The Role of the Central Bank, with Emphasis on Implementing Monetary Policy
The critical role of the Central Bank in setting monetary policy, controlling inflation by adjusting interest rates, and the ramifications of monetary policy for stimulating or dampening economic growth.

Panel Participants

• Moderator:  Dr. Mudher Qassim Saleh, Advisor, Central Bank of Iraq
• Dr. Mehdi Al-Hafedh, MP, Former Minister of Planning and Development Cooperation
• Dr. Warren Coats, Senior Monetary Policy Advisor, USAID Economic Governance II Project
• Faleh Dawood Salman, Former Deputy Governor of the Central Bank of Iraq

Topics Discussed

1. The monetary policy role of the Central Bank
   1. Implementation of monetary policy
      1. Money supply
         1. Setting and monitoring monetary and liquidity targets (M1, M2, etc)
         2. Issuing currency
         3. Monitoring of currency’s value vis-à-vis foreign currencies – conducting currency auctions
         4. Changing reserve requirements to affect money supply
         5. Open market operations (buying and selling government securities)
         6. Lender of last resort
         7. Ministry of Finance securities window
      2. Setting and monitoring interest rates
         1. Conferring with government bodies, bilateral and multilateral agencies, with respect to economic growth targets and inflation, as these are affected by interest rate policies
         2. Monitoring economic performance and adjusting rates in light of economic developments (rates paid banks for deposits as well as rates charged banks for loans – the discount rate
2. Acting as fiscal agent in monitoring money supply
3. Serving as an independent voice in monetary policy development and oversight

Reference Works

Arestis, Philip and Sawyer, Malcolm C. "Can Monetary Policy Affect the Real Economy?" September 2002. Levy Economics Institute Working Paper No. 355. Available at SSRN: http://ssrn.com/abstract=335620 or DOI: 10.2139/ssrn.335620 

Central Bank of Iraq. "Explanation to Banks of New Monetary Policy Instruments".

Coats, Warren. "The Role of the Central Bank of Iraq in Implementing Monetary Policy". April 2007.

Vohra, Baljit. "Developing an Integrated Financial Market Strategy". May 2004.

For additional information on summit presentations and proceedings, contact us at communications@izdihar-iraq.