Abstract

The new orientation of monetary policy in Iraq, through the Central Bank Law new No. (56) for the year (2004), and the Banking Law No. (94) for the year (2004) and activating the mechanisms of the market economy through a series of technical procedures, legal and important steps on the monetary level, which aims to improve the economic and financial stability, develop and maintain the stability of domestic prices to create a competitive economic environment in light of the unstable security situation, which greatly affected the speed and effectiveness of the tools used and the actions that have been taken, but that these tools have been able to influence the money supply in the period (2004 - 2010) and the savings surplus of individuals, through enhancing the confidence of individuals in the local currency and confidence in the banking system, and despite the rise in money supply due to replace the Iraqi currency old and modify ladder wages and salaries as well as to the high expenses of the Ministry of Finance (current and investment) and raise the volume of foreign reserves in Central Bank.