The new procedures for monetary policy in Iraq after the year 2003

Abstract EN

Monetary policy is an effective and significant economic policy in facing of inflation, as a fundamental and important part of the components of the general economic policy of any country.

This policy plays its role by influencing the volume of money supply in a manner that is appropriate prevailing economic conditions, in order to orb the cash surplus.

After 2003 the Iraqi economy Passed, in both monetary and real, a stage of the new changes took place, the most important of which was the independence of the central Bank of Iraqi, according to law 56 of 2004 in the formulation of monetary policy, and the identification of appropriate tools to implement this policy, in addition to the development of new instruments, that fit the orientations of the objectives of monetary policy in Iraq, the most important of which is the stability of prices, and the appreciation of the dinar, through the exchange and interest rates.

Furthermore, the research is divided to three sections.

The first section include the nature of monetary policy before 2003.

The second section deals with the application of the modern instruments of monetary policy after 2003, and the obtaining of the central Bank of Iraq independence.

The third section deals with the effectiveness and efficiency of monetary policy instruments in achieving economic stability, as well as reducing the inflation, in addition to the conclusions and recommendations, where the study confirm that the use of the central Bank of modern instruments and mechanisms help him to reach the main goal of controlling inflation, where the rate of inflation fell from 33.5% in 2003 to 1.9% in 2013, and this led to stability in exchange rates, a stability in the general price level as well, Therefore, the Iraqi market for securities should be activated through the central Bank.