The effect of fluctuations oil prices on monetary policy in Iraq

Abstract

The research aims to determine the role played by the monetary policy in Iraq to the period (2004- 2015) in the light of the continuous fluctuation of oil prices. such as monetary policy is a major transformation represented by the issuance of law (56) of the year 2004 at which was grant the central bank of full independence in drawing its monetary policy, but under a financial system of lacks for development, and therefore the difficulty of moving the effects of monetary policy to the real sector, if the main instrument of monetary authority is the exchange rate instrument.Also dealt with oil policy research in Iraq after 2003 and the role played by the oil sector as the leader sector and responsible for financing the public budget and the composition of gross domestic product and total exports and what are the obstacles facing this sector in both sides of production and export.Well done address the impact of fluctuations oil prices on some economic variables including the money supply that was linked to the relationship with the prices of oil and the exchange rate and how to become hostage oil revenues and foreign reserves of the currency which is linked directly to the price of oil.