Monetary policy achieves price stability

Sunday 21 July

Baghdad / Emad Al-Amara
 
 
The head of the studies department at Beit Al-Hikma Dr. Falah Hassan Thueni said that the most economic opinion is that the Central Bank is a governmental institution that exercises its functions within the legislative framework of the state and has its specificity in accomplishing the independent decisions of monetary policy and achieving price stability, which must be consistent with the general economic policy of the state. .
 
financial consultant
He explained the role of the central bank as "the one who issues and manages the currency, the state bank, its agent and its financial advisor, the fund in which the state maintains its reserves and its financial and financial savings, which is the last recourse for lending, and the regulator to regulate credit and maintain the integrity of the financial position of banks."


"If there is a kind of overlap or lack of clarity in any of the powers of all parties involved is supposed to be reflected on the stability of the level of the year prices and the exchange rate of the national currency against other foreign currencies and the commodity side of the economy."
 
Monetary policy
Thueni said that "monetary policy operates through an institutional and legislative framework represented by the law of the Central Bank of Iraq No. 56 of 2003, along with the basic objectives of achieving price stability and a stable financial system."
"Article 3 of the law sets out the central objectives of the central bank, which stipulates that the bank's primary objective is to achieve the maintenance of local price stability and to maintain a stable, competitive and market-based financial system," he said. And achieve prosperity in the country. "
 
Independence of the Central
He pointed out that "monetary policy in Iraq is managed by three elements, two of which are under the direct disposal of the central, namely the auction of currency, and the rates of interest on the dinar produced through the Central Bank's operations, which is using the interest rate signal (the price of the Central Bank) The third factor is the volume of foreign currency inflows from the Iraqi oil exports subject to fluctuations in the price of crude in global markets, which in turn outlines the public expenditure.
 
Relative success
For his part, said economic economist Dr. Qusay al-Jabri that "through a review of the monetary policy in the country for more than ten years, taking into account the circumstances and their effects, we can say that there is relatively successful achieved in relation to the main goal is to maintain a local price
stable".


"But the process of promoting sustainable growth, employment and prosperity remains targets beyond potential because the real economy is not responding to the relative stability, before the central is responsive to the change in economic activity
Commodity ".


Al-Jabri explained that "there is no economic policy in the conventional sense of economic policy. Monetary policy is one of its other instruments such as fiscal policy, planning, trade policy, operating policy, agricultural, industrial and investment policy, oil and the private sector."




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