Hatim George Hatim *: the stability of the Iraqi dinar against the dollar: Is it really necessary de

Hatim George Hatim *: the stability of the Iraqi dinar against the dollar: Is it really necessary development

by Hatim George Hatim

- Published in 06/04/2016

Hatim George Hatim *: the stability of the Iraqi dinar against the dollar: Is it really necessary development [1] the entrance of the Iraqi Central Bank adopted the principle of "stabilizing domestic prices" as one of its main objectives. [2] shows [...]

Hatim George Hatim *: the stability of the Iraqi dinar against the dollar:

Is it really necessary development [1]

entrance

Iraqi Central Bank adopted the principle of "stabilizing domestic prices" as one of its main objectives. [2] shows the World Bank in the context of the review of the Iraqi financial sector as "the nominal exchange rate is a tool key to the implementation of monetary policy in Iraq to secure price stability ...." [3 ] it works the central bank strives since 2009 and until the present time to maintain the stability of the dinar against the dollar (ie , the fluctuation within narrow limits (. to ensure this stability , the central bank take pumping appropriate dollar amounts believes in satisfying the demand for the currency within a price area acceptable before him. Observers noted that the price of the dinar against the US dollar (according to the auction / central bank window and the market) was and still oscillates simple proportions since the year 2009 until now (see figure 1 and table 1 in the Appendix).

This commitment by the Central Bank of Iraq, the stability of the dinar against the dollar does not reflect only the faith of the institution that this stability is one of the basic pillars to secure price stability in the Iraqi economy, but also expressed, implied, expressed conviction that price stability supports economic development. But it is not clear why the Iraqi assumed when formulating monetary policy to price stability in Iraq mortgagee always and never the stability of the dinar against the dollar and that price stability is essential for achieving development requirement.

[1] The researcher wishes to express its profound gratitude to Dr Nabil House of Representatives on what you prefer, its comments on the first draft of this paper, and wishes to assure the full responsibility for everything that still stuck out of the shortcomings and loopholes same time.

[2] Coalition Provisional Authority, the Iraqi Central Bank Law, Order No. 56 issued by the Coalition Provisional Authority Baghdad in 2004, Article 3, p . 6. Available on the website

[url=http://www.niqash.org/uploaded/documents/CPA_Order_56_Central Bank Law.pdf][You must be registered and logged in to see this link.]

[3] The World Bank, Republic of Iraq Financial Review, undated, p. 7, accessible at[You must be registered and logged in to see this link.]

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Hatim G. Hatim-Stability of Iraqi Dinar against the USD-final