Advisor Central Bank: interest rate monetary policy adopted by means of anti-inflation
2009-10-11
BAGHDAD (Iba) .. adviser said the Iraqi Central Bank that interest rates adopted by the monetary policy is the means of anti-inflation expectations and the resulting investment activity in order to regain its rightful role outside the real incubator inflationary speculation.
The appearance of Dr. Mohammed Saleh told the independent press (Iba) said Sunday that the plan is not perceived as circles, not knowing the work of monetary policy and related mechanics, especially ignorance of the risks of continued inflationary pressures and expectations associated with them and provided for a negative environment is unstable for investment real repulsive and attractive force of the currents speculation in the market and away from productive activity.
He said the attractive force of the Iraqi dinar and a strong national currency which is now the best tool in the evolution of monetary savings and financial intermediation and the proper and appropriate way to address the phenomenon of inflationary expectations, which became the assets of alternatives to the dinar as the preferred means of wealth.
Salih noted that although the bulk of the country's development programs is the responsibility of the Government within the annual investment budget, but the real investment activity to the private sector's active role has not only assisted the Government and submission of concessional loans to boost their activities
He noted that the benefit of the international reserves of the Central Bank of Iraq is based mainly in construction and stability. External value of the Iraqi dinar and defend exchange rates, high stability.
Once again warned of the tendency to act outside the scope of the purposes and objectives of the monetary balance, claiming that the financing of investment projects of different government.
President Saleh has told (Iba) previously: that the conduct of international reserves of the Bank will lose the country's defense force for economic stability, the whole, as well as to weaken the ability of monetary policy in the protection of the national currency and re-enter in the failings of inflation caused by the deterioration of the exchange rate and assume a sudden high waves external imbalances .
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