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HOW DOES THE CENTRAL BANK OF IRAQ FUNCTION?

 

Stressed the head of the studies department in the House of wisdom, Dr. Falah Hassan seconds to more views of the economy and see that the central bank is a government institution exercise its functions within the legislative framework of the state, and their specificity in the accomplishment of the decisions of the independent monetary policy and stabilize the price, which must be consistent with the economic policy of the state.

Financial advisor
Explained seconds the role of the central B “is issued currency managed by a State Bank and its and its financial adviser hosts where the state reserves to the needs of its savings and its monetary and Financial, which is the shelter of the criteria for lending, and the observer for the implementation of credit and maintain a healthy financial position for banks as Bank of banks”.
He continued, “IF YOU GOT SOME KIND OF OVERLAP OR LACK OF CLARITY IN ANY OF THE POWERS FOR ALL THE KIDS THE SAME RELATIONSHIP IS ASSUMED TO NOT BE REFLECTED ON THE STABILITY OF THE GLOBAL LEVEL OF PRICES AND THE EXCHANGE RATE OF NATIONAL CURRENCY AGAINST FOREIGN CURRENCIES OTHER, the downside of the economy”.

Monetary policy
Said seconds that “monetary policy works through the framework of the institutional and legislative representative of the law of the Iraqi central bank No. 56 of 2003, along with targets basic consists in the stabilization of price and financial system level”. And “ Article 3 of the law basic goals of the central bank, which states to be the main objective of the bank’s pursuit of maintaining domestic price stability, maintain a stable financial system is competitive and based on market,” adding, “ accordingly THE CENTRAL BANK SHALL ALSO PROMOTE SUSTAINABLE GROWTH, EMPLOYMENT AND PROSPERITY IN THE COUNTRY” .

The independence of the central
He drew that “monetary policy in Iraq trading of three elements, two of which FALL UNDER THE DIRECT CONTROL OF THE CENTRAL BANK, NAMELY CURRENCY AUCTION, AND THE INTEREST RATE ON THE DINAR PRODUCED BY THE CENTRAL BANK’S OPERATIONS, which are represented using reference interest rate ( the rate the central bank), adding, ”the second factor IS THE SIZE OF THE FOREIGN CURRENCY INFLOWS FROM THE EXPORTS OF IRAQI OIL IS SUBJECT TO PRICE OF CRUDE ON WORLD MARKETS, which in turn sends the features of public spending” .

Success is relative
From his part, said the academic economic Dr Qusay al-Jabri’s” through the calendar view of monetary policy in the country for more than ten years, taking into account the conditions and their impacts, we can say that there is relative success achieved in relation to goal basically is to maintain the price of the local level”.

However, “but the process of promoting sustainable growth, employment and prosperity remained targets outside the scope of the capabilities due to the lack of response of the real economy for the best of the consistency of relativity, before to be central is responsive to economic activity
Peace.”

And Al-Jaber that “ the lack of economic policy in the traditional sense of economic policy, which are monetary policy one of the tools by other such as financial policy and planning trade policy and employment policy, Agricultural Policy, industry and investment and the private sector”.

From Dinar Iraq IQD & Dong Vietnam VND

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