Saleh: devaluation of the Iraqi dinar will enter the country with 3 crises

Saleh: devaluation of the Iraqi dinar will enter the country with 3 crises


Last updated: 21 May 2017 - 9:18 p
BAGHDAD / The financial adviser to the prime minister, Mohammed Saleh, revealed on Sunday the reasons for not reducing the Iraqi government to the value of the Iraqi dinar, stressing that the devaluation will enter Iraq with 3 crises linked to price inflation and "terrorism" and the deterioration of the standard of living. in a press interview today: "there are bodies and personalities working to promote the idea of the deterioration of the exchange rate of the Iraqi dinar and the events of the deterioration in the standard of living and Serb stability in order to impose a monetary tax urgently affecting all segments of the people , which inflation and the events of deliberate deterioration of the standard of living in order to state that clog some deficit without considering any measure "Reducing the value of the Iraqi currency by reducing the exchange rate of the dinar against the dollar, for example, will add in its destructive consequences a negative impact on deepening the effects of the financial crisis, a new crisis of inflation in the general level of prices and inevitably generates an inflationary recession than exacerbated by the general economic situation and common discontent is intended at the time of fighting the war on terror , and we desperately need the elements of economic stability. "

He stressed that "here will enter the country three crises, financial crisis does not solve the rapid monetary policy methods such as reducing the exchange rate of the Iraqi dinar as the dollar campaign and the dollar and the rich and the richest of the rich, who fight against the power of the people and the misery of the poor and low income, and the second crisis of price inflation and the deterioration of economic stability caused by the deterioration of stability over the foreign currency and reduce the purchasing power of pensions and incomes of citizens exchange rate because of inflationary expectations and broadcast state of uncertainty and lack of confidence in Iraqi dinars. "

He pointed out that "the third crisis is a security crisis, the cause of terrorism and the war on the oppressor, the loser is the people and the winner of the devaluation of the dinar are the rich dollar and terrorism, and do not forget that inflation in the regions of the hasty and high inflation rates there to 3 decimal places and the deterioration of the standard of living has accelerated the victory over Stability of the standard of living in the rest of Iraq, which is the smart economic war practiced by the economic leadership in achieving the urgent victory. "Saleh said that" the government has reduced the expenses of non-basic and absurd and trivial, that is true, but did not exercise an absolute austerity policy such as reducing salaries or reduce the tail equ Great irrigation in the state or social welfare and the expenses of the war and the process of investment necessary. "

"The internal and external borrowing process to finance the budget deficit is not a deflationary process, as some claim, but rather a stimulus and expansionary process that fights deflation. The deflationary budgets that lead to economic stagnation are those where the budget is balanced by a lower level of expenditure and the possible revenues, Really shrinking ".

He said that "the budgets that are built on the deficit and is funded by the deficit by borrowing are expansionary budgets by nature, especially the current fiscal policy in Iraq, internal borrowing came in accordance with the vision of debt is reduced by the majority (ie, financing public debt through the expansion of cash basis relative) The opposite. "He noted that" external borrowing is like any other external resources such as oil revenues, in terms of the expansionary effect of the calculation of external inflows to public spending and the expansion of the mass of cash according to mechanisms known to specialists in monetary policy. "He stressed that" the promotion of topics Controversial "In a time of war and victory over terrorism, a hopeless attempt by a group of detractors who want to weaken the state and spread despair." Saleh concludes that "there is a programmed process of ignorance of the Iraqi street to spread the spirit of despair. Positive conditions are the financial victory and get out of the bottleneck as well as the military victory and liberate the land and man from the clutches of terrorism. "

[You must be registered and logged in to see this link.]