Economic Adviser to the Prime Minister: dinar upped the crutch and the central policy change

November 8, 2015 7:03





He gave a government expert on the Iraqi economy blamed on the Central Bank of the fact that his policy "deflationary" led to disruption of development, while leading its dependence on the dollar Award Auction Exchange "is real" price of the dollar against the value of "raised a crutch" of the dinar, the central calling to change its monetary policy.

Economic Adviser to the Prime Minister Abdel Hussein Al-Anbuge, said "the central bank monetary policy of withdrawing liquidity from the market led to disable the overall development of the country" where the central adopt a "vision that inflation in Iraq cash but the reality reflects another hypothesis is the fact that inflation is our real It stems from a structural imbalance and lack of investment, which has limited the process of withdrawing liquidity by raising interest rates it".


He said Anbuge that the central bank" since more than three years practiced a deflationary policy without having to get positive results, which confirms that inflation is not critical, "pointing out that" the exchange rate is not the real price because of its central adoption support the exchange rate through policy The dollar auction, meaning that upped the dinar a crutch and does not reflect the real power by the central bank.

"He continued by saying that the exchange rate" if it were a real We got the goods and services more with our money, where separated dinar exchange for the inflation rate. "

Anbuge pointed out that dealing with rising prices in Iraq "to not lie through monetary treatments but by real action" in the sense that "there is a problem in the offer does not address only through increased domestic production of fiscal and monetary stability is does not come only through criticism, there must be spend on investment. "

 And the alternatives available to the central bank policy adviser to Prime Minister says that it "lies in adopting an expansionary fiscal policy supported by an expansionary monetary policy is also to build infrastructure and drive development forward, I do not think that the economy only needs to monetary stability as what its usefulness in a backward level of development."

He added that the general level of price increases "can not only be seen by the low dollar exchange rate citizen does not have the details of this process and he sees a contradiction between the situation as it expected to see the sale of goods commensurate with the percentage decline the price of the dollar against the Iraqi dinar."

 He added that "(citizen) should be seen as the process in all its aspects because the import cost of increased security and transport, electricity, all of which are reflected negatively on the prices of goods is done on them instead of getting the opposite."

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