Parliament's economic (time): increase the issuance of currency weakening dinar

- January 18, 2016

BAGHDAD - Tamara Abdul Razak

Economic Commission confirmed that the increase in the issuance of currency in the market contributes to the provision of liquidity, noting that the version the more it causes weakness of the dinar against the dollar. Said committee member Najiba Najib (time) yesterday that (the issue of monetary policy, a central bank, especially that it is interested to find solutions to the financial and treatment of the country). She said (to increase the issuance of the currency contributes to the provision of liquidity but the increase may lead to the weakening of the Iraqi dinar against the dollar).

Najib explained that (borrowing from abroad is a bad thing being a debt on the country, especially since the government is trying to find alternatives in order to stay away from borrowing). Noting that the (out of the current economic crisis, needs to find other alternatives in addition to supporting the private sector).

As recommended adviser to Prime Minister Abdul Hussein Al-Anbuge increase monetary issuance to support government spending, calling for the need to move away from external borrowing.

Anbuge, said in a statement yesterday that (the government has several options to diversify their sources, especially after the drop in oil prices). He pointed out that he (does not favor direct debit from the central bank, which currently stands at $ 58 billion reserve although he covers twice the money supply). He added that Al-Anbuge (the government could increase the issuance of new cash by the Central Bank). Indicating that the (monetary issuance would be best to pull the reserve where it would be possible to use this version to support government spending) He called Anbuge (government not to seek to borrow, especially the outside, considering that borrowing will be for consumption purposes purely such as salaries and the purchase of weapons, a non-profitable while must to draw this borrowing for investment projects are utilized to reduce dependence on imported fill the local need). Stressing that (the state is able to meet the employees' salaries during the current year, but the drop in oil prices would have an impact on the rates of development and GDP).