Development and stability together
18/1/2018 12:00 am
Dr.. In the name of Brahimi
When recalling the previous three years that passed on the Iraqi economy jump to memory positions and economic decisions Pant today features its wisdom clearly after it contributed to the passage of those lean years, comes at the forefront of the policies of the Iraqi banking system in general and the central bank,
especially in the context of strengthening the government's finances by buying Government bonds Despite the unwarranted criticism of the central bank, it was critics who were able to stay one month without Salary?!
Most of these criticisms have smothered the smell of politics and have not borne economic arguments enough to withstand the facts of reality.
Some form the central bank to intervene in lending because its law forbids lending to the government to strengthen its independence.
This is true, but the same law allows the central bank to lend indirectly through the secondary market.
Ahmed, and therefore should not imagine the independence of the central bank as a relationship "divorce" with the government, but it represents the ability of the central to make decisions that he sees appropriate without pressure Political.
The second measure, which is no less important than the previous one, is represented in the developmental role of the Central Bank through the initiative to lend industrial, agricultural and residential projects the amount of five trillion dinars, as well as the financing of small and medium projects, the amount of one trillion dinars, despite the relative success of the cold in the industrial and agricultural fields and for external reasons The success of the housing initiative alone is sufficient to say the importance of the initiative And its success.
In order to strengthen the previous measures, the Central Bank submitted a few days ago to provide new financing for housing projects amounted to about five hundred billion dinars, and this step certainly has the developmental justification, which I mentioned, especially with high rates of population growth, which increase the need for housing units,
This initiative has positive indirect effects in achieving price stability targeted by the Central Bank as the relative weight of house prices and rent is the largest factor among the components of the index of prices in Iraq, and therefore this step demonstrates the awareness of a large by the responsibility Cash in stimulating development and price stability together.