the high inflation rate would hinder the process of investment
Date: Mon 10/17/2011 7:31
Baghdad / economic follow-term
economic analyst, said Abdul Latif Salim said the continued rise in inflation will lead to the reluctance of investors to enter into Iraq for the purpose of investment, calling to find solutions to reduce or minimize the rate of inflation in the country. Abdel-Salem, according to the Agency (news): The continued rise in the inflation rate for consecutive months in Iraq will 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 in front of the investor and hinder the process of investment within the country.
He noted that this increase is the sequence of inflation came as a result of the presence of imbalances of the structure of the Iraqi economy and the instability of prices in the market.
He said Abdul Salim in the Iraqi markets when prices are high, they did not fall, which lead to increased inflation rate in Iraq, and continued: that most of the world get the increase in prices for a limited period and then return to the old Fares. He stressed the need to find a package of administrative reforms and accurate studies for the purpose of reducing the inflation rate in Iraq, or reduce it, calling for a role of oversight and follow up the real from the government on the markets.
The deputy governor of the Central Bank of the appearance of Mohammed Saleh in an earlier statement (for the Agency news): The monetary policy and of the Central Bank is able to take the necessary steps and actions necessary to curb inflation happening in Iraq, through the control of the proportion of cash as much as possible and to influence the external value of money, in addition to using some of the policies as a policy the exchange rate or interest in order to reduce the rate. Salih stressed that inflation is under control, unlike conversations exaggerated that it reached the extent of risk, and continued: it becomes more serious when a proportion of tied places and now is the rank of one decimal.
The Deputy Governor of Central Bank: In the past, the inflation rate does not exceed (3 %) and now (4%) due to the world's expectations of inflation, which led to increased wages for real estate, food and so on, making the inflation builds himself and heading upward, calling for monetary policy to take the tools necessary and the procedures necessary to halt the inflationary expectations and reduce the constant increase it.
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