Muhammad Salih: The Stability Of Currency Exchange Is The Goal Of Monetary Policy In Combating Inflation

Baghdad  The financial advisor to the Prime Minister, Madhar Muhammad Salih, affirmed that: The stability of the currency exchange is the goal of monetary policy in combating inflation.

He told the National Iraqi News Agency (NINA) that: Iraq’s financial policy is different from other countries, as most of the foreign currency flowing into the economy is from one source, which is oil, and the only foreign currency offeror is the central bank.”

Salih added that: The central bank’s intervention must be continuous by selling daily to keep the demand for the dollar, and then the exchange rate stability.

He explained that: The intervention force is strongly governed by (the official reserves) for the Central Bank’s foreign exchange reserves and its intervention in the market, mainly by selling, to maintain stability in the exchange rate.

Salih indicated that: Jordan, for example, has inflows in foreign currency through market activity, and that the market’s reserves of foreign currency are influential and not underestimated, and the state or the central bank’s intervene in those countries is to control the exchange rate and its stability.

 

Source: National Iraqi News Agency