Posted by: citizen news
Prof. Dr. Jawad Kazem Al-Bakri
Babylon University-Faculty of management and Economics
previous data to conclude that the Iraqi economy is moving towards
inflation, though the rate is slower, the monthly amount of the
inflation (1%) will be (12%) Annually, assuming that inflation will
remain at a level (1%) Per month, which is doubtful in light of
developments in monetary policy in Iraq, and under the political effects
that began to overshadow the economic situation in the country.
high inflation rates usually lead to a devaluation of the national
currency, and this outcome began to emerge early 2013 simultaneous
course with high inflation, the value of the Iraqi dinar has fallen from
1200. dinar to the dollar in December 2012 to 1,300 dinars to the
dollar since the beginning of 2013.
Should first know the causes
that lead to the lower exchange rate of the local currency against
foreign currency of reference, there are a variety of reasons, including
economic, political, and economic result from high rates of inflation
and low and then reduced the purchasing power of money, as well as
increase the weakness in the balance of trade and balance of payments
for the State as a result of high demand for hard currency and the
absence of a national production is exported abroad and increase demand
for goods and raw materials from foreign countries, and the third reason
hwalasdar the new cash would strengthen further, view If accompanied by
a rise in productivity, the political causes of war awalhsaralaktsadi
or some of the policies pursued by Governments to create a placebo to
satisfy peoples or dumping policies.
In Iraq, ' inshallah '
many causes that eventually led to the depreciation of the Iraqi
currency in early 2013 and up to the present, including the following:
Monetary policy pursued by the Central Bank of Iraq to reduce the
currency auction on the grounds of corruption in deals to sell the
currency, and here we would like to make two very important first that
corruption in these transactions cannot be processed through the
necessity to reduce the supply of dollars in the domestic market, but
also through the fight against corruption, the Central Bank has reduced
the currency auction result damaged the Iraqi economy as a whole,
through currency depreciation, for the purpose of addressing the
situation of corruption caused by some users, and say Here most of these
users are included in the political process as in the time of the
former regime, point alakhrihi to preserve the value of the Iraqi
currency how make Iraqi citizens regain confidence in the national
currency, which suffered after she suffered at the hands of
dictatorship, this province is certainly not without cost, dollars paid
to auction, whatever their size, the low cost to maintain the rate of
the national currency for these years.
* Anfrd the blockade the
economic to Iran and the war in Syria has reduced the dollar reserves
for these two countries, their merchants turn to the Iraqi market for
the purpose of obtaining dollar using the vast amount of available Iraqi
currency they have because of the unilateral trade exchange between
them and Iraq, Iraq imported large quantities of goods from those
countries without export little.
* I have contributed to the
phenomenon of expectations (Expectations) on increased demand for the
dollar against the Iraqi dinar, Iraqi citizen after all these dips in
the price of the Iraqi currency to the US dollar is expected to further
decline began, so began the phase-out of the dinar against the dollar,
which has led to increased demand for the dollar, with the Central Bank
cut the dollar auction, on the one hand, and the exhibition of the dinar
in the market on the other.
* Led government interventions in
Central Bank policy, which almftrs that enjoys independence in all
countries of the world, a negative role in the aggravation of the
problems of the national currency, as there is always an inverse
relationship between government intervention and the ability of the
Central Bank to use monetary tools to address the problems of cash into
the economy, the more State intervention, the lower the capacity of the
Central Bank to reduce the cash problems in the national economy.
is possible that this phenomenon had multiple negative bathara on Iraqi
economy if without addressing the real scientific, these impacts are as
* Prices of local goods and services, if the akhedma
consideration over (90%) The Iraqi market goods are imported from
abroad, are already resident in dollars and that any reduction in the
value of the dinar against the dollar to pay more for the same product
dinars compared to the period before the devaluation of the dinar.
Damage classes that depend on both their incomes or dinars in their
savings, the savings will be worth with Dinaric devaluation of the
dinar, as well as damage to a staff, retirees, lenders, borrowers dinars
to the dollar, government contractors in dinars in particular
contractors, lessors of properties, tenants of the dinar to the dollar,
are still considered property.
Either proposed to limit the
depreciation of the Iraqi currency to the US dollar and other currencies
could be summarized as follows:
* Return to a monetary policy
that was pursued by the Central Bank of Iraq in the past five years and
that rely on the local meet market demand with surplus dollar Iraqi
dinar, by continuing the auction currency.
* Activation of the
fight against money-laundering and smuggling hard currency out of the
Iraqi economy away from the policies of the Central Bank, through
relevant bodies or departments.
Granting more autonomy to the
Central Bank of Iraq and not dragged to haggling policy, as the Central
Bank intervention has a direct affect the standard of living of the
individual who suffers from terrorism, and that this intervention will
add another ' suffering is suffering.
* We are accustomed in
Iraq, under quotas, that is alastisar on the block or the party or sect,
regardless of jurisdiction, so it is possible to view advisory
committees specialized in economic affairs when making any decision
concerning the lives of Iraqi citizens to study the pros and cons before
The wizards remain involved with the efficiency of the
Monetary Authority and seriousness in lifting Iraqi citizens from the
clutches of inflation which has been plagued by a long time, said Iraq
stands at a crossroads in terms of national unity and the barbaric
attack which leave daily from the rivers of blood, there is no room to
add new burden on his shoulders through the failure of monetary policy
that could infect the patient bmkotla.