Abstract

THE ROLE OF THE CURRENCY SALE WINDOW IN STABILIZING THE EXCHANGE RATE OF THE IRAQI DINAR

Malath Faeq Majeed

Volume: 9 Issue: 4 2019

Abstract:

The transition situation experienced by the Iraqi economy after the change of the political and economic system in 2003 and the changes that took place in the directions of monetary policy, especially after the Central Bank obtained its independence in accordance with Law No. 56 of 2004 and its use of modern monetary instruments, as a window of sale of the currency as one of the main and most appropriate ways The stabilization of the general level of prices through the stabilization of the local currency exchange rate, especially in light of the economic conditions prevailing in the economy from Iraq, monetary policy has succeeded in achieving its goal, but at the expense of the depletion of foreign reserves, Central Bank of reducing currency sales (especially cash sales), even if it caused a decline in the exchange rate in relative terms, in order to rebuild foreign reserves when oil prices rise again. As well as the need to work to limit the expansion of government spending, which is the main cause of increased money supply, which is inflationary pressures in the economy, which requires the central bank to intervene significantly in the window selling currencies to stabilize the dinar exchange rate.

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