Don961: Iraq Printed 56 Trillion Dinars During The Past Years
May 26, 2020
The economist, Rasem Al-Akidi, spoke about the 3 most important controls that must be observed when printing the national currency, in order to prevent the high prices in the country and the poor segments from being harmed.
Al-Akidi said: “Any process of printing the Iraqi local currency must take into account 3 important factors, which are the monetary mass (the amount of money that is printed) the volume of the deal (i.e. after the currency is printed, how much will be its size in markets, stores, homes, banks) and the volume of trading (i.e. How many activities that deal in the national currency, and how many activities that deal in hard currencies, including the dollar).
He added: Any process of printing the national currency must be printed according to the economic cycle of the country, i.e. the sum of all commercial activities and practices that take place and on the basis of which the volume of cash transactions will be.
He pointed out that “Iraq when it printed 40 trillion dinars and then reached 56 trillion in the past years, that was according to the economic cycle of the country”, indicating that “any increase in the nature of more than the need of the economic cycle will create more monetary mass than the market need, which leads to Creating inflation that pushes up prices. LINK