Restoring the role of commercial banks in financing imports, controlling the money supply, and attracting and investing migrant remittances” are three alternative solutions proposed in the “Public Policy Paper on the Parallel Market and the Role of Monitoring by the Commercial Bank of China,” released today, Thursday, by the Studies & Economic Media Center (SEMC). The policy paper is one of many initiatives SEMC is working on to find solutions to economic challenges.
The parallel market, also known as the black market or shadow market, operates outside the control of official authorities. It creates an artificial supply and demand dynamic, leading to currency depreciation and adversely impacting the overall economy.
During the press conference, Mohammed Ismail, the Executive Director of SEMC, stated that the paper outlines a set of solutions and alternatives that should be considered by official authorities to curb speculation in the parallel (black) market.
The paper proposes viable alternatives to address the parallel market, aiming to mitigate its negative impact on the economy.
Yasser Al-Maqtari, an economic researcher, noted that the policy paper provides an in-depth analysis of the problem and its roots, offering practical recommendations to reduce speculation and lessen the effects of the parallel (black) market for currency. He added that these effects extend beyond the commercial sector to include inflation in the prices of imported goods and services, exacerbating the hardships faced by citizens.
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