The Central Bank of Iraq 75 years in the face of economic challenges

 
05/08/2022

* Samir Al-Nusairi

By the current year 2022, the Central Bank of Iraq will have been 75 years since its founding and carrying out its duties. It has gone through stages of economic and financial challenges and monetary policy applications. During those years, it was in direct confrontation to overcome those challenges and political influences and changes in the economic systems that were prevalent at the time. However, the central bank proved

It is a solid, sovereign financial economic institution founded in 1947 of the last century. It is specialized in drawing the paths and policies of monetary policy applications, supervision and control over the banking sector, and is considered the financial advisor to the government. His role was essential in managing the economic process in Iraq, and he took over the leadership of his administration, 23 governors, all of whom were distinguished by distinguished technical and administrative specifications. And after the change in 2003 and in accordance with its new law 56 of 2004 and through its management of monetary policy and the achievement of its goals, where Iraq passed during the past 19 years an important stage of its economic system, where the change included the beginning of new applications for economic construction based on building introductions to the transition from the philosophy and strategies of the central economic system in Economics management to the philosophy, strategies and mechanisms of a market economy

Therefore, the Central Bank of Iraq and the banking sector have taken great development steps towards moving from banking activity to real and developmental activity, especially during recent years. to good rates, as indicated by the financial data and indicators, and that the Central Bank of Iraq was able to maintain for several years the exchange rate of the Iraqi dinar against the US dollar in a balanced manner, despite the fluctuation and variation up and down according to

Due to difficult economic conditions and financial and economic crises due to the decline in oil prices, the war on terrorism and the speculation that occurs in the markets. Where it is noted that the daily intervention of the Central Bank of Iraq in managing monetary policy tools in light of policy data

The issuance of instructions, controls, memoranda, and regulations and guidelines that are consistent with international standards and the requirements of regulations and rules for compliance and combating money laundering and terrorist financing, and the issuance of a law regulating this by No. 39 of 2015 and the liquidation of the notes diagnosed by the Financial Action Group (FATF) , which moved Iraq from the gray area to the regular follow-up Every two years and try to control the violations that occur by reviewing, evaluating and classifying banks for the purposes of comprehensive evaluation according to the (camels) system.And for the purposes of the foreign currency sale window, with the aim of controlling the movement of foreign currency and limiting its disposition, other than the specific economic goals of monetary policy applications.As dealing with the sale of foreign currency is one of the largest open market operations in controlling the levels of local liquidity and putting the cash surplus in its proper tracks, and it is a good economic indicator that the exchange rate will be stable despite the difficult economic conditions that Iraq went through after 2014 and 2020, the Central Bank of Iraq was also able Maintaining a good foreign cash reserve that exceeded 65 billion dollars, in addition to its gold reserves, despite the conditions of recession and economic depression. Re-discounting treasury bonds issued by the Ministry of Finance and issuing international treasury bonds, in addition to the World Bank’s praise of the economic and financial reform programs adopted by the Central Bank in accordance with its first and second strategies for the years (2016).The Central Bank according to its first and second strategy for the years (2016The Central Bank according to its first and second strategy for the years (2016- 2023) and its expectations of    good growth rates during the current year for the Iraqi economy , recording progress at the level of Arab countries . And the formation of a joint committee between him and the finance department to coordinate between the fiscal and monetary policies, and many coordinating measures were achieved because of this .

The calculated and bold economic and financial measures undertaken by the Central Bank and its successful experience in providing continuous support to the Iraqi economy, in addition to its initiative to revitalize the economic cycle, launch and follow-up the implementation of its multiple initiatives to finance small, medium, housing and investment projects in the housing, agriculture, industry and services sectors, support banks’ liquidity and achieve two economic and social goals in At the same time, other important measures have been taken by establishing the Deposit Insurance Company, which has begun its tasks for the purpose of restoring confidence in the banking sector and increasing the savings rate for the monetary mass in banks at the expense of the hoarding ratio.All this was accompanied by structural, structural and developmental developments in all the specialized and qualitative departments of the bank, focusing on total quality management, institutional development, adoption of international standards, compliance with rules and regulations for compliance, risk management, combating money laundering and financing terrorism, banking awareness and technical developments in payment systems, electronic payment and information technology, which contributed to the transition of policies The Central Bank’s work procedures have reached an advanced stage in the pace of achieving economic stability.

* Advisor to the Association of Iraqi Private Banks

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