Means and procedures of the Central Bank to stabilize the currency exchange rate: Iraq as a model

Wahida Jabr Al-Manshid, Prof.; Jaber Al-Shuhaili, Mona

	Means and procedures of the Central Bank to stabilize the currency exchange rate: Iraq as a model
Iraqi Journal For Economic Sciences
Article 1, Volume 0, Issue 52, 2017, Pages 121-157
Authors
Prof. Wahida Jabr Al-Manshid; Mona Jaber Al-Shuhaili
Abstract
The shift in the economic system philosophy in Iraq toward a market economy after (2003), reflected on the monetary system, especially after the enactment of the new central bank law, through the use of indirect instruments that came to keep pace with the public direction about the increasing reliance on market forces, deregulation and stay away from making arbitrary decisions. To achieve the objectives of the central bank at this stage, which is to tackle inflation and control the levels of cash flow to enhance the value of the Iraqi dinar exchange rate, the Central Bank adopted a set of modernizing procedures, including regulatory, technical and legislative aspects, as well as the introduction of new monetary instruments, and the adoption of two price signals: a reference of exchange rate and a reference of interest rate on the Iraqi dinar. Accordingly, research hypothesis stems that Central Bank of Iraqi (CBI) can stabilize the general level of prices, and raise the value of the Iraqi dinar, through these developed tools so, research aims, in the process of testing its hypothesis, to indicate the role of monetary instruments and procedures developed by the central bank in achieving the objectives of monetary policy, and, then assessing the role of new mechanisms, followed by the central bank to raise the value of the Iraqi dinar, and stabilize the exchange rate. For the purpose of full and detailed briefing of aspects of the research, it has been divided into four sections followed by conclusions and recommendations.

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