Business And Markets
0

MRC Floats New Ideas to Help Curb Inflation

Academics and economic experts have cautioned that the successful implementation of the proposed measures demands, among other things, a clear and comprehensive approach by and robust coordination among stakeholders
MRC Floats New Ideas to Help Curb Inflation
MRC Floats New Ideas to Help Curb Inflation

In a report the Majlis Research Center (MRC) has proposed ways on "Short-Term and Long-Term Solutions to Tame Inflation." The short-term list focuses on minimizing exchange rate fluctuations improving monetary policy governance, and strengthening the role of the central bank.
According to the report, long-term measures should help control the quantity and quality of liquidity, reform the banking sector, make a final decision on troubled banks, improve budgetary structure, avoid imposing state pricing strategies to fight inflation, redefine policies guiding pension funds and reduce rampant liquidity, IBENA reported.
One key proposal is to reduce importers' cautionary demand cycles by introducing new derivative currency instruments. This would demand restructuring the foreign exchange market in its entirety, consolidate official supply and demand at the exchange center without price interference and subsequently establish an efficient reference exchange rate. 

Premium

Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Add new comment

Financialtribune.com