Assessing the Effectiveness of the Central Bank of Iraq in Managing Foreign Reserves (2005-2017)

Abstract

The management of foreign reserves is an important issue because achieving an appropriate and secure level of these reserves contributes to maintaining internal and external stability by ensuring stability in the general level of prices and maintaining the value of the local currency to prevent the flight of capital abroad. In addition to its role in the face of shocks and external crises. That is, the size of the safe reserves is considered the safety valve for the economy towards the internal and external crises that the economy can face.

   The research proved the effectiveness of the Central Bank of Iraq in the management of foreign reserves for the period (2005-2017) by achieving two objectives at the same time, which is to maintain adequate and appropriate size of these reserves in accordance with international standards and indicators adopted on the one hand, in addition to maintaining the stability of the general level of prices and reducing inflation rates , Through the stability of the local currency exchange rate, which is one of the indicators of economic stability, on the other.