Independence and its role in achieving monetary stability through the use of the currency sale and purchase window (the Central Bank of Iraq case study) for the period (2004-2019)


The issue of independence has received the attention of many economic studies, both internally and externally, due to the great role that the central bank plays in achieving monetary stability on the one hand and achieving economic stability on the other. From this point of view, we find that most countries of the world worked on the independence of their central banks, and some of them worked on Amending its laws in order to increase the independence of its banks so that the Central Bank gets rid of dependence on the government. The Central Bank of Iraq obtained its independence under the new Law No. 56 of 2004, as it expressed historical eras that inherited financial losses that the country has suffered and continues to suffer from, such as the problem of high exchange rates for the dollar In front of the dinar, and according to the new law, the Central Bank was made an institution independent of the executive authority in accordance with the provisions of Law (56) that the Iraqi government legislated. It concluded with a number of conclusions, the most important of which are: The Central Bank achieved through its use of the currency sale window an improvement in the exchange rate of the Iraqi dinar against the US dollar, which achieved monetary stability. At the beginning of the period the exchange rate was (1353) dinars per dollar, while at the end of the study period it reached (1190) dinars per dollar