Devaluation of the dollar’s decline sponsor inflation

Source: Al-Sabah – 22/04/2012

Expect a member of the economic and investment commission in Parliament MP Amer winner increased rates of inflation in the country during the coming period in the absence of the ability of monetary policy to devalue the U.S. dollar against the Iraqi dinar. said Fayez: The persistence of high exchange rate of U.S. dollar against the Iraqi dinar without developing appropriate solutions and necessary action by the central bank will lead to economic problems large in the country, including high rates of inflation in the domestic market significantly in the coming period. He added that the Economic Commission representative held a meeting with central bank governor and his deputy, Leshan subject of increasing the value of the dollar during this period and discuss its implications on the Iraqi economy by increasing the inflation index, committing to develop the right steps and appropriate to reduce the value of the dollar and low inflation in the country, the fact that the central bank is the only body responsible for monetary policy in the country. He said al-Fayez said in an interview for the (news) that the main reason for high rates of inflation over the past year due to the non-application of the Tariff Act, which suspended local production and make the consumer dependent on imports outside of the material, which released this process the balance of import and export commodity, pointing out that the increase in the dollar exchange rate is also contributed to the currently increasing rates of inflation. was has revealed the Ministry of Planning for headline inflation during the month of last March rate (1.7 percent) compared to the previous month of February, while the annual inflation index for the period from March 2011 until March 2012 reached nearly significantly (8.3 (referring to: the reasons headline inflation of both types to the monthly and annual price increases of vegetables that have led to higher prices of food section and non-alcoholic beverages increased by (13.2 percent) compared to prices in the month of March of last year 2011, which was reflected in the indicators of inflation up to a year in Iraq.