IMPORTANT IRAQ NEWS: ARE THE CENTRAL BANK’S DECISIONS ENOUGH TO STOP INFLATION AND STRENGTHEN THE CURRENCY IN IRAQ? BY MNT GOAT, 15 SEPT

 ARE THE CENTRAL BANK’S DECISIONS ENOUGH TO STOP INFLATION AND STRENGTHEN THE CURRENCY IN IRAQ?

 As part of the Iraqi government’s efforts to improve the economic situation and stabilize the local currency, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed the role of the Central Bank’s decisions in reducing inflation rates and strengthening the value of the national currency.

While Saleh’s statements reflect the government’s commitment to achieving economic stability, many questions arise about the effectiveness of these policies in addressing real economic challenges.

The role of the Central Bank in stabilizing the currency: Saleh stressed that the monetary policies of the Central Bank, including decisions to raise or lower interest rates, play an important role in stabilizing the local currency. He explained that these policies aim to achieve a balance between the internal and external value of the currency, which is supposed to contribute to reducing inflation rates. While these measures are seen as economic stabilization factors, the question remains about the extent to which they will succeed in facing the challenges of rising inflation and other economic pressures.

Economic growth and strengthening the currency’s value: 

Saleh pointed out that sustainable economic growth strengthens the currency’s value and stability. He stressed that the real factors affecting the currency’s strength include high productivity, good employment, real investment, and innovation. In this context, many wonder about the Iraqi economy’s ability to achieve this sustainable growth, in light of the challenges it faces, such as low oil prices and political crises.

Technology and Innovation:

Stimulating Productivity and Economic Growth: Saleh noted that technology and innovation can play a crucial role in improving productivity and economic growth, which enhances the value of the currency. However, while innovation and technology are positive factors, achieving these goals requires a suitable environment for research and development, as well as effective investment support. In this regard, questions remain about the extent to which Iraq can meet these requirements amidst the current challenges.

The importance of political and administrative stability: 

Saleh also explained that political stability and the strength of the administrative system are important factors in enhancing confidence in the national currency. In this context, many people wondered about the extent of the political and administrative stability in Iraq, especially in light of the ongoing political crises and administrative challenges. Achieving political stability may be essential to achieving the desired economic goals.