We are close to economic stability
Author: Yasser Metwally
01/7/2018 12:00 am
I expected after the page of terrorism and its defeat was included in a previous column entitled "Economic stability is coming to Paris".
Let us follow this analysis.
It is very normal to have any decision or legislation or to make advantages and disadvantages and when the tilt of the balance in favor of advantages, we are in the right way and the right and otherwise, if the balance in favor of defects we are in the wrong way.
I will discuss in my subject this important measure is the "currency window" If we follow the procedure of the Central Bank of Iraq by adopting any window to control the market and determine the adverse effects of the fluctuation of the dollar exchange rate on the monetary stability we have seen through several turns during which the central to violent criticism according to different views and views, The currency window applies to it as a theory of advantages and disadvantages.
One of the fiercest criticisms is that it is a means of smuggling currency, and this aspect falls within the balance of flaws from the vision of this team to the loss of hard currency and the impact of the Federal Reserve guarantor of the future of the country of acute crises.
In contrast, the Central Bank has defended its adoption of the window, the best means available to provide local liquidity to meet the needs and requirements of the state of the national currency and salaries of employees and retirees and other uses, because the state's revenues are foreign currencies being a state of rent and oil source Budgets.
The Central Bank was able to convince the parliamentary committee that was following the event after reviewing the mechanism of work and how the central bank was able to provide liquidity and preserve the value of the national currency.
In the previous column I have pointed out that monetary policy has been able to achieve monetary stability at a fixed price equal to the official exchange rate with the parallel "price of trade" has been achieved stability after this price has passed all attempts and thus succeeded in monetary policy to stabilize the meaning of that He came close to economic stability and my prediction came in his place.
What does economic stability mean?
Means that the process of rebuilding the country will start with confidence because the economic stability restore investor confidence in the Iraqi market and its ability to secure the requirements and requirements of construction.
Thus, the balance was tilted in favor of the advantages of the currency window and thus the central bank was able to put its mark in the way of the return of companies.
In view of the success of the monetary policy, its engineer obtained an international Arab evaluation by nominating him as the best governor at the level of the Arab countries in 2018 and thus proved his good management of monetary policy and the development of the performance of the private banking sector.
We have to maintain these achievements for the sustainability of stability and this requires constant coordination between the financial and monetary policies and this will be within my next follow-up.