Monetary stability achieves economic stability and sustainable development
On the sidelines of the participation of the Governor of the Central Bank in the opening of the activities of the Arab Week for Sustainable Development Forum in its fifth edition, which was held in the Egyptian capital Cairo this week, he stressed that the monetary position in Iraq is very excellent through the achieved of basic indicators and goals on which monetary policy is based in its support for the government’s directions to diversify, stimulate and strengthen the national economy, and exit from the circle of the rentier economy based on oil revenues, which constitutes a major imbalance in the structure of the economy.
When there is no diversified productive base, in the important productive economic sectors, namely agriculture and industry, and this is not achieved without a strong, sober and advanced banking sector capable of constituting the main financial and investment link in financing, qualifying and developing projects with a productive dimension and increasing general budget revenues by more than 30% during the years of the National Development Plan 2024-2028.
This requires the need to activate the banking sector and stabilize 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 rate 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 rate. It achieved a qualitative shift to regulate the financing of foreign trade.
New channels of transfer have also been opened using other currencies, such as Turkey, India and China, in addition to European countries, this will make the process of external remittances more flexible, streamlined, transparent and regulated and comply with international standards that enhance trust and credibility in the operations we carry out.”
This means that the Central Bank is moving steadily to achieve the objectives of monetary policy and achieve economic stability in accordance with its law 56 of 2004.
