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Monetary policy has been and continues to be a vital issue in the country's economic life. It is a reflection of the general performance of the state and its seriousness in avoiding difficulties and emerging dilemmas and making them consistent with the goals set.
Before 2003, monetary policy was an extension of the government's self-deception. Hence the need for radical reform of the Central Bank and the new law of the bank was issued in 2004 and its amendments in 2017, which affirmed independence and established its primary role in protecting the country's resources.
That the task now is to comply with international banking and accounting standards and face money laundering and attempts to finance terrorism, which stand at the forefront of the challenges facing the Central Bank of Iraq. It is also essential to ensure the safety of monetary operations through the sale of currency is essential in the performance of the Central Bank and the installation of principles and rules of dealing in the project in a healthy atmosphere of control and supervision.
The preservation of the independence of the bank and enable it to perform its task without government intervention and make it an effective institution and guarantor of the interests of society as a whole.
The sale of the currency needs a deep understanding in light of the large accusations against the bank without evidence to prove the existence of suspicions of corruption or money laundering or smuggling of currency. The proposition that the sale of the currency is a waste of public money is a description of the economic illiteracy of the relationship and that there are many countries exercise this process, one of the main functions of the central banks in the world.
The Central Bank of Iraq exercises multi-dimensional functions. It is concerned with financial stability, managing the system of national payments, management of foreign reserves, licensing and monitoring of banks and financial institutions, and setting up preventive controls, in addition to other tasks related to issuing cash and publishing data, indicators and economic forecasts.
A central task of the central bank is to manage monetary policy, which aims to control inflation, stimulate the economy, make full use of the balance of payments and achieve monetary stability.
The achievement of the objectives of monetary policy depends mainly on the independence of the central bank. The independence here is the ability of the central bank to control and control the size of the monetary mass (as a fundamental element of monetary policy). Although the rules of central banks in most countries of the world, but this independence In real and practical terms subject to other influences and challenges, to varying degrees affecting that independence.
Therefore, it is noted that the Central Bank was able during the years 2015-2018 to achieve the objectives of monetary policy at a good level, despite the challenges faced by the most prominent deficit in non-oil revenue and deficit in public budgets and deficit in the balance of payments and dealing with cash and the rise of cash in circulation to the limit of 48 trillion dinars And 77% of them outside the banking system and the lack of fiscal policy of the government and its expenditures are specific to the expansion of money supply and poor coordination between the financial and monetary policies and the weakness of the banking sector and the weak role of some monetary policy tools and their effects on the increase and decrease Monetary bloc and an average interest rate of the legal reserve and other important challenges is the decline in domestic investment and increased foreign savings due to the security, political and economic conditions.
We can say that the Central Bank of Iraq exceeded most of the challenges by drawing up economic, scientific, technical, structural and structural policies and procedures that contributed to achieving its objectives in stabilizing the exchange rate, reducing inflation, rebuilding adequate foreign reserves and increasing the percentage of financial coverage and thus working in a team spirit to lead the national economy and achieve monetary and financial stability. Economic stability.
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