In the monthly meeting of the government and private banking leaders, Mr. Ali Al-Alak, Governor of the Central Bank of Iraq, stressed the continuation of the approach that the Bank is pursuing to stimulate the economy and build the capacity and development of the banking sector in order to move to the development role and contribute to financing investment and reconstruction projects. The exchange rate as the main achievement of monetary policy applications and one of its important objectives, which has positive repercussions on the revitalization of the economy and stabilize the monetary and financial system. Ed oil as a key resource for revenue and continuing imports of all goods and not to encourage and support local production will inevitably lead to the continuation of the bank offer to sell dollars, according to its law because the reason is not supply but demand for the dollar for the reasons above.
The central bank announced at the meeting the launch of its strategy for the next five years to implement 21 projects for thedevelopment of the banking business after it was able to most of themain objectives to achieve the sub – first strategy for years (2016 –2020 ) , which became possible that the starting process begins full objectives of monetary policy to achieve the transition to The ranks of international banks sober certified by specialized international financial organizations. And that of the strategic banking projects which have been identified for future objectives and its impact according to a program per project is limited to periods ofimplementation and reach the target during the years (2019 –2023These are development projects related to achieving financial inclusion such as the settlement of salaries and projects to restore confidence in the banking sector such as the Deposit Guarantee Company, projects for structural, administrative and legal development such as the government guide project, projects for training, rehabilitation, capacity building, classification of banks, and projects to move banks from the role of banking to contribute to development as a syndicated Islamic finance project. It should be noted here that although the bank has begun planning for these projects since 2016 but also as stated the government is committed to the curriculum as it comes to the banking sector and as targeted by the National Development Plan (2018 – 2022 ) and the vision ofIraq in 2030.
The central bank’s emphasis on working in accordance with its approach to economic reform since 2015 is anchoring the fact that the central bank and its current administration embody a bright spot in an unstable economic environment for subjective and objective reasons.
The results highlighted the experience of the Central Bank in supporting the national economy while maintaining its functions and objectives specified in its law, and its contribution to achieve economic resilience and promote the decisive victory over terrorism.
In addition to the results achieved on the scope of monetary policy applications internally and convince global financial organizations, the most important official reports issued by them confirmed the success of the policy of the Central Bank to achieve an important transition to the Iraqi economy and achieve stability in the exchange rate and the recovery of the Iraqi dinar and raise its purchasing power, one of the objectives of strengthening the economy.
In addition to his contributions and multiple initiatives to stimulate the economic cycle and enhance liquidity in banks and reach to re-coordinate bridges between the financial and monetary policies and propose new economic and structural policies to prepare public budgets for the coming years on the basis of programs and not items and attempts to restore confidence in the banking system.
The Central Bank has demonstrated its clear ability to interact, analyze business constraints and create conditions to overcome . . ..challenges