Specialists describe the central bank cut the rate of the dinar to the bitter treatment
Specialists describe the central bank cut the rate of the dinar to the bitter treatment
16/05/2015
BAGHDAD / JD / .. A number of experts and specialists in the financial and economic affairs, said the central bank has taken several measures to reduce the federal budget for the 2015 deficit, which exceeded the rate of more than 40%, including reducing the dinar exchange rate against the dollar, noting during their talk Agency / JD / that the reduction rate of the dinar against the dollar is a cure, but over because it will raise the rates of inflation and reduces the strength of the local currency, while the dollar swung the price will stabilize at 1300 dinars in the coming period.
He says economist Maitham coffee, “The reduction of the Iraqi dinar exchange rate will benefit the budget, because every dollar sells for the central bank at the most expensive of the dollar, which means that before the budget is funded by the difference between the price of two dollars deficit Alambain”.
He told coffee / JD /, that “this policy is used on a global scale, regardless of the level of progress or the availability of resources in the countries, a cure for the problems of the budget deficit and balance of payments deficit at the same time.”
He pointed out that the measure has immediate and future effects, which can lead to higher prices in the domestic market, but this rise could end excitement that it led to a decline in consumption and imports has been stimulated by market forces. ”
“Even on payments features could be improved in the future through lower imports could increase the surplus or at least the surplus,” adding that “its direct impact will be to reduce the budget deficit.”
For his part, he criticized the President of the Economic Information Center lion Mohammed Ali, lowering the dinar exchange to reduce the budget deficit rate policy the fact that going to hurt the citizens, adding that “the salaries and revenue people are denominated in dinars and reduce the value of the dinar mean multiples of the ability of citizen’s purchasing power, and this will lead to higher inflation rates.”
Mr Mohamed Ali told / JD / “The vision must be based on the experiences and the liberalization of the exchange rate or approaching that in the absence of full need coverage will lead to a steady rise in the local market is very sensitive and subject absolutely inflationary shocks internal and external with the stability of income levels.”
He added that “for the hypothesis and if you do not get cases of economic contraction due to declining employment will lead to a rise in prices of services and goods and the movement of the market indicate that the response to rising prices and its impact on higher consumer price of the real impact of any that the state monopoly still dominate the local market economy.” .
As an economic expert Sumaisem peace, it confirmed that this policy is a cure, but over what is happening from economic fluctuations in the country, noting that the application will reduce the budget deficit, but it will affect the local market in terms of higher prices.
And witnessing the dollar exchange rate rise against the dinar per dollar, reaching the price of 1300 dinars.
And suffer the budget in 2015 approved an estimated $ 119 trillion dinars and an oil price of $ 56 a barrel from a large fiscal deficit estimated at more than 40% because of lower oil prices in world markets. / End / 8 /
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