An economist for “Tigris”: The government does not have tools to reduce inflation except through the exchange rate

An economist for “Tigris”: The government does not have tools to reduce inflation except through the exchange rate

03-27-2021 02:32 PM

An economist for Tigris - The government does not have tools to reduce inflation except through the exchange rateEconomic expert Dergham Muhammad considered that the current inflation is linked to the change in the exchange rate, since the Iraqi market depends almost entirely on import, indicating that “the local product depends on importing raw materials.”

“This matter led to a significant increase in the consumer price, which led to an unprecedented increase in inflation rates,” Muhammad told “Dijlah”.

He explained, “The government currently does not have tools to reduce inflation except through the exchange rate tool, as it is the basis for raising inflation rates, or to support the import of basic commodities by providing subsidized dollars for the import of basic goods.”

The government is trying, through its competent ministries, to reduce inflation in the federal budget, whose draft law is currently being discussed in the corridors of the Iraqi parliament.

A number of problems revolve around the draft budget law, related to many sections, including the balance of the Kurdistan region, and the exchange rate of the dollar, which led to a lack of agreement about it so far.

dijlah.tv