Director of the Oia Center for Economic Studies: Withdrawing a currency and injecting new money means remaining in the same crisis
The director of the Oia Center for Economic Studies, Ahmed Abulsin, said that the problem is the money supply, which has risen to record rates, and what is required is to be reduced, explaining that injecting new money into the economy is a new problem that will have effects.
Abulsin added, in statements to the Qatari newspaper Al-Arabi Al-Jadeed, that the money supply is still high and that withdrawing a currency and then injecting new money means remaining in the same crisis, amid other repercussions, including rising prices and an increase in the exchange rate in the parallel market.
He called for the need to adopt rational policies aimed at restoring confidence in the banking system and at the same time gradually rebalancing the money supply.
He concluded by saying that a number of measures must be taken, including gradually abolishing monetary units from previous denominations of currency, while using coupons approved by banks to pay electricity, telephone, and fuel bills, in a way that reduces the need for liquid money.
