Economist Ahmed Al-Khamisi said that withdrawing the currency from circulation comes to control the money supply outside the banking sector, as the fifty dinar note constitutes 15% of the exported currency.
Al-Khamisi confirmed, in statements to the “Safar” platform, that there is counterfeit money of the same denomination used for speculation in the parallel market, which causes an increase in the dollar exchange rate and a widening of the gap between the official and parallel price.
He pointed out that controlling the money supply is the main means and tool in the economy, and that there is a close link between the money supply and inflation, pointing out that controlling the money supply can control inflation, which outside the banking sector by the end of 2023 reached approximately 43.15 billion dinars. This is equivalent to 7 times its normal rate.
He explained that the dollar exchange rate would stabilize once the counterfeit currency used for speculation in the parallel market was withdrawn, adding that a time plan must be developed to reduce the money supply by canceling the cash denominations that constitute a high percentage of circulation.
