Managing foreign reserves and its impact on avoiding economic crises resulting from the decline in global oil prices for the period (2008 - 2020)

Abstract

The impact of the decline in crude oil prices directly affects public revenues, which negatively affects the size of the foreign reserves of the Central Bank of Iraq, which requires the intervention of the latter by using its monetary tools to influence the economic activity of the country and using those foreign reserves to achieve stability in the exchange rate of the Iraqi dinar and the stability of the general level. Prices within the country, which is what it sought through several tools that had an impact, the most prominent of which was the so-called foreign currency selling window (currency auction). This also intervened by purchasing the treasury bills that the Ministry of Finance sought to issue in the secondary market and discounting them with it from the commercial banks in a way that contributes to achieving liquidity for the state and the banking sector to mitigate or limit the effects of the decline in oil prices, support the state’s development projects in the economic sectors, and support the private sector, all of these measures reduced the impact of external economic shocks on the Iraqi economy during the period (2008-2021) despite the decline in oil revenues. During the mentioned period.