I know this was already posted but its too good not to have a 2nd read!
CBI: This year's budget focused on increasing investment in Iraq
Dr. Sinan Shabibi, Governor of the Central Bank, said that this year's budget is an investment budget because it focused on increasing the size of investment.
Shabibi said that the Central Bank's role is to treat the imbalances resulting from the development process that will produce changes in the basic economic structure.
He pointed out that the task of the Central Bank is to achieve development in a stable monetary environment through utilizing all means and policies to achieve economic stability, intact environment and moderate inflation rate.
He continued: "Our relation to the budget is to preserve its resources, through fighting inflation".
Stressing that the Bank had made several measures including raising the exchange rate of the dinar, which had an impact on the budget through affecting the purchase capacity of the government; this impact will increase through dealing with inflation.
Shabibi added that: this policy will increase the confidence in the dinar, which will pull some of the money to the banking sector and rationalize the government spending because of its impact on inflation.
He indicated that this action will reduce the prices of imported goods such as the private sector imports and the government's imports for development that come from the conversion of the Iraqi dinar to the dollar.
He added that while this policy weakens the ability of the government to buy the dinar, it strengthens the Iraqi dinar owned by the government.
Pointing out that the bank wants a means to affect the economic and monetary policy by making the dinar valuable and powerful.
Source: Iraq Directory
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Posted on Monday, January 22