Expert: issuing government bonds would cause a new wave of “inflation” and the dollar will continue to rise
Expert: issuing government bonds would cause a new wave of “inflation” and the dollar will continue to rise
12/04/2016 14:01
BAGHDAD / tomorrow Press: confirmed an economic expert Salam Sumaisem, Tuesday, that the issuance of bonds by the central bank, to repay the Bureau ranked the government would cause a new wave of inflation in the country, and as pointed out that the deteriorating political and economic conditions are behind the rise in dollar prices, showed that foreign currency rates will continue to rise. the central bank announced on Saturday, the approval of a cell of the financial crisis , headed by Prime Minister Haider al – Abadi on the proposed bank to issue government bonds for the payment of contractors and suppliers on the state institutions. Sumaisem for “tomorrow ‘s Press,” that ” a strong dollar will continue because of the deteriorating political and economic situation in Iraq, and this led to a lack of confidence in the manner of reciprocity, and the lack of trust leads to the search for alternative means which are either gold or the dollar, so the increase in demand for gold and the dollar will rise. ” she added,” there is a the decision of the central bank, by issuing government bonds to contractors, which borrow from the public to pay off the debt owed by government contractors , “asserting that” these bonds entail benefits, this case lead to the occurrence rate of inflation and thus lower the Iraqi currency further. ” She explained the economic expert , that “Iraq is in front of a new wave of inflation as a result of the Central Bank on bond decision.” as suggested Sumaisem to be a process of lifting the dollar against the Iraqi dinar, “deliberate”, to enable the government employees ‘ salaries covered by the difference in the process of selling the dollar. a source in the parliamentary finance committee, who requested anonymity, has revealed the date (05/01/2016), for “tomorrow Press”, ” the government has received proposals from some parliamentary bodies and a number of ministers, require lifting the dollar to 200 thousand dinars per hundred dollars, in order to fill and cover staff salaries, which have become the government unable to pay in light of the continuing decline of oil prices. ”
alghadpress.com
