In March, the Coalition Provisional Authority published the Central Bank of Iraq Law, which is far more than a law — it’s a primer on central banking.
Subject to those objectives, the CBI shall also promote sustainable growth, employment, and prosperity in Iraq.
The new law provides for an independent central bank whose objectives are to achieve and maintain domestic price stability, foster and maintain a market-based financial system and promote sustainable growth, employment and prosperity.
The CBI is required to maintain its independence from the Government of Iraq and, except for the provisions set out in the law, will not take instructions from any other persons or entity, including government entities.
The new CBI law has been reviewed by the Iraqi Governing Council, acting on the recommendation of its Economic and Finance Committee.
The law has also been reviewed by the International Monetary Fund and calls upon the CPA to promote economic reconstruction and the conditions for sustainable development in Iraq.