مالية البنك المركزي و الاحتياطيات الدولية

Abstract EN

The finance of the central bank of Iraq in relation to its monetary operations and foreign exchange reserve management are the main tasks of this research work.

Basic indicators of the balance sheet and monetary aggregates are presented to highlight the process of foreign exchange accumulation within the context of oil-fiscal domination.

Although, a central bank financial state may be of little relevance to its operational efficiency and achievements of the monetary policy targets, the losses of foreign exchange rates translation and gold price changes have been thoroughly investigated.

Liquidity surplus and the characteristics of a debtor central bank, particularly negative net domestic credit, have been changed owing to the government Budget deficit.

In this regard extending more domestic credit to mitigate government budget deficit could be constrained by foreign exchange reserve.

Therefore a new macroeconomic environment may affect the central bank finance and its monetary policy rules.

Since the main source of unrealized losses is the foreign exchange reserve, its composition is revisited and exchange regime re assessed through comparison between hard peg and currency basket peg.

Considering the pattern of foreign exchange rates among major currencies and possible weights, a simulation experiment was conducted to discover the potential behavior in terms of nominal exchange rate volatility and other aspects.

The paper recommended more research efforts for better understanding of the relationships between the central banking operations and the central bank financial position