Invite the Central Bank to abandon the adoption of tight monetary policies
Invite the Central Bank to abandon the adoption of tight monetary policies
The Iraqi economist, to abandon the Central Bank to adopt tight monetary policies, because of their negative impact on the national economy, by changing the value of the real exchange rate of dinar and causing a deficit in the general budget. Abd al-Hussein Al-Anbuge, economic advisor to the Prime Minister, Before specialized symposium held in Baghdad, a, under the banner of (economic and financial reform and reconstruction in Iraq).
"The procedures at the Central Bank of hardline Iraqi currency to reduce the mass and raising the rate of disbursement, the results led to damaging the Iraqi economy a whole." The Al-Anbuge, during his research entitled (the effects of tight monetary policy ... How long?) In the symposium, that " That the Central Bank of attempts to raise the value of the dinar, changed the value in the market, which led to a decline in the value of oil resources resident dinar. He added that "reflected negatively on increasing the rate of disability, in addition to the resurgence of the economy rental, because the high value of the dinar Led to a dependence on imported more industries, which seem cheap imported goods for the Iraqi consumer. "Economic expert explained that" despite high oil prices, but the truth is that the economic cycle now ending outside the country, "believing that the beneficiary of the rising Iraqi currency" Who remit their profits at home abroad, and not vice versa. "
He said Al-Anbuge that monetary policy "did not address the phenomenon of inflation, as demonstrated by the rise of imported goods whose prices have increased because of higher oil prices globally," stressing the importance of monetary policy to be "neutral if were not able to cope with fiscal policy, reduce the gap with inconsistencies Between them. "
Rehn called Ahmed, Deputy Governor of the Central Bank, economists Iraqis to "re-examine the causes of inflation," considering increasing government spending, "one of its main causes, because the expansion of spending is not offset by an increase in production. ." Rehn said, "for example: How many days are needed from Iraq Cement, and how he can produce. "Demanded Deputy Governor of the Central Bank not to be" load bank unit responsible for what is happening in the Iraqi economy, "pointing out that the central lift interest rates to control the volume of cash" that led to bank deposits comes Mechanism, without lending to the private sector. "He pointed out that Rehn (93%) of deposits in the Central Bank" comes from a bank: the Rafidain and Rasheed Gumian ", he wondered, "Why does not the government directed banks to lend, rather than deposit the funds in the Central Bank to maximize profits ..?." A financial expert, Majid Image talk on this latter saying, "No desired results of the flotation of the dollar exchange rate, since that will ensure that interest rates will rise to more than the day." The image that everyone "focus How to solve immediate problems, namely how to develop the financial process, pressure on the state in order of preference the production process on trade, and finding solutions to reduce unemployment. "
The punitive Hamid, Chairman of the Businessmen Association, that Iraq "stands in front of the economic situation is difficult and very delicate, but it has the ingredients necessary to fill an important position globally." Punitive and agreed with the view of Al Wazzan, the importance of the emergence of the economy "parental care," but he believed that The best solution to the current Iraq situation is "making a mix of cooperation between public and private sectors, and this will not be through investment laws, but also to improve the infrastructure, focusing on the development of human skills and development and introduction of modern technology at work."
Translated version of http://www.aljeeran.net/economic.html
