Economic analyst warns: increase inflation hamper investment in Iraq

[trooper]

Economic analyst warns: increase inflation hamper investment in Iraq

October 16th, 2011 05:42 am ·

Baghdad (newsletter). Assured economic analyst Abdel Salem continued nice increase inflation will lead to reluctance of investors to go to Iraq for the purpose of investment, and called for finding solutions to limit or reduce the rate of inflation in the country.

Abdul Salim told a reporter (News Agency news) Sunday: continued increase in successive months inflation in Iraq would lead to a flight of investors from entering the country for the purpose of investment, indicating that inflation is one of the issues that are a sign of weakness to the investor and investment process within the country.

He noted that these successive increase of inflation came as a result of the presence of the Iraqi economy, structural imbalances and instability of prices in the market.

Abdel Salem in Iraqi markets when prices are not reduced, which increases the rate of inflation in Iraq, and continued: that most countries in the world get the increase in prices for a limited period and then return to the old pricing.

Economic analyst stressed on the need for a package of management reforms and thorough studies for the purpose of reducing the rate of inflation in Iraq or reduction, calling for a genuine follow-up and oversight role of the Government market.

Deputy Central Bank Governor Mohammed Saleh told appearance (News News Agency) to monetary policy of Central Bank capable of taking the necessary steps and actions necessary to reduce inflation in Iraq, through control of the liquidity ratio as possible and to influence the external value of the money, plus the use of certain policies such as exchange rate policy or interest to reduce the rate.

Saleh said that inflation is under control unlike chats by amounts that amounted to a serious and continued: more risky when up to two scales decimal places and now is ranked one decimal.

The Vice Governor of Central Bank: previously only inflation (3%) And now (4%) As a result of the expectations of world inflation leading to an increase in wages and food and other goods, making inflation builds itself and moving towards climb, calling on monetary policy to take the necessary tools and procedures necessary to halt inflationary expectations and reducing its continued growth.

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[DinarC]

Thanks Trooper. Is this an article they have previously posted. I was under the impression inflation was much higher, somewhere around 7% or higher at this point. (?) Anyway, its good to see their economists are voicing concerns regarding the climbing inflation.

Namaste.

[Dalite]

Thanks Trooper. Is this an article they have previously posted. I was under the impression inflation was much higher, somewhere around 7% or higher at this point. (?) Anyway, its good to see their economists are voicing concerns regarding the climbing inflation.

Namaste.

At this point, inflation is our friend.

If it is allowed to creep up above 10% ( double digit), redenomination becomes much less of an option.

At that point, increasing the exchange rate becomes a more pressing option.