Do you understand what he, the experts, are saying? This is not a good thing.
He is saying that due to the CBI tightening the monetary and changing the exchange rate as they have been lately, it has resulted in a budget deficit.
He was also complaining in the article about the CBI spending millions of Dollars at the auctions.
Here's what's happening that he's unhappy with. Iraq makes money by selling oil. They get dollars for the oil. They then use those dollars to buy back dinar to fund the budget. Well.. as they have changed the exchanged rate, their oil dollars buy back LESS dinar now, so they have to spend more dollars to buy back the same amount of dinars. That's causing the budget shortage he is referring to.
The other complaint he makes about the tight monetary policy is it's effect on the economy. A tight monetary policy makes it harder to get money. It is encouraging the banks to just deposit their money with the CBI for the high interest rates. That means they are not loaning it out. No loans, no investing in public sector, that's not good for the Iraqi economy and that's what he's pointing out.
This is not a good article. This guy , the experts, want Iraq to adopt a looser monetary policy, let the banks start loaning money and sounds like he wouldn't mind seeing the exchange rate go back up to 1300, 1400 or maybe higher.
I am amazed at some have interpreted this.
