KTFA
FRANK26: "YES... BECAUSE OF A NEW EXCHANGE RATE NO OTHER REASON".......F26
Monetary stability achieves economic stability and sustainable development
12/1/2024
On the sidelines of the participation of the Governor of the Central Bank in the opening of the activities of the Arab Sustainable
Development Week Forum in its fifth edition, which was held in the Egyptian capital, Cairo, this week, he confirmed that the monetary situation in Iraq is very excellent through the achieved indicators and basic goals on which the monetary policy is based in supporting the government’s orientations to diversify, stimulate and strengthen the national economy, and exit the circle of the rentier economy dependent on oil revenues, which constitutes a major flaw in the structure of the economy.
When there is no diversified production base in the important productive economic sectors, namely agriculture and industry, this cannot be achieved without a strong, solid, and developed banking sector capable of forming the main financing and investment link in financing, qualifying, and developing projects with a productive dimension and increasing the revenues of the general budget by rates exceeding 30% during the years of the National Development Plan 2024-2028.
This requires the necessity of activating the banking sector and stabilizing the pillars of the monetary position, which is in building “foreign reserves, which amounted to more than 100 billion dollars and 153 tons of gold, and constitute an adequacy ratio of 140% to enable the Central Bank to cover and support the defense of the exchange rate, achieve monetary stability, and cover imports, despite the difficult and complex circumstances surrounding the countries of the geographical region.
This enabled the Central Bank to control the general level of prices and inflation, which decreased from 7.5% in January 2023 to 3.8% currently, which is the lowest rate compared to inflation rates in Arab and regional countries, as the Central Bank continues to provide dollars for trade at the official price. It achieved a qualitative shift to regulate foreign trade financing.
New channels have also been opened for transfers using other currencies, such as Turkey, India and China, in addition to European countries. This will make the process of foreign transfers more flexible, streamlined, transparent, controlled and compliant with international standards that enhance confidence and credibility in the operations we carry out.” This means that the Central Bank is moving steadily towards achieving the objectives of monetary policy and achieving economic stability in accordance with Law No. 56 of 2004.
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