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Expert criticizes the lack of coordination between fiscal and monetary policies
24/06/2012 0:00
Said that it is the most prominent Marqlat determine the exchange rate
of Baghdad - Al Sabah
said an economist said the central bank's demands in cooperation with the government, larger for the highest possible coordination between fiscal and monetary policies, pointing out that this principle was enshrined in the Bank Act No. 66 of 2004, as well as law financial management, public debt, No. 95 of the same year. explained Karim Hammoud Faraj Speaking (morning) that the crisis experienced by the exchange rate of the dinar against the dollar due to several reasons, particularly the indiscriminate importation and increased rates of imports of goods and goods poor in Iraq, saying that this cost the country large sums of money used by importers to feed Tjarathm at the expense of the value of the dinar exchange rate, which fell as a result. Faraj said there are many factors in the economic arena led collectively to the instability of the exchange rate of the dinar against the dollar, factors can be overcome in the event of increased coordination between the two policies financial, monetary, and this requires to show more flexibility in dealing with the Central Bank on the one hand and the government with full joints economic and financial on the other. He Faraj to that during the occurrence of fluctuations and crises affecting the Iraqi dinar remains the Department of the crisis revolves around the auction currency held by the Central Bank on a regular basis During the week, while neglecting the role of government banks to finance purchases of private banks, warning of growing in place (dollarization), which he said could harm the Iraqi economy in general, saying that this phenomenon could fall national currency toppled many of the financial gains that achieved during the past years. criticized Faraj what he called the expansion is not reasonable for the imports, which confirmed they pose a threat to the economic reality in Iraq, through financial transfers significant private by the favor of the import of those materials, which resulted in accumulation of tons of goods poor in local markets as well as the export quantities of foreign exchange and flooding the market and thus impact negatively even in domestic production. and expert pointed out that measures of the Central are usually confused in times of crisis suffered by the Iraqi dinar in favor of the dollar, calling on him to take a more assertive in the diagnosis of the causes and develop treatments right for them, especially the reasons of a political nature, which he said it needs more than Altaan between all institutions and government departments.
criticized Faraj procedures and the Ministry of Commerce in the organization of import operations, explaining that these processes need to Planning Strategy to know the general needs of the country as well as the need to organize grant licenses import to the provisions of the Central Bank of the process of granting the dollar to holders of such licenses exclusively.
In order to determine the success of the exchange rate policy existing in the country called Faraj to hold a national conference expanded allegedly has a number of economic experts, academics, businessmen and state officials to discuss the extent to which the current exchange rate with economic policy for Iraq.
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