BANKERS: the stability of the local currency against those Alojunbipaaml important to curb inflation
(Voice of Iraq) - 29/03/2010
(Voice of Iraq) - Baghdad / term economic
Inflation is a state of continuous rise in the general level of prices which is the economists signal in the low purchasing power of citizens to be achieved despite an increase in Mdjulath, often Matkas several indicators, including inflation, so called (CPI), a index of consumer prices and other global indicators adopted in many developed countries in this area.
An economist at the Bank Group the economy to investment and finance Qais Al-Abdali said the stability of the Iraqi dinar against other currencies, particularly the U.S. dollar was the most important factor in reducing the negative impact of inflation which is still suffered by the Iraqi economy at the present time, which in turn caused a host of economic problems on the the country and citizens alike, in terms of weak purchasing power and a sharp drop in Mdjulath daily and monthly.
He is often measured by the inflation rates of the prices of goods and services that are affected by several variables are always in market conditions and fluctuations from time to time over the years, with the exception of prices of petroleum products which are subject to several variables always in accordance with the political and economic changes unfolding in the world, as evidenced by the fact that rates annual inflation of the past year 2009 has not recorded an increase or a decrease recall and a number of important sectors, a sector of housing or food, etc., which is an indication of the stability of the economic situation and control the rate of inflation continued to rise.
He pointed out that inflation is measured by indicators of price indexes to the consumer who is being most important to know the overall performance of the national economy of each country and the statement of the true values of important economic indicators such as income and gross-General and others, may have some of those factors, the greatest role in the rising inflation index, regardless of the signaling low in the rates of inflation and other factors, such as petroleum products have a major role in raising the levels of inflation, despite the low rates of consumer goods and food production and increase consumer spending on goods and certain services without the other, on the other hand may be a combination of factors, values, meet him for the role of higher rates of inflation, such as those mentioned former or otherwise, that could be reversed if a negative impact to positive to show us a clear role in the low rates of inflation and thus creating a state of economic stability that will be a window into the recovery and economic well-being and improvement in standard of living of the citizen direct reflection of those positive changes.
He explained that a number of circumstances have led to high inflation rates in an unprecedented way in Iraq, including the high prices of oil derivatives and the retreat of government support for a number of public sectors and citizens alike and to increase the volume of goods imported by the large turnout by the consumer against a decline in the domestic product and the instability of the dollar against the Iraqi dinar, which reached the ceiling of the (1470) IQD during the years 2004-2006, resulting in higher rates of inflation for many goods and services, including petroleum products exceeded by many of the scenarios predicted by specialists in this area.
He said the relative stability of the Iraqi dinar and stability to the U.S. dollar and other foreign currencies has contributed significantly to the stability of financial and economic situation in the country and reduction in the effects of rising inflation and stop at a certain point, but rather to decline to low levels and this is the case in the present time, with the adoption of indicators measure inflation using the inflation index from the foundation without relying on the normal measure of inflation rates and clear indicators of inflation, especially at the current stage of all Motaiattha and evaluation of the current economic reality in a scientific and deliberate in order to avoid economic problems after the diagnosis correctly and to find solutions that are required at a specific time.
