An economist defines 3 controls for printing new quantities of the national currency and warns of the harm of a group of society
Baghdad today _ Baghdad : The economist, Rasim al-Akidi, spoke today, Monday, of the 3 most important regulations that must be observed when printing the national currency, in order to prevent the high prices in the country and the poor segments.
Al-Akidi said, in an interview with (Baghdad Today), that
(1) “any process of printing the Iraqi local currency must take into account 3 important factors, which are the monetary mass (the amount of money that is printed) the volume of the deal (that is, after the currency is printed how much will be its size in the markets Shops, homes, banks) and trading volume (i.e., the number of activities that deal in the national currency, and how many activities that deal in hard currencies, including the dollar).
Al-Akidi added,
(2) “Any process of printing the national currency must be printed according to the economic cycle of the country, i.e. the sum of all commercial activities and practices that take place and on the basis of which the volume of monetary transactions will be.”
(3) The economic expert pointed out that “when Iraq printed 40 trillion dinars and then reached 56 trillion in the past years, that was according to the economic cycle of the country,” noting that “any increase in printing is more than the need of the economic cycle will create more monetary mass than the market needs What leads to the creation of inflation that pushes up prices and affects the purchasing power of many segments, especially the simple and the low-income. ”
(4) A well-informed source at the Ministry of Finance, on Wednesday (May 13, 2020), denied that there was any resort to the option of printing the currency to face the economic crisis.
He said in an interview with (Baghdad today), that
(5) “the option of printing the currency to provide salaries is excluded and not presented to the meetings of officials at the present time.”
Economists offer the option of printing controlled amounts of the currency or reducing the value of the dinar against the dollar to provide additional resources that will flow into the state treasury to secure the operational budget, including the salaries of employees.