The Central Bank of Iraq (CBI) is Iraq's Central Bank. The primary objective of the bank is to encourage and maintain a stable and competitive financial market in the country. The bank also works towards promoting sustainable growth, employment and prosperity in Iraq.
Article 3 of the Central Bank of Iraq Law states: "the primary objective of the Central Bank of Iraq shall be to achieve and maintain domestic price stability and to foster and maintain a stable and competitive market-based financial system. Subject to these objectives, the CBI shall also promote sustainable growth, employment and prosperity in Iraq."
The Central Bank of Iraq performs following functions:
- Performing open market operations with central banks, accept interest bearing deposits from banks, impose reserve requirements from time to time, as part of the overall monetary policy functions
- Managing the foreign exchange reserves of the country
- Acting as the government's banker and fiscal agent and performing financial operations on behalf of the government
- Acting as the banker to the country's banks
- Issuing the currency (Iraqi dinars) and monetary coins
- Establishing and maintain systems for clearing and settlement of payment transactions and regulating and supervising other payment systems
- Licensing, regulating and supervising banking activities in the country
The Central Bank of Iraq is governed by a Board of the Central Bank consisting of the Governor, two Deputy Governors, three Senior Managers, and three individuals with suitable expertise in the field who are not the employees of the Central Bank of Iraq in any capacity.