and fruits following the government's decision in February 2012 to suspend Astaradhma which led to a rise in the price index of the Department of Food and non-alcoholic beverages within the basket of public prices increased by 13.2%, compared to that index in the month of March 2011.
The second factor has been the case of the continuous rise of the index price for the Department of Housing and real estate (8%) than it was in March 2011 and Cabinet had decided to wait in the application delete zeros from the national currency.
The Director of Information Unit in the Secretariat of the Council of Minister Abdel Talaqani, The Department of Affairs of the Secretariat and directed, to issue a decision to wait in the application of the deletion of zeros from the national currency.
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