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The Central Bank transcends economic and financial challenges and moves to achieving monetary stability and promoting economic growth DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

The Central Bank transcends economic and financial challenges and moves to achieving monetary stability and promoting economic growth

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The Central Bank transcends economic and financial challenges and moves to achieving monetary stability and promoting economic growth Empty The Central Bank transcends economic and financial challenges and moves to achieving monetary stability and promoting economic growth

Post by RamblerNash Fri Sep 16, 2022 8:55 pm

The Central Bank transcends economic and financial challenges and moves to achieving monetary stability and promoting economic growth 4079

Samir Al-Nusairi

Update 09/17/2022 - 3:27 AM
The Central Bank of Iraq is the sovereign, independent and discreet economic institution as it approaches the occasion of its celebration of the seventy-fifth anniversary of its founding. To overcome it during the years (2020-2022), the most difficult and complex conditions due to the economic stagnation locally and globally due to the drop in oil prices, the Corona pandemic in 2020 and 2021, and the challenges of the food and energy crisis due to the effects of the Russian-Ukrainian war this year. The Governor of the Markari Bank, Mr. Mustafa Ghaleb Mukhaif, explained in a comprehensive talk recently published about the banking, technical and development measures implemented by the Central Bank in achieving the objectives of monetary policy, supporting and stimulating the economy and moving from the process of unilateral targeting (maintaining a certain limit for inflation) to the case of bilateral targeting (achieving stability monetary and economic growth).

Through our review and analysis of the Governor’s speech, we were assured of the exceptional efforts made, the results achieved, the future outlook and the road map drawn according to the first and second strategies of the Central Bank, as the challenges and repercussions faced by the monetary policy were made by clear and distinct efforts of the cadres of the Central Bank, in a high national spirit, and a keen interest in making changes in programs and policies Which moved the Markari Bank from the traditional banking, technical and structural methods of work to the modern methods of work related to international standards with all the determination to achieve the achievements that have been achieved at all levels and in all banking, technical, technical and administrative fields.

As the executive procedures and mechanisms adopted by the Central Bank during the past years in the use of monetary policy tools contributed to achieving the goals contained in Law 56 of 2004. 

And he proved that he is an independent, economic, financial and solid institution, and he is the specialist in drawing the paths and policies of monetary policy applications, supervision and control over the banking sector, and he is the financial advisor to the government. His main role was in managing the economic process in Iraq after the change in 2003 through his management of monetary policy and the achievement of its goals. During the past years, Iraq passed through 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 economic system Central to the management of the economy to the philosophy, strategies and mechanisms of the market economy.

However, 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 financial and epidemic crises and economic recession. Until now, great achievements have been made in reducing inflation, which Iraq was suffering from, and bringing it to good rates.

The financial data and indicators also indicate that the Central Bank of Iraq was able to maintain for several years the target exchange rate of the Iraqi dinar against the US dollar in a balanced manner, despite fluctuations and variances up and down and speculations of speculators in the foreign currency market.

Where it is noted that the daily intervention of the Central Bank of Iraq in managing the foreign currency sale process in light of the monetary policy data, which has been adopted since (4/10/2003) despite the many criticisms and observations, but it has made a significant contribution to maintaining monetary stability and facing any quantities needed by the market for the purpose of Financing trade for the private sector and meeting the needs of the Ministry of Finance from the local currency. To confront these criticisms, the Central Bank issued instructions and controls consistent with international standards and requirements of compliance regulations and rules and tried to control the violations that occur by reviewing, evaluating and classifying banks for the purposes of the currency sale window with the aim of controlling the movement of foreign currency and limiting its disposal 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 is stable despite the difficult economic conditions that Iraq has gone through. The Central Bank of Iraq was also able to maintain a good foreign cash reserve that exceeded 85 billion dollars, which is the highest balance since 2003, and the gold reserves amounted to 130.4 tons. He clearly contributed to covering the deficit in public budgets as planned through the issuance of international treasury bonds, in addition to the praise of the Bank and the International Monetary Fund for the economic and financial reform programs adopted by the government and expectations of a high rate of economic growth in 2022.

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 and strengthening the state treasury amounted to 30 trillion dinars in the years 2020 and 2021, in addition to its initiatives to revitalize the economic cycle and allocating 18 trillion dinars to finance and operate small and medium enterprises in the housing, agriculture, industry and services sectors. And projects of strategic structures, renewable energy, support for banks’ liquidity, and the achievement of two economic and social goals at the same time through the Community Initiatives Fund (Tamkeen).

All of this was accompanied by structural and structural developmental developments in all the bank’s specialized and qualitative departments, focusing on total quality management, institutional development, adoption of international standards, adherence to rules and regulations for compliance, risk management, combating money laundering, terrorist financing, banking awareness, and technical developments in payment and electronic payment systems and information technology. He also set his future strategic plan for payments and the transition to a cashless society.


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