Evaluating the foreign currency auction as a tool for monetary policy In Iraq for the period (2003-2017)

Abstract

The monetary crisis is an indicator of the performance of monetary policy in any country where the low incidence of monetary crises in any country of the country leads to the success of future visions of monetary policy makers. the study of the economy to identify its problems and seek solutions to control and control the monetary variables to address some Economic problems such as the problem of inflation, for example, as well as exchange rates and interest rates to achieve adequate monetary stability, modern monetary policy has taken a set of measures to combat these economic problems that occur through the use of the price of Exchange rate and interest rate monetary policy has taken these two tools to achieve monetary stability, especially in Iraq by raising the value of the Iraqi dinar to achieve stability in economic activity aimed at the identification of monetary policy and objectives and tools and effectiveness in the growth of economic activity and its economic effects in Iraq through its tools.This study starts from the premise that Iraqi economy in its current situation requires an alternative monetary policy aimed at achieving stability in price levels taking into account the foreign currency reserve and the state of the oil economy and achieve economic growth. In order to test the hypothesis, study was divided into three chapters, the first dealt with the conceptual framework of monetary policy and the second dealing with trends in monetary policy in Iraq, while the third dealt with the auction of foreign currency and monetary policy options. This study reached a number of conclusions, the most important of which is that the main objective of the Central Bank of Iraq to stabilize the value of the Iraqi dinar through intensive intervention in the management of the sale and purchase of foreign currency through the auction of currency, and the most important recommendation reached by the study the need for the survival of the current monetary policy of the Central Bank as it is And rely on the customs protection of the national product for the success of the import substitution project, which will contribute to strengthening national production. This requires a strong protection system free of corruption both at official and informal border points.