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 paralysis almost entirely for domestic 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 campaign to 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 experiencing rates up continues. member Economic Commission MP / coalition in Iraq / Qusay Fri Abadi, said (of the Agency news): “The inflation rate rises 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%). 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 lower its value against the Iraqi dinar. stressed: 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 explained dollar for banks and reduce the unemployment rate and to encourage investment, to fight inflation. As a member of Economic Commission MP / National Alliance / Amer Al-Fayez, stressed during a recent (the news) that the federal government did not provide any measure scientific to reduce the rate of inflation do not care about higher rates. attributed Fayez: reasons for the high rates of inflation to neglect the key element in supporting the economy and the fulfillment of a sector Special. explained: that the fundamental solution to reduce the rate of inflation is deleted three zeros from the Iraqi currency and revalue against the U.S. dollar, to absorb inflation, as well as support the industry, trade, agriculture and the private sector. while recommended by the Economic Commission MP / National Alliance / Ibrahim Rikabi , diversifying sources of income the state to reduce inflation rates, noting that the increase of the operating budget and low investment budget is the cause of rising inflation due to the distribution of salaries tremendous staff not Ikdon service. said: that the agricultural sector in Iraq almost nil and there is no national industry fact, what led to high inflation rates, so you must open investment and activate the sector free market and the role of agriculture, industry and reduce the unemployment rate to tackle inflation. was reported 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 Mohammed Saleh, stressing: that inflation rates fluctuate constantly between high and low, but it does not affect the economy of the Iraqi market. explained: that the highest level of inflation is 6.7% and oscillates to be up 5%, a percentage that does not require a fear of economic disaster. In the view 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 domestic production. said Najib: that conditions throughout the Middle East to help the growth of inflation and rising rates, stressing the importance of diversifying sources 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. confirmed Jubouri: that encourage housing and distribution of residential land 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 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 festival mushrooms and predecessors. In this context, economic analyst nice Abdulsalam (of the Agency news): There unexpected rise in inflation rates globally, as witnessed in July and August a significant rise in inflation rates and is expected to this month will rise further. attributed analyst Economic out rising inflation in Iraq to sizeable foreign debt that he inherited the country from the former regime. 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 alongside remnants of the former regime, which is the basis of the problem. between: that address the high rates of inflation depends on the central bank raised interest rates on deposits in order to encourage the deposit money in banks in order to absorb excess liquidity. continued: should adopt a policy of effective tax on imported goods, and determine the size of spending in the operating budget and reduced compared budgetary investment to curb inflation. / end / 21. d. Q /
Source: ikhnews