The independence of the Central Bank of Iraq and its role in achieving monetary stability for the period (2004-2019)


The issue of the independence of the central bank is one of the most important topics that have received the attention of many economic studies, both internally and externally, due to the great role that the central bank exercises in achieving monetary stability on the one hand and achieving economic stability on the other hand, although the independence of the bank from the government is impossible. In theory and practice, due to the nature of the relationship between the central bank and the government, the bank seeks independence by using the appropriate tools to achieve those goals drawn between it and the government. The research problem enables (that the government’s interference in the bank’s work is the problem in itself, and thus leads to an imbalance in the work of the monetary policy tools). The Central Bank of Iraq obtained its independence under the new Law No. (56) for the year 2004 as it expressed historical periods that inherited financial losses. Including the country and still, such as the inflation problem that the Iraqi economy faced in the nineties, and under the new law, the Central Bank made an independent institution from the executive authority according to the provisions of Law (56) enacted by the Iraqi government, which reduced inflation rates in the Iraqi economy. 2008 until the end of the study period from maintaining low rates of inflation. While the research recommends granting the Central Bank of Iraq more independence in order to be able to take decisions and implement them in a timely manner, which enhances its credibility, as it is essential support for an effective and transparent monetary policy in the long term.