On: Saturday 08/20/2011 13:46
Baghdad (news) .. The economic expert Dargham Muhammad Ali that the causes of rising inflation in recent years caused by the tools used by the Iraqi Central Bank to stabilize the exchange rate with the lifting of the value of the dinar and maintain the stability of the market.
Ali said in a study sent by (of the Agency news) on Thursday : that the causes of rising inflation in recent years caused by the tools used by the Iraqi Central Bank to stabilize the exchange rate of Iraq and raise the value of the dinar and maintain the stability of the market in conjunction with government policies wrong in drawing tracks economic cross-rein shocks inflationary increased rates of inflation.
He explained that the rates of inflation growing, During recent months, something attributable to the reasons for non-cash, but for reasons of legislative and legal, by imposing some restrictions of imports and the imposition of customs on imported goods, leading to high rates of annual inflation to (6.5%) during the two months the last.
He added that this rise worrying signal needs to processors shared between the government and the central bank without the need to change interest rates current as at acceptable rates, where the group must be at the exchange rate if Matovrt flexibility to reduce the dollar exchange rate in conjunction with the imminent implementation of the policy to delete the zeros by the Central Bank.
He noted that the pace of Annual inflation varies during the past year and the beginning within the limits of (3 and 4%) which is internationally accepted depending on the dinar exchange rate stable and the relative stability of legislation and income levels.
The expert stressed the economic need to ensure increased support for basic food commodities through the ration card which factors as a whole will to absorb inflation in conjunction with the need to work on improving the country’s energy as it adds an element of the local product and the cost of basic services, in addition to the need to pressure non-essential government expenditures in the operational side.