Economists: inflation .. Heavy legacy inherited Iraq and shook confidence in its national currency

Economists: inflation .. Heavy legacy inherited Iraq and shook confidence in its national currency
Date: 04/09/2012 12:13:23 Tuesday



Baghdad (news) / report / dreams Furaiji / .. inflation .. Recipe has become inherent in the Iraqi economy since the early nineties of the last century as a result of the siege and successive wars, and the subsequent almost complete paralysis of local production after 2003.

Large handful of local currency, is worth only a commodity is very simple, and confidence shaken, and money means big does not want people campaigning for his weight, but prefer an international currency more stable and less quantity, and often the U.S. dollar, those are the main symptoms of economic inflation, which is witnessing rates up continues.

Member Economic Commission MP / coalition in Iraq / Qusay Fri Abadi, said (of the Agency news): "The inflation rise unreasonably also confirms the reality of the situation in Iraq," expressing his surprise at the words of the Central Bank that the inflation rate fell to (6% ).

He explained: that the central bank is able to reduce the rate of inflation by increasing the dollar supply and reduce the demand for it, which leads to decline in value against the Iraqi dinar.

Confirmed: that imports and limited domestic production led to the escape of hard currency and raise the rate of inflation, calling, the federal government and the central bank to activate the private sector broad dollar for banks and reduce unemployment and encourage investment, to fight inflation.

As a member of the Economic Committee MP / National Alliance / Amer Al-Fayez, stressed during a recent (the news) that the federal government did not provide any scientific procedure to reduce the rate of inflation do not care about higher rates.

Fayez attributed: the reasons for the high rates of inflation to neglect the key element in supporting the economy and the fulfillment of which the private sector.

He explained: that the fundamental solution to reduce the rate of inflation is the deletion of three zeros from the Iraqi currency and raise its value against the U.S. dollar, to deflate, as well as support for industry, trade, agriculture and the private sector.

While a member of the Economic Committee recommended MP / National Alliance / Ibrahim al-Rikabi, diversifying sources of income for the state to reduce inflation rates, noting that the increase in the operating budget and low investment budget is the cause of rising inflation due to massive distribution of salaries to staff service Ikdon not.

Stated: that the agricultural sector in Iraq almost non-existent and there are no national industry fact, what led to the high rate of inflation, so you must open the investments and activate the free market sector and the role of agriculture, industry and reduce the unemployment rate to tackle inflation.

The news earlier talked about the high rate of annual inflation to 140.7% due to higher prices of housing, electricity and food, which was denied by the central bank adviser appearance of Mohammed Saleh, stressing: that inflation rates fluctuate constantly between high and low, but it does not affect the economy of the Iraqi market.

He explained: that the highest level of inflation is 6.7% and oscillates to be up 5%, which is not required by the fear of an economic disaster.

In the eyes of a member of the Finance Committee MP / Kurdistan Alliance / Najiba Najib, the high rate of inflation came from Iraq's dependence on oil imports and the lack of local production.

Najib added: that the conditions of the whole Middle East region conducive to the growth of inflation and rising rates, stressing the importance of diversifying sources of building the economy through support of religious tourism and banking sector and support the industry and agriculture to reduce inflation.

A member of the Finance Committee MP / National Alliance / Haitham al-Jubouri: that higher inflation rates earned on higher prices for services such as housing and electricity.

Jubouri said: to encourage housing and residential land distribution will ease inflation, calling the central bank to take action to raise the exchange rate of the dinar against the dollar and avoid the arrival of inflation to high levels it is difficult to avoid.

Economists expect to see inflation rates during the month of September this significant increase, according to data from the Ministry of Planning compared to what the outcome of the prices during the Eid al-Fitr and what preceded it.

In this context, he said economic analyst Latif Abdul Salam (the Agency news): there is an unexpected rise in inflation rates globally, where he witnessed the month of July and August a significant rise in inflation rates and expected that this month will be the largest increase.

He attributed the economic analyst of rising inflation in Iraq to the huge foreign debt that the country inherited from the former regime.

He pointed out: that the exchange is justified in government departments and the space of financial and administrative corruption has led to high rates of Altdkhmn along with remnants of the former regime, which is the root of the problem.

And: to address the high rates of inflation based on the central bank raised interest rates on deposits in order to encourage the deposit money in banks in order to absorb excess liquidity.

He continued: must adopt effective tax policy on imported goods, and determine the size of spending in the operating budget and reduced investment compared to the budget to rein in inflation. /


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