Indicators of economic resilience and stability in the monetary system

13/9/2018 12:00 am

Samir Nusairi

Central banks in the countries of the world mainly aim to achieve monetary and financial stability through its programs and strategy, which aims to maintain stability in the exchange of local currencies against other foreign currencies and build sufficient foreign reserves in accordance with international standards issued by the International Monetary Fund and evaluate banks based on other criteria Economic and political shocks in their countries, controlling stable rates of inflation and interest rates, implementing compliance regulations and rules, combating money laundering and financing terrorism.

The march of the Central Bank of Iraq during the past four years proved that it is moving steadily to achieve the stated goals and this proves that Iraq's exit from the monitoring and follow-up to the regular follow-up period every two years like other banks of the world according to the financial work group

(FATF).

As well as the honoring of the Central Bank of the best Arab portfolio of 2018 and occupy a global position ahead of the report, according to the report of the Global Finance Annual 2018; which we expect to be reflected in the efforts of the Central Bank and the Association of Banks and Banks to restore international banking relations with banks

Correspondence.

And because of the international political changes, most notably US sanctions imposed on Iran and Turkey; to be accurate and non-critical economic analysis of the reality of monetary stability in Iraq and the effects of the new shock (sanctions) expected on the exchange rate of the Iraqi dinar, which has been stable since 1/1/2018 and is still strong and stable Despite international and domestic political shocks.

In order to ensure that the expectations are not taken in an extreme manner and create a state of fear among the public and the banking sector, and through an economic and analytical analysis of the state of stability in the exchange rate and from a neutral and transparent point of view, we note that the high independence of the Central Bank on the one hand and the availability of foreign reserves on average, The monetary bloc in circulation on the other hand and to cover the imports according to the standards of the International Monetary Fund, as foreign reserves are fully insured and Iraq occupies the fourth place in the Arab and is currently about $ 58 billion and grows day after day.



In addition to the strength and recovery of the Iraqi dinar during the past seven months and deal with the wisdom and responsibility and independence by the Central Bank will prevent the impact of international conditions and sanctions on neighboring countries.

On the reality of monetary stability, which began to be achieved during the first half of this year with the emphasis that the Central Bank does not have a deficit in the budget, but vice versa is currently achieving a surplus in the budget because of high oil prices.




All this represents the real guarantees for the protection of the exchange rate and to face this new shock will be overcome and exceeded the economic and security shocks suffered by the Iraqi economy during the years

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