27/09/2011Central Bank: inflation in Iraq and domestic and foreign policy able to reduce inflation
The Central Bank of Iraq, Tuesday, that inflation in the two-way street outside Iraq because of the high prices in the world and local problems because of the housing sector and the services attached to it, as he emphasized that monetary policy is able to curb the inflation.
The deputy governor of Central Bank of Iraq the appearance of Mohammed in an interview for "Alsumaria News" that "there are two trends of inflation in Iraq are the external and domestic," adding that "rising prices in the world and especially in the dollar has reflected on the imports of Iraqi goods and commodities, the causing prices to rise in Iraq and led to inflation. "
Saleh pointed out that "the prices of goods and imported goods amounted to more than 40% in the month of July of this year compared to July of last year, 2010," pointing out that the "source of domestic inflation lies in the housing sector and its attached services, which include high rents continued reflected significantly impact on inflation in Iraq. "
Salih stressed that "the bank has processors in containing inflation by looking at three factors include the size of the reserves of the Central Bank of Iraq retaining the dinar and trends in inflation and the balance of payments of Iraq through the ratio of exports compared Balastairadat of goods and services," noting that "the central bank has the ability to curb inflation in the country has a trade surplus is estimated between three to five percent, and has large reserves. "
Saleh pointed out that "the brake on inflation comes from the bank through the use of monetary tools to properly support and the assignment of the Iraqi currency by controlling the levels of liquidity and enhance the purchasing power of the Iraqi dinar by the use of signal exchange and interest rate."
The Central Bank of Iraq has been reduced during the month of February of last year 2010 interest rate one point to 6% for the equivalent of the annual inflation rate in Iraq last year, amounting to 6% after the cut in June of 2009 from 9 to 7% to match the decline in rate of inflation, which reached 7%.
The Ministry of Planning for the high inflation during the month of August, by 1.5 percent compared with last July, "noting that" the annual index rose is the other by a relatively large hit 5.2 percent compared with same month of last year 2010, while the Central Bank of the high the basis of inflation for August, reaching 7.61 percent, while the rate of inflation to 5.24 percent.
The CBI, with headquarters in Baghdad and has four branches in Basra and Sulaymaniyah, Irbil and Mosul, he founded the bank independent Iraqi under the law of the Central Bank of Iraq issued on March 6, 2004, and shall be responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies and management foreign reserves and the issuance of currency management, as well as to regulate the banking sector.
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