An invitation to invest in the stability of the exchange rate in rebuilding the economy
An invitation to invest in the stability of the exchange rate in rebuilding the economy
1/15/2014 0:00
The balance of the money market is a central
Baghdad – Hussein al-Tamimi Tgb
The objectives of monetary policy to achieve economic growth and stability and reduce the unemployment rate, and the stability of prices of goods and services, as well as the stability of exchange rates, and improve the balance of payments position and achieved these goals by following the monetary policy tools of direct and indirect.
That’s what started talking competent affairs banking Samir Nasiri said: Achieving the goals of monetary policy is through regulations issued by the Central Bank of Iraq during the past years and finally it was released in colloquial 2012 and 2013.
replacement cash and draw Alnasiri to the importance of maintaining the balance of the cash market and work to strengthen the Iraqi dinar exchange rate, which represents the external value of the dinar, as well as face the phenomenon of substitution of cash and the required availability of a tight monetary policy a two-way or across the two signals powerful are the exchange rate and interest rates, noting that he ordered enhances the mechanical moving cash to influence the balance of the cash market and then the stability of real activity that requires lifting the external value of the Iraqi dinar in a manner commensurate with the real exchange rate to contain inflationary expectations, adjusting interest rates, Central Bank of Iraq in a manner gives financial market strong signals for changes proportionate and desirable with the evolution of the time structure of interest rates. , and pointed out that the basic functions Central Bank of Iraq is to build a cash reserve foreigner in order to promote and cover the Iraqi dinar exchange rate and the creation of economic stability, which is one of the indicators of the success of the application of monetary policy. rate balanced He continued, saying that the current structure for the stability of exchange rates has been granted an opportunity for the Iraqi economy to rebuild and growth, the Although prices have not stabilized completely, due in part to the lack of stability and the nature of the conditions experienced by the country, where managed policy adopted by the central to maintaining the rate balanced the Iraqi dinar is 1233 dinars as at 31/12/2012 and is 1200 dinars in August / 2013. Within this context, he has the CBI in the collection of reserves at a high level of foreign exchange, the shares have installed the exchange rate of Iraqi dinar against the U.S. dollar, and is an order appropriate and required at the current stage where the foreign exchange reserves up to 76 billion dollars, and must be noted the role played by the private banking sector in achieving this stability due to implementation of the policy of the Central. pressure of aggregate demand , pointing to the need to curb inflation and the state of rootedness in the phenomenon inflationary Eshrha inflation mainly caused by the pressure of aggregate demand, which led to the disruption of the money market in terms of the public’s desire to retain cash balances over the supply of those assets. This reflects an increase in the speed of money circulation and an increase in inflationary expectations at a time, as it has become the latest source of continuing phenomenon inflationary so it was a goal of reducing hyperinflation of the main objectives of monetary policy. dollarization phenomenon and face the phenomenon of dollarization said Alnasiri: become money represents without doubt confounded, is good value in light of real interest rates negative made individuals inclined to hold foreign currency as a store alternative to value through the spread of the phenomenon of substitution of cash (dollarization) any use of foreign currency in domestic transactions so was the face of this phenomenon, its positive impact as one of the goals of monetary policy. currency management Lama In a detailed reform the management of currency between the Iraqi Central Bank adopts a system of management of the currency of any transformation of a small amount of currency chasing a large amount of the price of services which reflect the stage of stability, growth and prosperity, and on this basis, the proposed project to delete the zeros from the Iraqi dinar fired from considerations of good management of the monetary system and the transformation of the mass of cash flaccid to block easy monetary circulation or creativity.
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